Friday, 12th March 2010 Top stories this week HBF Policy Conference and manifesto launch.....read more John Healey: Green overhaul for planning system to cut emissions and bills.....read more Budget date confirmed.....read more Output in the construction industry 4th quarter 2009.....read more RICS: Supply outstripping demand.....read more Quick Links HBF news Government and political news Economic news Industry news Housing Market news Events HBF news HBF Policy Conference brings lively political and economic debate A full house at this week’s HBF annual Policy Conference saw a lively debate on future housing and planning policy between Housing Minister John Healey and his Conservative Shadow Grant Shapps. In the “Question Time” style discussion the Labour and Conservative approaches to improving housing supply, the planning system and the business climate were probed in questions from the audience. The Minister and his Shadow locked horns on issues including whether radical change was needed on aspirations for home ownership and the funding and operation of the Conservatives’ proposed financial incentive for development. In the economic debate Michael Saunders of Citigroup and Ed Stansfield of Capital Economics gave their assessments of the prospects and issues facing the housing market in coming years and discussed industry challenges with HBF’s Director of Economic Affairs, John Stewart. Read more to top HBF manifesto launched HBF launched its 2010 general election manifesto this week at the Policy Conference. In a press release accompanying this HBF called for action on housing supply. HBF Executive Chairman Stewart Baseley said: “We have a desperate and growing housing crisis that just has to be addressed. But despite the shortfall of homes fast approaching a million, we are building less than at any time since the Second World War. The social and economic implications dictate that the new Parliament's MPs must address the barriers to delivery as a matter of urgency and it is positive that both parties are committed to increasing provision.” Read more HBF is circulating the manifesto to members, candidates in the election, press and broadcast contacts and other bodies with an interest in housing issues. If you would like supplies of the printed manifesto to distribute to your own political and other contacts please email info@hbf.co.uk letting us know how many copies you would like. The manifesto has already achieved coverage in the national media and trade press. Please click here to view a copy of the manifesto to top Government and political news John Healey: Green overhaul for planning system to cut emissions and bills Housing and Planning Minister John Healey has announced a set of measures in tacking climate change by updating planning rules, granting nearly £10m to improve green skills and backing further progress by the "second wave" of eco-towns. Three new draft planning policy statements (on Climate Change, Natural Environment and CoastalChange) aim to give councils a "green planning rulebook" so new sustainable developments are planned and built with the aim of reducing carbon emissions and with adaptation to the future climate in mind. Proposals for the new climate change planning policy (replacing the current PPS on climate change and that on renewable energy) aim to help ensure that new developments are built in the right places, utilising sustainable sources of energy and encouraging the installation of electric car charging points. John Healey, said: "Today I am announcing a triple boost for councils to tackle climate change. Overhauled planning policies will act as a new green planning rulebook and the £10m for councils will provide training to help deliver action on the ground. I am also pleased to announce two new areas in the eco-town "second wave". Councils are making great progress and already highlighting where they can apply tough green standards in new developments. This signals real and radical momentum to change and to re-think how we design our towns and homes for the future. "We know we need greener, renewable energy if we are to meet our ambitious low carbon targets. We also know that the ways and means for people to access this energy needs to be quicker and easier. "The tougher, better guidelines for planning give councils a new blueprint, reflecting the latest targets and ensuring councils put combating climate change at the heart of future development - ultimately saving people money on their bills and reducing emissions." Read more to top TCPA reaction to planning policy statements The Town and Country Planning Association (TCPA) and Friends of the Earth have welcomed the announcement of the three new Planning Policy Statements (PPS). TCPA Chief Planner, Dr Hugh Ellis said: "This is an historic moment. Planning can, and must, address the critical need to reshape our society and economy into a positive low carbon future. In the aftermath of the failure of Copenhagen it is now crucial that we drive transformational change by empowering communities to deal with their energy need. This policy is one of the most dramatic and significant steps forward in the development of spatial planning. The profession has to step up to the challenge of taking communities to a low carbon future." Friends of the Earth's Renewable Energy Campaigner Nick Rau said: "Tackling climate change must be at the core of the planning system - and these reforms are a significant step towards a low-carbon future." "Local authorities have a vital role to play in ensuring that UK carbon reduction targets are met by boosting green development and preventing carbon-hungry projects from being approved." Read more to top Kickstart Round Two: Over 5,000 new and affordable homes unlocked in first tranche The Homes and Communities Agency has completed its assessment of the first tranche of schemes for a share of the second round of Kickstart funding. Of the 265 schemes shortlisted for Round two, 87 successful schemes are to receive funding that will help unlock them and enable more first time buyers to own their own home. Around a quarter of the successful schemes are expected to be back on site by the end of this month. A total of almost £83m will be allocated to unlock 5,696 new homes, including 3,503 affordable of which 2,193 will be made available through HomeBuy Direct, 345 through other Low Cost Home Ownership routes and 802 for social rent. Almost all of the schemes (85) are expected to meet Level 3 of the Code for Sustainable Homes. A complete list of the schemes announced this week can be found at www.homesandcommunities.co.uk/kickstart-round-two to top John Healey: Kickstart backing for first time buyers and house building jobs In his statement on the announcement Housing Minister John Healey drew attention to the provision of low cost homes for sale on sites across every region of the country receiving support through the Government's HomeBuy scheme. Mr Healey has also made it a requirement that those receiving funding must provide apprenticeships and opportunities for local workers. This week’s announcement will give 99 additional young people the chance to learn the building trade. John Healey said: "We're putting the weight of Government investment into building much-needed affordable homes, keeping people in work and giving young people a chance of apprenticeships. "That's why today I'm allocating £83 million to get 87 stalled developments across the country up and running again, creating 1,700 jobs and giving more than 2,200 first-time buyers the chance to take an affordable step onto the property ladder. Read more to top Economic news Budget date confirmed The Prime Minister has confirmed that the Budget statement will be delivered on Wednesday 24th March 2010. to top CML publishes Budget submission The Council of Mortgage Lenders’ Budget submission urges the Government to commit to the ongoing funding of measures to help borrowers in financial difficulty. The CML's submission also urges the Government to use the Budget to announce how it will work with the industry to address the market implications of lenders repaying the £300bn support given under the Special Liquidity Scheme and the Credit Guarantee Scheme. Finally, the CML urges the Government to clarify how it will address growing demand for affordable housing in both home ownership and rental tenures, against the backdrop of fiscal cutbacks. CML Director General Michael Coogan observed: "At the moment we cannot see how to square the circle between increasing demand for housing, constraints on the necessary finance to deliver it, the repayment of £300bn of lending support between 2011 and 2014, and reductions in public spending as the fiscal deficit is addressed. And all of these features apply at a time when more people are going to need housing help. "Lenders have been active in supporting lending to all tenures, and are committed to delivering an ongoing flow of finance for housing in all its forms, but at the moment there is too little clarity about how the competing policy pressures can be reconciled. The Chancellor should take the opportunity in the Budget to address this. "We call on the leaders of all political parties to commit to prioritise spending on housing in the coming years, at a time when we recognise difficult investment choices will have to be made in the next comprehensive spending review. Housing can be a driver of economic recovery, but the lack of it contributes to a wide range of social problems." Read more to top CBI: Budget must deliver convincing plan for public finances The CBI is urging the Government to use its last Budget before the election to set out more details of spending plans for government departments in order to boost confidence in the UK’s public finances and provide economic stability. In a letter to Chancellor Alistair Darling, Richard Lambert, the CBI’s Director-General, spells out two critical objectives for the Budget: boosting the UK’s fiscal credibility and fostering economic growth. The CBI says that delivering a detailed and credible plan for balancing the books by 2015-16, two years earlier than planned, is the key to addressing concerns about the UK’s public finances and its AAA debt rating. It called for an earlier date for budget balance to be achieved through a combination of lower overall spending and public service reform, rather than resorting to damaging tax rises at time when the economy is still fragile. The CBI states the Budget must also include measures to nurture economic growth by supporting businesses and entrepreneurs, including reversing the planned rise in employers’ National Insurance Contributions, which amounts to a tax on jobs. Mr Lambert said: “This Budget comes at a pivotal moment for the UK economy. Investors are clearly jittery about sovereign debt, but are prepared to give the UK the benefit of the doubt until after the election. “The UK’s deficit, though worryingly large, is still manageable, but the Government must act now to set out a convincing, credible pathway for balancing the books. It is critical that this Budget provides credibility and direction on the public finances, and creates the right conditions for businesses to drive economic growth.” Read more to top BRC-KPMG: Retail sales monitor February 2010 – “Snow distorts February sales” According to the February figures released by the British Retail Consortium, UK retail sales values rose 2.2% on a like-for-like basis from February 2009, when sales had dropped 1.8%, hit by snow and consumer caution. On a total basis, sales rose 4.5% against only 0.1% growth in February 2009. Food sales slowed further after shoppers had stocked up during January's snow. Lower food inflation and consumer caution also depressed sales. Non-food recovered, having been hit by January's snow, but growth was often against larger declines a year ago. Clothing and footwear showed stronger gains than in January and homewares and furniture returned to growth. Non-food non-store sales (internet, mail-order and phone sales) in February were 15.5% higher than a year ago compared with 14.6% in January. The very cold and wet weather, and shoppers receiving catalogues whose delivery had been delayed by snow, helped to boost sales. Read more to top Industry news Output in the construction industry 4th quarter 2009 According to the latest statistics released by the Office for National Statistics, the total volume of construction output in the fourth quarter of 2009 fell by 1% compared with the third quarter of 2009. All new work rose by 5% while repair and maintenance fell by 9%. The total volume of construction output in the 12 months to the fourth quarter of 2009 fell by 11% compared with the previous 12 month period The total volume of new work in the 12 months to the fourth quarter of 2009 was 13% lower compared with the previous 12 months but was 5% higher in the fourth quarter when compared with the previous quarter. The total volume of repair and maintenance work fell by 10% in the 12 months to the fourth quarter of 2009 compared with the previous 12 months and was 9% lower in the fourth quarter of 2009 compared with the previous quarter. New private housing work in the 12 months to the fourth quarter of 2009 was 28% lower compared with the previous 12 months but the fourth quarter of 2009 was 3% higher compared with the previous quarter. New work in the public housing sector in the 12 months to the fourth quarter of 2009 was 1% higher (on a small base figure) compared with the previous 12 months and the fourth quarter of 2009 was 14% higher than the previous quarter. Read more to top FSA launches new 'proactive' strategy Hector Sants, the Chief Executive of the Financial Services Authority (FSA) speaking this morning on Radio 4’s Today programme said that the organisation needs to "to get out into the field" and intervene earlier. Speaking as the organisation launches a major shift in strategy, Mr Sants said that it would become "a proactive regulator that takes its own view and does not just rely on firms behaving responsibly and does not just assume that the market is always right". In saying this he referred to new mortgage products as well as other financial products. Mr Sants, who is leaving his post during the summer, said that he did not fear any change of government, adding "we will discharge whatever mandate parliament gives to us". The Conservatives have said they will abolish the FSA if they win the next election. Listen again to top Housing market news RICS: Supply outstripping demand The balance between supply and demand shifted toward the supply side as the new instructions net balance outpaced buyer interest for the second consecutive month, says RICS (Royal Institution of Chartered Surveyors) latest UK Housing Market survey. New instruction and new buyer enquiries rebounded in February following a weather skewed dip in January with both net balances turning positive. For the second consecutive month the new instructions net balance outpaced the new buyer enquiries net balance - the first sustained shift towards supply for two years. 7% more chartered surveyors reported a rise than fall in new buyer enquiries compared with the previous month up from a negative reading of 20% while a net balance of 15% of surveyors saw a rise in new instructions which compares with a negative balance of 5% in January. 17% more Chartered Surveyors reported a rise than a fall in house prices down from 31% in January. Surveyors in the regions are still reporting house price gains in most areas but the net balances are a little less positive than they were. However, surveyors in the North, Yorkshire and Humberside, Wales and the West Midlands reported house price falls. The price expectations net balance also remained in positive territory but the latest reading is the lowest since July 2009. Meanwhile, the closely-watched sales to stock ratio is also beginning to edge lower which is consistent with the housing market becoming a little less tight. The newly agreed sales net balance fell for the second consecutive month but surveyors still expect sales to increase indicating that the recent drop in transactions is a reflection of recent adverse weather conditions. Read more RICS also this week release its election manifesto. Read more to top CML: January cheaper property sales hit by end of stamp duty holiday House purchase loans fell by more than three times the decline in remortgages in January, according to data released by the Council of Mortgage Lenders. This emphatically demonstrates the effect on the mortgage market from the end of the temporary stamp duty holiday in December. There were 49% fewer house purchase loans in January than in December but only 15% fewer remortgage loans. However, the 32,000 loans for house purchase, worth £4.7bn, were up from the low of 23,000 (worth £3.1bn) seen in January 2009. Conversely, the 24,000 loans for remortgage, worth £3bn, were down from 45,000 (£6.2bn) a year ago. This is the lowest monthly level of remortgage activity - both by number and value - in eight years of available data. First-time buyers recorded the largest drop among house purchasers, with a 54% drop (55% by value) from December to January, reflecting the fact that a high proportion would usually fall into the £125,000-£175,000 property value category and rushed through their purchase to complete in December. There were 11,300 first-time buyer loans, worth £1.3bn, in the month, down from 24,800 (£2.9bn) in December 2009, but still up from 8,600 (worth £900m) in January 2009. Following a 63% increase in the number of first-time buyer transactions for properties in the £125,000-175,000 band in December, the number of equivalent transactions fell by 80% in January – to account for just 19% of all first-time buyer loans, down from a record 42% in December. Compared to a year earlier, the number of first-time buyer loans in this category was down 22%. Commenting on the data, CML Director General Michael Coogan said: “It was a quiet start to the year. Lending volumes in January were low, but we had predicted this would happen due to the end of the stamp duty holiday distorting December’s figures. “When December and January data are taken together, they show little change in underlying market conditions compared with recent months, with activity still slow but well up on the lows of a year earlier. We expect lending over the coming months to remain weak as uncertainty over of the state of the economy and the upcoming election are likely to continue to hold back housing market activity.” Read more to top Haiti earthquake appeal Following the earthquake in Haiti, HBF launched an urgent appeal to the house building industry on behalf of its nominated charity Habitat for Humanity (HfH). The earthquake decimated the country's infrastructure and thus its ability to cope with the devastating impacts. It is a catastrophe of major proportions with early estimates suggesting that up to three million people have been killed, injured or made homeless. Habitat for Humanity has been present in Haiti, working with poor and low-income families in need of decent housing since 1981. It has a Disaster Risk Assessment Team on the ground, establishing a clear picture of the situation and providing specialist shelter provision and reconstruction assistance. Further information about this is available on their website http://www.habitatforhumanity.org.uk Whilst appreciating the difficult economic climate in which members are operating it only seems appropriate that our industry should support a charity that specialises in shelter provision, housing repair and reconstruction. How quickly we raise funds will directly affect Habitat for Humanity's ability to assist now, when their help really is needed. Please help by making a secure online donation today. http://www.habitatforhumanity.org.uk to top Events Housing Lecture 2010: Labour's Agenda Tuesday 23rd March 2010 The New Homes Marketing Board and the Centre for Social Justice are hosting an event in association with the Smith Institute that will look at Labour’s housing policy proposals. Speakers will include the NMHB chair David Pretty CBE; Rt. Hon. John Healey MP, Housing Minister. It will be chaired by Paul Hackett, Director, The Smith Institute. The event will run from 1800-1930 and be followed by a drinks reception Limited spaces available, to request a space please email housinglecturead@smith-institute.org.uk to top HBF: Event diary dates HBF has announced the return of three of its most popular social events for this year. The economic climate dictated that the HBF Ball, its North West Social dinner and its golf day have not taken place for the past two years, but member demand sees them return for 2010. Please make a note of the dates for your diary and click on the event to download the booking form: http://www.hbf.co.uk/fileadmin/documents/events/GolfBookingForm10.pdf" target="_blank">HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course http://www.hbf.co.uk/fileadmin/documents/events/NWBookingForm2010.pdf" target="_blank">HBF North West Social Dinner – Friday 10th September 2010 – The Midland Hotel, Manchester http://www.hbf.co.uk/fileadmin/documents/events/HBFBALL10-BF.pdf" target="_blank">HBF Ball – Friday 10th December 2010 – Marriott Grosvenor Square, London to top HBF AGM & lunch Wednesday 28th April – the Hyatt Regency Hotel – the Churchill Annual lunch speakers announced; Raynsford and Gummer HBF has announced that the speakers at this year’s Annual Lunch will be Labour MP and ex-housing minister Nick Raynsford and Conservative MP and ex secretary of state for the Environment John Gummer. The HBF AGM & Annual Industry Lunch will take place on Wednesday 28th April at the Hyatt Regency Hotel, London. The day will begin with the AGM and Open Council meeting and be followed a drinks reception and the annual lunch. If you have any queries about any of the above please contact the events team on 020 7960 1646 and mailto:events@house-builder.co.uk" target="_blank">events@house-builder.co.uk http://www.hbf.co.uk/fileadmin/documents/events/AGMBookingForm10.pdf" target="_blank">Please click here to download a booking form to top Habitat for Humanity's Hope Challenge 11-13th June 2010 Habitat for Humanity, HBF's nominated charity will again be holding its Hope Challenge event in 2010. This unique and exciting outdoor challenge event will see teams; Spending two days and two nights in the great outdoors Sleeping in a self built shelter Undertaking mental and physical team challenges Last year's Hope Challenge was a huge success and had the competitors trekking around the Edale and Hope Valleys, with a base camp in the sheltered Vale of Edale. In 2010 HforH are planning a larger and more exciting event with walking routes encompassing the surrounding hills including the Skyline Ridge over Mam Tor and the lower reaches of Kinder Scout. However this is no ordinary weekend of walking! Participating teams will also be tested on their initiative and teamwork... and by building, and sleeping out in, their very own shelter they will experience some of the challenges faced by those who live in poverty housing. Think you can rise to the challenge? Want to join HforH in Hope Challenge 2010? http://www.habitatforhumanity.org.uk/hopeinfo.htm" target="_blank">Find out more about Hope Challenge 2010 http://www.habitatforhumanity.org.uk/hoperegister.htm" target="_blank">Register your team for Hope Challenge 2010. http://www.habitatforhumanity.org.uk/hopephotos.htm" target="_blank">Take a look at the photos and video of Hope Challenge 2009. http://www.habitatforhumanity.org.uk/hopecontact.htm" target="_blank">Contact HfH with any questions about Hope Challenge. to top For other HBF events visit the website
