London pre-open: Stocks seen up as investors mull Rightmove data

20th May 2024 07:39

(Sharecast News) - London stocks were set to rise at the open on Monday as investors mulled the latest UK house price figures.

The FTSE 100 was called to open around 10 points higher.

Data released earlier by Rightmove showed that average house prices hit a new record of £375,131 in May, lifted by the momentum of the Spring selling season.

House prices pushed up 0.8% on the month following a 1.1% increase in April.

On the year, prices were up 0.6% in May following a 1.7% jump the month before.

Rightmove said pent-up demand from would-be buyers who paused their plans last year was a key driver behind increased home-mover activity despite mortgage rates remaining elevated for longer than expected.

Tim Bannister, Rightmove's director of Property Science, said: "Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the Base Rate up to 5.25%, where it has remained since August 2023. However, the momentum of the Spring selling season has exerted enough upwards price pressure to reach a new record asking price.

"The top-of-the-ladder sector is still leading the way, while from a regional perspective the North East, with the cheapest average prices in Great Britain, has seen the strongest price growth. However, it's important to remember that prices overall are still only 0.6% ahead of this time last year. The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched."

In corporate news, Hilton Foods said trading in the year to date had been in line with expectations, with volumes and sales ahead of last year despite a challenging economic environment and lower raw materials prices in some of its markets.

UK & Ireland volumes and revenue were ahead of last year, benefiting from a strong Easter trading period as well as slowing inflation and good growth in Ireland, while the momentum of turnaround at its UK Seafood operation continued, the company said in an update.

AstraZeneca announced plans to build a $1.5bn manufacturing facility for antibody drug conjugates (ADCs) in Singapore, to enhance the global supply of its cancer treatments.

The pharmaceuticals firm said the facility, supported by the Singapore Economic Development Board, would be its first end-to-end ADC production site, designed to incorporate all manufacturing steps and achieve zero carbon emissions. Construction would start by the end of 2024, with the facility expected to be operational by 2029.