Despite strong demand and value growth in outer London, the central London market has seen prices falls.

UK greenfield land values, excluding London, fell by 0.4% in the third quarter of 2016, but rose 2% year-on-year.

Residential land values in central London suffered their largest fall (8.9%) since 2008/09 in the past six months, and declined by 10.2% year-on-year.

Office development land fared little better, falling 5.9% in the last six months and 5.3% year-on-year.

Savills suggested this reflected the “combined effect of stamp duty on high value homes and the impact of the Brexit vote on sentiment”.

Jim Ward, director Savills residential development research, said: “Caution is a clear theme of the current land market and we now wait to see if this translates into lower volumes or values this autumn.

“But in the long term, demand for homes will continue to rise, even if net migration is reduced significantly, and those housebuilders that have not been buying land will need to do so soon if they are to maintain volumes.

“For now, they are expected to continue to favour lower risk, smaller sites, with larger site acquisition focused on locations where house prices continue to rise.

“Sellers of other sites will need to factor buyer caution into their pricing.”