During February prices within areas such as Belgravia, Knightsbridge and Kensington fell by 1.5 per cent whereas before monthly falls had been running at 4 per cent.
Knight Frank says it has witnessed a 28 per cent rise in viewings many of whom are wealthy Russians returning to the market after a 'six-month absence'.
This will be good news for the well-heeled residents of central London, many of whom have seen their homes crash in value by 22.6 per cent over the past year. The average house for a price in Belgravia, for example, is currently £2.6 million - a year ago it would have been £3.18 million, a drop of nearly £600,000 or £50,000 a month.
"After a period of sustained price falls in the central London market, it is rather early to suggest that we are seeing the beginning of a recovery," says Liam Bailey, head of residential research at Knight Frank.
