We have revised our forecast for UK property market growth upwards again, to 6% for 2006.

Supply shortages will continue to put upward pressure on house prices in the longer term, especially for larger, quality properties.

Prime markets are now recovering from a four year slump and showing very high levels of growth.

Prime country house price growth is spreading from London to the Home Counties and is now strongest in the market for mansions.

Recent experience in London’s Docklands provides an important lesson for both developers and policy makers by showing that high new supply levels will temporarily suppress values.

Continued affordability pressures will increase occupier demand for shared equity.

We think that there are strong reasons for investors to put money into shared equity investments.

Shared equity may also become an important mechanism for ongoing landowner participation in large development schemes and regeneration projects.

Shared equity could even be incorporated into mechanisms which ultimately provide a method of forward funding long term development projects.