A prominent property investor is predicting more agency branch closures as transactions continue to plummet.

London Central Portfolio (LCP) warned that annual transactions in prime areas of the capital dropped to 3,671 in October, or just 70 sales per week, which is down 15.4% annually and now at a lower level than during the global financial crisis.

LCP, which uses Land Registry information for its data, found that average annual prices in prime central London (PCL) as of October stood at £1.8m, up 4.2% annually.

Naomi Heaton, chief executive of LCP, warned that the recent closure of Foxtons’ Park Lane branch won’t be the last across the sector.

She said: “Transaction levels continue to have a very real effect on London estate agents. Foxtons have closed their flagship office on Park Lane as part of a cost-cutting exercise.

“Moore Stephens reported in July that 27% of high street estate agents are struggling to survive. As the PCL market has seen the most dramatic fall in transactions across the UK over the last few years, it is likely that it will not be the last we hear of this in the coming months.”

In Greater London, prices were up just 0.8% annually in October to £631,987 and sales fell 5.6% to 89,096, the lowest level since the financial crash.

Heaton added that new-build sales in greater London were also down 15.5%.

She said: “No doubt, this is a contributing factor to the strife that estate agents are currently having to weather. Countrywide, theUK’s biggest estate agency, has seen their share price fall by 98.5% over the last four years.

“On top of this, there are still many hurdles to jump in the Brexit negotiations and there is still no final road map on the table. This is not the news that the market needed to hear and it is hard to see any light yet at the end of the tunnel, with so many vested interests at play both in the UK and EU.”

Excluding London, England and Wales saw prices grow 2.7% annually to £264,987 on average, while transactions dropped by 0.7% over the year to 806,403.

Heaton added: “Most of the properties in England and Wales have not been as heavily impacted by the recent changes to tax legislation as London.

“It appears the political climate surrounding Brexit has created considerable uncertainty. This has resulted in a fall-off of activity, exacerbated by lack-lustre price growth which deters potential sellers from putting their property on the market.

“It is unlikely that any significant reversal will be seen until there is more clarity over Brexit.

“Whilst transactions in the new-build sector have increased by 5.1%, this may not be sustainable at the 14.9% premium it currently commands compared with older stock.”