House price recovery hopes mount

A housing sector update is expected from Persimmon

A Treasury White Paper on key reforms to financial regulation will be the highlight of next week.

And more clues on the health of the UK property market will be offered when a trio of housebuilders give updates from the sector.

Hopes have been mounting over a recovery in house prices so the market will be looking for any confirmation of this in comments from firms including Persimmon, Barratt Developments and Bovis Homes.

Nationwide's latest June property value figures added to the optimism when it said prices rose by 0.9% during the month to stand at £156,442 - the third increase in four months. Recent updates from other builders have also suggested it may not just be a short-term blip.

Taylor Wimpey - the UK's biggest housebuildler - said last month that the market should avoid a "severe" downturn as it reported a 73% hike in forward orders since the year-end.

Chancellor Alistair Darling is also set to lay out his plans for the future of banking regulation during the week.

The report, delayed from this week because of a clash with other key Government releases, will finally answer speculation over a power struggle between those responsible for policing the financial sector.

The Bank of England, Treasury and Financial Services Authority (FSA) have reportedly been at loggerheads as regulators vie for a meatier role - although all three have played down rumours of a spat. It is a sensitive issue, not least because both the FSA and Bank did not spot the systemic problems that were to turn into the financial crisis experienced last year.

City minister Paul Myners has said that the tripartite system will remain key, with "macro-prudential regulation" a joint effort.