Friday, 17th April 2009 Top stories this week HCA delivers despite downturn...read more CLG: House Price Index - February 2009...read more RICS: Housing market survey March 2009...read more ‘New Homes Week 2009' announced...read more Housebuilding innovation awards launched...read more Quick Links Industry news Housing market news Economic news Government and political news Events Industry news HCA delivers despite downturn The HCA delivered some 50,000 new affordable homes across England and hit its target to invest £3.9bn on its national housing and regeneration programme in 2008/09. Despite the downturn the agency has been able to increase the number of completed rental and low cost home ownership (LCHO) properties as well as the number of rental starts compared with last financial year. The preliminary end of year results outlined this week showed that the agency exceeded several of its output targets, including completion of rental properties, reclamation of brownfield land and creation of employment floor space. HCA Chief Executive Sir Bob Kerslake said that the results were a massive achievement given market conditions and the creation of the new agency: “This is a tremendous result in terms of delivery and spend. We are very grateful to all our partners, RSLs, local authorities and house builders, in particular, for the part they have played in achieving this. Our ability to act flexibly and tailor make solutions with our partners has allowed us to unlock the full potential of our budget, benefiting both the industry and communities. These results give us confidence in our ability to deliver in the next financial year despite the market.” Read more to top HCA poll – mounting industry concern A second poll released today by the HCA Academy, the skills and expertise arm of the Homes and Communities Agency, has found a significant increase in the number of housing and regeneration professionals admitting to mounting concern about the recession. Read more to top Government seal of approval for RICS Code of Practice RICS Code of Practice for Service Charge Management published 6th April 2009 has received Government approval from Iain Wright MP, Communities and Local Government minister. “I am pleased to be able to approve the new RICS Service Charge Residential Management Code...This code will be an effective tool in driving up management standards in the leasehold property sector, and is part of the overall action we are taking with industry to improve service and information for consumers in the home buying and selling process.” The code of practice, first published in 1997, has been updated to incorporate the provisions of the Commonhold and Leasehold Reform Act 2002 (where implemented). It will apply to all leasehold properties where a service charge is payable, and the landlord is not a public sector authority or Registered Social Landlord (RSL). This Code promotes good practice in management of residential leasehold property, and provides a basis for determining how management should be undertaken including legislative requirements and good practice. Read more to top Housing market news CLG: House Price Index - February 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 February 2009. The key points from the release are: UK house prices were 12.3% lower than in February 2008; The mix-adjusted average house price in the UK stood at £189,813 in February 2009 (not seasonally adjusted); UK house prices fell by 4.8% in the quarter ending February 2009. This compares with a fall of 4.3% for the quarter ending November 2008; Annual average house prices fell in England (-12.4%), Wales (-12.5%), Scotland (-8.6%) and Northern Ireland (-19.4%); Annual average house prices paid by first time buyers in February 2009 were 15.1% lower than a year ago. By comparison average house prices paid by former owner occupiers were 11.2% lower. Read more to top CML: “House purchase lending edges up, remortgaging declines, but spring has not sprung yet” The number of house purchase loans ticked up in February, according to new data from the Council of Mortgage Lenders. There were 24,300 house purchase loans worth £3.1bn, compared with 23,400 loans worth £3.1bn in January - a 4% increase. But historically activity remains very weak, running at around one-third of the average February total of 76,000 loans for house purchase between 2002 and 2007. Remortgaging declined steeply with 35,000 remortgage loans, down from 44,000 in January- a 20% decline. CML expected demand for remortgaging to remain muted as lenders' standard variable rates are attractive compared to new mortgage pricing, and house price falls continue to erode equity levels which will exclude some borrowers from the best remortgaging deals available to those with large deposits. There were 9,400 loans to first-time buyers - a 7% monthly increase -but significantly less than the 17,400 in February 2008. The tight lending criteria remained a barrier to most first-time buyers. First-time buyers typically had a deposit of 25% in February, a new record. First-time buyers typically borrowed 2.95 times their income, down from three times in January. The average first-time buyer loan was £95,000, down from £97,000 in January and £114,000 in February last year. This decline reflects the change in house prices over the same period and the growth in the size of first-time buyer deposits. Lower income multiples and mortgage rates have made affordability considerably easier for those able to get a mortgage. Interest payments consumed 15.4% of the average first-time buyer’s income in February, down from 20.1% in February 2008 and the lowest proportion since June 2004. Read more to top RICS: Housing market survey March 2009 Key points from the RICS’ housing market survey released this week include: New buyer enquiries rose for the fifth consecutive month leading to an increase in both newly agreed sales and sales expectations; The sales to stock ratio edged upwards for the third successive month to stand at its best level since August 2008; New instructions continued to decline resulting in inventory on estate agents books dropping to the lowest level since September 2007; The seasonally adjusted net balance of surveyors reporting falling rather than rising prices recorded a modest improvement in March but at 73.1, it remained deeply in negative territory. The latest reading was, however, the best outcome since February 2008; Significantly, the tentative signs of a pick-up in activity have become more broadly based over the past month. New buyer enquiries have now increased for five consecutive months with the positive net balance in March climbing to its best level since September 2003; There was clear evidence that the higher level of buyer interest was feeding through into actual sales. Newly agreed sales, measured on a net balance basis, rose over the month as did the average sales per surveyor series (for the first time since the tail end of 2007); The number of new instructions of residential property continued to decline albeit relatively modestly in March. This relentless fall in homes coming to the market (which dates back two years) is now becoming very visible in the diminishing stock of unsold property. Read more to top Economic news Bank of England maintains Bank Rate at 0.5% and continues with £75bn asset purchase programme The Bank of England’s Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to continue with the programme, announced on 5th March, of asset purchases totalling £75bn financed by the issuance of central bank reserves. The Committee noted that since its previous meeting a total of just over £26bn of asset purchases had been made and that it would take a further two months to complete that programme. The minutes of the meeting will be published at 9.30am on Wednesday 22nd April. Read more to top Government and political news The All Party Urban Development Group has this week released a call for evidence for their current inquiry on ‘Regeneration and the recession: unlocking the money’ Read more; to top Events ‘New homes week 2009’ announced The New Homes Marketing Board this week announced that it is proposing to hold ‘New Homes Week 2009’ between 14th and 20th September. Like the previous New Homes Weeks in 2005 and 2006, which proved extremely successful, the objective of the week will be to promote the new homes market by highlighting the benefits of new build homes, which will hopefully result in increased visitor levels to sites and thus drive sales. It is imperative that the New Homes Marketing Board and the Home Builders Federation assist its members in every possible way to drive sales in such challenging trading conditions. Last year it was felt that the environment was just too turbulent to justify such a campaign, and whilst clearly a challenging environment remains, increased consumer interest dictates that every option should be explored to convert that interest in to reservations. The campaign will be driven predominantly through the local media, and the NHMB will be developing stories around set themes for each day of the week to generate public interest. As well as developing an overarching strategy, NHMB will be looking to link up with members on a local and regional level, and to support them to develop their own initiatives/ events throughout the week. In order that members are fully aware of the proposals it is requested that the relevant member of staff emails nhw2009@hbf.co.uk and further details will be sent out shortly. to top Zero Carbon, Part F and Part L - The cost and impact on housebuildersWednesday 20th May 2009 - Think Tank, BirminghamWith the consultations for Building Regulations Parts F & L and the zero carbon definition taking place this year, this conference will help housebuilders understand the impending changes and their cost and impact on the industry. It will also provide delegates with valuable and practical insight into the future of Building Regulations. This full day event will specifically examine zero carbon, Part F and Part L over three morning sessions. The afternoon session will concentrate on the introduction of the new SAP methodology later this year with real life examples and a software demo. The conference will also analyse the real cost of sustainable housebuilding, looking at delivering to code level 3 and 4 and higher level schemesTo book online please click here or for further information please contact the events team on 020 7960 1646 events@hbmedia.co.uk to top Hope 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 in the summer. Taylor Wimpey, Bovis and HBF are amongst the teams already registered for the Hope Challenge 2009, and they are looking for more house builders to enter an event that was born out of industry activity. It is a challenge event for teams of 3-6 people that 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 challengesThe Shelter Build challenge - sponsored by NHBC1000m of hill ascent and 20 miles of trekkingA balance of fitness, strategy and team workHFH is 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. If you would like to sponsor the HBF team please click hereClick here for more information and entry requirements to top Housebuilding innovation awards launched Entries are now invited from all parts of the industry for the prestigious Housebuilding Innovation Awards 2009. The awards, run by Housebuilder Magazine and HBF and in conjunction with the NHBC, have become recognised as the most coveted of the industry awards and are endorsed by Government. Entry is FREE and there are eight categories covering all aspects of the industry including sustainability, marketing, design, customer satisfaction and partnerships. The entry deadline is May 8. To download a copy of the entry form go to www.hbmedia.co.uk/hbm_awards.php 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 top Rosie Hinchliffe/Steve Turner View Previous Weekly News Summary
