Britain's FTSE rises as housebuilders, miners rally

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* FTSE 100 up 0.3 pct

* Housebuilders extend gains

* Miners track metals prices higher

* Hays (LSE: HAS.L - news) falls after results

By Kit Rees

LONDON, Sept 1 (Reuters) - UK shares rose on Thursday, starting September in positive territory as housebuilders rallied and mining stocks rose on recovering metals prices.

The blue chip FTSE 100 index was up 0.3 percent at 6,799.70 points by 0903 GMT, slightly underperforming the broader European market.

Housebuilders Taylor Wimpey, Persimmon (Frankfurt: 882058 - news) , Barratt Developments (Frankfurt: 859551 - news) and Berkeley Group, which is set to lose its place in the FTSE 100, extended their rally from the previous session, gaining between 3 percent and 3.7 percent respectively. Data on Wednesday had shown British house prices rose more than expected in August.

"There's maybe a general sense that, at least in the short-term, the referendum vote's note having any catastrophic effect on the UK economy," Jasper Lawler, market analyst at CMC Markets, said.

"Given these homebuilding shares have dropped in the region of 20 percent, after the vote, I think there's a bit of a reassessment as to whether that's really justified."

Upbeat factory data also helped, with a PMI survey showing British manufacturing staged one of its sharpest rebounds on record in August, recovering from the initial shock of Britain's June 23 vote to leave the European Union.

The FTSE 100 posted its third straight month of gains in August, as sterling weakness following Britain's Brexit vote prompted investors to buy into the index's internationally-facing companies.

Mining companies rebounded after two sessions of losses, as metals prices hit 2016 peaks on upbeat manufacturing data from China, the world's biggest consumer of metals.

Miners Glencore, Rio Tinto (LSE: RIO.L - news) and Antofagasta (LSE: ANTO.L - news) all rose between 0.8 percent to 2.4 percent.

Britain's banks also rose, led by Asia-exposed HSBC which gained 2.4 percent.

Hikma and St James's Place were the top fallers after the stocks traded without entitlement to their latest dividend payouts.

Outside of the blue chips, mid cap recruiter Hays dropped 4.3 percent after reporting results. It said that hiring in Britain had weakened significantly shortly after the Brexit vote as private sector clients were hesitant to add new workers.

"The run-up to the EU referendum had an impact on (Hays') figures, with net fees in the UK flat as increased concern over the economic outlook hit client and candidate confidence, especially in the second half," AJ Bell investment director Russ Mould said in a note. (Editing by Catherine Evans)