House prices in Ealing dropped by 13.8 per cent last year - the second biggest fall of any London borough.
Only Merton saw a bigger fall of 14.5 per cent between January 2008 and January 2009, according to property monitoring group Hometrack.
Its figures show the average price of a home in Ealing slid from £331,500 to £285,600 over the course of the year.
Between December and January alone, prices in the borough tumbled by around £5,000. It marked 16 months of consecutive falls as the UK moves further into recession.
Nationally, the average drop over the year was 9.4 per cent and in London an average home cost £279,400 last month, down 10.7 per cent on the previous January.
Hometrack research director Richard Donnell said: "The short term prospects for the economy and levels of unemployment are at the forefront of most consumers minds and these will be key to the performance of the housing market over 2009.
"However, after more than a year in denial, the majority of sellers now accept that house prices have fallen. Moreover they realise that to have any hope of selling their property, realistic pricing is vital. This is an important step in the ongoing and drawn out process of market re-adjustment."