In news that may interest those thinking of investing in the California property market, a new bill has been passed intended to improve urban development in the state.

Governor Arnold Schwarzenegger has signed into law legislation which restricts urban sprawl by encouraging compact planning.

It will do this by enabling local government to implement housing schemes that will link the creation of new residential property with other developments, such as the provision of new public transport links.

It will do this by ensuring that funding for transport and other developments is only provided where new urban developments are carried out according to the principles of compact development.

Such property may be more valuable than it could otherwise have been because of the better transport links provided to connect such homes to places of work such as downtown areas of cities.

In another development that may boost property in California and the whole USA property market, the Senate last night voted 74-25 to back a revised version of the $700 billion (£380 million) rescue package for the US banking system.

The bill, which now includes tax breaks for businesses and middle earners, will now go back to Congress, which voted against the original plan partly because some members were concerned about the burden it imposed on taxpayers.

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