The housing market in prime areas of Central London has continued to slow at the start of 2015, according to Douglas & Gordon’s London property barometer.

The firm found a greater increase in activity in ’emerging’ areas of the capital, with changes to the Stamp Duty tax having a marked effect in more expensive locations.

George Franks, sales director at Douglas & Gordon, said the market had seen fewer buyers making inquiries, with many homeowners now wanting to sell off-market.

“More sellers coming to the market would seem to tally with thoughts that high Stamp Duty Land Tax has been a tax on mobility,” he said.

“Although there are fewer buyers registering, those that are committed and ready are again most active in emerging prime. Interestingly c. 20% of sellers approaching us wish their properties to be offered off market pre-election so buyers need to dig deeper than just looking online.”

The rental market in the capital bounced out of its traditional Christmas slump faster than normal this year. There were 25% more new tenancies starting in the first month of the year than in January 2014.

However, lettings director Virginia Skilbeck said political uncertainty was a great cause for concern for landlords in 2015.

“As each political party unveils its policies in the run up to the election, landlords and investors are wary of Ed Miliband’s proposals for 3 year tenancies and rent controls,” she said.

“It is already apparent that Labour is misguided if they think landlords are evicting their tenants all too quickly and without grounds. No decent landlord (the vast majority) wants to lose a good tenant as continuity is preferable to multiple void periods which are costly.

“Restricting rental growth could affect growth in the institutional private rented sector, impacting on building and supply of new housing.”