British equities rallied on Tuesday, with the FTSE 100 closing 0.13% in the green, as house prices rose for the first time in four months during June.
Average house prices in the UK rose 0.2% month over month in June, after a revised 0.2% drop in the previous month, according to data from Lloyds. The results beat analysts’ expectations for a 0.1% uptick in the month.
“Looking ahead, we expect the housing market to continue moving at a measured pace,” said Lloyds Head of Mortgages Amanda Bryden. “Lower borrowing costs should provide some support for demand, though affordability constraints remain an important factor. The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving.”
“After a choppy few months shaped by global uncertainty, tariff-driven inflation anxiety and the resulting rate volatility, June’s data offers a tentative but welcome signal that the market is finding its footing,” RBC Capital Markets said, adding that while affordability remains stretched and buyer demand subdued, lower mortgage rates and resilient first-time buyer activity could support a stronger second half.
Next, investors will examine the house price balance report from the Royal Institution of Chartered Surveyors on Thursday, which is expected to show an improvement in June.
On the corporate front, Shell (SHEL.L), up 3.38%, was one of the main drivers of the blue-chip index after updating its integrated gas and upstream production guidance for the second quarter and projecting “significantly higher” gas trading than the first quarter.
The energy giant also agreed to sell its South African downstream business to Adnoc Distribution. The deal values the business at an implied enterprise value of $1 billion and covers 580 company- and dealer-owned fuel stations.
On the downside, FTSE 250-listed Capita (CPI.L) tumbled 13.54% after acknowledging that its management of the Civil Service Pension Scheme has “not been good enough.” The business process outsourcing company also apologized for the delay in bereavement, retirement, and quotation cases.
On the geopolitical front, two commercial vessels were reportedly struck in the Strait of Hormuz, while Iran’s Foreign Minister Abbas Araqchi said Tehran would not resume negotiations with Washington unless US President Donald Trump ended threats.
