Friday, 5th March 2010 Top stories this week Ministers launch Home Energy Management Strategy.....read more Bank of England maintains both Bank Rate and size of the Asset Purchase Programme .....read more NHBC: Home Building Skills - Action Plan to 2020.....read more Building (Local Authority Charges) Regulations 2010.....read more Making better use of Energy Performance Certificates and data: Consultation.....read more Latest house price indices.....read more NHMB: 89% still believe in home ownership.....read more Quick Links Government and political news Economic news Industry news Housing market news HBF news Events Government and political news Ministers launch Home Energy Management Strategy Energy and Climate Change Secretary Ed Miliband and CLG Ministers this week launched the Government’s major new strategy for improving the energy efficiency of the existing housing stock - ‘Green Homes, Warmer Homes Home Energy Management Strategy’. The strategy will be implemented in a three stage plan: To insulate 6 million homes by the end of 2011; To have insulated all practical lofts and cavity walls by 2015 ; To have offered up to 7 million eco upgrades by 2020 - all homes to have smart meters. It will also pave the way for ‘pay as you save’ green finance to make energy efficiency pay from day one. Ed Miliband said: “The Warm Homes, Greener Homes Strategy will remove the deterrent of upfront costs and reduce the hassle of the move to greener living. “Making homes more energy efficient will help protect people from upward pressure on bills, tackle climate change, and make us less reliant on imported energy. “New ‘pay as you save’ green finance, a new alliance between energy companies and local authorities to help people in their communities, as well as moves to encourage landlords to stop ignoring energy wastage in their properties, will help deliver the radical transformation that’s necessary.” Read more to top John Healey outlines Government response to mayor's London housing strategy Housing Minister John Healey has published the Government's response to the Mayor of London's plans for affordable housing in the Capital. In a letter to the Mayor sent last month and published this week, Mr Healey highlights the particular importance of providing affordable housing in London, both in ensuring its long-term economic success and in meeting the needs and aspirations of ordinary Londoners. Under powers granted in the 2007 GLA Act, Ministers can exercise their power to direct the Mayor to change his housing strategy if any part is in conflict with national housing policy. In his letter, Mr Healey explains that the Government has decided not to use these powers - both in recognition of the Mayor's electoral mandate, and because a number of key policies contained in the London Housing Strategy which are of concern to Government will be taken forward by the London Plan, which will be subject to scrutiny through Examination in Public later this year. But in his letter, John Healey also warns that the housing strategy will not sufficiently address the Capital's needs. Please click here to view a copy of the letter Read more to top HBF: Dismore Bill unnecessary and short ‘sited’ In a press release published this week, the HBF criticised the Parliamentary Private Members Bill to be presented for its Second Reading today by Andrew Dismore MP as both a waste of Parliamentary time and a demonstration of the lack of understanding of housing issues by some MPs. The Bill by the Labour MP for Hendon requests that under the planning system 'special regard shall be had to the desirability of preserving gardens and urban green spaces” - powers every single Local Authority already has under existing planning rules whereby they are allowed to take into account any consideration they feel necessary when assessing a planning application and setting policy. HBF said Mr Dismore's Bill misses the much bigger point that the country has a major housing shortage with insufficient homes being built, many people struggling to enter the housing market and the waiting list for affordable homes approaching five million. The release recognised Local Authorities face difficult choices in determining where to build necessary new homes. They may choose to grant planning applications for garden sites as it is the only way to supply much needed housing in a manner that is not detrimental to the local character. Such building is often important for smaller local firms which provide much needed local employment. HBF's Planning Director Andrew Whitaker said: "It is extremely disappointing that at a time when we have an increasing housing supply crisis a MP would devote valuable parliamentary time to promoting a Bill which is both unnecessary and will do nothing to help those needing homes. MPs should be exploring why house building has dropped to the lowest level since World War 2 at a time when 1.8 million families are registered on Local Authority housing waiting lists. Addressing how we supply enough land on which to build the homes we desperately need, and the chronic shortage of mortgage availability, would be a far better use of legislative and parliamentary time that could result in huge social and economic benefit. When scoring opportunities are in short supply it is vital to shoot at the right target.” Read more to top Economic news Bank of England maintains both Bank Rate and size of the Asset Purchase Programme The Bank of England’s Monetary Policy Committee this week voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200bn. The minutes of the meeting will be published at 9.30am on Wednesday 17th March. In its comment the CBI said that the Bank should stand ready to continue with quantitative easing as required, given the "extremely shallow roots" of the economic recovery. Read more to top Bank of England: Lending to Individuals January 2010 According to the latest data released by the Bank of England, total net lending to individuals rose by £2.0bn in January. The twelve-month growth rate ticked up to 0.8%. The three-month annualised growth rate was 1.3%, a 0.4 percentage point increase from a revised 0.9% for December. Within the total, net lending secured on dwellings increased by £1.5bn, above the December increase of £1.2bn and the previous six-month average of £1.0bn. The twelve-month growth rate ticked up to 1.0%, from 0.9% in December. The three-month annualised growth rate rose to 1.4%. The number of loan approvals for house purchase (48,198) was lower than the December figure (58,223) and below the previous six-month average (55,924); approvals for remortgaging (23,611) and for other purposes (23,035) were also lower than in December and lower than their respective six-month averages. Consumer credit increased by £0.5bn, above the previous six month average of a net repayment of £0.2bn, and also above December’s net increase of £0.3bn. Credit card lending increased by £0.2bn and other loans and advances increased by £0.3bn. The annual growth rate of consumer credit was less negative at -0.2%; the three-month annualised growth rate increased to 0.7%. Read more to top Industry news CLG: Planning system reforms “Cutting red tape and saving money for developers to help drive recovery” A package of planning system reforms aimed at saving developers time and money to help them complete building projects during the recovery have now been approved by parliament, Planning Minister John Healey confirmed this week. Businesses that need to extend existing planning permissions to allow more time to build new developments will now pay significantly lower fees which, along with other measures aiming to improve the flexibility of planning permissions, CLG estimate may save up to £69m a year. John Healey said: "At a time when funding for new developments is difficult, I have changed the planning rules to give developers longer to build new projects that will help drive economic recovery. "Now I am able to cut and cap the fee for extending existing planning permissions. As we work to secure a strong economic recovery, we need to do what we can to keep plans for new development on the table. The planning system has to adapt to current economic circumstances to help homeowners, industry and developers, and we have done just that." Read more to top NHBC: Home Building Skills - Action Plan to 2020 People from across the home building industry are being called upon to respond to a consultation to help tackle the future skills agenda - one of the biggest challenges facing the industry over the next decade. While this agenda impacts across the construction sector home builders are at the forefront. “Home Building Skills - Action Plan to 2020” has been developed by NHBC, the Zero Carbon Hub and ConstructionSkills. The initiative has sought to identify key issues, potential impacts on the home building sector and ways of addressing the short, medium and longer term skills challenges they create. Following an initial in-depth research phase conducted with industry experts and representative bodies, the industry is now being urged to respond to a consultation launched at this year's Eco Build (2nd - 4th March). The consultation will be live online until 31st May 2010. Once the consultation closes the findings will be developed into an online hub, which all those involved in home building - whether site managers, architects, bricklayers or others - will be able to use to establish what training support they need, and where to find it. Read more and respond to the consultation to top Building (Local Authority Charges) Regulations 2010 The Building (Local Authority Charges) Regulations 2010 (SI 2010/404) were laid in Parliament this week. The new regulations implement a number of key changes to the local authority (LA) building control charging regime in England and Wales proposed during consultation last spring. The 2010 Regulations revoke and replace the Building (Local Authority Charges) Regulations 1998 (SI 1998/3129) and come into force on 1st April 2010 (subject to a transitional provision - see guidance). The main changes in the 2010 Regulations relate to new flexibilities, in particular: the ability for LAs to charge for giving substantive advice related to their building control functions; an increased range of factors to be taken into account in setting charges; the option of setting either standard charges or making individual determinations of charges; and being able to give refunds and make supplementary charges, all of which are intended to make the charging regime more accurate and fairer. New accounting requirements are also included which are intended to make the regime more transparent and accountable. Alongside the regulations CLG has also published the following documents: A Circular containing guidance explaining the effect of each of the regulations A Circular Letter giving general guidance on the implementation of the changes An Impact Assessment setting out the likely impact of the changes A Summary of the responses to the consultation All the above documents, including the regulations themselves, can be accessed via the CLG's website, please click here to view to top Making better use of Energy Performance Certificates and data: Consultation A consultation has been launched this week by Communities and Local Government regarding Energy Performance Certificates (EPC) and Display Energy Certificates (DEC). The aim of the consultation proposals is to help improve the effectiveness of EPCs and to make better use of energy performance data as part of UK plans to reduce carbon emissions. In the package of measures proposed, the CLG favour the early introduction of a requirement for all adverts for property marketed for sale or rent to carry details of that property’s EPC rating. This requirement would need to be introduced in any case by 2012-13 under the terms of the recently agreed revision of the EU Energy Performance of Buildings Directive (EPBD). HBF will be seeking member views on the issues raised in the consultation. If you would like to contribute to discussions on the HBF’s consultation response, please contact Rosie Hinchliffe – rosie.hinchliffe@hbf.co.uk. Read more to top NHPAU shows that type, density and location of planned new homes has a big impact on their viability and affordability A new report has outlined how the mix, density and location of new housing developments affects the affordability of those new homes for first-time buyers, and how financially viable they are for the developer. It finds not only that what is most profitable and most affordable is rarely the same, but also that both vary considerably from city to city and within each city. The National Housing and Planning Advice Unit (NHPAU), has revealed these findings in a new report “The Implications of Housing Type/Size Mix and Density for the Affordability and Viability of New Housing Supply”. The research has developed a model which can estimate the sales value of different mixes (detached, semi-detached, terraced, flats) and densities of homes on particular sites. The sales prices are compared with the prices of existing homes in the area and local incomes to assess whether the homes built would be affordable for first time buyers. The sales data is also compared with building cost estimates, to explore how profitable different mixes would be. Neil McDonald, Chief Executive NHPAU, commented: "The NHPAU has long maintained that building the right type of homes in the right places is crucial to improving affordability. This work provides further evidence of this and of the tensions between what is most profitable for the developer and what may be best for the local community. It should be studied carefully by those responsible for developing housing strategies and local plans." Read more to top Housing market news Latest house price indices Hometrack: House price rises lack solid foundations According to Hometrack’s latest house price survey, house prices rose by 0.3% over February, but Hometrack caution that price rises alone are not indicative of strong foundations as the 2010 housing market gets off to a slow start. February is traditionally a month when the Hometrack survey registers significant growth in the number of sales agreed - over the last eight years the growth in sales agreed over February has averaged 30%. Yet this year the number of sales agreed has averaged just 10%. While it is important to not read too much into one month’s set of figures, the survey also revealed below average increases in both the amount of new housing for sale and new buyer registrations. The supply of homes for sale may have grown by 4.6% but the average increase over the same month in previous years has been 14%. Buyer registrations have increased by 8.3% this month compared to an average of 24% in the same month over the last 8 years. Despite the broad evidence of sluggish market activity, price pressures are feeding through more strongly than was the case in the second half of 2009. Average prices are up 0.3% over February and by 0.4% in the last 12 months - the first year on year rise since March 2008. The survey also showed that prices have risen across 25% of postcodes – a level not seen since 2007. Read more to top Halifax: prices down in February The key data from the latest Halifax house price index covering the month of February are: House prices fell by 1.5% in February. This was the first decline since June 2009 following seven consecutive monthly increases; Prices in the three months to February were 1.8% higher than in the preceding quarter. This compared with a 3.2% increase on the same basis in January; House prices in February were 4.5% higher on an annual basis. This was the largest increase in the annual rate of change - measured by the average for the latest three months against the same period a year earlier – since January 2008. The annual rate increased from 3.6% in January despite February's monthly fall, partly because February's decline was lower than the decline in February 2009; Prices are 8.0% above the low reached in April 2009; an increase in the average price of £12,367 over this period. This follows a decline of 23% between August 2007 and April 2009. The average house price is now £166,857. Commenting, Halifax Housing Economist Martin Ellis said: “There has been a decline in the underlying rate of house price inflation – measured by a comparison of the latest three months with the previous quarter – over the last few months. An increase in the number of properties available for sale has helped to reduce slightly the imbalance between supply and demand. At the same time, the bad weather in the first two months of 2010, together with the return of the lowest stamp duty threshold to £125,000, are likely to have had an adverse impact on housing demand. The combination of these factors appears to have helped to curb the upward pressure on house prices." Read more to top Land Registry: House price index According to the latest Land Registry house price index, the January data shows an annual house price movement of 5.2%, which is the second month in a row in which the figure has been positive. While not all regions are recovering at the same rate, it is clear that overall prices are increasing. Monthly house price change was also positive this month at 2.1%. This is the eighth consecutive month that the figure has been above zero. The average house price in England and Wales now stands at £165,088, which is an increase from last month's figure. Transaction volumes averaged 57,722 per month from August to November 2009. In comparison to this, the figure was 42,523 during the same months the year before. Read more to top NHMB: 89% still believe in home ownership For the third year in succession, a YouGov survey commissioned by the New Homes Marketing Board (NHMB) has shown that the vast majority of Britons still want to invest in homes of their own despite the nation’s economic woes. While the shortage of mortgage funding and the loss of confidence in the housing market are still causing serious frustration – with over a third of respondents saying their chances of buying a home of their own are worse than a year ago - the public’s general belief in home-ownership is undented, with just under nine out of ten respondents (89%) stating that they regard it as a sensible investment in their future. A virtually identical YouGov survey carried out for the NHMB two years ago, in 2008 – before the worst of the banking crisis and global credit crunch - produced a figure of 90%. In last year’s 2009 YouGov survey, it dropped marginally to 88%, before bouncing back to 89% this year David Pretty CBE, Chairman of the New Homes Marketing Board, commented: “Even though the economic situation has worsened dramatically since our first survey on this subject two years ago, our latest look at underlying demand for home ownership shows that it remains very strong. Our national belief in the benefits of home-ownership seems almost unshakeable, which is quite remarkable given the current economic situation. “However, this climate is still serving to thwart home ownership ambitions more than at any time in modern history, with 43 per cent of respondents putting their plans on hold citing difficulties in either obtaining a mortgage (26 per cent), saving for the larger deposits when their bills and daily expenses are rising (44 per cent) or lack of confidence in the market (23 per cent). Looking at the results of this latest survey, it is clear that this is causing frustration and resentment. It is particularly frustrating for those buyers who are creditworthy and have a reasonable deposit but who simply cannot get a suitable mortgage.” Read more to top HBF news HBF at Ecobuild HBF Director of External Affairs John Slaughter spoke about the industry perspective and issues in working on the zero carbon homes policy at a seminar during the Ecobuild conference and exhibition held at Earls Court this week. John also took part in a panel debate on housing supply as part of the Ecobuild conference programme. to top HBF meet the Chief Construction Adviser Director of Economic Affairs John Stewart met the Government’s Chief Construction Adviser, Paul Morrell, this week to discuss the zero carbon homes policy in the context of work on the cumulative impact of regulation on the industry. to top HBF and key industry bodies: Public sector construction vital to economy In a letter addressed to today’s edition of the Guardian the HBF joined other construction bodies in stating that public sector construction is vital to the UK economy. The letter said that: “Despite the recent upward revision of the UK's GDP figures, as your article suggests, the construction industry remains in a deep downturn (Construction recovery hit by weather and election uncertainty, 3 March). “Construction's value to the economy is not fully appreciated because of its fragmented nature. Few realise that it contributes 8.5% of the UK's GDP and employs around 3 million people across 300,000 firms. That is why the CBI and other leading representatives of the sector are urging the government not to take the easy option of cutting capital spending further. This would damage the country's long-term competitiveness and risk jeopardising the fragile economic recovery, as well as putting more jobs at risk. “Public sector spending on construction projects represents about 40% of the industry's turnover. This is already set to halve under the current government's spending plans, with more than £90bn of capital spending cut between now and 2014. But investment in construction is one of the best ways of stimulating the whole economy and jobs. A recent report by LEK Consulting revealed that every £1 invested in construction generates £2.84 in total economic activity.” Read more to top Haiti earthquake appeal Following the earthquake in Haiti, HBF launched an urgent appeal to the house building industry on behalf of its nominated charity Habitat for Humanity (HfH). The earthquake decimated the country's infrastructure and thus its ability to cope with the devastating impacts. It is a catastrophe of major proportions with early estimates suggesting that up to three million people have been killed, injured or made homeless. Habitat for Humanity has been present in Haiti, working with poor and low-income families in need of decent housing since 1981. It has a Disaster Risk Assessment Team on the ground, establishing a clear picture of the situation and providing specialist shelter provision and reconstruction assistance. Further information about this is available on their website http://www.habitatforhumanity.org.uk Whilst appreciating the difficult economic climate in which members are operating it only seems appropriate that our industry should support a charity that specialises in shelter provision, housing repair and reconstruction. How quickly we raise funds will directly affect Habitat for Humanity's ability to assist now, when their help really is needed. Please help by making a secure online donation today. http://www.habitatforhumanity.org.uk to top Events HBF to host housing ‘Question Time’ featuring Healey and Shapps 10th March, Westminster The HBF’s Policy conference will this year be a pre-election ‘Question Time’ style debate featuring the main housing political heavyweights. Housing Minister John Healey and his Tory shadow Grant Shapps will take part in an open debate to be chaired by HBF Executive Chairman Stewart Baseley. The Lib-Dems are also expected to field a representative. Questions will be taken from the assembled delegates on the key housing issues in what is sure to be a heated and fascinating debate with the General Election looming. It will be followed by a debate featuring an expert panel of leading economists, including Citigroup’s Michael Saunders and Capital Economics Ed Stansfield which will look at the prospects for both the housing market and the general economy. For further information and booking details go to; Download a booking form Visit the website to book online to top Housing Lecture 2010: Labour's Agenda Tuesday 23rd March 2010 The New Homes Marketing Board and the Centre for Social Justice are hosting an event in association with the Smith Institute that will look at Labour’s housing policy proposals. Speakers will include the NMHB chair David Pretty CBE; Rt. Hon. John Healey MP, Housing Minister. It will be chaired by Paul Hackett, Director, The Smith Institute. The event will run from 1800-1930 and be followed by a drinks reception Limited spaces available, to request a space please email housinglecturead@smith-institute.org.uk to top HBF: Event diary dates HBF has announced the return of three of its most popular social events for this year. The economic climate dictated that the HBF Ball, its North West Social dinner and its golf day have not taken place for the past two years, but member demand sees them return for 2010. Please make a note of the dates for your diary and click on the event to download the booking form: HBF Golf Day - Tuesday 13th July 2010 - Woburn Golf Course HBF North West Social Dinner - Friday 10th September 2010 - The Midland Hotel, Manchester HBF Ball - Friday 10th December 2010 - Marriott Grosvenor Square, London to top Annual Lunch speakers announced; Raynsford and Gummer HBF has announced that the speakers at this year’s Annual Lunch will be Labour MP and ex-housing minister Nick Raynsford and Conservative MP and ex secretary of state for the Environment John Gummer. The HBF AGM & Annual Industry Lunch will take place on Wednesday 28th April at the Hyatt Regency Hotel, London. The day will begin with the AGM and Open Council meeting and be followed a drinks reception and the annual lunch. The key note speaker will be announced shortly. If you have any queries about any of the above please contact the events team on 020 7960 1646 and events@house-builder.co.uk Please click here to download a booking form to top Habitat for Humanity's Hope Challenge 11-13th June 2010 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. Think you can rise to the challenge? Want to join HforH in Hope Challenge 2010? Find out more about Hope Challenge 2010 Register your team for Hope Challenge 2010. Take a look at the photos and video of Hope Challenge 2009. 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 HBM events visit http://www.hbmedia.co.uk/ to top Rosie Hinchliffe View Previous Weekly News Summary
