Good morning and welcome to the IC’s live blog, where we round up the biggest business stories of the day
Rising house prices
Annual house price growth rose to more than a tenth last month, marking the highest level in the UK in almost seven years, according to the Nationwide House Price index.
The UK market has experienced “a complete turnaround over the past 12 months”, said Nationwide’s chief economist Robert Gardner.
A record high of 183,000 transactions was recorded in March, in line with the original end of the government’s pandemic-induced stamp duty holiday. But “a lot of momentum has been maintained” since then, said Gardner.
Moreover, while stamp duty relief has been a contributor to that momentum, it “is not the key factor”, noted Gardner. “It is shifting housing preferences which is continuing to drive activity, with people reassessing their needs in the wake of the pandemic”.
Emma Powell asked in April whether house prices could maintain their high annual growth rate. report last month suggested that a shift towards rural locations and larger homes might be abating.
Heinz investment and Senior takeover
In other news this morning, ketchup manufacturer Kraft Heinz (US:KHC) is planning a £140m investment in Wigan’s Kitt Green – Europe’s largest food manufacturing facility.
And turning to deal-making activity on UK shores, shares in engineering company Senior (SNR) closed at 159p on Friday – marking a rise of more than a third on the day’s opening price – as it emerged that the group had rebuffed a possible 176p a share offer from private equity firm Lone star. This was the third “unsolicited proposal” from the firm.
On the subject of private equity, Oliver Telling considered the record boom in PE-backed IPOs last month – asking whether it is simply too risky to invest.
You can read our full analysis of today’s events in the live blog below.
