London open: Housebuilders pace gains after Nationwide survey
Updated : 08:44
London stocks rose in early trade on Tuesday, with housebuilders pacing the advance after an upbeat survey from Nationwide.
At 0840 BST, the FTSE 100 was up 0.4% at 7,104.28.
Housebuilders Taylor Wimpey, Barratt Developments, Persimmon and Berkeley Group all gained after the latest survey from Nationwide showed that house prices rose at their fastest rate since 2004 in June as buyers competed fiercely in a market rebounding from Covid-19 lockdowns.
The average price of a property in the UK rose 13.4% in June from a year earlier to a record £242,709, Britain's biggest building society said. In the quarter to the end of June prices rose 10.3%, up from 6.3% in the first quarter of 2021.
June's rate of growth was boosted by the shutdown of the property market a year earlier during the first Covid-19 lockdown but prices also rose sharply because of a buying frenzy.
Martin Beck, senior economic advisor to the EY ITEM Club, said: "There are some headwinds beyond the end of the stamp duty holiday. The end of the evictions ban on 31 May could prompt some landlords to sell to make up for rent arrears they have not been able to address until now, raising the supply of properties and weighing on prices.
"A similar outcome might arise if suggestions of a permanent decline in the number of foreign-born workers in the UK during the pandemic prove true. And, despite a rapidly recovering economy, higher inflation and the prospect of an increase in unemployment when the furlough scheme ends means the outlook for household income growth is not all positive.
"But for the time being, the housing market is likely to continue to be on the upside."
Elsewhere, UDG Healthcare edged up after US private equity firm Clayton, Dubilier & Rice confirmed its increased final £2.7bn offer for the Dublin-based company.
IWG shares surged following a report the office space provider has held talks with US private equity firm CC Capital about a possible £4bn takeover. According to Sky News, talks were held in the last month but it was not known whether they are ongoing.
United Utilities was knocked lower by a downgrade to ‘underweight’ at Morgan Stanley.
Market Movers
FTSE 100 (UKX) 7,104.28 0.44%
FTSE 250 (MCX) 22,610.27 0.34%
techMARK (TASX) 4,466.43 0.29%
FTSE 100 - Risers
Barclays (BARC) 175.10p 2.09%
Evraz (EVR) 611.00p 1.94%
Taylor Wimpey (TW.) 163.35p 1.81%
Persimmon (PSN) 2,983.00p 1.64%
Legal & General Group (LGEN) 264.60p 1.50%
Barratt Developments (BDEV) 713.20p 1.45%
Ocado Group (OCDO) 2,048.00p 1.44%
Just Eat Takeaway.Com N.V. (CDI) (JET) 6,710.00p 1.39%
Compass Group (CPG) 1,529.50p 1.36%
WPP (WPP) 994.60p 1.28%
FTSE 100 - Fallers
Fresnillo (FRES) 788.20p -1.60%
United Utilities Group (UU.) 985.20p -1.24%
Anglo American (AAL) 2,874.00p -0.95%
Polymetal International (POLY) 1,604.00p -0.68%
Relx plc (REL) 1,917.50p -0.60%
International Consolidated Airlines Group SA (CDI) (IAG) 175.46p -0.53%
Reckitt Benckiser Group (RKT) 6,423.00p -0.34%
Tesco (TSCO) 223.50p -0.20%
BHP Group (BHP) 2,140.50p -0.16%
BT Group (BT.A) 199.55p -0.15%
FTSE 250 - Risers
PureTech Health (PRTC) 365.50p 6.40%
IWG (IWG) 318.40p 6.06%
Network International Holdings (NETW) 374.70p 2.07%
Coats Group (COA) 69.30p 1.91%
IG Group Holdings (IGG) 850.50p 1.86%
BlackRock World Mining Trust (BRWM) 609.00p 1.67%
Dunelm Group (DNLM) 1,401.00p 1.60%
CMC Markets (CMCX) 458.50p 1.55%
Jupiter Fund Management (JUP) 276.80p 1.54%
Oxford Instruments (OXIG) 2,365.00p 1.50%
FTSE 250 - Fallers
TUI AG Reg Shs (DI) (TUI) 362.40p -5.65%
Essentra (ESNT) 310.50p -2.36%
Pagegroup (PAGE) 582.00p -1.77%
Centamin (DI) (CEY) 102.55p -1.49%
Cineworld Group (CINE) 81.80p -1.30%
Hays (HAS) 160.30p -1.17%
Carnival (CCL) 1,632.60p -1.13%
Ultra Electronics Holdings (ULE) 2,212.00p -0.90%
Ferrexpo (FXPO) 435.00p -0.82%
Restaurant Group (RTN) 127.60p -0.78%