Friday, 26th June 2009 Top stories this week HBF meets new Housing Minister......read more Rightmove: New sellers hesitate as first-time buyers struggle.....read more Positive revisions to CML housing market forecasts.....read more BBA: May figures for the main high street banks.....read more Housing Minister: Extra legal help for struggling homeowners.....read more New Homes Week 2009 - get involved!.....read more Quick Links HBF news Housing market news Economic news Industry news Government and political news Events HBF News HBF meets new Housing Minister HBF Executive Chairman Stewart Baseley had an initial meeting with the new Housing Minister, John Healey this week. Stewart summarised the current industry position, the importance of effective delivery of the HomeBuy Direct and Kick Start schemes and the need to address the issues of mortgage finance and the impact of regulation on future housing supply. It was agreed to keep in close touch on all of these. HBF briefs HCA on Kick Start progress and ‘impact of regulation' HBF and members met the Homes and Communities Agency on Monday to discuss the Kick Start scheme. The HCA indicated that the £400m scheme had been heavily oversubscribed. The shortlist of projects under consideration for support will be made known in late July. On Tuesday HBF and members also met senior HCA management to present our findings on the impact of regulation on future housing supply. to top Proposed changes to Part F and Part L of the Building Regulations Housing Minister John Healey launched a consultation on changes to the Building Regulations Parts F (Means of Ventilation) and L (Conservation of Fuel and Power) last week. These are proposed to deliver the first step towards zero carbon buildings which it is estimated will produce carbon savings of over 3 million tonnes a year from 2020. The consultation also proposes a range of measures, including a strategy for training and dissemination, designed to further improve the levels of compliance and performance in buildings. The HBF will be organising three seminars regarding the changes and their implications for developers. The events will take place in July/ August, and location and venue are dependent upon numbers although we anticipate that they will be held in London, the South West and Derby. If you would like to register your interest in attending one of these seminars please contact rosie.hinchliffe@hbf.co.uk to top Housing market news Rightmove: New sellers hesitate as first-time buyers struggle The Rightmove house price index reported this week that: The average property asking price fell by 0.4% (£1,005) as new sellers hesitate, following 4 months of rises. The average price was £227,441 in May and £226,436 in June; However, prices were still up by 6% in 2009 as the equity-rich snap up the restricted supply of saleable properties; The shortage of new sellers was most acute in the south, indicating a north/south divide in future house price growth - new supply was down 45% in southern regions compared to 40% in the north; The mortgage famine was exacerbated by rising lender margins and interest rates preventing many equity-poor first-time buyers from mopping-up less saleable stock and repossessions. Miles Shipside, Commercial Director at Rightmove, commented: "It's a mistake to confuse the upturn in enquiries and sales with a return to a more normal market. While conditions are much improved on the darkest days of last year, we are now starting to see some big distortions and wild swings due to the combined effects of recession and restricted mortgage availability. As the best deals on property and mortgages are only open to the equity-rich, the new stock that agents are looking to attract has to match what these purchasers want to buy and can afford. Perennially popular areas with good schooling are in, while flats in large blocks and terraces requiring major works are out, meaning new sellers are having to adjust prices accordingly." Read more to top Positive revisions to CML housing market forecasts The Council of Mortgage Lenders has updated its housing market forecast for 2009. The CML state that while conditions in the housing and mortgage markets remain extremely challenging, existing borrowers are gaining some significant benefits from the effect of lower interest rates. This factor, taken together with the significant levels of forbearance being shown by lenders and the government's interventions to improve support for some struggling home-owners, has resulted in the CML reducing its forecast for repossessions for this year from 75,000 to 65,000. The CML now also expects around 360,000 mortgages to be in arrears equivalent to 2.5% or more of the mortgage balance by the end of the year. The CML's forecasts for housing transactions and gross lending remain unchanged, at 700,000 transactions and £145bn of gross lending. However, the outlook for net lending appears less negative than previously forecast, and the CML now expects net lending to fall by only around £5bn, compared with the £25bn contraction previously anticipated. The CML observes that: "The raft of measures taken by the authorities have stabilised the economy and will sow the seeds for a recovery over time, including in the housing market. But the improvement is likely to be slow and drawn out, especially as the extensive fiscal, monetary and credit support measures are gradually unwound." Read more to top NAEA: Four house hunters for every property The monthly market survey of the National Association of Estate Agents found that the average branch had 299 house hunters on its books in May - up from 265 the previous month and 247 in May 2008, with estate agents registering four house hunters to every available property. The average branch had 69 properties on its books. For the second month running estate agents also reported a successful selling period. The average branch sold 10 properties, a 30% increase on the same time last year and double that sold on average in August 2008. Gary Smith, President of the NAEA, said: "This is really good news for the housing market and the UK economy in general. NAEA members are showing that there are buyers a-plenty out there. More often than not these are also potential sellers who are at the beginning of the process - so there is bound to be a lag which creates a shortage of properties in the short term. "With mortgage interest rates at historically low levels and prices now far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession." Read more to top Economic news BBA: May figures for the main high street banks The British Bankers' Association reported this week that the banks' net mortgage lending of £2.3bn was the weakest monthly rise since early 2001, although mortgage approvals continued to increase. Personal deposit inflows continued to be weak and consumer credit growth was minimal. Lending to financial companies rose marginally while lending to non-financial companies was little changed overall. BBA Statistics Director, David Dooks, said of the latest data: "Steady monthly increases since last November have seen the number of loans approved for house purchase recover to levels seen in early 2008, although gross and net mortgage lending show a subdued wider mortgage picture. However, unlike much of the mortgage market, the high street banks are still seeing lending growth and improved mortgage availability is reflected in higher average loan approval values. "Consumers' borrowing appetite remains weak, reflecting uncertainty over household circumstances, so credit growth is negligible and spending activity on credit cards is down on this time last year. Lending to non-financial companies was little changed overall in May." Read more to top CBI: Retail sales remain weak in June Retail sales fell for the second month running in the year to June, following April's brief respite, the CBI said this week. The decline, broadly in line with retailers' expectations, was no worse than in May however, and less severe than falls recorded between July 2008 and March 2009. In the CBI's latest Distributive Trades Survey, while 31% of retailers said year-on-year sales volumes rose in the first two weeks of June, 48% said they were down, giving a balance of -17%. Retailers expected sales to fall slightly faster in July, but this balance of -21% was similar to expectations for June (-20%). Sales for the time of year were said to be poor by a net 15% of retailers, though this was less negative than in May (a balance of -36%). They are expected to be similarly below par in July (-13%). The three-month moving average, which smoothes out monthly peaks and troughs, remained negative (a balance of -10%), though was the least negative for over a year (-9% in April 2008). Read more to top Industry news HCA: A new partnership for sustainable housing delivery The Crown Estate and the HCA have embarked on a significant new partnership that aims to support the delivery of sustainable communities across England. The two organisations have established a ten year Joint Working Agreement to help them meet their joint goals of accelerating housing provision and facilitating the delivery of sustainable communities. The agreement will focus on prioritising the delivery of sustainable, high quality housing, including affordable housing, and identifying new opportunities in communities across the country; through; Making the best use of land to increase the supply of housing and accelerate delivery; Creating sustainable communities through quality development and place making; Providing affordable housing in places where people want to work and live; Contributing towards housing delivery at national, regional and local levels. It is estimated the agreement will help deliver more than 10,000 homes across Hertfordshire, Bedfordshire and Norfolk; with up to five thousand more in Nottinghamshire, Somerset, Wiltshire, Lincolnshire, Dorset and Leicestershire. Read more Region exceeds target for new affordable homes The East Midlands has exceeded its 2008/9 target for the delivery of 2,345 new affordable homes by 46%, providing 1,092 over and above the original forecast. East Midlands Regional Assembly (EMRA's) Regional Housing Group received a report from the Homes and Communities Agency (HCA) setting out their achievements for the year at its June meeting. Bob Walder, Chair of the Regional Housing Group said: "This is an outstanding achievement during what has been a very difficult year. It is testimony to the hard work of both the HCA and delivery partners across the region. It represents a significant contribution to local employment in the housing industry at a crucial time for jobs, creating much needed homes when the rest of the industry is putting developments on hold." Read more to top Proposed changes to Part F and Part L of the Building Regulations: Consultation events CLG and the BRE are organising Building Regulations 2010 consultation events for Part L (Conservation of Fuel and Power) and Part F (Means of Ventilation). The Part L event is due to take place on the 15th of July 2009 at BRE in Watford and the Part F event on the 16th of July 2009 at One Great George Street, London. These free workshops have been organised on behalf of CLG to provide designers, contractors, manufacturers, developers and building control professionals with first hand details of the proposed changes. The workshops will provide delegates with an explanation of the proposals and an opportunity to question CLG and their advisors. It will also provide a chance to discuss the likely implications of the proposed changes with a broad group of stakeholders. Please contact natalie.isaac@aecom.com for the Part F event, and events@bre.co.uk for the Part L event. Wakefield's core strategy contested in court Wakefield's core strategy is to be contested in court after a developer launched a legal challenge to its 30% affordable housing policy. Barratt Developments is seeking to overturn the policy in Wakefield Metropolitan District Council's core strategy on the basis that the planning inspector was wrong to recommend that the affordable homes policy be modified and failed to give proper reasoning. In March, inspector Shelagh Bussey initially said the strategy was unsound on several counts including inconsistency with PPS3, lack of clarity on green belt policy and an absence of strategic housing assessments. The council then completed its housing assessments and commissioned supplementary economic viability evidence on affordable housing provision. Bussey concluded that the strategy was sound in April and it was then adopted. In a statement, Wakefield said it intends to defend its position. Read more to top Government and political news Housing Minister: Extra legal help for struggling homeowners Housing Minister John Healey has announced more help for families facing repossession of their home with the doubling of funding for free, on-the-spot, legal advice in courts. Since last summer the extra Government cash for an additional 76 court desks has meant there is free on-the-day legal advice and representation for people facing repossessions or eviction hearings available in all parts of England. "It is real backstop help for those closest to the point of losing their home," explained Mr Healey, "All's not lost, even in court. In four out of five cases, the court desk advisers stop immediate repossession or eviction. Over the last year we've seen this work to help people keep their homes, so I'm doubling the extra money to support this service to £1.5m." Free legal advice and representation through court desks is one of a range of help measures introduced by Government to protect people's homes from repossession. Read more to top Government taken to court over the eco-towns policy in the South East Plan Arun District Council has lodged a legal challenge to the policy, which states that councils should "facilitate" proposals agreed for growth points and eco-towns. It previously said they should merely "test" eco-town proposals, but it was changed in the final version of the plan. The Government Office for the South East (GOSE) has admitted that it was an error but said it cannot be altered now that the plan has been formally approved. In a letter to the council, GOSE Deputy Regional Director Howard Ewing insisted that eco-town proposals will be subject to full assessment via the planning process. He added that the policy relates to a future review of schemes so has no effect until then. The planning policy statement on eco-towns, due next month, will allow proposals to be fully assessed, he said. Read more to top Events New Homes Week 2009 - get involved! Preparations are now well underway for New Homes Week 2009 that will take place between 12th 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 to consumers by highlighting the benefits of new build homes, which will hopefully result in increased visitor levels to sites and thus drive sales. The New Homes Marketing Board and HBF will be producing a range of literature and marketing materials - including a 16 page glossy newspaper - and is encouraging members to get involved and organise events on their sites across the country. For more information and to get involved contact new-homes@hbf.co.uk to top Delivering energy provision in sustainable development Davies Arnold Cooper LLP & the Home Builders Federation (HBF) are holding a seminar on delivering energy provision in sustainable development on the morning of 14 July in London. The seminar will include a Question and Answer session with a leading panel of experts. The seminar will cover essential guidance and will include the following: Regulation - zero carbon consultation, what is coming on the horizon? Delivery - what works and on what scale? Legal What are the challenges in blending energy delivery and housing? Delivery: limitations of the property law system, how to extract maximum value Consumer choice: implications of Citiworks The ESCO and Consultants' perspective - what developers need to know Please click here for further information and booking details HBF annual Planning Conference 2009 - Staverton Park, Daventry Planning viability 15th September 2009 In the current economic crisis much has been discussed about fiscal policy and incentives but what of planning policy in these challenging times? Is it business as usual or is the current model broken? The 2009 HBF Planning conference will seek to address this and more. Click here for booking details or contact kellie.kent@house-builder.co.uk. to top Housing Market Intelligence Conference - Savoy Place, London Tuesday 13th October 2009 The industry's leading business strategy and planning conference and launch of the seventh annual Housing Market Intelligence Report. A booking form will shortly be available but for further information please contact the events team on 020 7960 1646 or visit http://www.house-builder.co.uk/ The Housebuilding Innovation Awards - Millennium London Mayfair Thursday 5th November 2009 The industry's most sought after and prestigious awards will this year be presented at a glittering black tie event on Thursday 5th November. The shortlist will be announced on Wednesday 1st July and tickets will shortly be available to book. For further information please click here or contact the events team on 020 7960 1646. to top 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
