Sales volumes plummeted 57% to 24,770 in January, according to the latest Land Registry statistics.
This compares to 57,810 in January 2008.
Properties priced between £100,001 and £150,000 proved most popular (6,578), closely followed by properties priced between £150,001 and £200,000 (5,092).
The downward trend of sales volumes in London continues to mirror the rest of the country, with 2,876 sales recorded for London - 65% down to 8,217 year-on-year.
Meanwhile, house prices in March fell 0.4% to £152,895 compared with February and 16.2% year-on-year - the same level last seen in August 2004.
Prices in the North East increased the most, up 1.8% to £112,259, closely followed by the South West, where prices increased 1.1% to £163,167.
The sharpest monthly price falls were in the West Midlands, where prices declined 2% to £126,820.
In terms of annual price falls, the most severe price decline was in the South East where prices fell 17.6% to £187,357, closely followed by those in the East where prices have fallen 17.2% to £159,317.
Editors note: These figures do not reveal the upturn in sales agreed in April - this is partly due to the new price levels that are now in place, Norwich Estate Agents report.
