Friday, 30th October 2009 Top stories this week Grant Shapps: “Labour has created a generation of NIMBYs”.....read more Bank of England: Lending to Individuals September 2009.....read more John Healey: £450m to get workers back on stalled housing sites.....read more House building: June Quarter 2009, England (Revised).....read more RICS: First time buyer demand increasing.....read more Quick LinksHBF news Government and political news Economic news Industry news Housing market news Events HBF News HBF response - Community Infrastructure Levy HBF's response to the CLG consultation on the detailed proposals and draft regulations for the introduction of the Community Infrastructure Levy (CIL) as submitted on 23rd October 2009 is now available to download from the HBF website. Read more to top Government and political news Grant Shapps: “Labour has created a generation of NIMBYs” Grant Shapps, Shadow Housing Minister, delivered a speech to an Institute of Public Policy Research event on how Government housing policy has increased NIMBYism (not in my back yard) and exacerbated the housing crisis. He criticised the Government’s top-down approach to house building, which he said had contributed to the creation of NIMBYs. His solution to this problem is to “Scrap targets... abolish regional quangos... and allow local communities the freedom to build again.” He also criticised Regional Spatial Strategies for reducing the amount of houses being built due to legal challenges. He acknowledged that more houses need to be built. He accused Labour of “helping to foster a deep suspicion” of house builders and developers and suggested that incentives should be put into place to encourage house building. Read more to top Economic news Bank of England: Lending to Individuals September 2009 According to the latest statistics released by the Bank of England, total net lending to individuals rose by £0.7bn in September. The twelve-month growth rate remained at 0.8%, and the three-month annualised growth rate increased 0.1 percentage points to 0.3%. Within the total, net lending secured on dwellings increased by £0.9bn, weaker than the August figure of £1.3bn, but above the previous six-month average of £0.6bn. The twelve-month growth rate fell by 0.1 percentage points to 0.8%. The three-month annualised growth rate increased to 0.6%. Within total secured lending, secured lending by banks (excluding the effects of securitisations) increased by £3.5bn, above both the £2.9bn increase in August and the six-month average of £2.6bn. The number of loan approvals for house purchase (56,215) was above the August figure (52,970) and above the previous six-month average, whereas approvals for remortgaging (25,528) were below the August figure of 28,348 and below the previous six-month average. The number of loans approved for other purposes (27,956) was higher than in August, but below the previous six-month average. Consumer credit fell by a net £0.3bn, below the previous six month average. Credit card lending increased by £0.1bn and other loans and advances fell by £0.3bn. The annual growth rate of consumer credit continued to fall, to 0.5%; the three-month annualised growth rate fell to -1.6%. Read more to top CML comment on September lending data The September lending data from the Bank of England shows a continuation of recent trends in the mortgage market. Underlying levels of mortgage lending have edged a little higher driven by an increase in house purchase activity, but remortgaging volumes continue to decline. CML Economist Paul Samter observed: “There is clear evidence of a significant pick up in housing market lending activity from a year ago, even though it remains low on any historic comparison. On the other side of the gross lending equation, remortgaging volumes continue to weaken. Borrowers seem to be opting to stay on low reversion rates, with official interest rates not expected to rise for some time yet. “Overall, the numbers support our view that housing market activity continues to strengthen. But we are cautious about how far we can expect it to continue increasing, with funding still a challenge and the economic outlook still subdued.” Read more to top Industry news John Healey: £450m to get workers back on stalled housing sites Housing Minister John Healey this week finalised a £450m funding package to Kickstart work on stalled housing developments. His announcement of money for 115 sites follows on from his announcement of cash for 27 sites at the Housing Market Intelligence conference two weeks ago and 10 in September bringing the cumulative total to 150 sites that now having been allocated Kickstart money. Mr Healey said this cash injection to every region of the country is a rapid response to the recession, to help house-building at a time when the industry needs it most. Workers will start returning to these mothballed sites within weeks - building over 11,100 homes, and creating or safeguarding around 9,500 jobs. Over 5,000 of these houses will be affordable homes for low cost sale or rent. The Government has applied tough value for money tests for projects to receive Kickstart funding. The Minister gave the green light to 115 schemes to receive a share of up to £388m. This takes total Government investment through the Kickstart programme to over £450m to deliver over 11,000 homes. It means that since June Mr Healey has approved the release of almost £1.5bn in Government help for house-building. Mr Healey is ready to run a second wave of Kickstart, with over £500m available. Developers continue to see the real help this can offer in tough times, which is why second wave bids have been received that could deliver up to 55,000 homes and around 2,000 apprenticeships. John Healey said: "This Kickstart cash is a rapid response to the recession, using the power of Government investment to support the country through the downturn. With this investment, we are creating jobs and helping build the homes people need. "Kickstart funding comes with tough terms, and I expect much of this money to be repaid within five years. Some developers have failed our tough value for money test, but I'm also encouraged that others have withdrawn saying they no longer need help because market conditions are improving. "But with over £500m Kickstart cash available in the second round, help is on hand for those who need it. And I expect all developers submitting bids to offer apprenticeship and local job opportunities for young people in our communities as part of their plans to get their stalled housing projects back on track." Read more to top House building: June Quarter 2009, England (Revised) The latest national statistics on house building were released under the auspices of the UK Statistics Authority this week. This quarterly Statistical Release presents National Statistics on new house building starts and completions in England and its regions up to the June quarter 2009. The figures in this release for the December quarter 2007 through to the March quarter 2009 are unchanged from the earlier release on 20th August. An error in the June 2009 quarter figures in this release led to the withdrawal of that release. This release provides corrected figures for the June 2009 quarter. Key points from the latest release are: There were an estimated 21,580 seasonally adjusted housing starts in England in the June quarter 2009, up 18% on the previous quarter but 34% lower than the June quarter 2008. This is the second successive quarterly rise in seasonally adjusted housing starts; Private enterprise housing starts (seasonally adjusted) were 24% higher than in the March quarter 2009, but 37% lower than in the June quarter 2008; Annual housing starts figures for England continued to decline. They totalled 78,570 in the 12 months to June 2009, down 47% compared with the 12 months to June 2008 and 58% below their 2005-06 peak; Housing completions in England were down by 6% to an estimated 29,790 (seasonally adjusted) in the June quarter 2009 compared to the previous quarter. Compared with the June quarter 2008, completions were down by 19%; Private enterprise housing completions (seasonally adjusted) were 2% lower in the June quarter 2009 than the March quarter 2009, and 22% lower than in the June quarter 2008; Annual housing completions in England totalled 126,500 in the 12 months to June 2009, down by 22% compared with the 12 months to June 2008. Read more to top NHBC: Consistent Improvement for UK house building sector The latest house building statistics from the National House Building Council have revealed further indications of recovery throughout the UK. During the three months from July to September 2009, NHBC received 24,136 applications to build new homes in the UK - an increase of 4% on the same period last year. Some regions demonstrated particularly solid improvement in July - September 2009 compared with the same period last year, including both the North East (149%) and North West (37%). All four countries of the UK displayed signs of recovery. Imtiaz Farookhi, NHBC Chief Executive, said: "It is reassuring that NHBC's figures show consistent improvement and that these positive signs extend across the UK. The sector has weathered the traditionally slow summer period, but we must now see out the autumn and hope that this confidence extends to the end of the year." NHBC statistics for the three months to the end of September 2009 also show: Recovery in the private sector continues. Private sector applications were up 17% across the UK to 15,577 from 13,358 for the same period last year; Public sector figures for the three months to the end of September totalled only 8,559 – 13% lower than the same period a year ago (9,827); The average number of daily sales of new homes in the UK recorded by NHBC during July to September 2009 was 365 – 15% lower than the same period a year ago (429), but 7% higher than the number of sales recorded during the last rolling quarter (342). Read more to top HCA: Action on apprenticeships as 'employment dividend' to housing investment Around 2,800 apprenticeships and Local Labour Initiatives could be created through HCA investment in new and affordable homes over the next two years, the Homes and Communities Agency confirmed this week. Up to 1300 could be created predominantly through the Agency’s Kickstart and Local Authority New Build Programmes, with a further 1500 through the standard NAHP. The Agency has written to RSLs in receipt of NAHP funding outlining its commitment to apprenticeships and confirming that provision of a scheme, or commitment to establishing one, will be a requirement of receiving grant funding. It also intends to recruit some of its own entry level regional delivery posts through Local Employment Partnerships with JobCentre Plus. Sir Bob Kerslake, Chief Executive of the HCA, said: “Homes and jobs should go hand in hand in creating thriving communities. That is why this is a high priority for Government, and why we are seeking to maximise the employment dividend of our investment. ”We are well placed to do this through our strong links to the construction industry, but we need our development partners to take the lead, and in turn to encourage their own partners to create opportunity. And we also need to play our part, hence our commitment to graduate training and Local Employment Partnerships with JobCentre Plus.” Read more to top Development Control Statistics: England 2008-09 The latest national statistics on Development Control were released under the auspices of the UK Statistics Authority this week. Statistics in this release present provisional figures on Development Control in England in 2008-09. In 2008/09, 'district level' planning authorities in England received 507,000 applications, a decrease of 22%when compared to the previous year; There were 489,000 decisions (granted or refused), 18% lower than the previous year; Permissions amounted to 387,000, 83% of decisions. The rate remaining approximately level since 2005/06; 71% of major applications were decided within 13 weeks. The rate has stayed level since 2006/07; In 2008/09, 'county level' planning authorities received 1,667 'county matters' planning applications, 8% lower than in the previous year; There were 1,507 decisions of which 92% were permissions. This rate has remained more or less level since 2001/02 Read more to top Housing market news RICS: First time buyer demand increasing Demand from first time buyers is rising, while buy-to-let investors are gravitating towards houses rather than flats says RICS' latest housing market research. The RICS' new buyer enquires series has reported a positive net balance for 11 consecutive months. On the back of the pick-up in interest in the market, RICS thought it would be valuable to delve a little further into this trend. Questions were asked about the proportion of enquiries coming from first time buyers and whether surveyors are now seeing a rise in buy to let investment. Additional questions in the August Housing Market Survey focused on the issue of first time buyers. Surveyors reported that 13% of new enquiries derived from first time buyers with a net balance of 28% reporting that the number of first time buyer enquiries had increased over the past three months. The North West recorded the highest proportion of first time buyers at 23%, while the lowest proportion was recorded in East Anglia with only 6%. The results of the survey, meanwhile, suggest that the net balance of surveyors reporting a rise in first time buyer demand was most rapid in the South East and East Anglia at 56% and 43% respectively. However, surveyors in Yorkshire and Humberside and the North reported falls in first time buyer demand over the previous three months. In September, surveyors were asked how buy-to-let demand had changed in relation to both houses and flats. A net balance of 2% more surveyors reported a rise than a fall in buy-to-let enquiries in aggregate; interest was generally stronger for houses than flats. London bucked the trend by reporting a positive balance of 8% more surveyors reporting higher (rather than lower) demand for flats compared to a negative balance of 16% for houses - this is arguably a reflection of the different nature of the London rental market and the cost and availability of houses in the capital. Read more to top Land Registry: House price index The September data from Land Registry shows an annual movement of -5.6%, which is a result of the positive monthly change of 0.9%. This brings the average house price in England and Wales to £158,377. This is the fifth month in a row where the annual rate of decline has eased. The number of sales averaged 48,109 per month from April 2009 to July 2009. In the same time period the year before, transaction volumes averaged 59,677 per month. Key regional observations: All regions in England and Wales experienced a decrease in their average property values over the last 12 months; The region with the most significant annual price fall was the North East with a movement of -8.2%; London experienced the greatest monthly rise with a movement of 1.3%; Wales was the region with the most significant monthly price fall with a movement of -2.6%. Read more to top Events Housebuilding Innovation Awards 2009. Just one more week left to book - and limited spaces available. This years Housebuilding Innovation Awards will be presented by broadcaster, journalist and ex MP Gyles Brandreth, next Thursday, 5th November 2009. The shortlist for the Awards reveals a range of examples of the outstanding innovative achievements the industry has made in the past year. Please click here for full details The Awards, which are supported by the Government, have become among the most sought after in the industry as they recognise excellence in innovation in all aspects of the house building business. The culmination of the Awards is the announcement of the house building firms deemed to be the overall Innovators of the Year –previous winners have included Redrow, Barratt, Explore Living and Midas. The winners will be announced at a glittering black tie awards ceremony on Thursday 5th November at the Millennium London Mayfair Hotel. For further information or a booking form please contact the events team on 020 7960 1646 or visit www.house-builder.co.uk to top HBF Annual Technical Conference 2009 – The TechnoCentre, Coventry The Building Regulatory Agenda – from here to 2016 Wednesday 18th November 2009 The conference aims to look at the forthcoming amendments to the Building Regulations, addressing CLG’s policy overview and in particular concentrating on the recent Parts F & L consultation. Expert speakers from CLG, BRAC, NHER, Zero Carbon Hub and BRE will be there to answer your questions on all building regulation issues. For further information please visit www.house-builder.co.uk or contact the events team on 020 7960 1646 to top WHAT HOUSE? Awards 2009 – gala presentation luncheon Tickets and tables are now available for the 2009 What House? Awards, taking place at London's Grosvenor House Hotel on Friday 20th November. The event is one of the highlights of the house building calendar, as the industry meets to salute the best new homes in Britain. To book your seats for this prestigious event please email Derek Smith. Or download a booking form at www.whathouse.co.uk/awards. 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 Hinchliffe/Steve Turner View Previous Weekly News Summary
