A policy shift by the Bank of England has sent shares in house building companies tumbling

A policy shift by the Bank of England has sent shares in house building companies tumbling. British housing prices have risen by 7% in the past 12 months, the fastest growth in over the 3 years. Buyers have been spurred on by The Funding for Lending Scheme (FLS) which offered banks incentives for mortgage lending. However, amid concerns of a housing bubble an improved access to credit the BOE will redirect this incentive to small businesses. More changes are expected to reign in the surge in property prices that has been partially fueled by offshore investors. England's finance minister George Osborne is due to deliver a half year budget update next week and is widely expected to introduce a capital gains tax on foreign-owned property. (VIEW LINK)