Price growth in prime central London has slowed to zero in October, ending four years of growth.
According to Knight Frank’s Prime Central London Sales Index report, last month was the first time in four years that no monthly growth was registered as political uncertainty affects the market almost six months ahead of the general election.
Tom Bill, head of London residential research at Knight Frank, said: “Prices in prime central London were flat in October, ending a four-year period of uninterrupted growth.
“The positive run began in November 2010, the same month Ireland became the second European country after Greece to receive a bailout as concerns grew over the future of the eurozone.”
He added: “Ireland has since left its bailout programme and the economic risks that drove buyers into the safety of London property have been superseded by political risks that have created a mood of caution.
“As a result there is growing evidence that asking prices are having to adjust to more subdued market conditions.”
Annual growth continued a three-year slowdown from November 2011 to reach 6.5% in October.
Prices have risen 40% over the last four years, exceeding growth in the UK mainstream market, with Knight Frank forecasting 22% cumulative growth between 2015 and 2019.