Worries over a deepening political crisis in the UK and rising interest rates globally kept London's main stock indexes under pressure on Thursday, with shares of homebuilders edging toward a multi-year low hit recently.

UK's housing index, which touched a near decade low last week, slipped 1.3% as rising interest rates fuelled concerns about affordability and a sharp slowdown in the sector.

However, lifting markets off early lows, oil stocks gained 1.9% as they benefited from a jump in crude prices after news that China is considering a cut in the duration of quarantine for inbound visitors.

The blue-chip FTSE 100 slipped 0.1%, while the midcap FTSE 250 index dropped 0.3%.

British Prime Minister Liz Truss struggled to retain a grip on power on Thursday, a day after a second top minister quit and rowing and jostling broke out among her lawmakers in parliament in a dramatic breakdown of unity and discipline.

Truss was forced to abandon almost all of her policy programme earlier this week after it caused a bond market rout, and a collapse of her approval ratings and those of her Conservative Party.

"Investors are taking some comfort in the fact that the fiscal outlook looks less challenged," said Laura Cooper, a senior investment strategist at BlackRock.

"But it is still going to take time to build fiscal credibility given the uncertainty we've seen over the past couple of days. We wouldn't expect UK assets to be broadly bid at this juncture just because of the heightened uncertainty."

Disappointing earnings also weighed on the overall mood, with Schroders slipping 0.2% after the fund manager reported a drop in its assets under management as geopolitical uncertainties and recession risks kept investors skittish.

Dunelm dropped 2.8% after the home furnishing retailer reported a dip in quarterly sales but stuck to its annual outlook. (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)