New data from respected property consultancy LonRes shows that prices in prime central London fell 9.7 per cent in the 12 months to the end of March 2019.
Two other locations - prime outside of central London, and what LonRes calls prime fringe - fell by 6.7 and 6.6 per cent respectively in the same period.
The consultancy says that in the first quarter of this year - the latest figures available - sellers rather than buyers appeared to be most cautious about the impact of Brexit.
That’s because new instructions dropped by 27 per cent across the three prime-related areas of the capital measured by LonRes but in prime central London alone the number of new instructions fell 39 per cent compared to the same quarter of 2018.
Transactions were relatively stable year-to-year - just a one per cent drop in Q1 2019 compared to Q1 2018 - although demand appears at last to be rising.
Some 52 per cent of respondents to the most recent LonRes survey reported a rise in applicants registering over the course of the first three months of this year.
“In Q1 2019 Brexit dominated with little indication of how the UK would leave the EU on March 29. Many prospective buyers did not transact. Fewer new homes reached the market and transaction levels fell back” notes Marcus Dixon, head of research at LonRes.
“The prospect of months of negotiations over Brexit appears to be convincing prospective buyers that now, while we have some Brexit breathing space, might be a good time to re-enter the market. Agents are reporting a rise in applicants which could mean the next quarter is busier than the last” he continues.