The property market in London is expected to slow further in the run-up to the general election in May, a new report has claimed

London Central Portfolio said that despite a slump in asking prices in many areas of the capital the market remained strong. It said prices in Prime Central London grew 16.2% across 2014, much higher than the 12.3% rise in 2013.

However, transactions in the final quarter of the year were a fifth down on the same period in 2013, a common trend before general elections, the firm said.

Across the whole of 2014 the number of property transactions remained flat compared to the previous year, although there was a shift in the type of deal completed with more transactions below £1m taking place.

The average price of a property in the capital’s central area now stands at £1,738,783.

Naomi Heaton, CEO of London Central Portfolio, said she expects the market to return to growth following the election.

“Prime Central London continues to benefit from its safe haven status in the face of global political and economic volatility,” she said.

“Despite being hit hard by the various taxes introduced during 2014, it continues to attract investment as one of the most globally desirable centres in the world.”

“Whilst it is anticipated that activity in the market will continue to slow down prior to the general election, all the evidence suggests that it will rally again thereafter. The sector underneath the £1m price point becomes increasingly attractive, untouched as it is by new taxation. In 2014 transactions beneath this level increased by 14%.”