UK Home Prices Rise 3.5%, FTSE in Slight Rebound

Arthi Gupta
15 Oct, 2012
New York City

The UK indexes advanced after home prices increased in October and gross domestic product is estimated to drop 0.2% this year. Santander UK withdrew out of its agreed purchase of 316 RBS branches valued at

[R]4:00 PM London – The UK indexes advanced after home prices increased in October and gross domestic product is estimated to drop 0.2% this year. Santander UK withdrew out of its agreed purchase of 316 RBS branches valued at £1.7 billion.[/R]

The UK indexes gained following the rise in European markets after the release of better than expected trade data from China. The sentiment improved on the expectations of higher exports to Asia and a possible increase in commodities prices.

In London, the benchmark index FTSE 100 gained 3.63 or 0.1% to 5,797.26 and the pound edged lower to $1.6049.

UK Home Prices Improve

Home prices in the United Kingdom increased in October, the latest survey by Rightmove showed today.

The average asking prices of a property in the UK rose 3.5% on a monthly basis in October to £243,168, the biggest increase for eight months following a 0.6% drop in September.

Annually, prices gained 1.5% in October compared to the 0.7% rise in September. All regions showed increases, with above average rises in London.

The average home price in London rose 4.8% from a month ago and was up 6.2% on an annual basis.

In another report, the UK’s gross domestic product is expected to drop 0.2% this year, before increasing to 1.2% in 2013 and 2.4% in 2014, according to a report from Ernst & Young ITEM Club released today.

Gainers & Losers

Royal Bank of Scotland Group Plc, the lender fell 0.8% to $8.57 after said Santander U.K. withdrew its purchase of 316 branches valued at £1.7 billion or $2.7 billion.

BT Group plc, the telecoms services provider fell 1% to 216.50 pence after a broker downgrade.

Kingfisher plc, the retailer soared 2.6% to 275.51 pence after positive broker comments.

Quindell Portfolio PLC rose 2.6% to 12.44 pence after the software outsourcer reported turnover for the nine months ended September 30 is circa £95.7 million, with adjusted EBITDA of £29 million.

Smiths Group plc fell 0.5% to 1,045 pence after the technology company announced that it has closed a $400 million dollar-denominated bond offering following the launch on October 5.