The number of UK firms listed across the London Stock Exchange and its junior Alternative Investment Market totalled 2,179 at the end of December 2012, down 2.2% from 2,228 a year earlier, according to the latest data from the World Federation of Exchanges.

These numbers are a far cry from the record 2,913 domestic companies that were listed in London at the end of December 2006.

It is unclear when there were fewer UK companies listed on the LSE and Aim, as historical figures for the exchanges are not readily available. WFE data only goes back to January 2003, when there were 2,399 domestic firms listed in the UK. Data publicly available from the LSE, meanwhile, dates back to January 1999, when there were 2,386 domestic firms listed.

But it is likely that the latest figure is the lowest for some time; according to a 1989 paper from the United Nations, in 1983 there were just 2,217 domestic firms listed on the London Stock Exchange – 38 more than today.

There was also a fall in the number of foreign firms listing in the UK last year. As of December 31 there were 588 overseas companies listed on the LSE and Aim, down from 598 a year prior. However, this figure is a 15% increase on the 512 listed in January 1999.

There are hopes that the IPO market will pick up in 2013. Yesterday, house-builder Crest Nicholson announced plans to return to the market.

And in October, the UK Government and regulators took steps to make it easier for firms to list in the country. The Financial Services Authority proposed removing the minimum free float of 25% for standard listings – where companies do not need to employ a nominated adviser or have a three-year trading record in order to list – “provided that sufficient liquidity is present”.

In September, the UK Government also announced that it was working with the LSE in making it easier for technology companies to list in the UK.

–write to giles.turner@dowjones.com