In further proof of how quickly markets can turn, Knight Frank has said that in central London, the number of applicants has fallen, while stock levels are rising.

The firm said that while prices in central London have grown by 7.8% over the year, applicants last month were a third lower than in May 2013.

Agents are also having to work harder, with the number of viewings up 70% before an offer is made.

Knight Frank said that stock levels have climbed steadily since the start of the year, and that there are clear signs that buyers are becoming more sensitive to high prices.

Knight Frank researcher Tom Bill said: “There is a growing sense the market is pausing for breath.”

Meanwhile, central London independent Sandfords has also reported a major slowdown in the market.

The firm said there was a 45% annual decline in its viewing figures and a 40% drop in applicant registrations.

Andrew Ellinas, director, pictured, said buyers are refusing to pay the current asking prices for properties in central London after they “rocketed out of control”.

He said: “Prices surged to unbelievable levels.

“We estimate that 45% of properties are now over-priced by 10%, and an additional 25% by 20%.

“A small percentage of our current stock has recently been reduced in price as some vendors recognise this recent change in the market, but all vendors need to be willing to follow suit if they want to sell their property in what has become an uncertain market.”