Friday, 14 November 2008 Top stories this week Half of borrowers avoid stamp duty in September.....read more RICS: sales hit a new low but expectations of a recovery increase....read moreHousing and Planning Delivery Grant.....read more HBF meets housing minister Margaret Beckett.....read more Quick Links Housing market news Government and political news Economic news Industry news HBF News Events Housing market news Half of borrowers avoid stamp duty in September The temporary increase in the stamp duty threshold saw 51% of homebuyers avoiding stamp duty in September, compared with 22% in September last year. However, the number of house purchase loans was 57% lower than September 2007, according to new data from the Council of Mortgage Lenders. There were 35,000 loans for house purchase worth £5 billion in September, down 15% in volume and 15% in value from August, and less than half September 2007 levels. First-time buyers in September borrowed an average of £104,500, down from £108,000 in August. The first-timer average amount borrowed has been steadily declining since peaking at £119,250 in July 2007. This has brought the average first-time buyer income multiple down to 3.18, its lowest level since March 2006. But first-time buyers have been continuing to have to put down larger deposits (16% in September) and fewer of them are entering the market - only 13,400 in September, down from 28,200 in September 2007. CML Director General, Michael Coogan, said: "While house purchase activity has reached exceptionally low levels, it is encouraging to see transaction costs lowered for a larger proportion of borrowers. The government should consider what other measures can be brought forward to enable the market to transact more easily. "Banks and building societies do want to support homeowners, but they have limited funds available and are, quite reasonably, taking a prudent approach to risk. If the pricing and volume of interbank lending continues to improve, this should help the flow of mortgage lending." Read more to top CLG UK house price index The latest UK house price index statistics produced by Communities and Local Government were released on Tuesday 11 November 2008. The latest statistics release includes data based on mortgage completions during the month of September 2008. The key points from the release are: UK house prices were 5.1% lower than in September 2007 The mix-adjusted average house price in the UK stood at £208,583 in September 2008 (not seasonally adjusted) UK house prices fell by 3.0% in the quarter ending September 2008. This compares with a fall of 1.0% for the quarter ending June 2008 Annual average house prices fell in England (-5.1%), Wales (-5.2%), Scotland (-0.8%) and Northern Ireland (-15.8%) Annual average house prices paid by first time buyers in September 2008 were 7.8% lower than a year ago. By comparison average house prices paid by former owner occupiers were 4.0% lower. Download a copy of the UK house price index RICS: sales hit a new low but expectations of a recovery increase The average number of transactions per surveyor fell again in October as a lack of mortgage finance continued to stifle the ability of buyers to access the market, but expectations that sales will improve (over the next three months) increased, says RICS' UK housing market survey published this week. The survey shows that the balance of surveyors reporting house price falls fell back slightly in October with 81.8% more Chartered Surveyors indicating a fall than rise in house prices, a decrease from 84.5% in September. Meanwhile transactions have fallen even further in October as lenders continue to keep a tight grip on finance. The average number of transactions per agency (over the last three months) was 10.9, a drop from 11.5 in September, and the lowest figure since the survey began in 1978. However, surveyors were increasingly optimistic that business will pick up. A positive net balance of 20% of Chartered Surveyors expected an upturn in sales over the next three months, a rise from 4% in September. Optimism was even more pronounced in London with 37% more Chartered Surveyors expecting a rise in sales, up from a negative net balance of -2 in September, while the South West recorded optimism as high as 47%. Commenting, RICS spokesperson Ian Perry said: "Last week's interest rate cut should certainly help to support the market now that lenders have agreed to pass on the reduction to borrowers. Even so the general lack of mortgage finance remains a major blockage in the housing market for a large majority of would-be buyers. Fortunately, many vendors have finally started to accept current market conditions and are dropping their asking prices to achieve a sale. Sales should increase in the coming months as more and more sellers understand that greater realism is the only way to make that long desired move." Read more Download a copy of the RICS housing market survey to top Government and political news Housing and Planning Delivery Grant Housing Minister Margaret Beckett announced the final allocations of the first round of £101m of Housing Planning Delivery Grant (HPDG) for 2008-09 this week. In a written ministerial statement Mrs Beckett said: "HPDG was established in 2007 to reward local authorities for improved delivery of housing and other planning outcomes as part of their strategic, place shaping role and to provide more support to communities and local councils who are actively seeking to deliver new homes. The grant replaces Planning Delivery Grant which has been paid since 2002-03. The housing element of the grant was developed following concerns from Local Authorities that housing growth was inadequately recognised by the local government finance system. HPDG is designed to strengthen the incentive for local authorities to respond to local housing pressures by returning the benefits of growth to communities and to incentivise efficient and effective planning procedures." Read more to top Chancellor announces date for pre-Budget report It was confirmed this week by the Government that the pre-Budget Report will be delivered by the Chancellor on Monday 24th November at 3:30pm. Alistair Darling announced the date of the eagerly-anticipated mini-Budget in a statement to the House of Commons. It is expected to feature an update on the Government's fiscal rules and tax initiatives to help the economy out of the downturn. The HBF is calling on the Government to take significant steps to assist the housing market. Read more Conservatives propose tax cuts for new jobs David Cameron has unveiled Conservative plans which propose giving tax cuts to employers who hire new workers, in a move that he believes would create an estimated 350,000 new jobs over a year. Under the proposals tax cuts worth £2,500 per person, per year would be given to employers who hire new workers who have been unemployed for three months or more. £2.6bn of tax breaks would be given to employers in total - and this would be paid for by using the money saved on welfare payments. Read more MPs back regional select committees The Commons has approved plans to create new regional select committees for England, although the chairmen will not be paid. After a bitterly fought debate in the House on Wednesday MPs backed the plan to create eight new grand committees for the English regions by 254 votes to 220. The bodies will seek to scrutinise the work of the Government's regional ministers, as well as regional development agencies and strategic health authorities. But opponents have criticised the fact that they will have Government majorities even in areas where the Labour Party does not have the most MPs and that in some cases members will not be from the relevant region. Housing supply debate There was a Westminster Hall debate on housing supply in the current economic situation led by Clive Betts (Labour, Sheffield Attercliffe). Click here for the full transcript to top Economic news NAEA: "Chancellor must suspend stamp duty" The National Association of Estate Agents (NAEA) has called on the Government to use its Pre Budget Report to help thousands of young people currently priced out of the housing market. Chris Wood, President-elect of the NAEA, said: "The Chancellor must realise that the housing market is not a piggy bank for his personal use - the gravy train is over and stamp duty cannot be used irresponsibly to boost his coffers. "The bill for first time buyers has more than doubled in the last five years, making it impossible for many young people to start their own home. As it stands, stamp duty is a tax on aspiration - disappointing during an economic boom but unforgiveable in a faltering economy. "We now call on the Government to suspend stamp duty and hold a full review into making the system work better for the consumer. That is a discussion at which NAEA would be very happy to sit at the table." Read more to top Industry news East Midlands regional housing strategy endorsed A blueprint to guide Government investment in local housing has been approved by the East Midlands Regional Assembly (EMRA). EMRA's housing strategy aims to ensure there are enough suitable and affordable homes to meet a predicted rise in the number of households, from 1.7m to 2.1m by 2016. Read more CABE to train and accredit housing design assessors in every local authority CABE announced this week that a nationwide network of 500 accredited assessors is being set up to enable new housing schemes to be evaluated against the Building for Life criteria. CABE will train at least one individual in every local authority in England to be able to use Building for Life as an assessment tool. Dominic Church at CABE commented: "... [Building for Life] is the best tool we have available to achieve a consensus between developers and planners about the design and layout of each site. And accredited assessors in every local authority will help create much greater transparency for developers." HBF is monitoring and discussing developments in this area with both CABE and CLG officials. Read more to top HBF news HBF meets Margaret Beckett Stewart Baseley, John Stewart and John Slaughter met the new Housing Minister, Margaret Beckett this week for a first full bilateral discussion. The meeting concentrated on the current market slowdown. HBF set out the origin and development of the current problems and stressed the need to restore a more normal availability of mortgage finance. While welcoming the Government measures taken to date HBF pointed out that more extensive assistance to support the market was required. It was agreed to hold early discussions to look at possible further action on stock purchase and the scope for other means of helping the industry to maintain activity. We will of course keep members informed of progress in these discussions. to top Events HBF Policy Conference Tuesday 17 March 2009, Central London The HBF Policy Conference will look at the current challenges facing the industry. A full list of speakers and further details will follow shortly. If you have any questions then please contact the events team on 020 7960 1646 or events@hbmedia.co.uk Hope Challenge: 12 - 14 June 2009, Peak District HBF'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 work We 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 For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetings For HBM events visit http://www.hbmedia.co.uk/ to top Rosie Hinchliffe View Previous Weekly News Summary
