London pre-open: Stocks seen up as investors mull Halifax house prices

London stocks were set to rise at the open on Monday following an upbeat session in Asia, as investors mulled the latest house price data from Halifax.

The FTSE 100 was called to open up around 25 points.

Figures released earlier by Halifax showed that house prices rose in September for the third month in a row and were close to record highs.

Prices rose 0.3% on the month, matching the increase seen in August. On the year, meanwhile, house prices were up 4.7% in September following a 4.3% jump the month before. This was still the strongest rate since November 2022.

The average price of a home stood at £293,399 - just shy of the record high of £293,507 set in June 2022 - versus 292,540 in August.

Amanda Bryden, head of Mortgages at Halifax, said: "It’s essential to view these recent gains in context. While the typical property value has risen by around £13,000 over the past year, this increase is largely a recovery of the ground lost over the previous 12 months. Looking back two years, prices have increased by just +0.4% (£1,202).

"Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022.

"While improved mortgage affordability should continue to support buyer activity - boosted by anticipated further cuts to interest rates - housing costs remain a challenge for many. As a result we expect property price growth over the rest of this year and into next to remain modest."

In corporate news, Rio Tinto confirmed speculation that it has approached Philadelphia-based lithium chemicals producer Arcadium Lithium regarding a possible takeover.

"The approach is non-binding and there is no certainty that any transaction will be agreed to or will proceed," Rio Tinto said. US-listed shares in Arcadium were up 10% on Friday, while its secondary shares in Australia soared 45% on Monday.

Mitie Group said it had bought Spanish security business Grupo Visegurity for up to €11m (£9.2m), comprising an initial payment of €9m and performance-linked deferred payments of up to €2m over the next two years.

Grainger reported strong full-year income growth, adding 1,113 new homes and achieving like-for-like rental growth of 6.3%, with occupancy at 97.4%.

The FTSE 250 private landlord said it generated £274m from non-core asset sales to support its growth strategy, adding that its build-to-rent schemes were leasing ahead of expectations.

It said it expected continued growth in the new financial year, underpinned by wage growth and a favourable political environment, as it prepared for its conversion to a real estate investment trust next October.