The FTSE 100 fell at the open on Wednesday as flat UK house price data weighed on housebuilders.
London’s blue-chip index dropped 0.4% in early trading to 10,454.49, with property-related stocks among the weaker performers. The FTSE 250 declined 0.1%, with Berkeley Group down 1.4%.
Nationwide figures showed UK house prices were unchanged in June, after falling 0.6% in May. Annual house price growth picked up to 2.2%, but the absence of monthly growth suggested continued caution in the housing market.
Barratt Redrow fell 1.6%, while Persimmon slipped 0.5%.
House Prices Stall as Mortgage Costs Hit Buyer Demand
UK house prices were flat in June as higher borrowing costs and geopolitical uncertainty weighed on buyer confidence.
Property values were unchanged between May and June, according to the Nationwide house price index, leaving the average UK home worth £277,484.
Annual house price growth picked up to 2.2% in June from 1.7% in May, but the monthly flatline pointed to a softer housing market after recent pressure on affordability.
Nationwide said the market had softened in recent months amid uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates.
Higher market rates have fed through into mortgage pricing, increasing costs for borrowers and limiting what buyers can afford.
The average two-year fixed mortgage rate stood at 5.53% on Monday, still above the 5.4% level seen before the latest escalation in the Middle East.
