Friday, 29th May 2009 Top stories this week NHBC: UK house building decline begins to stabilize......read more RICS UK construction market survey Q1 2009.....read more BBA: April figures for the main high street banks.....read more Quick Links Industry news Economic news Housing market news Government and political news HBF news Events Industry news NHBC: UK house building decline begins to stabilise The National House Building Council's latest statistics indicate that the decline in UK house building is stabilising with the first quarter-on-quarter rise in applications to start new homes in almost two years in quarter one this year. 17,859 applications were received by NHBC in the three months to the end of April 2009 – 10% higher compared to the previous rolling quarter January to March 2009 (16,232). Although NHBC figures show that activity levels during the three months to the end of April were still severely depressed, with a 53% reduction in the number of applications received compared to the same period a year ago, some encouragement can be taken from April's figures, which show applications to start new homes in the combined private and public sectors rose for the fourth successive month in a row to 6,379. Imtiaz Farookhi, NHBC Chief Executive, said: "While it is still too early to assume that these are definite signs of a recovery, some positive indicators are emerging which suggest that the severe downturn in house-building activity may be beginning to turn a corner. Anecdotal evidence from house-builders and developers also suggests that conditions are easing slightly on site, no doubt boosted by the Government's recent £1billion budgetary pledge to help the housing market and the Homes and Communities Agency's (HCA) Kickstart initiative to open up mothballed sites." Read more to top RICS UK construction market survey Q1 2009 Workloads in the first three months of the year continued to weaken across the board, but some key areas, including housing, saw an easing in the pace of the decline, the RICS construction market survey stated this week. Construction workloads remained in negative territory for the fourth consecutive quarter with 45% more surveyors reporting a fall rather than a rise in overall workloads in the first quarter, up from a net balance of -47. Both private and public housing saw a slight improvement in the number of surveyors reporting falling workloads, with 49% more surveyors reporting a fall than a rise in private housing, up from -66%, and 13% more reporting a fall than a rise in public housing, 7% less than the previous quarter. RICS Chief Economist Simon Rubinsohn commented: “This slight easing we are seeing in both public and private housing is broadly in line with the figures coming from the Government on the number of housing starts, which saw a small rise in the first quarter of 2009, and could be aligned to recent signs of a gentle pick-up in activity in the housing market. “Activity is still declining across the construction sector, but it appears to be doing so at a lesser rate than was previously the case and public sector projects will play a key role in any recovery as long as the finance is made available to prevent them from stalling. "Despite some sub-sectors showing slightly more positive signs, construction output is likely to post a double digit drop over the course of 2009 with a further loss of employment and skills in the industry." Read more to top CLG: Land use change statistics (England) 2008 - provisional estimates (May 2009) The latest national statistics on land use change were released under the auspices of the UK Statistics Authority on 28th May 2009. Statistics in this release present provisional figures on land use change in England. Land use change statistics are annual data. This release provides initial estimates for 2008 of building on previously-developed land and the average density of new dwellings. For some topics (see below) 2008 data are not yet robust and so the latest robust data available is presented instead. In 2008, on a provisional estimate: 78% of dwellings (including conversions) were built on previously-developed land, compared to 77% in 2007; New dwellings were built at an average density of 46 dwellings per hectare, compared to 44 dwellings per hectare in 2007. In 2007: 2% of dwellings were built within the Green Belt (unchanged since 2004) and 5% of land changing to residential use (from any use) was within the Green Belt (unchanged since 2001); 9% of dwellings were built within areas of high flood risk and 6% of land changing to residential use was within areas of high flood risk. Read more to top Economic news BBA: April figures for the main high street banks The British Bankers’ Association reported this week that the high street banks' net mortgage lending of £2.7bn in April was the lowest figure for some eight years. Both gross and net mortgage lending figures reflected weak approvals in recent months to result in the lowest monthly figures since March 2001. However, the number and value of house purchase approvals increased slightly suggesting that this part of the market may have stabilised. Personal deposits rose for the third successive month but the savings trend in bank accounts remained subdued. Lending to financial companies decreased as recent short-term lending unwound and there was a net repayment from non-financial companies. BBA Statistics Director, David Dooks, said of the latest data: “The house purchase part of the mortgage market appears to have stabilised, with slightly more approvals coming through, although April’s weak net mortgage lending reflects the lower number of approvals in previous months. Households’ uncertain financial circumstances not surprisingly continue to dictate consumer behaviour, both in the housing market and in generating only low demand for new personal loans. Company borrowing also reflects the economic backdrop, with most non-financial sectors seeing net repayments, although short-term finance for other financial companies unwound in the month, suggesting that their financing needs may be easing.” Read more to top CBI Distributive Trades Survey According to the CBI's latest Distributive Trades Survey, retail sales volumes declined in May, broadly in line with expectations. 31% of retailers said year-on-year sales volumes were up in the first half of May, while 48% said they were down. The resulting balance of -17% was close to retailers’ expectations (-15%) and, other than last month’s broadly flat figure of +3%, was the least negative figure since June 2008 (-9%). A similar decline in sales is expected in June (-20%). Price inflation in the retail sector had eased significantly on the previous quarter - prices rose in the year to May at the slowest rate for nearly three years - and retailers are less pessimistic about their general business situation. Ian McCafferty, the CBI’s Chief Economic Adviser, said: “Retailers are less pessimistic about their general business situation, and the decline in demand now appears to be slowing compared with the turn of the year. However, with unemployment still rising, conditions will remain tough.” Read more to top Housing market news CML: House purchase lending declines in Scotland New data from the Council of Mortgage Lenders shows that house purchase lending in Scotland continued to fall in the first quarter of 2009. There were 7,600 house purchase loans in Scotland, down 34% from 11,600 in the previous quarter and 52% from the same quarter a year earlier. Across the UK, house purchase lending in the first quarter declined 25% from the previous quarter and 44% from the first quarter of 2008. The Scottish housing market appears to be lagging behind the rest of the UK. In coming quarters CML expects activity in Scotland to stabilise at low levels as seen across the UK as a whole. Scotland accounted for around 10% of the total number of UK house purchase loans, still a little above the long term average (9%). The fall in lending was fairly evenly distributed across borrower types. Loans to Scottish first-time buyers fell by 33% from the previous quarter and home movers fell by 36%. Scottish first-time buyers typically needed a deposit of 25% in the first quarter - equal to around £26,000. A year earlier, first-time buyers typically required a 12% deposit - equal to around £14,000. Read more to top Homes for Scotland call for action on mortgages Responding to the CML figures, Homes for Scotland Chief Executive Jonathan Fair said: "The fact of the matter is we are now seeing sustained increases in enquiries and visitor numbers so it is clear consumer confidence appears to be improving as people contemplate the bottom of the market. However, the biggest challenge remains converting this interest into sales. Quite simply, whilst people do still want to buy in response to improving affordability and the industry is doing all that it can to assist them, many are being refused credit for often unfathomable reasons." to top Government and political news HBF to give further evidence to CLG Select Committee on “Housing and the Credit Crunch” Arrangements have been confirmed for HBF to give further oral evidence to the CLG Select Committee on 1st June. The Committee held a brief inquiry last autumn into “Housing and the Credit Crunch” to examine the Government’s response to the effect of the credit crunch on housing policies. HBF was invited to give evidence to this. Following its report on this inquiry published in February, the Committee has decided to hold another oral evidence session to re-examine the position. HBF’s Director of Economic Affairs, John Stewart, will again be giving evidence at the session on 1st June alongside representatives from the CML, National Housing Federation and Intermediary Mortgage Lenders Association. to top HBF News Entries open for the best new places to live Entries for this year’s Building for Life awards are now open. Now in their seventh year, the Building for Life awards publicly celebrate schemes committed to high design standards and place making. In difficult times, they aim to reward those who are delivering high aspirations, recognise quality and showcase quality housing schemes. The awards are organised by CABE and the Home Builders Federation. All entries are formally assessed by some of Britain’s leading housing experts using the Building for Life criteria. They select outstanding schemes to present with a Building for Life Award at a prestigious ceremony later in the year. Deadline for entries: 30th June 2009 Please click here for details of how to enter the Building for Life awards or alternatively email enquiries@buildingforlife.org to top Events HBF Midlands AGM Friday 12th June – Sketchley Grange Hotel, Hinckley, Leicestershire The HBF Midlands Annual General Meeting and luncheon is being held at the Sketchley Grange Hotel, Hinckley, starting at 12.15 pm. This is an excellent chance for everybody working in the housing industry, at all levels, to review the previous year and forward plan for 2009, as well as networking with peers. Please contact Marian MacDonald on 020 7960 1605 or marian.macdonald@hbf.co.uk for further details and booking information. to top ‘New homes week 2009’ The New Homes Marketing Board has 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 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 www.house-builder.co.uk to top 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 contact the events team on 020 7960 1646 or visit www.house-builder.co.uk to top Hope Challenge: 12 - 14th June 2009, Peak District HBF'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 challenges The Shelter Build challenge - sponsored by NHBC 1000m of hill ascent and 20 miles of trekking A balance of fitness, strategy and team work HFH 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 here Click here for more information and entry requirements 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 HinchliffeView Previous Weekly News Summary
