* FTSE 100 up 0.2 percent
* BP higher after release of oil spill investigation report
* Property stocks up after Halifax house prices data
* Banks fall on concerns about European banks' health
By Tricia Wright
LONDON, Sept 8 (Reuters) - Britain's top share index was higher at midday on Wednesday, boosted by energy stocks led by BP after the oil company reported on the causes of its Gulf of Mexico spill.
By 1145 GMT, the FTSE 100 was up 8.49 points, or 0.2 percent, at 5,416.31, after breaking a seven-session winning streak to close down 0.6 percent on Tuesday at 5,407.82.
Bank and mining stocks had pulled the index lower in early trading. But energy stocks helped power the index higher, with BP adding 2.3 percent.
"People are liking the clarity (given by the report), but it is also a bit of bargain hunting as well," Joshua Raymond, analyst at City Index, said.
"Basically, there is not really much driving the markets at the moment. People are using losses as a buying opportunity and we are starting to see elements of that in the last hour or so."
Among mining stocks, African Barrick Gold was best off, up 1.7 percent, as gold prices rose towards record highs in Europe.
U.S. stock index futures,, pointed to a firmer start on Wall Street on Wednesday, following a decline in the previous session, with U.S. President Barack Obama set to unveil billions of dollars in new business tax incentives and spending on big construction projects.
The 1800 GMT Federal Reserve release of its latest Beige Book survey of U.S. economic conditions will also attract investor attention.
PROPERTY WANTED
British real estate companies were in demand after Barclays Capital issued a positive sector outlook and mortgage lender Halifax posted a surprise uptick in August house prices.
Hammerson rose 1.7 percent, British Land put on 0.9 percent, and Land Securities added 0.6 percent.
ARM Holdings climbed 4.5 percent to a near eight-year high after RBS repeated its "buy" rating, saying Samsung had selected ARM's technology for its new mobile phone chip over Imagination Technology's, and with traders pointing to re-hashed bid rumours surrounding ARM.
Imagination Technology shares were down 8.4 percent.
Banks fell again, adding to Tuesday's declines when the Wall Street Journal reported major lenders understated holdings in potentially risky government debt during tests designed to probe banks' strength.
Further darkening the mood, Ireland extended guarantees for short-term bank liabilities amid fears over the escalating cost of bailing out nationalised lender Anglo Irish Bank.
Barclays was the worst off, down 2.4 percent, also hurt by a downgrade from Bernstein to "market-perform" from "outperform".
British manufacturing output maintained a healthy pace of growth in July and industrial output recovered from a dip caused by an early start to oil rig maintenance in June, official data showed. (Editing by Dan Lalor)