UK's main equity indexes started the week on a lacklustre note as uncertainty over U.S. debt ceiling negotiations weighed on risk appetite, while shares of NatWest gained after the British government cut its stake in the bank.

The blue-chip FTSE 100 held its ground at 7,756.98, as of 0703 GMT on Monday, mirroring caution on Wall Street after negotiations on lifting U.S. debt ceiling failed to reach a deal.

The FTSE 250 was listless at 19,289.12.

NatWest Group Plc rose 0.7% after Britain sold about 1.26 billion pounds ($1.59 billion) in shares of the bank, the sixth tranche it has sold since intervening to rescue the lender in 2008.

Dechra Pharmaceuticals PLC shed 4.9% after the veterinary healthcare firm cut expectations for its annual underlying operating profit.

Investors appeared to show scant response to data that signalled domestic house prices rose in May by more than in any other month this year on better economic outlook and steadier mortgage rates, as per property website Rightmove.

The real estate sector rose 0.3%.

($1 = 0.7923 pounds) (Reporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips)