1:00PM New York, 6:00PM London - U.K home prices rose in December by an annualized 5.2% rate.

London stock averages gained for the first time in three days led by commodity stocks as metal prices increased.

In London trading FTSE 100 rose 0.33% or 20.80 to 6,356.50.

Of the 102 FTSE Stocks 56 gained, 4 declined, and 5 were unchanged. Smith & Nephew led advancers with a rise of 7.9% followed by BT Group climbing 5.21%.

HBOS’s Halifax House Price Index showed today on the mortgage lender’s Web site that house prices rose after three successive monthly declines by 1.3% in December. The prices were 5.2% higher than a year ago.

Furthermore, fourth quarter prices for 2007 were 0.8% lower compared to those realized in the third quarter.

The average price of a home in the U.K. increased by 11,759 pounds from a year ago to 97,039 pounds.

According to HBOS, the mixed pattern of monthly price rise and falls characterizes a subdued market. Prices are also expected to be flat in 2008.

The British Retail Commission announced today on its Web site that U.K. retail sales rose 0.3% in December 2007 on a same store basis compared to a year ago when sales climbed 2.5%. In addition, the three month trend rate of growth declined 0.8% from 1.8% in November for like-for-like sales, and fell 2.8% from 3.8% for total sales.

Director General of the British Retail Commission Kevin Hawkins said: “This is somewhat worse than we expected and points to a very challenging first half of 2008. Given that full effects of the Bank’s previous increases in interest rates have yet to be felt by many households, retailers and manufacturers alike need a rate cut now-preferably a half point.”

Of the FTSE 100 index shares Smith & Nephew led advancers with a rise of 7.29% followed by gains in BT Group Plc of 5.21%, in Lonmin Plc of 3.72%, in Kazakhmys Plc of 3.4%, and in Rexam Plc of 3.23%.

Commodity stocks also gained as the price of metals soared. BHP Billiton climbed 3.15% and British Energy jumped 2.98%.

Yell Group Plc led a decline of FTSE 100 stocks with a drop of 6.20% followed by losses in Persimmon of 4.89%, in Taylor Wimpey of 4.89%, in First Group Plc of 4.23%, and in BG Group Plc of 3.41%.

Persimmon and Taylor Wimpey and other homebuilders slumped after ABN Amro Holding analyst William Jones cut the earnings forecast for the industry by 19% for 2008 and 30% for 2009. Dresdner Kleinwort also told clients yesterday to dump the homebuilders.

Persimmon is expected to release its earnings and revenue tomorrow.

British Airways fell after EasyJet Plc announced in a statement its loadfactor, or proportion of seats filled, fell 2.2% to 78.9% in December. Other European airlines also declined on the news. British Airways closed down 2.74%.

Bloomberg news reported today Michael Page Incorporated said today that fourth quarter profit rose 38% as a placement of sales and marketing workers and engineers in Europe offset a drop in demand from U.K. banks.

Gross profit climbed 128 million pounds from 93.1 million pounds from a year earlier. In the U.K. profits advanced 16% in the quarter to 45 million pounds.