The new PM, Gordon Brown, announced the government's new housing bill last week, vowing to increase the country's house-building programme by 20% to create an extra 3m homes by 2020. 

This means increasing the existing target of 200,000 new homes per year by an extra 40,000. "The government's apparent move away from plans to tax land owners at the point planning permission is granted is good news for developers. Providing they stand firm on this, developers could increase their profits and see a faster return on their investments," comments United Trust Bank. 

"Rising rates are clearly increasing the risks for developers, and sending up holding costs through the long planning process. While there has generally been lots of money available from banks and building societies, it has been the steadily rising prices of homes for first time buyers and young families that keep young people out of the market," adds United Trust.

Brown may have broken with tradition by setting out his plans for the next session, but if these plans don't turn into action, the price of basic housing throughout the UK will continue to rise beyond the reach of ever more first time buyers.