AUS
NZ
UK
CA
USA
IND
Highlights:
- UK house prices: Increased 0.3% in September, with prices nearing record highs as mortgage approvals rise.
- Corporate developments: Rio Tinto explores a potential acquisition of lithium producer Arcadium, and Mitie acquires Spanish security firm Grupo Visegurity.
- Grainger's performance: Strong income growth and new homes added, with expectations of continued growth and REIT conversion in 2025.
London's FTSE 100 is expected to start the week on a positive note, rising by around 25 points at the open on Monday. The upbeat mood comes after a strong session in Asian markets and as investors review the latest UK house price data from Halifax and several key corporate updates.
Data from Halifax, one of the UK's largest mortgage lenders, revealed that house prices increased for the third consecutive month in September. On a monthly basis, prices rose by 0.3%, matching August’s growth, while annual prices saw a 4.7% increase. The average UK house price now stands at £293,399, just shy of the record £293,507 set in June 2022.
Amanda Bryden, Head of Mortgages at Halifax, pointed out that while prices have risen by around £13,000 over the past year, this largely reflects a recovery from declines seen in the previous 12 months. Over a two-year period, prices are up just 0.4%, or £1,202.
Bryden highlighted improved market conditions, noting that strong wage growth and declining interest rates have contributed to a rebound in buyer confidence. Mortgage approvals have risen by over 40% year-on-year, reaching their highest level since July 2022. However, she tempered expectations, predicting that while mortgage affordability is improving, property price growth for the remainder of this year and into 2025 is likely to be modest due to ongoing affordability challenges.
Corporate Updates: Rio Tinto, Mitie Group, Grainger
Several major corporate announcements also caught investors’ attention:
-
Rio Tinto (LSE:RIO) confirmed speculation that it has approached US-based lithium producer Arcadium Lithium regarding a potential takeover. While the approach is non-binding and there is no certainty of a deal, Arcadium’s shares rose by 10% in the US on Friday, with its Australian-listed shares soaring 45% on Monday.
-
Mitie Group (LSE:MTO) announced the acquisition of Spanish security firm Grupo Visegurity for up to €11 million (£9.2 million), comprising an initial payment of €9 million and performance-linked deferred payments of up to €2 million over two years.
-
Grainger (LSE:GRI), a FTSE 250-listed private landlord, reported strong full-year income growth, adding 1,113 new homes to its portfolio and achieving like-for-like rental growth of 6.3%. Occupancy rates were also high at 97.4%. The company generated £274 million from non-core asset sales, with the funds supporting its expansion plans. Looking ahead, Grainger expects continued growth into the new financial year, driven by wage growth and a favourable political environment as it prepares for conversion to a real estate investment trust (REIT) in October 2025.
