FTSE 100 rises as UK homebuilders rally on 2.5% deposit plan

The FTSE 100 opened about 0.26% higher on Monday, driven by a surge in British homebuilders and gains in oil companies, despite rising oil prices and global interest rates. Homebuilders rallied after the UK government confirmed plans for a new equity-loan program, Your First Home, allowing eligible first-time buyers to purchase new homes with 2.5% deposits backed by 20% government loans. Barratt Redrow rose nearly 15% and Persimmon about 16%, while Shell and BP added roughly 1% as Brent crude climbed above $106 per barrel. The broader European STOXX 600 also rose about 0.3%, but mining stocks fell 2% to 5.5% due to a stronger dollar. Investors monitored Bank of England comments on quantitative tightening, while higher energy costs fueled inflation concerns pressuring rate-sensitive sectors.