Sales volumes in Prime Central London slumped 17 per cent in the second half of last year compred to the same period of 2014, according to high-end agency Knight Frank.
The number of properties in PCL marketed through the company has risen seven per cent.
Prices in Kensington and Chelsea - one of the boroughs which symbolised the seemingly-endless boom in PCL - have fallen slightly by 0.3 per cent since 2014.
However, the firm says April’s stamp duty deadline has resulted in higher sales volumes in the last two months - although this has not been quantified.
“The pick-up suggests buyers and vendors have begun to absorb the stamp duty changes introduced in December 2014, with asking prices that increasingly reflect higher rates of stamp duty and lower levels of price growth” according to Tom Bill, Knight Frank's head of London residential research.