Luxury residential property in London fell 3.7% last month, the second highest monthly decline on record, as the super-prime market over £10m (€11m), which had previously weathered the financial crisis better than other sectors, begins to fall in line with the rest of the market.

Prices for prime London property mainly based around Kensington, priced between £1m and £9m, spiralled down nearly 4% in January as consumer confidence fell off a cliff, according to upmarket estate agent Knight Frank.