London's housing market sees asking prices rebound as sellers stay away

New listings were down 30 per cent on the year leaving the capital starved of new listings, says Rightmove

London property values climbed 2.4 per cent to £603,855 (Dh2.86 million) on average in October. Reuters

Asking prices for London homes rebounded in October amid a scarcity of new properties, with areas closest to the centre of the UK capital seeing the biggest gains.

Values climbed 2.4 per cent to £603,855 (Dh2.86 million) on average, UK property website Rightmove said in a report published on Monday. New listings were down 30 per cent on the year, showing how the Brexit crisis has made prospective sellers reluctant to take the plunge.

Properties in London’s central transport zone saw asking prices jump 6.4 per cent from September, making it the only area where values were up on the year, Rightmove said. Nationally, prices gained just 0.6 per cent on the month, the smallest increase for the time of year since 2008.

“London has spent a few years in the price doldrums, but the scarcity of properties coming to market is now helping to underpin prices,” said Rightmove director Miles Shipside. “Though with continuing Brexit uncertainty, there is still no certainty of a sustained price pickup.”

A separate report by UK housing research company Acadata painted a gloomier picture, with house prices slipping in September, driven by a 12th consecutive decline in London.

London and its surrounding regions have borne the brunt of the property downturn since the 2016 vote to leave the European Union, though a buoyant labour market has helped the market weather the storm.