Transaction volumes in London are down by more than half compared with the period just before the financial crisis, and are also down nearly 50% measured year-on-year.
London agent Portico has analysed Land Registry data and found that transactions as of July, the latest available on the Land Registry, were 54% lower than the average monthly figure in the time leading up to the crash.
According to its research, the average monthly transaction volume in London in 2007 was 14,148. In comparison, in July this year there were 6,500 transactions in the capital.
While recognising the figures are five months old, the agent says it has not seen volumes increase since July.
On a yearly basis Portico says transactions have fallen from 12,481 in July 2015 to 6,500 in July 2016, a 48% drop.
Mark Lawrinson, regional sales director of Portico, said a price readjustment in the market could reinvigorate volumes at some point, making housing more affordable for first-time buyers, but warned this is a scenario unlikely to happen any time soon.
He said: “Transaction volume levels have remained critically low since April, down 60% in prime central London versus last year.
“With prices historically following volume decline, if this chronic lack of volume continues over next six months, we could be looking at 6–7% price decreases in prime central London which is likely to filter out to greater London.”