The luxury London homes market is calling the green shoots of recovery.

Prices for the capital's smarter houses are falling at their lowest rate since last spring — and upmarket estate agent Knight Frank says viewings, mainly from Russians, are up.

“There is some evidence the situation in the London market is at least seeing some higher activity,” said Knight Frank's Liam Bailey. Those buyers who are in the market place are serious about doing a deal at the new lower prices being offered.”

Knight Frank says the top houses in London's most expensive boroughs fell in value last month at an average of 1.5%. But, it adds, that is the lowest rate of fall in 10 months.

In 2008, the prices of London luxury homes fell 23%, far outstripping drops in the wider housing market and reckoned to be the worst in the top end of the market since 1976. Knight Frank says international buyers, headed by the Russians, are responsible for a 28% surge in viewings this February over the same month last year.

The agent, which takes its data from Mayfair, Knightsbridge, Belgravia, Kensington, Chelsea, Notting Hill, St John's Wood and Regent's Park, has previously said it expects homes in these areas to dive 35% from their March 2008 peak before levelling out.