London pre-open: Stocks seen up; house price data in focus

London stocks were set to gain at the open on Monday as investors mulled the latest research from Rightmove.

The FTSE 100 was called to open around 15 points higher.

Research released earlier by Rightmove showed that house prices eased in November as uncertainty around the Budget weighed on demand.

According to the latest house price index, average new selling asking prices fell by 1.4% month-on-month in November, to £366,592. That was steeper that the 0.8% drop usually seen at this time year of year.

Year-on-year, prices rose 1.2%.

However, Rightmove said that despite the government's Budget at the end of October having a "dampening" effect, overall market activity was stronger than last year.

The number of agreed sales was up 26%, while the number of new sellers coming to market was 6% higher.

There were also early signs of a further uptick in demand following the Bank of England’s decision to trim interest rates at the start of November, the second reduction so far this year.

Tim Bannister, Rightmove’s director of property science, said: "There’s been a lot of news to digest for homeowners over the last few weeks, and it appears that the market may still be chewing it over.

"We had been seeing a drop-off in buyer demand, both in the lead up to the Budget and in its immediate aftermath, as it was confirmed that there will be an increase to stamp duty charges.

"However, a second Bank Rate cut and a boost of optimism regarding 2025 appear to have reversed this trend at least temporarily."

Rightmove currently expects new seller asking prices to rise by 4% in 2025, its highest prediction since 2021, as lower mortgage rates help release pent-up housing demand.

Bannister added: "The big picture of market activity remains positive when compared to the quieter market at this time last year. This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improved affordability for more of the mass market."

In corporate news, aerospace company Melrose held full-year guidance after a rise in revenues driven by aftermarket demand in its engines division, particularly in defence.

Revenue rose 7% in the four months to October 31, with aftermarket up 32% year on year although original equipment volume growth remained constrained by industry-wide supply chain issues, Melrose said in a trading statement.

The company still expects adjusted operating profit £550m - £570m, adding that it was on track to hit a £700m profit target in 2025.

Safety equipment maker Halma announced it is buying Lamidey Noury Medical, a Paris-based manufacturer of medical technology devices, for €50m.

Lamidey Noury makes advanced electrosurgical and associated energy devices which are used in minimally invasive urology, gynaecology and general surgery, and the business is adjacent to Halma’s existing presence in diagnosis and biopsy devices for similar diseases.

Elementis announced that chief executive officer Paul Waterman would step down after nine years in the role, with a transition planned no later than its annual general meeting in April.

The FTSE 250 firm said Waterman would assist with the leadership handover, and remain available for support until the end of July 2025. Its board said it had started the search for a successor.