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FTSE 100 edges lower as investors dump housebuilders

Some 4,670 one-way departures are expected from Britain in July, coming in at an average of one every 9.5 minutes.
Some 4,670 one-way departures are expected from Britain in July, coming in at an average of one every 9.5 minutes.

London’s premier index edged lower today driven down by investors selling off real estate stocks despite fresh data released today showing UK house prices are rising at the fastest pace since before the financial crisis.

The capital’s premier FTSE 100 index closed 0.24 per cent lower at 7,403.01 per cent, while the mid-cap FTSE 250 index, which is more aligned to the health of the UK economy, rose 0.09 per cent to 23,539.55 points.

Housebuilders led the FTSE 100 lower today, with the likes of Barratt Developments and Berkeley Group finishing 0.76 per cent and 1.53 per cent lower respectively.

Fellow housebuilder Taylor Wimpey lost 0.88 per cent today.

The losses came despite UK property prices shooting up over 10 per cent over the last year, according to new research released today by building society Nationwide.

The cost of buying a home in Britain hit £254,822 this month, the highest price on record and up around £24,000 since December last year.

Travel stocks were out of favour during the morning session, with British Airways owner IAG notching the largest fall on the FTSE 100, dropping 2.27 per cent. FTSE 250 listed short haul airlines Wizz Air and easyJet dipped over 1.10 per cent each in opening exchanges.

All three pared back some losses during afternoon trading.

The pound was broadly flat against the greenback, edging up 0.01 per cent to buy $1.3487.