(Bloomberg) -- Asking prices for London homes rebounded in October amid a scarcity of new properties, with areas closest to the center of the U.K. capital seeing the biggest gains.
Values climbed 2.4% to 603,855 pounds ($778,000) on average, Rightmove Plc said in a report published Monday. New listings were down 30% 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% from September, making it the only area where values were up on the year, Rightmove said. Nationally, prices gained just 0.6% 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 Acadata painted a gloomier picture, with U.K 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 labor market has helped the market weather the storm.
To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net
To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Andrew Atkinson, Brian Swint
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