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24 May 2010 By George Hay Follow @gfhay

The new government wants to jack up capital gains tax, which could prompt the wealthy to dump second homes. Public spending cuts could push up unemployment, dampening demand. Wealthy Greeks and bankers may keep London afloat. But average UK house prices could end the year down.

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The average UK house price is 167,802 pounds, lender Nationwide reported on 29 April. This is 10 percent below the peak of 186,044 pounds recorded in October 2007, but has risen 13.6 percent from a trough of 147,746 pounds in February 2009.

A net balance of 17 percent of surveyors reported a rise in prices in April, according to the Royal Institution of Chartered Surveyors up from 9 percent in March but down on the 35 percent recorded in November.

The net balance of new buyer enquiries was up 8 percent in April, compared to 35 percent in September, while the new sales instructions were up 11 percent, having been up 21 percent in March.

The average asking price for houses rose 0.7 percent in May, compared to 2.3 percent a month earlier, according to estate agent Rightmove.

Monthly UK mortgage approvals for house purchase were 48,901 in March, according to the Bank of England. That compared to a nine month low of 46,882 in February, and a 21month high of 59,572 in November. The longrun average is approximately 93,000, and approvals reached 130,000 per month at the top of the boom in 200607.

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