The decline in the 15 districts defined as the English capital’s prime areas was 0.6%, according to London-based broker Knight Frank.

In Knightsbridge, home to the Harrods department store, values dropped by 7% in the 12 months to February, while there was a 3.3% fall in South Kensington and a 2% drop in Chelsea.

Sellers of luxury homes in the city are cutting asking prices on the largest proportion of properties in a t east three years as high valuations, commodity-price declines and new stamp-duty taxes reduce demand.

Vendors lowered asking prices on 39% of homes in central London since they were first offered for sale, according to data compiled by researcher Lonres in January.

“A combination of higher levels of stamp duty and volatility in the financial markets means that demand for prime central London property has been subdued in the first two months of 2016,” Tom Bill, head of London residential research at Knight Frank, said in the report published yesterday.

“In particular, the start of the year has been overshadowed by fears surrounding the impotence of central banks,” he said.