London pre-open: Stocks seen flat; UK house prices see first annual drop since 2023

(Sharecast News) - London stocks were set for a flat open on Monday as investors mulled the latest UK house price data and as oil prices continued to rise.

The FTSE 100 was called to open around two points lower, with a relatively quiet session expected as US markets will be closed for Labor Day.

At 0730 BST, Brent crude was up 1.3% at $97.57 a barrel and West Texas Intermediate was 1.4% higher at $92.72.

Figures released earlier by Lloyds showed that house prices fell in August as the market remained subdued.

Prices were down 0.2% on the month following a 0.1% drop in July. On the year, prices declined by 0.4% in August following 0.1% growth the month before - the first annual fall in house prices since November 2023.

The average price of a home stood at £298,468, down from £299,153.

Andrew Asaam, mortgages director at Lloyds, said: "The housing market has faced a more difficult backdrop in recent months, with the impact of global events on inflation and borrowing costs creating greater economic uncertainty. What we're not seeing is a rush of homeowners cutting prices. But more are choosing to sit tight, with sellers reluctant to accept offers they feel are too low, while some buyers are waiting to see how conditions develop.

"As a result, fewer homes are changing hands, with latest industry figures showing mortgage approvals now at their lowest level since the start of 2024. It's also important to keep recent price movements in perspective. Average house prices remain around 25% higher than they were at the end of 2019, despite the substantial increase to interest rates seen over recent years. The market's adjustment to higher borrowing costs has been gradual, with wage growth helping to offset some of the pressure on affordability. The recent modest declines in prices are best viewed in that wider context.

"We expect the market to remain fairly subdued in the months ahead, but this will likely only have a limited impact on house prices. While affordability remains a challenge, wages continue to grow and employment has held up better than many anticipated. This will help to support demand from those who need or want to move."

In corporate news, Spire Healthcare has agreed to be taken over by Tulip UK Bidco, a new company which comprises investment firm Toscafund, private equity firm THCP Advisory and US investment manager Ares, for £1.03bn.

Under the terms of the deal, Tulip UK Bidco will pay 250p per share in cash for Spire, which is a 66.2% premium to the closing share price on 13 May, the last business day prior to the possible offer announcement.

Drugmaker AstraZeneca said that its breast cancer drug Etcamah (camizestrant), used alongside a CDK4/6 inhibitor, has been granted accelerated approval in the US for patients with a common form of advanced breast cancer who show signs of developing resistance to standard hormone therapy.

AstraZeneca said the decision was based on an FDAauthorised blood test that detects emerging ESR1 mutations, which signal that current treatment was becoming less effective and follows results from its Phase III SERENA6 trial.

In an interim analysis, the Etcamah combination cut the risk of disease progression or death by 56% compared with continuing aromataseinhibitor therapy, extending median progressionfree survival to 16 months from 9.2 months.