Dealers said that the reduced demand for street art was a result of worries about the economy and confusion about the authenticity of Banksy works.
"Things are difficult at the moment," said Annabel Thomas, an executive director of the London-based dealers the Fine Art Society. "There's a definite retreat to the blue-chip material."
The auction included many works priced between £1,000 and £5,000. The 74 lots that sold brought in £300,000 ($553,400), far below the pre-sale estimate of £1 million.
Only five of 20 Banksy prints sold. The artist's authentication agency, Pest Control, had refused to endorse five of those, which were instead declared authentic by a rival service, Vermin.
Another high-profile work that failed to sell was a self-portrait done in lipstick and blood by supermodel Kate Moss, with a low estimate of £30,000.
A highlight that did sell was an ink-and-chalk sketch that Lucian Freud created at age 19, which went for £22,800, beating its estimates.