Brett Rumford is the highest-placed Australian after shooting a one-under 71 as compatriots Marcus Fraser, Wade Ormsby and Lucas Herbert returned even-par rounds.

While tournament host Justin Rose struggled to an opening 74, his fellow Englishman Pepperell overcame difficult windy conditions to end the day on top of the leaderboard on five-under par.

The first hole-in-one of Pepperell's European Tour career came in remarkable fashion.

His 5-iron from 172 yards on the 9th bounced off the flag stick, away from the hole, but somehow spun back and rolled into the cup.

Pepperell was not done there and a birdie on the 10th and eagle on the 11th meant he had covered a three-hole stretch in five-under par before bogeys on the 13th and 15th were followed by a closing birdie.

"It was a bizarre shot from where I was standing," Pepperell said.

"It looked like it pitched in the hole, jumped up and looked like it was going long because of the height it came out and obviously went in.

"I played awful in the pro-am on Wednesday, probably the worst I have in a while and I wouldn't say I played great today but had that really hot run and it's great to be at the top with Matt and Tommy."

Pepperell poses after he scored a hole-in-one during day one of the British Masters. PHOTO: Luke Walker/Getty Images.

Fleetwood's own round was not without incident, with his only bogey of the day coming after an errant tee shot on the par-3 17th finished in a cup holder in a buggy which had been parked to the left of the green.

"I'm still not sure how it got there," said Fleetwood, who outscored playing partner, Ryder Cup teammate and Francesco Molinari by six shots.

"Luckily it didn't go in the beer in the other cup holder because it would have ruined a drink and the golf ball.

"It wasn't a great shot, but bogey was fine. It's not something you get too angry about around here today.

"I do have quite a good mindset at the moment. I'm by no means the freshest I've ever been but it's a case of trying to be easy on yourself."

Wallace had set the clubhouse target earlier in the day as he seeks a fifth win in his 50th European Tour start and fourth victory of a season which saw him narrowly miss out on a Ryder Cup wild card.