The property industry was hoping for progress on tax-efficient vehicles for investment in the sector, in yesterday's pre-budget report. However the government will not legislate for new tax-efficient trusts, which are expected to launch a mass savings market based on property and boost the market's capitalisation, in 2005.

Many had wanted the Chancellor to give details of how these vehicles - known as real estate investment trusts (REITS) - will be structured and some had even expected legislation in 2005.

Instead the Chancellor did not say much about the housing market, devoting just twelve lines to the products, stating that the government will conduct further consultation in time for the next budget report in 2005.

It now appears as though legislation will be deferred until after the next General Election.

The National Association of Estate Agents (NAEA) is disappointed that the Chancellor did not take the opportunity to amend stamp duty levels in his pre-Budget report today, despite the government now taking around £4 billion each year from residential stamp duty.

Peter Bolton King, Chief Executive of the NAEA, comments: "House prices have risen by around 150% since the £60,000 threshold for stamp duty was set over a decade ago meaning that practically every homebuyer is now liable for higher levels of this tax. Stamp duty was never meant to be an all-encompassing property tax. But with the Chancellor's refusal to adjust the scale, one can't help wondering whether he is beginning to look on it as a contribution to the shortage in his spending: home buyers should not be forced to pay for the Chancellor's errors in his budgeting".

Work has started on one of the largest regeneration and development projects in the north-east of England. £500 million will be invested into the scheme led by Tees Valley Regeneration and will comprise residential, commercial and leisure developments, which is expected to create up to 2,000 jobs.

The Commercial regeneration scheme will take place at Manhattan Gate, Middlehaven in Middlesbrough and will eventually become the business capital of the Tees Valley. The project is expected to take anywhere between 10-15 years to complete. However the first building, the 30,700 square foot three-storey Hudson Quay, is expected to be complete by summer 2005.

Development manager of The Helmsley Group, a property development and investment firm involved in the project told This is York.co.uk: "we are confident that with our involvement and the backing it is receiving from all the partners involved, it will be a major success."

New research from Landlord Mortgages reveals that close to 75% of buy-to-let investors still chose to invest in their local area.

Lee Grandin, Managing Director of Landlord Mortgages said: "It is interesting to see that such a large percentage of landlords are now investing in the region they live in. It shows the resilience of local investors who, despite house price increases, prefer to do their homework and buy in their home region before looking at other options. It is so important to have an in-depth knowledge of an area before committing to buy-to-let. "These figures also indicate that investors are moving towards a more hands on attitude to managing a property, which is a far cry from the frenzied investment buying of five years ago".

According to Rightmove's house price index (from 10th October to 13th November), asking prices fell this month by 1.7%, which is the second biggest fall this year. The survey suggests that some sellers are reducing property asking prices in an attempt to attract more interest from buyers.

The fall caused the annual rate to lower from 13.4% to 11.6%, with a further drop expected before the end of this year.

Miles Shipside, Rightmove's commercial director said: "We're going to see a couple of painful months for sellers as the market finds a level at which buyers are confident again. "It may be ugly for a month or two, but a bit of turbulence is inevitable on the approach to the much hoped for 'soft landing'."

Rightmove's house price index for period - 10th October to 13th November: