Deserializing REST xml into JAXB annotated class

I am querying a restful service (3rd party, no access to source etc) and I want to deserialize the response to relevant classes. I have following method to do it:

protected String getRestResponse(String path, List<String[]> params) {
   // ResteasyProviderFactory instance = ResteasyProviderFactory.getInstance();
   // RegisterBuiltin.register(instance);
   // instance.registerProvider(ResteasyJackson2Provider.class);

    ResteasyClient client = new ResteasyClientBuilder().build();
    ResteasyWebTarget target = client.target(UriBuilder.fromUri(PropertiesHandler.getPropertyByKey("restUrl")).build());
    client.register(new AddAuthHeadersRequestFilter(restClient.getUser(), restClient.getPass()));
    client.register(ResteasyJackson2Provider.class);
    target = target.path(path);
    if (params != null) {
        for (String[] s : params) {
            target = target.queryParam(s[0], s[1]);
        }
    }

    Response response = target.request(MediaType.APPLICATION_XML).get();

    // THIS DOES NOT WORK
    List<UserDTO> list = response.readEntity(new GenericType<List<UserDTO>>() {});
    // return response.readEntity(String.class);
    return null; // :/
}

I have written classes that represent the data structure got back form service. The data:

<?xml version="1.0" encoding="UTF-8"?>

<list>
  <local.User>
    <id>132d5719-b1fe-4677-861d-fd08fbcb7bcf</id>
    <name>Peter</name>
    <age>81</age>
  </local.User>
  <local.User>
    <id>e5ad3ad6-b291-47f5-8b52-025f6f7e1c27</id>
    <name>Susan</name>
    <age>11</age>
  </local.User>
</list>

And the class:

@XmlRootElement(name = "local.User")
public class UserDTO {
    @XmlElement
    private String id;
    @XmlElement
    private String name;
    @XmlElement
    private String age;

    // .. skipped
}

Anyway, when I run this, I get:

javax.ws.rs.ProcessingException: Unable to find a MessageBodyReader of content-type application/xml and type class UserDTO
    at org.jboss.resteasy.client.jaxrs.internal.ClientResponse.readFrom(ClientResponse.java:166)
    at org.jboss.resteasy.client.jaxrs.internal.ClientResponse.readEntity(ClientResponse.java:135)
    at org.jboss.resteasy.specimpl.BuiltResponse.readEntity(BuiltResponse.java:199)

I have also tried to response.readEntity with datastructure representing the list, but also no luck, same message (with relevant data types).

@XmlRootElement(name = "list")
@XmlSeeAlso({GridNodeDTO.class})
public class ListUser {
    List<UserDTO> dtoList;
}

Everything works when I read the response to String.class. How can I deserialize the response into my own classes?