Average prices increased in prime central London (PCL) during the first quarter of 2017 but actual sales numbers tell a different story.

Analysis of Land Registry data, by property adviser the London Central Portfolio (LCP), shows average prices in the wealthiest part of the capital hit £1.9m in the first three months of this year, up 4.6% on a quarterly basis.

Naomi Heaton, chief executive of LCP, said this has been buoyed by a greater proportion of more expensive properties being transacted, with an 8.5% annual increase in transactions between £2m to £5m.

On an annual basis, just 3,406 PCL sales actually took place, a fall of 41% over the previous year and lower than in 2008.

Meanwhile, transactions in greater London also reached a record low of 82,694, LCP said, down 19% on the fourth quarter and 32% annually.

Sales across England and Wales fell 26% between the end of last year and first three months of this year to 820,478, down 17% annually.

Heaton said: “Despite Government initiatives to support aspiring buyers with reductions in basic rate Stamp Duty and their flagship Help to Buy scheme, sales in England and Wales remain concerningly low. They saw their biggest quarterly fall in six years during the first quarter, equivalent to the fall during the financial crisis.

“With falling transactions across every sector, the Government needs to take a serious look at how they can get the property market moving again.”

But Knight Frank is more hopeful about the future, with its latest PCL report showing the number of prospective buyers registering was 15% higher in the first five months of the year compared with 2016.

The agent said the number of exchanges in PCL recorded between January and May was 14.2% and 8.7% higher respectively than the same period in 2016 and 2015.

Viewing levels were up by a fifth compared with last year and the amount of stock under offer was up by 36%, suggesting the future flow of exchanges will remain strong.

However, the report highlights LonRes transaction data that underlines the slowdown in the market.

After registering 323 sales in April, which was the second highest figure since June 2015, the LonRes figure fell back to 249 in May, suggesting a degree of caution ahead of the General Election, the Knight Frank report said.

In lettings, the agent found rental declines in PCL are slowing as supply dips.

Rental values declined 4.4% in the year to June, Knight Frank said, the smallest annual decrease since August 2016.

The number of new tenancies was up 25% between January and May, while there was a 7% fall in the number of new lettings properties placed on the market.

This gathered pace in the three months to May when the decline reached 17%.

Tom Bill, head of London Residential Research at Knight Frank, said: “Stronger demand and lower levels of new supply are underpinning rental values.”