ES News email The latest headlines in your inbox twice a day Monday - Friday plus breaking news updates Enter your email address Continue Please enter an email address Email address is invalid Fill out this field Email address is invalid You already have an account. Please log in Register with your social account or click here to log in I would like to receive lunchtime headlines Monday - Friday plus breaking news alerts, by email Update newsletter preferences

London house prices fell faster than anywhere else in the country in March as the impact of Brexit finally caught up with the property market.

The average price of a home slipped 1.5 per cent in March to £471,742, dragging the year-on-year rate of increase down to 1.5 per cent, the slowest since 2012.

The house price figures from the Land Registry came as the Consumer Prices Index rate of inflation jumped from 2.3 per cent to 2.7 per cent, its highest rate since September 2013.

The biggest year on year falls were in The City, Tower Hamlets and Islington, all areas favoured by workers in the key financial services sector thought to be vulnerable to the fallout from the Referendum vote.

Richard Snook, senior economist at consultants PwC:“These figures are consistent with the Brexit related slowdown that we anticipated last year.

Jonathan Hopper, managing director at propperty buyers Garrington Property Finders, said:“These official figures suggest the slowdown is sharper and started earlier than first thought.”

“April’s surprise election announcement applied a dab to the property market’s brakes, but this data confirms it had already dropped down a gear in March.

“This snapshot of a slowing market – taken before the election announcement – confirms what many in the industry had feared.

"For the housing market, the snap election has come at just the wrong time – injecting an unwelcome dose of uncertainty into an already fragile market.

“Nevertheless the lull could be short-lived. If the election delivers a clear result that puts Brexit firmly back on track, the property market could receive a huge boost, freeing up more supply and with greater levels of clarity spurring discretionary buyers into action.”