London pre-open: Stocks to nudge down as investors mull house price, retail data

London stocks were set to nudge lower at the open on Friday as investors digest the latest house price and retail industry data.

The FTSE 100 was called to open down five points.

Figures from Nationwide showed that house price growth slowed in October.

House prices ticked up 0.1% on the month following 0.6% growth in September. This was below expectations for 0.3% growth.

On the year, house prices increased 2.4% in October, down from 3.2% a month earlier.

The average price of a home stood at £265, 738, down from £266,094 in September.

Nationwide chief economist Robert Gardner said: "Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the significantly higher interest rate environment.

"Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year.

"Providing the economy continues to recover steadily, as we expect, housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth."

Investors will also be mulling the latest retail industry data, which showed that UK footfall declined in October, reversing much of September’s surprise uplift.

Footfall jumped 3.3% in September, the first rise in over year and a notable improvement on August’s 0.4% dip.

But according to the latest data from the British Retail Consortium and Sensormatic, total UK footfall decreased 1.1% in October, dampening hopes for the start of a more positive trend.

High streets recorded a 3.6% slide, compared to September’s 0.9% uptick, while shopping centre footfall was down 1.6%. In September, it rose 2.3%.

Retail park footfall increased by 4.8%. But that was below September’s 7.3% spike.

Andy Sumpter, EMEA retail consultant at Sensormatic, said: "While this will be disappointing for many retailers, who may have hoped the positive figures in September would spell the start of a more consistent uptick in store traffic, it perhaps shouldn’t come as a surprise.

"We expect to see a bumpy recovery as myriad market conditions - from the cost of living to shaky consumer confidence around the Budget - continue to make footfall performance volatile."

Helen Dickinson, chief executive of the British Retail Consortium, said the timing of half term had made for tough comparatives.

However, she added: "Retailers have seen footfall consistently fall since the pandemic. Thriving high streets and town centres not only good for local economies but also form a key part of the social fabric of communities up and down the country.

"Retailers needs a policy environment that supports growth and investment."

Corporate news was thin on the ground but CMC Markets announced a long-term partnership with New Zealand bank ASB, to provide ASB's clients with a customised trading platform, integrating CMC's technology with the bank’s existing systems.

The FTSE 250 company said the platform integration with ASB - owned by Australia’s Commonwealth Bank - was expected to complete within 12 to 18 months. It said the deal would also see CMC established as a full trading, settling, and clearing participant of the NZX exchange.