Strutt & Parker says both the volume of sales and the sum of the selling prices of homes in Prime Central London have plummeted 47 per cent in the past year.
Using LonRes and Strutt & Parker's own data, the agency says that the 47 per cent drop happened between Q3 2015 and Q3 this year.
A total of 384 properties were sold in PCL during the third quarter of 2016.
However, despite the Brexit vote and the continuing economic and political uncertainty, "PCL still retains its attractiveness to overseas buyers with a slight increase of buyers coming from both Western Europe and Asia relative to Q2 2016" according to the agency's head of London residential, Charlie Willis.
“The fall in sterling against certain currencies following the Brexit vote, particularly the dollar and the swiss franc, has definitely been a major contributing factor to the increase in buyers we have seen from Europe and Asia since June. For overseas buyers, this currency play instantly wipes out the formerly prohibitive cost of 15% Stamp Duty on the most expensive properties” he says.
Strutts says economic conditions, alongside the stamp duty surcharge for additional homes, are hitting the PCL lettings market which is 36 per cent down compared to Q3 2015.