Friday, 16th October 2009 Top stories this week HMI Conference exposes major housing policy differences.....read more HCA: Second wave of Kickstart funding announced.....read more Mayor of London publishes revised London Plan.....read more RICS house price index: More new instructions not enough to quell rising prices.....read more CML: Goals must be clear for regulatory reform.....read more Quick LinksHBF news Industry news Housing market news Government and political news Economic news Events HBF News HMI Conference exposes major housing policy differences This year’s HBF Housing Market Intelligence Conference took place on Tuesday, attracting 200 senior house building industry delegates and a range of top speakers. Both Housing Minister John Healey and Shadow Housing Minister Grant Shapps gave robust defences of their party’s policies on house building. There were also presentations from Homes and Communities Agency CEO Sir Bob Kerslake, HBF Executive Chairman Stewart Baseley and Michael Coogan, Director General of the Council of Mortgage Lenders amongst others. In their speeches, both Shapps and Healey said that their respective parties would increase house building if they were elected next year, but by very different routes - indicating major policy differences in the run up to the next election. Healey reiterated the Government’s commitment to supporting the industry and unveiled the next Kickstart funding allocation - for details see below. Shapps championed the Conservative’s policy of ‘localism’ - the devolving of decisions on development down to local communities. He detailed how his party would fix the ‘broken’ planning system to facilitate more house building, and incentivise local communities to support development such that developers would be ‘paraded through the streets’ for delivering new homes. Stewart Baseley urged the Government not to withdraw the financial assistance given to support house building and to use the forthcoming Pre-Budget Report to ‘underpin’ the recent market stabilisation. Baseley said: “If I have one big message for Government today, it is a plea not to withdraw incentives, as I fear to do so would potentially slow the market just as it is beginning to show signs of recovery. We need to see an extension of the stamp duty holiday and Homebuy Direct and Kickstart schemes as well as assistance for first time buyers.” He then warned that the Conservative’s switch towards localism was a ‘high risk strategy’ at the end of the worst recession in living memory, and that central Government could not simply ‘abdicate responsibility for the country’s housing need any more than it can for schools and hospitals’. Baseley detailed a set of ground rules and controls that must be put in place to enable localism to work and ensure much needed housing supply was maintained and the country’s innate ‘NIMBYism’ is overcome. “It is impossible to conceive that any Government would risk an undersupply of beds or classrooms. It has to know that for a population of some 60 million there is a need for so many schools or hospitals. Housing to me is no different. It is a basic human requirement.” Please click here for a full copy of all the speeches and presentations The 2009 Housing Market Intelligence Report, the house building industry’s leading annual information publication, was launched at the conference and contains 150 pages of industry information and analysis. Please click here to purchase a copy to top Industry news HCA: Second wave of Kickstart funding announced Another £51m has been released by the Homes and Communities Agency (HCA) in the second wave of schemes to be unlocked through round one of the Kickstart Programme. The announcement was made by the Housing Minister, John Healey at this week’s Housing Market Intelligence conference, and revealed that a further 2000 new homes will be built on sites that had previously stalled due to the economic downturn. This second wave of funding will allow work to continue at 27 housing schemes across the country and is in addition to the £10.2m Kickstart money awarded by the HCA in September. This brings the total number of homes released through Kickstart to 2750 across 37 schemes with an investment of over £60m. Sir Bob Kerslake, Chief Executive of the HCA said: “This latest Kickstart money combined with funding through our standard affordable housing programme puts us in an ever stronger position for delivery of much needed new homes. “As a result thousands more people will have a new quality home at a rent they can afford, or will be helped to take the first steps into home ownership.” Also announced by the Housing Minister was an update on the HCA’s National Affordable Housing Programme, revealing that in September, almost £400m was allocated to deliver around 6,000 affordable homes across the country. This includes £32m in the South West, over £13m in the North West and funding for more than two thousand new affordable homes in London. The Public Land Initiative (PLI), established as part of the Prime Minister’s Housing Pledge, was also mentioned in the speech by the Housing Minister. Set up in June to build 1,250 new homes, including around 500 affordable homes, on a small number of sites owned by the HCA, PLI will see the first home builders on site by April next year and the first 50 homes completed by 2010/2011. Read more to top Mayor of London publishes revised London Plan Mayor of London Boris Johnson has published his revised London Plan along with two related strategy documents. The London Plan is the overall strategic development plan for the capital over the years to 2031. Alongside this Johnson has published the draft Mayor’s Transport Strategy which sets out the Mayor’s vision for transport in London over the next 20 years and the Economic Development Strategy which sets out his plans for the economic development of the capital. According to Johnson the new Plan "puts more emphasis being given to quality and space, and with percentage targets for affordable housing scrapped in favour of numerical targets being agreed with every borough.” HBF is convening a working group to discuss its response to the London plan consultation. Members should contact James Stevens at james.stevens@hbf.co.uk if they would like to participate in the discussion. Read more to top East of England Plan to 2031 The East of England Regional Assembly has published for consultation its scenarios for housing and economic growth for the plan period 2011-2031. The consultation proposes deferring any increase in the regional housing targets, to take account of the CLG 2006-based household projections, until after 2021. The reason cited by the Assembly is to avoid de-stabilising Local Development Framework preparation. The HBF has convened a working group of members to discuss its response to both the housing projections and the spatial options for distribution. Members should contact James Stevens at james.stevens@hbf.co.uk if they would like to participate in the discussion. The consultation ends at 5pm on 24th November 2009. to top Coalition calls for 'new vision' for rural communities A new coalition of organisations covering the social, economic and environmental needs of rural areas has called for a 'new vision' for rural communities. Six organisations: Action with Communities in Rural England, Campaign to Protect Rural England, Country Land and Business Association, Local Government Association Group, Royal Town Planning Institute and Town and Country Planning Association have launched the Rural Coalition "to campaign for reforms to create a strong, confident and sustainable countryside." A coalition prospectus published this week states: "For 50 years or more, policy has undervalued the countryside and failed to meet the needs of rural communities – and therefore of the nation. In hindsight, the result is starkly apparent. Rural communities have slowly but relentlessly become less and less sustainable and less and less self-sufficient. "On its current course, with no change of policy and no commitment to action, much of the countryside is becoming part dormitory, part theme park and part retirement home. Only if people in rural communities have ready access to local schools, local jobs, local shops and pubs and homes will they and their children thrive, and will the nation meet its environmental and economic needs” Read more to top Meeting Carbon Budgets - the need for a step change Progress report to Parliament “Meeting Carbon Budgets - the need for a step change” is the Committee on Climate Change's first annual report to Parliament on progress towards meeting the country's targets for reducing greenhouse gas emissions under the Climate Change Act. It assesses the progress that has been made by Government so far in reducing emissions and the implications of the recession and 'credit crunch' for meeting carbon budgets. The report sets out the emission reduction indicators that will be used to judge progress and provides a detailed analysis of the policies required to reduce emissions of greenhouse gases from electricity generation, from buildings and industry, heat and transport in the years up to the end of the third carbon budget period in 2022. The report calls for efforts to galvanise action to reduce emissions from the existing building stock and for a review of the regulatory and market arrangements for the power sector which it does not believe are currently sufficient to drive the pace and scale of change necessary to decarbonise the grid. Read more to top Brussels to propose mandatory EU energy savings goal The European Commission plans to impose binding energy-efficiency targets on EU member states, according to a draft of the EU's revised Energy Efficiency Action Plan obtained by EurActiv. Entitled 'Seven Measures for Two Million New EU Jobs', the draft seeks to simplify the 2006 Action Plan for Energy Efficiency by concentrating on a few effective measures. It acknowledges that the EU is set to fall short of its 2020 target to slash energy consumption by 20%, instead achieving only 11% by the deadline. The most controversial initiative in the draft is a plan to introduce mandatory energy-saving obligations on member states "in line" with the EU's aspirational goal of using 20% less energy in 2020. The paper suggests that the targets could be either sector-specific, potentially limited to buildings, or cover all aspects of the economy. However, the Commission stops short of specifying whether the EU should set an absolute cap on each member state's emissions by 2020 or whether the savings would be in relation to their projected energy consumption. The final shape of the plan will emerge after an impact assessment has explored these options, as well as the likely need for burden-sharing measures between member states. Read more to top Campbell Robb appointed Shelter Chief Executive Campbell Robb has been appointed Shelter’s new Chief Executive. He takes up his appointment on 1st January 2010. Campbell is currently the Director General of the Office of the Third Sector (OTS) in the Cabinet Office. Read more to top Housing market news RICS house price index: More new instructions not enough to quell rising prices According to the latest RICS house price index, the new instructions net balance remained in positive territory but slipped back compared to August. Other key findings included: New buyer enquiries continued to grow strongly. Sales expectations and price expectations also improved, although the former at a slower pace than in August; The net price balance was positive for the second consecutive month and markedly higher than in August; The seasonally adjusted net balance of surveyors reporting rising rather than falling prices over the last three months jumped to 22% in September (from 10% in August). That was the second consecutive positive reading and the highest net balance since May 2007; New demand continued to outpace the supply of property onto the market. The net balance of surveyors reporting an increase rather than a decrease in new buyer enquiries dropped to 36 in September from 47 in August. The new buyer enquiries balance hit a recent high of 66 in June so the pace of new demand growth has eased since then. But the September reading was still one of the highest in the survey's history; The net balance of surveyors reporting an increase in new instructions slipped back to 4% in September, from 12% in August. The stock of unsold property on surveyors’ books remained unchanged at 64; More activity from both buyers and sellers meant that sales activity continued to improve. The agreed sales net balance was virtually unchanged at 32 in September. However, the actual number of sales per surveyor over the last three months nudged up to 18, the highest reading since March 2008. Read more to top CML: Two speed mortgage market in August The mortgage market is on two speed settings, as house purchase lending continues to recover but remortgaging continues to decline, according to the latest data released by the Council of Mortgage Lenders. The number of house purchase loans in August (53,000) is down 5% from July but 29% higher than August a year ago. And whilst this is still significantly lower than the August average in the seven years before the credit crisis of 100,000 loans, it is more than twice the level of activity at the start of the year. There were 19,200 loans to first-time buyers and 33,400 loans to home movers. House purchase activity, worth £7.2bn in August, accounted for its largest share of total mortgage activity since 2002. At £12.3bn, gross mortgage lending - which encapsulates all mortgage lending activity including house purchase, remortgage, and buy-to-let lending - declined 36% from August 2008. Remortgaging activity continued to fall away due to the extremely low interest rate environment and restrictive lending criteria for the most attractive deals. There were 32,000 remortgage loans advanced in August, a 22% decrease on July, and a 57% decrease on August last year Read more to top CLG: House Price Index - August 2009 The latest UK house price index statistics produced by Communities and Local Government were released this week. The latest statistics release includes data based on mortgage completions during the month of August 2009. The key points from the release are: UK house prices were 5.6% lower than in August 2008 but 0.5% higher than in July 2009 (seasonally adjusted); The mix-adjusted average house price in the UK stood at £196,510 in August 2009 (not seasonally adjusted); UK house prices rose by 2.6% in the quarter ending August 2009. This compares with a fall of 1.7% for the quarter ending May 2009 (seasonally adjusted); Annual average house prices fell in England (-5.9%), Wales (-3.2%), Scotland (-0.8%) and Northern Ireland (-11.5%); Annual average house prices paid by first time buyers in August 2009 were 6.6% lower than a year ago. By comparison average house prices paid by former owner occupiers were 5.3% lower; Annual average house prices paid for new properties in August 2009 were 9.9% lower than a year ago. By comparison average house prices paid on pre-owned dwellings were 5.3% lower. Read more to top Government and political news Government publishes its Forward Regulatory Programme The Government has published its Forward Regulatory Programme as a key component of a series of reforms that it is introducing to strengthen the management of regulation. The aim is to bring a new openness and clarity to the regulatory process and enable decisions on new regulations to be taken in the context of the cumulative burden of the Government’s regulatory programme on business and the wider economy. Business Minister Ian Lucas said: “The Government is delivering its ambitious agenda to change the way Government regulates. This new package builds on the benefits delivered to date by tackling the immediate concerns of business in the current economic situation, and sets out a new commitment to cut ongoing costs over the longer term. “The cost of regulation is a serious concern to business. That is why we have looked at the timing of measures to give real help to businesses now, taking out immediate costs over the next 18 months. And our new forward looking programme of regulation shows how we are delivering more than £40bn in benefits to the economy, outstripping costs by more than four times over, before May 2011.” Ian Lucas also announced the appointment of Michael Gibbons as the first chair of the new independent scrutiny body, the Regulatory Policy Committee. The Committee will help ensure Government proposals are challenged and underpinned by robust evidence and analysis and that benefits justify the costs. He said: “We are committed to introducing no more regulation than is necessary and making sure the benefits outweigh the costs. To strengthen the accountability of the government’s regulatory programme, I am pleased that Michael Gibbons will lead the new, independent scrutiny body that will make sure government provides robust reasoning and analysis for its future regulatory programme.” Read more to top Economic news CML: Goals must be clear for regulatory reform In publishing its submission to the Financial Services Authority (FSA) on the future of mortgage regulation, the CML said that lenders recognise the need for change emerging from the FSA's ongoing review. But it also warns that, with the mortgage market still not functioning normally, there is a heightened risk that intervention could deliver the wrong outcome for consumers. With the FSA expected to publish its discussion paper later this month, the CML said that proposals for regulatory reform must focus on areas where evidence of consumer detriment have been clearly identified. The CML's submission points out that some former concerns about the mortgage market have already been addressed by the way in which firms have responded to changed market conditions. It therefore argues that there is no need for urgent intervention by the FSA to complete its review, change the mortgage rules or implement broader regulatory reform. The CML points out that the European Commission's ongoing review of responsible lending and borrowing is another reason for caution. It is crucial - for consumers, as well as firms - that proposals in the UK and Europe are complementary, not conflicting. The CML does believe, however, that one outcome of the review should be a widening of the FSA's remit to include secured second charges alongside first charge mortgages, which would benefit both consumers and firms. But it argues that the FSA's primary goal at this stage should be the introduction of more effective supervision of the rules and firms it already has in place. On the regulation of buy-to-let, the CML acknowledges that views among lenders are mixed. But it points out that the unregulated buy-to-let market has already delivered significant benefits for most landlords and tenants. As in the mainstream market, proposals for change in the regulation of buy-to-let lending must seek to address clearly identified consumer detriment. Read more to top Events Housebuilding Innovation Awards 2009. Just 3 weeks left to book - and limited spaces available. Housebuilder Media is delighted to announce that Gyles Brandreth, broadcaster, journalist and ex MP, will be presenting at the Housebuilding Innovation Awards on Thursday 5th November 2009. The shortlist for the Awards reveals a range of examples of the outstanding innovative achievements the industry has made in the past year. Click here for full details The Awards, which are supported by the Government, have become among the most sought after in the industry as they recognise excellence in innovation in all aspects of the house building business. The culmination of the Awards is the announcement of the house building firms deemed to be the overall Innovators of the Year –previous winners have included Redrow, Barratt, Explore Living and Midas. The winners will be announced at a glittering black tie awards ceremony on Thursday 5th November at the Millennium London Mayfair Hotel. For further information or a booking form please contact the events team on 020 7960 1646 or visit www.house-builder.co.uk to top HBF Annual Technical Conference 2009 – The TechnoCentre, Coventry The Building Regulatory Agenda – from here to 2016 Wednesday 18th November 2009 The conference aims to look at the forthcoming amendments to the Building Regulations, addressing CLG’s policy overview and in particular concentrating on the recent Parts F & L consultation. Expert speakers from CLG, BRAC, NHER, Zero Carbon Hub and BRE will be there to answer your questions on all building regulation issues. For further information please visit www.house-builder.co.uk or contact the events team on 020 7960 1646 to top WHAT HOUSE? Awards 2009 – gala presentation luncheon Tickets and tables are now available for the 2009 What House? Awards, taking place at London's Grosvenor House Hotel on Friday 20th November. The event is one of the highlights of the house building calendar, as the industry meets to salute the best new homes in Britain. To book your seats for this prestigious event please email Derek Smith. Or download a booking form at www.whathouse.co.uk/awards. to top For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetingsFor HBM events visit http://www.hbmedia.co.uk/ to top Rosie Hinchliffe/Steve Turner View Previous Weekly News Summary
