Rightmove’s latest house price index revealed owners were putting their houses on the market this month for 0.4% less than they were in February.
Hackney and Tower Hamlets saw month-on-month falls of 4.1% and 3.3% respectively although both have seen double figure growth over the past year.
Rightmove director and housing market analyst Miles Shipside said: “This month fits the consistent pattern of ebbs and flows in many different localities within the overall London market, with prices still going up in some better-value boroughs and still going down in others that have overshot.
“The consistent theme is of a re-adjusting market, evidenced by the first fall at this time of year for three years.”
The index found asking prices had risen in Greenwich, Lewisham and Newham (6.6%, 2.1% and 0.7% respectively) over the month.
The latter, by this measure, comes out as London’s fourth most affordable borough with an average asking price of £340,953. In Tower Hamlets the figure is £544,893.
Miles said: “The top and bottom ends of the market in the capital are suffering, having become overheated and also out of kilter with either buyers’ judgements of value or ability to afford.
"Outer London boroughs such as Bexley, Havering and Hillingdon and parts of South East England still offer value and relative affordability to buyers.
“With year-on-year price increases at over 10% in many of these locations it is clear that buyer demand remains strong.
“However, sellers in these locations should be aware that this popularity may come at a price.
"An overheating market can take a long time to cool back down and for transaction volumes to recover after buyers have been driven out by over-pricing.”
Rightmove’s index is not a guide to prices actually achieved on properties and only reveals what sellers were putting their homes on the market for at a given time.
Go to rightmove.co.uk.