The value of prime central London residential development land fell by 2% last year.

Values were static for three consecutive quarters, following dips at the start of 2019, according to Knight Frank’s residential land index.

It follows an annual decline of 5.6% the previous year, and 2.1% the year before.

Knight Frank said land values in prime central London have bottomed out, with a shift in developer sentiment, following the general election.

Across the country, greenfield land values fell 2.5% and urban brownfield was down 0.2% during the year.

While Knight Frank was optimistic about upticks in the near-term, the agent predicted challenges towards the end of the year.

Justin Gaze, head of residential development land at Knight Frank, said: “While political uncertainty has undoubtedly diminished, and early 2020 has seen positive sentiment by land buyers across all market sectors, the eventual terms of Brexit persists as a live issue.

“In the short term there is strong demand for land but in the face of limited sales price growth of completed units, increasingly constrained by affordability and upward pressure on build costs, buyers are reducing their margins in order to secure opportunities in a competitive market.

“We anticipate that, as we get closer to December 2020, the more cautious and price-sensitive the market will become.”