London stocks closed mixed on Monday, with the FTSE 100 edging 0.1% lower to 10,684.88 as sharp gains in housebuilders were offset by weakness in miners and renewed concerns over oil and interest rates.
The more domestically focused FTSE 250 rose 0.3% to 24,335.32, while the AIM All-Share fell 0.4% to 783.36.
Housebuilders dominated the risers after the government announced its Your First Home equity-loan programme for England. Barratt Redrow jumped 12%, MJ Gleeson surged 20%, Persimmon gained 15%, Taylor Wimpey rose 12% and Bellway added 10%.
The scheme is expected to allow eligible first-time buyers to purchase a new-build home with a deposit as low as 2.5%, supported by a government-backed equity loan worth up to 20% of the purchase price. Detailed eligibility, costs and implementation plans are due to be confirmed at the 28 October Budget.
The rally spread into the housing supply chain, with Howden Joinery up 3.0%, Kingfisher gaining 1.3% and Mortgage Advice Bureau rising 5.1%, as investors priced in the prospect of stronger new-build reservations and mortgage activity.
Mining shares moved sharply in the opposite direction as precious-metal prices fell. Fresnillo lost 5.1%, Endeavour Mining dropped 4.5% and Hochschild Mining fell 7.2%, while gold slid to around $4,123 an ounce from $4,282.86 on Friday.
Higher US bond yields added to the pressure. The 10-year Treasury yield rose to 5.26% from 5.21%, while the 30-year yield climbed to 5.57%. Wall Street was also lower at the London close, with the Dow down 0.7%, the S&P 500 off 0.8% and the Nasdaq falling 1.0%.
Nvidia bucked the weaker US market, rising 2.2% after its board authorised an additional $150 billion of share repurchases, taking the remaining programme to $235 billion, which the company expects to execute through fiscal 2028.
Oil remained another source of inflation concern. Brent crude was quoted at $107.60 a barrel, up from $106.21 on Friday, after Donald Trump rejected Iran’s proposal to end the conflict and reopen the Strait of Hormuz. Trump has nevertheless indicated that further negotiations could take place this week.
In UK corporate news, Entain fell 5.1% after Brazil moved to ban online betting and gaming, pushing the Ladbrokes owner towards the lower end of its previous £910 million to £960 million 2026 underlying EBITDA guidance and 21%-22% online margin range.
Chancellor John Healey also used Monday to promote what he called a “new age of industrialisation”, alongside government backing for major British shipbuilding projects. Rolls-Royce separately announced £300 million of investment in UK manufacturing and engineering facilities, including Derby, Bristol, Glasgow and Rotherham.
For investors, Monday’s session showed an unusually sharp sector rotation rather than broad market strength. Housing-related shares benefited from a major policy catalyst, but higher oil, rising bond yields and falling metal prices continued to weigh on the wider FTSE 100. The next test is whether the housebuilder re-rating can hold once the Budget reveals the scheme’s detailed eligibility rules, developer contributions and timetable.
Investor takeaway: London’s headline index slipped despite a powerful rally in housebuilders, as falling precious-metal stocks and renewed pressure from oil and bond yields weighed on the FTSE 100. The domestic FTSE 250 fared better, reflecting the scale of the housing-sector response to the government’s new first-time buyer scheme.
