Friday, 23rd April 2010 Top stories this week Liberal Democrat VAT plans spark political row.....read more Rightmove house price index.....read more CML: Gross mortgage lending up 24% in March.....read more HBF and NHF: Affordable housing crisis will 'plumb new depths' unless spending maintained warn housing bodies.....read more Quick Links Government and political news Housing market news Industry news Economic news HBF news Events Government and political news Liberal Democrat VAT plans spark political row A political war of words broke out this week over the Liberal Democrats’ manifesto pledge to equalise VAT on new build homes and repairs and renovation work on existing properties. Liberal Democrat Scottish Affairs spokesperson Alistair Carmichael was reported as commenting that this policy would result in a raise of at least 5% VAT for new build homes (which are currently zero-rated) since EU rules would preclude a rate lower than 5% for renovation. Conservative Shadow Housing Minster Grant Shapps responded quickly, branding the Liberal Democrat plans “a tax bombshell on the housing market at a time when house building is at its lowest peacetime rate since 1924. These plans would make it even harder for young people to get onto the housing ladder.” The Labour Party said that it was “bewildered” by the Liberal Democrats’ proposal. HBF Executive Chairman Stewart Baseley was quoted widely in the media saying: “The Lib Dems’ plan is an extremely poorly thought through proposal that would constrain much needed housing development still further and potentially increase the cost of housing.” to top Housing market news Rightmove house price index The latest house price index published by Rightmove, reported that: Spring sellers are ignoring pre-election concerns and have increased the average asking prices by 2.6% (£5,898); Choice has increased as property supply shows some indications of outstripping buyer demand; This month had the highest monthly run-rate of new sellers since before the Lehman Brothers collapse; The average unsold stock per agent has jumped to its highest since October last year; The tentative recovery is threatened by the prospect of a hung parliament. Miles Shipside, Commercial Director of Rightmove comments: “Rarer property types in desirable locations are achieving record prices. For ‘location, location, location’ you can also read ‘cash, cash, cash’. Conversely, in areas where buyers have less access to cash or mortgage finance, or there is an over-supply of a certain property type, then sellers are having to price much more aggressively to secure a sale. There is increasing divergence between these different markets, with agents reporting some pockets where a couple of viewings find a cash-rich buyer, whereas a few miles down the road it’s taking over 20 viewings to achieve a sale […] “With weather disruptions out of the way, more sellers are coming to market and they appear to be ignoring the uncertainties facing potential buyers. Prices are up, but so is choice, and the two are not happy bedfellows in the longer term. This year more than ever the traditional spring seller window is a price sensitive one, if asking prices continue to rise, all but the most popular locations are building themselves up for some of the gains to be lost later in the year”. Read more to top CML: Gross mortgage lending up 24% in March Gross mortgage lending was an estimated £11.5bn in March, a 24% rise from £9.3bn in February and a 3% rise from £11.2bn in March 2009, according to data published by the Council of Mortgage Lenders. The figures are in line with the typical seasonal pattern of a rise in lending volumes in March. Gross lending for the first quarter of 2010 was tan estimated £29.5bn, a 24% decline from the fourth quarter of 2009 (£38.9bn) and a 9% decline from £32.4bn in the first three months of 2009. This is the lowest quarterly lending total since the first three months of 2000, but is very much in line with the CML forecast of a gross lending total of £150bn this year. In this week’s CML market commentary, CML Economist Paul Samter said: “Overall, housing and mortgage activity remains subdued, but is comfortably higher than in the depths of the recession a year ago. Despite the increase in activity late last year and a subsequent fall early this year - due to the end of the stamp duty holiday - the underlying position looks to have barely changed. But with the gradually improving economic backdrop and interest rates still low, we continue to expect a gentle improvement in market conditions later in the year. “However, the longer-term problems facing the market remain and will limit the speed of recovery in the housing market and wider economy. Financial institutions still face the prospect of around £300bn of official support schemes beginning to end from next year, and will need to find alternative funding sources. This will likely limit how much new funding can be made available to the housing market.” http://www.cml.org.uk/cml/media/press/2609" target="_blank">Read more to top Industry news HBF and NHF: Affordable housing crisis will 'plumb new depths' unless spending maintained warn housing bodies HBF and the National Housing Federation have issued a joint press release calling for the maintenance of public investment in affordable housing following the election. It outlined that said the nation’s affordable housing crisis would plumb new depths after the election, unless the three major parties committed to protecting the housing budget. The release set out the fear that potential cuts of 25% to the housing budget - as implied in the Budget - would have dire consequences for affordable housing provision - as well as the industry. It pointed out that cuts on this scale would mean: 574,000 planned affordable homes may not be built in the period up to 2020; 287,000 jobs in construction and related fields could be lost or not be created; First time buyers would see vital support disappear; The Government target to build 1m affordable homes, and 3m homes overall by 2020, could be missed by 20 years; 1.4m people may be added to housing waiting lists, which are already at record levels. Given the devastating impact big cuts in spending would have on affordable house-building, the Federation and HBF said that housing should be viewed in the same ‘untouchable’ terms as health and education by the political parties, and protected from cuts. http://www.housing.org.uk/default.aspx?tabid=212&mid=828&ctl=Details&ArticleID=2885" target="_blank">Read more to top Britain must curb home ownership obsession, warn experts Britain must curb its obsession with home ownership and look to new ways of meeting housing demands, according to experts at this week’s Housing Forum national conference. Speakers from across the housing industry warned that with the average age of a first time buyer is now 37 and the average house deposit nearing £32,000. They warned that the next Government urgently needed to do more to change public perception of home ownership. Jeffrey Adams, Chairman of the Housing Forum and Group Chief Executive of United House, said that the future of the housing industry was uncertain: “Building for social rent is becoming increasingly difficult. Home ownership is unaffordable for many and new forms of funding for housing investment are needed now more than ever.” http://www.house-builder.co.uk/" target="_blank">Read more to top Local Planning Authority Green Belt Statistics: England 2009/10 The latest National Statistics on the estimates of the area of designated Green Belt land in local authorities in England were released under the auspices of the UK Statistics Authority this week. This release presents estimates of the area of Green Belt land in England by region and by local authority as at 31st March 2010. Key points from this latest release are: Designated Green Belt land in England as at 31st March 2010 was estimated at 1,639,560 hectares, about 13% of the land area of England; Designated Green Belt land in England as at 31st March 2009 has been revised and now is estimated at 1,639,650 hectares. This is an increase of 810 hectares from the estimate of 1,638,840 hectares published in April 2009. This is due to corrections, improved measurements and Positional Accuracy Improvements from several authorities; Between 1st April 2009 and 31st March 2010 there has been a net decrease of 80 hectares when compared with the latest 2008/09 estimates. This is due to two authorities who adopted new plans which resulted in a real net decrease in the area of Green Belt; Over the longer term, since these statistics were first compiled for 1997, there has been an increase in the area of Green Belt after taking account of the redesignation of some Green Belt as part of the New Forest National Park in 2005. http://www.communities.gov.uk/publications/corporate/statistics/lagreenbelt2009" target="_blank">Read more to top Economic news Gross domestic product preliminary estimate 1st Quarter 2010 According to the latest statistics released by the Office for National Statistics, the chained volume measure of gross domestic product (GDP) increased 0.2% in the first quarter of 2010. The increase in output was due mainly to increases in business services and finance and manufacturing. Output of the service industries increased 0.2%. Output in the production industries increased 0.7%. GDP decreased 0.3% in 2010 Q1 compared with 2009 Q1. Construction decreased 0.7% compared with a decrease of 0.9% in the previous quarter. Construction increased 0.2% between 2010 Q1 and 2009 Q1. http://www.statistics.gov.uk/pdfdir/gdp0410.pdf" target="_blank">Read more to top HBF news HBF's response to the HM Treasury Consultation: Investment in the UK Private Rented Sector HBF has made a submission to the Treasury’s consultation on investment in the UK private rented sector. http://www.hbf.co.uk/fileadmin/documents/Consultations/HBF_Response_-_HM_Treasury_-_Investment_in_the_UK_Private_Rented_Sector_-16_04_10.pdf" target="_blank">Please click here* to download a copy of the HBF’s response. *Member only information, please remember to login to view to top Customer Satisfaction Survey to be launched next week. HBF will launch the results of its annual customer satisfaction survey at its AGM and Annual Lunch next Wednesday. It is the fifth year of the Survey and is a measure of the satisfaction levels of people who purchased new homes between October 2008 and September 2009. to top Construction ‘On Thin Ice’ Mark Starling, Safety, Health & Environmental Manager, Kier Partnership Homes is now on an adventure to the 1996 Position of the Magnetic North Pole covering a distance of 360 nautical miles. He set out from Resolute Bay in the high Canadian Arctic in March heading to the Magnetic North Pole. If successful the expedition will be the first all British team to attempt the pole completely unsupported. Unsupported means the team will be pulling all of their food and equipment throughout the trek on pulks; there will be no resupplies or checkpoints en route. The course will take Mark through the high Canadian Arctic on the sea ice where he could experience temperatures as low as -50°C and will be travelling through the home of the polar bear. This is one of the harshest yet most beautiful environments in the world. This is an exciting union between COINS and Kier Group, with an objective to raise minimally £50,000 that will go directly to COINS Foundation projects. Mark’s place has been sponsored by COINS and the Kier Group have given Mark five weeks leave of absence to train for and complete the expedition. The COINS Foundation seeks to work in genuine partnership to address the needs of the most excluded communities in the world, building schools, hospitals and homes. If you would like to sponsor Mark in this epic expedition, you can at: http://www.justgiving.com/markstarlingnorthpole2010" target="_blank">www.justgiving.com/markstarlingnorthpole2010 You can follow the Team on a map located at http://www.arcticexpeditions.co.uk" target="_blank">www.coinsfoundation.org or http://www.arcticexpeditions.co.uk" target="_blank">www.arcticexpeditions.co.uk For more information please contact: Jo Franklin, COINS Marketing Director on +44 (0) 1753 501000 to top Events Housebuilder Awards 2010 – just two weeks left to enter There are now just two weeks left to enter for this years prestigious Housebuilder awards. Now in its sixth year - the Housebuilder Awards bring together the best of innovation and excellence in the house building industry. The Housebuilder Awards are the highlight of the house building calendar, celebrating the very best of the industry and recognising the achievements of those leading the way in innovation. This year the winners will be announced at a glamorous black tie event on the night of Thursday 28th October at the Millennium London Mayfair Hotel. http://www.house-builder.co.uk/awards/" target="_blank">Please click here to visit the website, see all categories and to download Entry is free - deadline Friday 7th May 2010 to top Housing Market Intelligence 2010 – October 12th, Savoy Place, London This year’s Housing Market Intelligence conference and annual report launch will be held on Tuesday 12th October at Savoy Place in London. Now in its eighth year, Housing Market Intelligence has become the leading strategic conference for the house building industry. This year the event is expected to sum up the new political climate nearly six months after the election, as well as providing analysis and insight into the market, the economy, the sustainability agenda, mortgages and all the key issues for house builders and associated companies. Full details will be published over the summer but note the date in your diary today! to top HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course There are now just a few team places remaining for the HBF Golf day in July. The event will take place on the stunning Duke’s course at Woburn, for many years home to the British Masters and will see teams from across the industry battling to be crowned the unofficial house building golf champions. http://www.hbf.co.uk/fileadmin/documents/events/GolfBookingForm10.pdf" target="_blank">Click here for more information; to top North West Social Dinner The HBF North West Social Dinner will this year take place on Friday 10th September at the Midland Hotel in Manchester. Although it didn’t take place last year, regulars are booking in their droves for what is always a fun evening. http://www.hbf.co.uk/fileadmin/documents/events/NWBookingForm2010.pdf" target="_blank">Please click here to find out more to top HBF Ball Also returning for 2010 on Friday 10th December at the Marriott Grosvenor Square, London, is the HBF Ball, traditionally the social highlight of the industry’s year. http://www.hbf.co.uk/fileadmin/documents/events/HBFBALL10-BF.pdf" target="_blank">For more details please click here to top Robust Details seminars RD has announced a series of regional seminars. They will take place; 30th June – Huddersfield 1st July – Coventry 15th July - Surrey These seminars will provide delegates with a full update on robust details developments. As well as the ‘latest news’ affecting Part E and sound insulation, the seminars will anticipate the effects of the new Part L on the design of separating walls and floors. A full panel of experts will be on hand for all your sound insulation concerns. To download a booking form or pay onlinehttp://www.house-builder.co.uk/rdl" target="_blank"> please click here to top Habitat for Humanity’s Hope Challenge 11-13th June 2010 – registration deadline approaching Habitat for Humanity, HBF's nominated charity will again be holding its Hope Challenge event in 2010. This unique and exciting outdoor challenge event will see teams; Spending two days and two nights in the great outdoors Sleeping in a self built shelter Undertaking mental and physical team challenges Last year’s Hope Challenge was a huge success and had the competitors trekking around the Edale and Hope Valleys, with a base camp in the sheltered Vale of Edale. In 2010 HforH are planning a larger and more exciting event with walking routes encompassing the surrounding hills including the Skyline Ridge over Mam Tor and the lower reaches of Kinder Scout. However this is no ordinary weekend of walking! Participating teams will also be tested on their initiative and teamwork… and by building, and sleeping out in, their very own shelter they will experience some of the challenges faced by those who live in poverty housing. Registration for teams wishing to take part in Hope Challenge 2010 will be closing on 14th May. Everyone interested in participating is urged to register their team online athttp://www.hopechallenge.org.uk" target="_blank"> http://www.habitatforhumanity.org.uk/hopeinfo.htm" target="_blank">Find out more about Hope Challenge 2010 http://www.habitatforhumanity.org.uk/hoperegister.htm" target="_blank">Register your team for Hope Challenge 2010. http://www.habitatforhumanity.org.uk/hopephotos.htm" target="_blank">Take a look at the photos and video of Hope Challenge 2009. http://www.habitatforhumanity.org.uk/hopecontact.htm" target="_blank">Contact HfH with any questions about Hope Challenge. to top For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetings For' index.php?id="eventsandmeetings For HBM events visit http://www.hbmedia.co.uk/" target="_blank">http://www.hbmedia.co.uk/ to top Rosie Hinchliffe
