Transactions have fallen dramatically in prime central London.

In the smartest areas, sales are down year-on-year by 50%.

According to Lonres, which tracks sales in London, the overall year-on-year decline in February was 22%. In February 2014 there were 671 sales, compared with 522 last month.

Richard Barber, director at W.A.Ellis, said: “We reported a 34% reduction in year-on-year transaction volume in January and the trend continued throughout February.

“If one drills into the statistics further, the most dramatic reduction is the sale of houses within Belgravia, Chelsea, Knightsbridge and Kensington which have dropped by 50%, from 40 sales in 2014 to 19 in the same period this year.”

He added: “An interesting trend that we have observed recently is the off-market sale, and with sentiment amongst domestic buyers so cautious, it is not surprising that vendors wish to keep their houses away from the internet, where its exposure and time on the market can so easily be measured.

“There have certainly been several off-market sales recently, but these will not contradict the general downward trend in transaction levels.”