It looks like luxury property market of London touched the bottom and started to revive, Bloomberg reports.

House values in the best regions of the city grew by 1,2% in the second quarter compared with last year. This is the highest annual growth in three years. Buyers use benefits of price slump observed earlier that happened due to higher sales taxes that hurt demand.

More owners want to sell, and number of deals is growing since prices became more realistic, experts note.

Stump duty increase, higher taxes on landlords and second-house owners, as well as excess of new houses supply cooled at one time hot market for luxury homes in UK’s capital.

Prime property in the center of London costing from 2 million pounds and more lost 12% of its value compared with peaks four years ago. As a whole, prices lost 9,6%.

At the same time, rents increase can be observed. Rent in luxury areas grew by 3,9% past year to 1120 pounds per week.