Knight Frank says the number of exchanges in Prime Central London in the year to the end of February slumped 14 per cent.
The agency, citing LonRes data, says the scale of the drop is down to weaker economic sentiment leading to some buyers and sellers remaining hesitant.
It also says the number of properties listed for sale across Prime Central and Prime Outer London has declined in recent months “as a result of Brexit-related political uncertainty” according to Tom Bill, head of London research for Knight Frank.
Despite the over-arching problems of the prime London market, Knight Frank says there are some optimistic signs.
The number of new prospective buyers in prime areas of London increased 6.3 per cent in the year to February, and the number of offers being submitted is rising - up 7.5 per cent in the same period.