Friday, 13 February 2008Top stories this weekHBF meet Shadow Chief Secretary and the Bank.....read more RICS UK housing market survey, January 2009.....read moreEd Miliband: "Be part of the great British refurb - to cut emissions and cut energy costs" .....read moreBank of England inflation report.....read moreQuick LinksHBF newsHousing market newsGovernment and political newsIndustry newsEconomic newsEventsHBF newsHBF meets Shadow Chief SecretaryHBF Executive Chairman Stewart Baseley, and Directors John Stewart and John Slaughter met Conservative Shadow Chief Secretary to the Treasury, Philip Hammond this week to discuss housing market issues. We set out the situation with regard to mortgage availability, and other significant factors affecting the residential property market at present. In a wide ranging discussion we explored possible means of supporting a sustainable recovery in activity in the light of the Conservatives' publicly stated wish to seek to avoid future asset bubbles, including in housing. We agreed to continue dialogue on this set of issues as the Conservatives look to further develop their housing policy.to topHBF meets CML and BankStewart Baseley and John Stewart met officials at the Bank of England to bring them up to date with recent trends in home building and the industry. HBF provides a continuous flow of information and comment to the Bank, but these periodic meetings with officials allow more detailed discussion of relevant key issues.HBF also accompanied a group of senior industry executives to a meeting with banks and building societies at the Council of Mortgage Lenders (CML). The discussion covered mortgage funding volumes and mortgage terms; the Government's proposal to offer a guarantee for mortgage-backed securities from April; progress with the CML Disclosure of Incentives Form and lender confidence in lending on new homes; new home valuations and the influence of lenders' instructions on valuers' new home valuations; and lender support for HomeBuy Direct. to topHousing market newsRICS UK housing market survey, January 2009The average number of transactions per surveyor changed little over the last three months despite buyer interest rising for the third successive month, according to RICS' UK housing market survey published this week.The average number of transactions per agency (over the last three months) was 9.9, a small drop from 10.0 in December, and the lowest figure since the survey began in 1978. The balance of surveyors reporting house price falls increased slightly in December with 76.3% more Chartered Surveyors indicating a fall than rise in house prices, compared to 73.9% the previous month. Significantly, interest in the market continued to pick up with 16% more Chartered Surveyors reporting a rise than a fall in new buyer enquiries. Expectations that sales will increase turned positive once again with a balance of 10% more Chartered Surveyors expecting sales to pick up in the coming months. Optimism is most visible in London and across the South of England with the balance of surveyors expecting sales to increase in London rising from 18% to 38%. In contrast Chartered Surveyors expected house prices to continue to decline in the near term.Commenting, RICS spokesperson Jeremy Leaf said:"The latest survey provides further evidence of the eagerness of buyers to try and pick up bargains. This interest has yet to translate into sales but transactions may pick up in the coming months if the government follows through on its recent announcement and introduces guarantees for the issuance of residential mortgage backed securities. The latest cut in interest rates may improve confidence for those on the margins, encouraging buyers looking for more attractive finance deals."Download a copy of RICS' housing market survey to topCML: Mortgage landscape reshaped in 2008New data from the Council of Mortgage Lenders graphically illustrates the sharp decline in mortgage lending activity over the past year. There were 516,000 house purchase loans in 2008, a decline of 49% from 2007 and the lowest level of activity since 1974. There were 32,000 house purchase loans in December, a decline of 5% from November and the lowest level since monthly records began in 2002. Remortgaging declined by 26% from November to 40,000 loans in December, as the combination of attractive reversion rates and more restrictive lending criteria meant that for many borrowers the best option was to stay with existing deals. The tightening in credit criteria, falling house prices, and the weakening economy have restricted the number of first-time buyers entering the market. In December, there were 12,100 loans to first-time buyers worth £1.4bn, the lowest levels since monthly records began in 2002. First-time buyers typically had a deposit of 22% in December, the highest proportion in 34 years of available data. The average first-time buyer borrowed 3.1 times their income and spent 17.1% of their income on interest payments. Tracker mortgage products increased in popularity in 2008 as official rates declined, accounting for 29% of new loans, compared with 16% in 2007. However, the majority of borrowers continued to prioritise certainty over monthly payments, as 58% of new loans were fixed-rate mortgages, albeit down from 73% in 2007. Over half of all home buyers (74% of first-time buyers and 44% of home movers) did not pay stamp duty in December. Without the temporary increase of the nil-rate threshold last September, only 40% of first-time buyers and 18% of home movers would have been exempt.Read more to topNAEA comment on CML figuresFollowing the release of the Council of Mortgage Lending's figures on mortgage lending in 2008, Peter Bolton King, Chief Executive of NAEA (NFOPP) said:"NAEA figures show that there is a huge demand for property from first time buyers, who are increasingly visiting estate agents, registering their interest and searching for property. These figures demonstrate that they are being frustrated at the final hurdle because lenders are not making mortgages available."First time buyers are crucial, not only to the housing market, but the entire economy. More must be done to help them."Read moreto top Government and political newsEd Miliband: "Be part of the great British refurb - to cut emissions and cut energy costs"The Secretary of State for Energy and Climate Change, Ed Miliband, Communities Secretary, Hazel Blears, and Housing Minister, Margaret Beckett, have launched a consultation on a long-term Heat and Energy Saving Strategy.The draft plan sets out the need to reduce all household carbon emissions to almost zero, in order for the UK to achieve its target of an 80% cut in emissions by 2050. Proposals in the plan include:Finance packages to install energy efficiency measures and low-carbon heat and power sources would be offered to householders. Repayment from part of the savings on energy bills would be linked to the property, rather than residents;Combined with guaranteed cash payments by way of a Renewable Heat Incentive and a Feed-in Tariff for small scale electricity generation, the payback for homeowners who switch to low-carbon technologies and save energy would start from day one;Options for improving the delivery of energy efficiency advice and measures, including establishing a central coordinating body funded by energy companies and working to Government-set targets;Rolling out low-cost home energy audits, developing a qualification for energy advisers, and establishing an accreditation scheme for installers.Mr Miliband said: "Energy efficiency and low-carbon energy are the fairest routes to curbing emissions, saving money for families, improving our energy security and insulating us from volatile fossil fuel prices."The ideas in the Strategy are likely to be relevant to the Government's proposal for a definition of zero carbon homes, which is currently out to consultation. HBF will be considering any links and interactions between the two sets of proposals and take these into account in its response to the zero carbon consultation.Read more Download a copy of the consultation to topCBI response to Government Heat and Energy Saving StrategyCommenting on the announcement of Government plans on energy efficiency, Neil Bentley, CBI Director of Business Environment, said: "A step-change in the way we consume energy in our homes is needed, and this is a positive step forward. However there is no more time to lose. Government and industry must work together urgently to take these ideas forward if we are to save a big enough slice of the £8.5 billion wasted in energy in the UK each year."Although there are huge potential energy savings to be made in households, we need to see an economy-wide strategy that also accounts for the hundreds of thousands of small and medium-sized companies across the UK who, like homeowners, need better incentives to overcome the upfront costs of installing energy efficient measures."Business has the potential to deliver massive savings as a provider of energy efficient solutions but we need to see clearer measures to kick-start the move towards a low-carbon recovery."Read more to top37,000 new affordable homes for LondonMayor of London, Boris Johnson announced this week that he has already identified which London boroughs will deliver three quarters of his affordable housing target.The Mayor has reached a provisional agreement with 14 London boroughs to deliver over 16,750 affordable homes. The remaining 19 boroughs have already identified a further 20,500 affordable homes, and the Mayor expects to conclude provisional agreements with these boroughs in the coming months to meet his pledge to deliver 50,000 affordable homes over three years.The Mayor is now exploring the potential for boroughs to have greater influence over, and responsibility for, the delivery of affordable housing in their local area. City Hall will shortly begin discussions with the 14 boroughs who have agreed provisional agreed targets over measures to give local communities more influence over housing in their area.Boris Johnson said:"I am delighted to report that, together with councils across London, we have already identified where 37,000 new affordable homes will be delivered, which is over three quarters of my ambitious affordable housing target. "This is extremely encouraging news for Londoners who are looking for their first step on the housing ladder and a much-needed boost for the construction industry during the current economic downturn."Read more to topOlympic legacy homes announcedThe Mayor of London, Boris Johnson, Communities Secretary Hazel Blears and Olympics Minister Tessa Jowell this week unveiled plans for the legacy of the Olympic Park after the 2012 Games. The plans, which begin public consultation earlier this week, set out proposals to build 10,000 new homes in addition to those in the Olympic Village. Read more to top10 Downing Street receives NHF's "Green Homes Now" petitionA petition calling for further carbon emission cuts in new build homes - signed by almost 200 housing associations managing over 1m affordable homes and with over 2m residents between them - was be delivered to 10 Downing Street.The petition, organised by the National Housing Federation, highlights concerns that private developers are not being asked to build to the same environmental standards as the social housing sector. From early 2008 housing associations have been cutting carbon emissions in all homes they build by 25% but private developers will not have to make the same cuts until 2010. They will then be on a slower timetable of carbon cuts than housing associations as builders move towards zero carbon housing from 2016.The National Housing Federation argues that this twin-track approach to eco-friendly homes is leading to 8m tonnes of carbon emissions and keeping the purchase cost of green products unnecessarily high.Read more to topIndustry news"Retrofit for the future": Competition to cut carbon emissions in social housingIn March the Technology Strategy Board is launching a new £10m competition ‘Retrofit for the future' to enable building and renovation companies to retrofit and refurbish social housing to make deep cuts in carbon emissions.The competition will look for at least 50 prototype whole dwelling solutions to improve the performance of the entire property, whether it's a 1930s semi or high rise flat. The Technology Strategy Board will be offering 100% funding to each proposal they accept, as well as space to develop the prototype.Read more to topEconomic newsBudget 2009Chancellor of the Exchequer: Rt Hon Alistair Darling MP has announced that he will make his Budget statement to the House of Commons on 22nd April 2009 at 12:30pm.to top Bank of England's Inflation ReportThe Bank's Inflation Report published this week stated that CPI inflation fell to 3.1% in December. In the central projection, CPI inflation falls well below the 2% target in the medium term, as the drag from a substantial margin of spare capacity in the economy more than outweighs the waning impact on import and consumer prices from the lower level of sterling. The near-term path of inflation will be uneven. This reflects two further factors: first, the marked fall in energy prices, which will drag down sharply on inflation during 2009; and, second, the direct impact of the temporary cut in VAT, which will pull down inflation during 2009 but briefly push it back towards the target in early 2010. The balance of risks around the central projection for inflation is judged by the Bank to be slightly on the downside.Mirroring the downturn in the world economy, the near-term outlook for UK activity has worsened. Credit conditions have tightened further, demand prospects have become more uncertain and sentiment has deteriorated. Businesses have responded by cutting output, running down inventories, scaling back investment plans and shedding labour.Consumer spending appears to have contracted sharply in 2008 Q4. Falling employment, lower financial wealth and tight credit conditions are likely to continue to bear down on consumers' expenditure in the near term. And households' desire to reduce indebtedness and increase savings will probably also weigh on consumption. In coming quarters, those factors are likely to more than offset the boost to households' spending power from past falls in commodity prices, the low level of Bank Rate and the temporary reduction in VAT.GDP is estimated to have fallen by 1.5% in 2008 Q4, a substantially larger decline than envisaged at the time of the Bank's November Inflation Report. Subsequent industrial production data suggest that even this estimate could be revised down. Evidence from business surveys and from the Bank's regional Agents point to a broadly similar contraction in the first quarter of 2009.Download a copy of the Inflation Report to topEventsHBF ‘Building towards a brighter future' conference - Shapps and Kerslake to speak.Tuesday 17th March 2009, Central LondonConservative shadow housing minister Grant Shapps heads a heavyweight list of speakers for this year's HBF Policy Conference that includes HCA chief executive Sir Bob Kerslake, CML director general Michael Coogan, housing expert John Callcutt, Zero Carbon Hub chief executive Neil Jefferson and, fresh from completing the Killian Pretty review David Pretty. Other speakers include economic experts Richard Donnell and Christopher Hill who will be joining HBF's John Stewart to further develop issues raised in a highly successful session at last year's Housing Market Intelligence conference.The conference will be chaired by HBF executive chairman Stewart Baseley and will look at a range of issues and challenges currently facing the industry. For more information and details of the full agenda please click here or contact the events team on 020 7960 1646 or events@hbmedia.co.uk to topHope Challenge: 12 - 14th June 2009, Peak DistrictHBF's nominated charity, Habitat for Humanity, which builds safe, decent homes for families living in poverty, is organising a fundraising event to take place next summer. Hope Challenge 2009 is a challenge event for teams of 3-6 people and will test your initiative, your teamwork and your fitness. And by sleeping in your very own shelter you will experience some of the challenges faced by those who live in poverty housing. The event involves:2 days and 2 nights in the great outdoors Mental and physical team challenges 1 overnight shelter to build, and sleep in 1000m of hill ascent and 20 miles of trekking A balance of fitness, strategy and team workWe are looking for teams of people who want to rise to the challenge of raising funds in support of the 2 billion people living in poverty housing around the world.Click here for more information and entry requirements. to topFor other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetingsFor HBM events visit http://www.hbmedia.co.uk/ to topRosie HinchliffeView Previous Weekly News Summary
