The 25% year-on-year fall in NHBC new home registrations comes amid growing unease among developers about demand for luxury one to two bedroom flats in the capital.

Across the country as a whole the number of new homes registered with the NHBC fell 9% compared to the previous year. Half the 3,264 drop was accounted for by Greater London alone.

NHBC figures also showed a 10% increase in the number of new home completions in the rolling quarter across the UK. 

Completions increased to 33,182 from 30,155 in the same period 12 months ago, reflecting the strong registration growth seen during 2015.

The latest January monthly figure showed the house building industry got off to a slow start across the country with registrations down 9% at 10,309 compared to a year ago.

NHBC Chief Executive Mike Quinton said: “While the January figures indicate a slower start to 2016, industry confidence remains high, with last year’s growth reflected in the increase in new home completions in the past three months.

“There’s no doubt that house builders are extremely active and are optimistic about future growth.

“With many ambitious build programs underway, it is clear the industry is committed to delivering the high quality new homes the country needs.”