Top stories this week *CLG publish "Facing the housing challenge: Action today, innovation for tomorrow" *CML urges Treasury to adopt innovative funding solution *RICS: Activity at all time low but opportunists enter the market *HBF brief Yvette Cooper on housing market Top stories this weekCLG publish "Facing the housing challenge: Action today, innovation for tomorrow"....read moreCML urges Treasury to adopt innovative funding solution.....read moreRICS: Activity at all time low but opportunists enter the market.....read moreHBF brief Yvette Cooper on housing market.....read moreQuick LinksGovernment NewsEconomic NewsHousing Market NewsIndustry NewsHBF NewsEventsGovernment NewsCLG publish "Facing the housing challenge: Action today, innovation for tomorrow"The CLG document "Facing the housing challenge: Action today, innovation for tomorrow" published this week, reports on progress on last summer's Housing Green Paper and also sets out further measures to help alleviate the current challenges in the housing market. Housing Minister Caroline Flint commented:"The package being announced today will both help people facing difficulties right now, and lay the foundations to help meet the long term housing needs of the country."That means being ambitious, but also practical and realistic, acknowledging not only the difficulties faced by individuals and families, but for those who work in the house building industry."The measures include:A new scheme to support first-time buyers into affordable home ownership by renting first and buying laterThe first 4 local housing company pilot schemes - new partnerships between the public and private sector to provide homesNew proposals to deliver up to 75,000 homes in 20 more towns and cities designated as growth points, with £100 million of investment for the schools, hospitals and other facilities needed to support homesConfirmation that more Housing Corporation funding, beyond the £200 million already allocated to buy unsold stock from house builders for affordable homes, could be made availableProvisional allocation of £510 million in Housing and Planning Delivery Grant rising from £100 million in 2008-09 to £250 million in 2010-11New plans to work with local authorities and housing associations to examine proposals for mortgage rescue schemes and the wider role they could play in supporting home ownersRead more Download a copy of "Facing the housing challenge: Action today, innovation for tomorrow" to topReaction to Government measuresIn a statement reacting to Caroline Flint's announcement Stewart Baseley, executive chairman of the HBF, said:"Whilst welcoming any steps aimed at stimulating the housing market, [these] announcements are clearly not enough. We have been warning Government for months now of the implications for the wider economy of not taking steps to address the situation in the housing market and the consequences of a lack of wide scale action are now becoming clear. We need coordinated and comprehensive action on three fronts - to encourage mortgage lenders to start lending again (measures such as those announced by CML); tangible measures to assist beleaguered first time buyers who have all but disappeared from the market, such as a stamp duty holiday / mortgage interest relief / and a Government backed savings scheme; and to see interest rates trending down - including the rates passed on to borrowers." Read more Shelter's chief executive Adam Sampson, also raised concerns regarding the Government's proposals:"This package of measures shows the Government is committed to finding practical solutions to Britain's housing crisis, from help for first time buyers and struggling homeowners to ensuring the house-building industry keeps building..."The Government is moving in the right direction, but to make real progress, they and mortgage lenders must work together to get the market moving by making mortgages available again for first time buyers and anyone else wishing to move."Read more CLG response to the Callcutt ReviewCaroline Flint also published the Government's response to John Callcutt's Review of Housebuilding Delivery in the form of an open letter covering the Callcutt report's recommendations and summarising the action taken in relation to these. Amongst other things, the response indicates CLG's willingness to consider the ideas being put forward by the NHBC and HBF as part of current discussions with the Office of Fair Trading for a future annual customer satisfaction survey for the industry.Read the responseto topCLG publish "Housing and Planning Delivery Grant Allocation Mechanism and Summary of Consultation Responses"The Government set out detailed proposals for the Housing and Planning Delivery Grant (HPDG) Allocation Mechanism for consultation between October 2007 and January 2008. This document confirms the final allocation mechanism in the light of the comments received, and notes the Government's intention to bring forward proposals for an affordable housing incentive from 2010-11. In addition, this document provides a summary of responses to the consultation.Download a copy of the Housing and Planning Delivery Grant Allocation Mechanism and Summary of Consultation Responses View the provisional allocations of the Housing and Planning Delivery Grant North East Regional Spatial Strategy publishedThe Secretary of State has published the final adopted version of the North East Regional Spatial Strategy. The strategy raises the net housing provision for the region to 7,680 dwellings per year, a total of 128,900 for the 17 year period between 2004 and 2021. This is an increase of 1,000 dwellings per annum from the draft RSS published in 2005.Read more to topEconomic NewsCML urges Treasury to adopt innovative funding solutionThe Council of Mortgage Lenders has publicised proposals it has drawn up for the Crosby Review to address the funding problems in the mortgage market. CML Director General Michael Coogan said:"If they act quickly, there is a window of opportunity here for the Government and the Bank of England to break the logjam in the housing and mortgage markets and underpin confidence in the financial system. The single biggest issue in the housing market that the authorities need to address is the lack of available funding to support new mortgage lending.""This proposal has the virtue of being delivered through the market itself. Unlike a government guarantee, the investor keeps the credit risk. But it specifically incentivises investors, which the special liquidity scheme does not. And it can be implemented quickly, in an environment where speed is of the essence. A year into the credit crunch, there is no merit at all in waiting until the autumn before taking steps that will help the housing market to remain more resilient, and so help the overall health and stability of the UK economy."Read more to topHBF reaction to CML funding solution suggestionFollowing the CML's publication of their funding solution suggestion, Stewart Baseley, executive chairman of the HBF, commented:"Any action that will inject liquidity back into the mortgage market, and so invigorate the housing market must be welcomed. Government and the Bank now need to take urgent steps to encourage investors to return to the mortgage market, and as such we support CML's suggested action. Crosby's remit is to look at the market in the medium and long terms, but waiting to act until November / December to take action is no longer an option as the implications for the economy of the housing market downturn start to become painfully clear." View full press releaseCML: Gross lending declines in JuneGross mortgage lending declined to an estimated £23.8 billion in June, down 3% from May and 32% from June 2007, according to the Council of Mortgage Lenders.The decline between the first and second quarter was a marginal 1%. However, an increase would typically be expected in spring. The year-on-year decline has gathered pace in recent months; lending in the first quarter of 2008 was down 11% on 12 months earlier, while the second quarter was down 21%. CML director general Michael Coogan commented: "Market activity during a traditionally a busy time of year for mortgages has been muted by funding shortages and, more recently, dampened consumer demand. "While by historic comparisons we still have had a good level of gross lending, new net lending has been constrained in 2008 and this picture will continue for the rest of this year..." "Government efforts to help housing associations purchase new-build properties and borrowers to save for a deposit are welcome, but are likely to have only a marginal impact on the housing market. The recent reduction in short-term fixed-rate mortgage costs is a small bit of welcome news for hard-pressed households facing significant pressures on their finances from the higher cost of food and fuel, in particular."Read more Download the June Gross Lending Table to topHousing Market NewsRICS: Activity at all time low but opportunists enter the marketThe average number of transactions per surveyor fell further in June but some would-be-buyers are again showing interest in the market, says the RICS' UK housing market survey published this week.The RICS house price balance improved slightly for the second consecutive month but still remains a significantly depressed figure. 88% more Chartered Surveyors reported a fall than a rise in house prices, a decrease from 92.2% in April. Commenting, RICS spokesperson Jeremy Leaf said:"With demand so low, would-be-buyers are negotiating from a position of strength. Even in a weak market there are always opportunities for investors and buyers to profit and some are starting to circle for bargains." "However, transaction levels remain incredibly low with many buyers cut out of the process by tight lending conditions."Read more Download a copy of the RICS housing market survey to topARLA: Rents are set to rise by up to 15% over the next two yearsIn a report for the Association of Residential Letting Agents, ARLA, the Private Rented Sector is forecast to continue outstripping other types of investment property and it is predicted that rents will rise significantly in the short term. House prices will almost certainly increase faster than commercial real estate over the longer term, as housing supply is less responsive to demand than commercial property but consumers demand more housing as living standards rise.The report, Part I of "The Modern UK Housing Market - Origins and Prospects" by Professor Michael Ball, Professor of Urban and Property Economics at Reading University, forms part of a wider study into residential housing commissioned by the National Federation of Property Professionals, to be published in the Autumn.Professor Ball forecasts rents to rise by 10% to 15% in both 2008 and 2009. Despite this, he says that the modern Private Rented Sector is helping to stabilise housing because it accommodates those who, by this stage in the housing cycle, would be over-stretched borrowers with rising negative equity. A re-run of the 1990s, when negative equity prolonged the housing market recession and blighted the lives of many is less likely to occur in this downswing as a result.Read more Download a copy of the report to topIndustry NewsThe successful bidders for Second Round Growth Points are announced by governmentThe New Growth Points (NGP) programme was launched on 24 October 2006 when 29 local authorities and partnerships were named as NGPs commencing a long-term Partnership for Growth with Government. The second round published this week adds a further 20 areas spread throughout all 9 English Regions. The full list along with agreed housing numbers, local ambitions, and a location map is available please click here to view. Unfortunately it remains unclear whether the Growth Points strategy links with, reflects, or merely ignores the current round of Regional Spatial Strategies being formally adopted around the Country.Simplified arrangements for production of CO2 emission rate calculations for new buildings: Consultation paperThis consultation document published by CLG contains proposals on how the arrangements for showing compliance might be streamlined through simplification and better coordination of the requirements to carry out CO2 emission rate calculations, thus reducing the burdens. The consultation closes on 26 August 2008.This consultation document concerns two measures:the requirement to demonstrate that the actual as built CO2 emission rate (DER/BER) does not exceed the target CO2 emission rate (TER) for the building concerned the requirement to provide an energy performance certificate (EPC) for all new buildings. Read more to topHBF NewsHBF brief Yvette Cooper on the housing marketHBF executive chairman, Stewart Baseley, accompanied by senior HBF members met Chief Secretary to the Treasury, Yvette Cooper MP, to brief her on the housing market and to explore possible ways in which assistance might be provided to counter the effects of the credit crunch. Stewart Baseley has also written to the Minister following the meeting to summarise the key points made.to topEvent NewsHBF Annual Planning Conference 2008Wednesday 10 September - The Kassam Stadium, OxfordThis year's conference will discuss the combined challenges of climate change and the new planning act. The day is designed to provide delegates with both vital knowledge from the plenary sessions and practical guidance through our interactive workshops on the Community Infrastructure Levy and the PPS1 supplement on Climate Change.For further information please contact the events team on 020 7960 1646 or events@hbmedia.co.uk Housing Market Intelligence15 October - Savoy Place, LondonThe annual Housing Market Intelligence conference is the housebuilding industry's leading event for discussion of the strategic and macro issues facing housebuilders and is a must for anyone involved in the business of housebuilding."For further details please contact the events team on 020 7960 1646 or events@hbmedia.co.uk to topHBF Technical ConferenceWednesday 12 November, University of York2008 has seen the government propose major changes to the way that Building Regulations are enforced. With many regulations under consultation, it is important to keep informed of the current and future legislation. The morning section of the conference will provide delegates with up to date information on Parts G & L, the Code for Sustainable homes as well as examining the future direction of travel for building regulations.The afternoon is to be devoted to the delivery of Zero Carbon Homes with the agenda to be set by the new zero carbon hub. For further details please contact the events team on 020 7960 1646 or events@hbmedia.co.uk 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 topRosie Hinchliffe
