Sales transactions in prime central London have fallen to the levels in the six months after the collapse of Lehman Brothers in 2008.

Patrick Bullick of Stanley Chelsea, who is chairman of the NAEA London branch, said: “Sales volumes now are incredibly low.

“In the second quarter of this year, there were 205 transactions at above the £2m mark in Kensington & Chelsea. In July, transactions dipped but largely reflected the tail end of the previous three months.

“Since then, it is as though people went on holiday and haven’t come back.”

He said: “In the first six months after the collapse of Lehman Brothers I had just two sales – compared with the 40 or so a year we had been making.”

Bullick said that the “current lull”was almost entirely related to uncertainty over next year’s General Election, and the property taxation regime that could follow.

Bullick said: “The ambiguity about the General Election is making most foreign investors hesitate about buying in central London – for the moment.

“The statistics don’t show it yet, but the second quarter this year was the peak of the market for now, and prices have drifted since.

“There is a myth that foreign buyers will pay stupid sums for London property regardless of the facts. In reality these buyers are very clever and well advised.”

Knight Frank yesterday reported that the number of “super-prime” transactions – ie, sales of houses worth over £10m – had bounced up by a third so far this year compared with last.

But Bullick said the reality was that such sales would be “very thin” in number.

Bullick said the big question for the prime central London post-election was whether the market would bounce back.