The FTSE 100 moved higher on Monday, with housebuilders among the gainers after the UK government announced plans for a state-backed equity loan scheme aimed at first-time buyers purchasing new-build properties.
The FTSE 100 was up 0.47% at 08:37 GMT, while Germany’s DAX gained 0.25% and France’s CAC 40 rose 0.34%. Sterling advanced 0.15% against the US dollar to $1.3266.
The government’s Your First Home scheme is expected to allow eligible first-time buyers in England to purchase new-build homes with deposits of 2.5%, supported by government-backed equity loans of 20%. Full details are due to be confirmed at next month’s Budget.
Housing Scheme Supports Housebuilder Shares
The proposed equity loans will initially be interest-free, with household income limits and local property price caps used to determine eligibility.
Developers participating in the scheme will also be expected to contribute towards its costs.
The government said the programme is intended to reduce the deposit barrier facing first-time buyers while supporting demand and supply in the new-build housing market.
Middle East Developments Remain in Focus
Investors also continued to monitor diplomatic developments in the Middle East and their potential implications for energy markets.
Saudi Foreign Minister Faisal bin Farhan Al Saud arrived in Washington for talks with US Secretary of State Marco Rubio on regional issues.
Kpler data showed Middle East crude exports reached 12.8 million barrels per day in September, their highest level since the war began on 28 February, although they remained below the pre-war level of 18.8 million barrels per day. Of the September total, 7.4 million barrels per day were transported through the Strait of Hormuz.
US Central Command said US forces had assisted 2,000 transits through the region.
Iranian Foreign Minister Abbas Araghchi said Tehran remained prepared for diplomacy while also reiterating Iran’s position on responding to further military action.
US President Donald Trump has said he expects further talks this week. US envoy Mike Waltz said a proposed seven-day plan had been rejected over provisions concerning frozen funds and sanctions relief.
Oil Prices Rise While Gold Declines
Energy prices advanced amid the continuing Middle East developments.
Brent crude futures rose 2.75% to $100.10 a barrel, while WTI futures gained 2.82% to $95.03.
Gold moved in the opposite direction, with futures down 3.38% at $4,175.60 an ounce and spot gold falling 3.29% to $4,144.36.
UK Budget and Industrial Policy in Focus
Chancellor John Healey is expected to set out plans for what the Labour Party described as a “new age of industrialisation” at its conference in Liverpool.
He is also expected to commission three floating docks for nuclear submarines at Clyde.
The government’s next Budget is scheduled for 28 October, when further details of the Your First Home programme, including income and property price limits, costs and implementation arrangements, are expected to be announced.
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