Property prices in London fell in March as Brexit uncertainty halted the annual spring bounce, and are down almost 4% year-on-year, while the number of sales agreed in February was also nearly 10% lower in the capital when compared to February last year, new data has found.

Rightmove’s House Price Index revealed that the price of property coming onto the market in London fell by 1.1% (£6,625) in March compared to February, and was down 3.8% year-on-year. This is the first time since 2015, when there was a 0.3% drop, that Righmove has identified a fall in house prices at this time of year, and it is the largest fall in March since 2011.

Kensington and Chelsea have seen the biggest drop over the last 12 months, with house prices 8.3% lower. The second largest drop was in Lambeth, where prices were down by 6.8%.

However, the fall in house prices is not bad news for all, with the average asking price for first-time buyers in London was1.3% lower in March than in February, and 4.4% lower over the year.

Despite the recent fall, London house prices are still 68% higher than ten years ago. In its report, Rightmove highlighted that “it is little surprise” that some buyers are either ruled out of the market or are holding back and looking for prices to settle at what they judge as a new level of fair value.

“As the clock ticks down towards the Brexit deadline it is natural human behaviour for more buyers to hesitate. The number of sales agreed by London’s estate agents in February was 9.6% below the same period in 2018, which indicates both hesitation and a lack of buyer affordability,” it said.

Commenting on the statistics, Rightmove director and housing market analyst Miles Shipside said: “While March marks the start of spring, temperatures have yet to rise in the London housing market. Brexit uncertainty will no doubt have played a part in dampening the usual spring bounce, though this gives a negotiating opportunity for the new crop of buyers who traditionally start looking at this time of year. They will find new seller asking prices on average 3.8% cheaper than a year ago.

“The capital had a period of intoxication with a heady mix of high demand, low interest rates and higher salaries. Buying activity remains restrained as some potential buyers await a more settled political climate. This could be a temporary pause, with the possibility of a bounce-back if and when there is a Brexit outcome that gives buyers more confidence and more certainty.”

Furthermore, the poor performance of London’s housing market has taken a toll on the rest of the country, with the average asking price increasing by just 0.4% in March when compared to February. Despite this, every region bar London and the North East registered house price growth in March, with Scotland and the North West registering a monthly increase of 3.1% and 2.2% respectively.

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