Stock markets were largely flat on Monday as a new week begins in global trading - despite trade tariff uncertainty going through the courts in the US. Few major businesses will report financials this week in the UK, with the FTSE 100 looking to build on an eventual 0.56 per cent rise across August.
Meanwhile in Britain, house prices fell month on month - albeit only by 0.1 per cent. House price growth year on year also slowed, with one expert suggesting the property market is “struggling to find its feet following the hike in stamp duty costs”. Elsewhere, bitcoin is down to $108,000 and gold is hovering around $3,550.
In other business news, Wise is reportedly looking at becoming a regulated bank and National Gas has warned of the prospects of blackouts due to spending cuts.
Follow The Independent’s live coverage of the latest stock market and business news here:
Key points
- House prices fall month on month in the UK
- Experts claim market struggling after stamp duty change - but prices could rise next month
- Building Society calls on government to set date for Budget to avoid property market uncertainty
Housebuyers feel the autumn chill – is the economy heading for a deep freeze?
15:00 , Karl MatchettAs the property market takes an unexpected dip, with homeowners deciding to stay put, rather than sell up, it’s only the latest bad news for Rachel Reeves’s Budget, says James Moore
Housebuyers feel the autumn chill – is the economy heading for a deep freeze?
Business and Money - 1 September
08:03 , Karl MatchettWelcome to September and welcome to our live business and money blog!
Today we’ll look at the latest stock market news, the best bank accounts for your money and plenty more.
House prices fall 0.1% in August
08:11 , Karl MatchettWe’ll start with UK house prices - and the latest Nationwide data shows a 0.1% drop month on month.
It was a surprise drop overall despite known struggles in the market, with the average price of a property in the UK now at £271,079.
However, year on year there is still growth in prices - though it is slowing.
“The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms,” Robert Gardner, Nationwide's Chief Economist, said.
“House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years.
“Combined with the fact that mortgage costs are more than three times the levels prevailing in the wake of the pandemic, this means that the cost of servicing a mortgage is also a barrier for many. Indeed, an average earner buying the typical first-time buyer property with a 20% deposit faces a monthly mortgage payment equivalent to around 35% of their take-home pay, well above the long run average of 30%.”
Some reaction now to bring you from a range property and finance experts.
Let’s start with Alice Haine - personal finance analyst at Bestinvest, who points out the stamp duty change has had a major impact on the market this year.
“UK house prices fell 0.1% in August, while annual growth softened to 2.1% from 2.4% in July, suggesting the market is struggling to find its feet following the hike in stamp duty costs that came into force in April when thresholds reverted to their previous, lower levels,” Ms Haine said.
“While the summer has seen in a surge in homebuying activity, sellers are pricing more realistically in a bid to secure deals at a time when buyers hold the upper hand. Sellers, who initially listed at inflated prices, are increasingly adjusting their asking prices to stay competitive.
“Meanwhile, speculation is mounting over further property tax reforms, just months after the market was forced to absorb the end of the stamp duty break. Chancellor Rachel Reeves is expected to deliver fresh tax hikes at her upcoming fiscal statement amid concerns over the health of the public finances, with property taxation believed to be a target.”
House prices expected to increase next month and beyond
08:40 , Karl MatchettPrices might be down for now, but it’s a temporary blip and a normal part of summer, say some experts.
Two here offer different reasons why the upcoming period might see prices increase again:
“The market may have paused over the summer, but the annual picture remains one of growth and resilience,” said Verona Frankish, CEO of Yopa.
“With the holiday season behind us, attention now turns to the final run up to Christmas, which is traditionally one of the busiest periods of the year and one of the hard deadlines many buyers and sellers set for their completion data.
“The added motivation of moving before the festive season, combined with improving mortgage affordability, should help drive a strong finish to the year for the housing market.”
Additionally, political uncertainty could see people hold off moving - meaning less supply and higher prices.
“Mortgage rates have been easing slightly but typical fixed deals remain around 4%, keeping monthly payments elevated, and higher inflation will make the path to lower interest rates even longer,” said Karen Noye, mortgage expert at Quilter.
“Speculation around potential reforms in the Chancellor’s upcoming budget, including possible levies on high-value homes or changes to capital gains tax on primary residences, could also cause hesitation among sellers. This would tighten supply further and paradoxically push prices higher, worsening conditions for new entrants to the market.
“Either way, without a significant increase in available homes and clearer policy direction, the market risks stagnation.”
Badenoch in pledge to ‘get all our oil and gas out of the North Sea’
09:00 , Karl MatchettKemi Badenoch has committed the Tories to extract as much oil and gas as possible from the North Sea.
The Conservative Party leader said it was “absurd” to leave the fossil fuel resources untapped.
But the Government said issuing new licences for oil and gas exploration would “not take a penny off bills” and would accelerate the “worsening climate crisis”.
A Conservative government would make “maximising extraction” its goal if it wins power, rather than measures aimed at shifting the North Sea industry away from fossil fuels.
Badenoch in pledge to ‘get all our oil and gas out of the North Sea’
Budget uncertainty could lead to property chain "collapse"
09:37 , Karl MatchettAnother expert is not so sure that the property market will be bouncing back.
Jonathan Stinton, head of mortgages at Coventry Building Society, is calling on the government to set a date for the Budget - to stop a “collapse” of property purchase chains due to uncertainty.
“The consequences of all this speculation are very real. Every time a new rumour surfaces it creates more uncertainty, and the housing market really doesn’t thrive on guesswork.
“Even the hint of tax changes is enough to make buyers and sellers worry about their next step. We could see people trying to hold off buying in case a tax break is around the corner, while others feel pressured to offload a property quickly before any rules change. That could mean chains collapse and families are left in limbo.
“The Chancellor shouldn’t leave people twisting in the wind. We need clarity – either quash the rumours or confirm the details. And, most importantly, set a date for the Budget so buyers, sellers and the market know how much more of this they have to endure.”
FTSE 100 rises, European stocks climb
09:48 , Karl MatchettThe FTSE 100 has climbed this morning, up 0.25 per cent with weapons firms Babcock and BAE Systems leading the way, both up more than 2.5 per cent today.
It’s a similar story around Europe so far, France’s CAC 40 up 0.53 per cent and Germany’s DAX 0.55 per cent in the green.
We’re early of course but futures markets show US stocks rising too - but that’s for tomorrow’s opening, as today markets are shut for Labor Day.
Expert reveals the five side hustles that may earn you extra money
10:10 , Karl MatchettNearly two-thirds of UK adults are either already engaged in or contemplating a side hustle, according to new research from art supplier Jackson’s Art.
The study found that 61 per cent of Britons are looking to supplement their income, driven by a desire for both enhanced lifestyles and financial stability.
For 43 per cent, the primary motivation is to earn more disposable income for luxuries such as holidays, self-care, or dining out.
However, the rising cost of living is a significant factor for others, with one in three seeking extra money to cover essential expenses like bills and mortgages.
Here are the side hustles they experts say are potential earners:
Premium Bonds: £1m winners in Cumbria and County Durham
10:25 , Karl MatchettPremium Bonds: love them or hate them, someone wins big every month. The two £1m winners this time around are from County Durham and Cumbria, both of whom held the max £50,000 in their accounts.
Both had also held their Premium Bonds ticket which won for over a decade.
If you hold Premium Bonds you can check for prizes on the app and website from tomorrow.
They are run by NS&I, effectively as a savings account but one which does not pay interest, so no prizes or gains on your money are guaranteed.
HSBC latest bank to increase potential mortgage lending amounts
10:40 , Karl MatchettHSBC have become the latest lender to up their loan to income potential borrowing amounts.
A change in affordability rules means first time buyers can now borrow up to 5.5 times earning, meaning joint applicants could borrow more than £55,000 more than previously.
It also applies to first direct customers, which is owned by HSBC.
UK manufacturing downturn worsens amid slump in new orders
11:05 , Karl MatchettThe downturn in UK factory production worsened last month due to a fall in new orders and export business due to trade tensions, according to new figures.
The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 47.0 in August, slowing from 48.0 in July.
Any reading above 50 indicates that activity is growing while any score below means it is contracting.
It was marginally worse than expected, with economists having predicted a reading of 47.3.
The figures were the worst for three months and represented a setback for the sector after signs of recovering activity earlier in the summer.
More here from PA.
Small businesses borrowing at four-year high
11:32 , Karl MatchettThe Bank of England have shown data which sees SMEs borrowing at a four-year high.
Responses from within finance are varied, some suggesting it shows the cost pressures firms have been under, with others pointing to the likelihood of money being put into business investments.
Jon Maloney, founder at Century Business Finance, said: “Given the pressure SMEs have been under in the past 12 months, I think it’s safe to say that the borrowing figures we’re seeing are primarily being driven by cash flow, or rather the lack of it.
“Confidence remains low in terms of recruitment and investment due to uncertainty created by the government. Hopefully they’ll finally realise come the Budget that you cannot keep hammering businesses and expect growth.”
Royal Mail move to scrap second class post on Saturdays to take ‘many months’
11:45 , Karl MatchettThe owner of Royal Mail has said it will take “many months” to roll out changes that will see it ditch second class letter deliveries on Saturdays across the UK.
International Distribution Services (IDS) – which saw its £3.6 billion takeover by Czech billionaire Daniel Kretinsky’s EP Group complete in June – said it was yet to start expanding the reforms outside of the pilot already running across 35 delivery offices.
Ofcom gave the green light to Royal Mail to scrap second class letter deliveries on Saturdays and change the service to every other weekday, starting from July 28.
But under its Universal Service Obligation, Royal Mail must keep Monday to Saturday deliveries for first-class post and maintain the target for second-class letters to arrive within three working days.
More here:
Royal Mail move to scrap second class post on Saturdays to take ‘many months’
Bitcoin slowing its rate of change could be down to big businesses
12:14 , Karl MatchettJPMorgan believe the departure from bitcoin in following its historical volatility could be down to big businesses stockpiling it.
Bitcoin’s price is around $108,500 now, having tipped over $123,000 earlier this year - but its 3- and 6-month volatility rates have decreased to historically low levels.
“Corporate treasuries now hold over 6% of bitcoin's total supply and act as a form of private sector quantitative easing for crypto markets,” JPMorgan global market strategist Nikolaos Panigirtzoglou wrote in a client note.
“We believe a factor behind the collapse in bitcoin volatility has been the acceleration of bitcoin purchases by corporate treasuries,” Panigirtzoglou added.
FTSE 100 risers and fallers - Monday
12:40 , Karl MatchettRoughly lunchtime so let’s scan the FTSE 100 and see which shares are up or down the most today.
Risers:
- Endeavour Mining +3.7%
- Babcock International +3.7%
- Rolls Royce +2.6%
- Tesco +2.1%
Fallers:
- 3i Group -1.9%
- Airtel Africa -1.4%
- BT -1.4%
- SSE -1.4%
The index itself is up 0.11 per cent today so far.
Looking to buy? Expert tips for the property market
13:01 , Karl MatchettWe covered earlier the news that property prices fell last month - but are expected to rise once more going forward.
Here’s some tips from Babek Ismayil, founder at OneDome, on how to complete a home purchase before Christmas, as is a popular target this time of year.
“Prioritise chain-free or vacant homes — new-builds that are build-complete are ideal — and price/offer realistically to avoid renegotiations,” he says.
“Also, be mortgage-ready before you offer. Have an Agreement in Principle, ID, proof of deposit and source-of-funds ready to share within hours, not days.
“Use a broker who knows which lenders are turning cases fastest and can book the valuation immediately. Keep your credit stable, for example no new credit or job moves, until you complete.”
Those tips should help the process move as quickly as it is able to - though much depends on others involved in the deal of course.
“Try to limit the chain when negotiating. You may also want to consider placing a strong offer for the property you want on the condition the seller will go into rented if they can’t meet the deadline,” adds Chris Barry, director at Thomas Legal.
However, if you’re only just now starting the process, be aware that unless you are cash-only or have no chain involved in your buy-sell deal, simple timelines may not match up to get you in before Christmas.
“Mortgage approvals currently average 43 days according to UK Finance, while local authority searches take an average of 32 days, with some councils reporting delays of up to 12 weeks. Add conveyancing delays that stretch beyond eight weeks on average, and December completion becomes pure fantasy,” suggests Kundan Bhaduri, from the Kushman Group.
Home buyer mortgage approvals climb to six-month high
13:30 , Karl MatchettThe number of mortgage approvals made to home buyers jumped to a six-month high in July, according to Bank of England figures.
Some 65,352 mortgage approvals for house purchases were recorded in July, marking the highest total since 65,775 approvals in January 2025.
The figures were released as Nationwide Building Society reported that UK house prices dipped by 0.1% in August, compared with July.
House prices are still high compared to household incomes, the Society’s report said.
Payments firm Wise considers becoming UK bank
14:00 , Karl MatchettPayments company Wise has reportedly explored the possibility of applying for a UK bank licence.
The Times say it is very early stage conversations at present and no applications have been made.
Wise is known for its cross-border transfers at lower transaction fees and has more than 15m customers across 160 countries.
It now offers multi-currency accounts and debit cards but cannot take deposits as a lender.
UK’s last local currency axed due to rise of digital and card payments
14:20 , Karl MatchettThe Lewes Pound – the UK’s final surviving local currency – is being officially discontinued after 16 years of circulation, amid the rise in card and digital payments resulting in lack of demand for cash, including local alternatives.
Sunday 31 August was the last day the currency, which worked like a voucher, was valid in participating shops and businesses in the East Sussex town, marking the end of a bold experiment in community economics.
Launched in 2008 as a response to global financial instability and environmental concerns, the Lewes Pound was designed to encourage support of local business in Lewes. At its peak, over 100 shops accepted the currency, and it became a symbol of grassroots resilience and sustainability.
UK’s last local currency axed due to rise of digital and card payments
FTSE 100 flat after afternoon sell-off
16:15 , Karl MatchettThe FTSE 100 looks set to finish flat for the day after a fall-off this afternoon.
It’s now down 0.03 per cent, though the 250 of smaller companies is slightly in the green still, up 0.07 per cent.
That’s it for today - we’ll be back tomorrow morning with more business and money news so see you then.
