Analysts have apportioned this decline in confidence among residents in the capital to the significant and disproportionately high rises in property prices and the risk of escalating interest rates.

Affordability concerns have hit Londoners harder than the rest of the country and have negated the positive impact of the World Cup build-up and the summer heat wave, both of which have resulted in rising confidence elsewhere.

“Given the current housing market in London, the index will continue to play an increasingly central role in measuring Londoners’ attitudes towards, and concerns about, their financial circumstances,” said Jim Hodgkins, the managing director of CreditExpert.

Mr Hodgkins claimed the personal credit index gave an “important indication of consumer confidence levels” across the board.

He also cautioned consumers to take precautions against ID fraud, which could harm credit confidence if the levels of this kind of crime were allowed to get out of control.

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