Property stock levels across Prime London were up 42% year-on-year in February, according to research from LonRes.
However, new instructions were down 15% year-on-year in January 2021, and down 22% against the previous five-year average.
The spike in activity in the early part of last year was largely attributed to a post-election bounce.
Marcus Dixon, head of research at LonRes, said: “A year ago, the market in central London was hotting up.
“A Conservative majority in December’s general election resulted in a flurry of activity as buyers, who had been nervous of a regime change, returned to the market.
“Exchanges and under offers in January and February last year rose by more than a quarter on 2019 levels and prices edged up too.
“This was welcome news for the market last year but does mean that activity at the start of 2021 is likely to be subdued in comparison.”
The sales market for houses priced between £2m and £5m grew 15% over the last three months against the same period a year earlier. Over that same three month period, house prices outperformed prices of flats, with house prices up 5.2% while flat prices rose by 0.4%.
Additionally, January 2021 saw the achieved prices rise by 1.6% year-on-year.