Top stories this week
HCA appoints one-stop-shop partner panel.....read more
More cash and more homes says Healey.....read more
Latest price indices.....read more
Bank of England: Lending to Individuals November 2009.....read more
CML: Winners and losers from the stamp duty holiday .....read more
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New move to improve housing association standards
Jocelyn Davies AM, Deputy Minister for Housing and Regeneration has encouraged housing professionals and tenants to have their say on proposed new performance standards for Housing Associations in Wales.
A consultation on the governance and financial management of Housing Associations is available for comment on the Welsh Assembly Government website.
The proposed standards could:
Provide strategic shape and direction to the new self assessment arrangements for Housing Associations;
Improve accountability by letting all housing tenants/customers know what they should expect from their landlord;
Drive service improvement;
Help provide structure to any regulatory review by the Assembly
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Mortgage approvals soar, but experts still cautious
The number of mortgages approved for buying homes has more than doubled during the past year, figures showed this week, in a further sign of a continued strengthening of the property market.
A total of 60,518 loans for new homes were in the pipeline during November – the highest level since March 2008 and more than double the record low of 27,162 seen in November of that year.
In Wales, economists and estate agents said the recovery remains likely be very gradual, despite the dramatic rise in lending.
Nigel Jones, a co-director of South and West Wales estate agents John Francis, suggested the housing market recovery is being slowed by lenders continuing to demand hefty 15% deposits from first-time buyers.
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First Minister announces Assembly vote on full law making powers referendum
A key Assembly vote which could pave the way for a referendum on full law-making powers will be held within weeks, the First Minister confirmed this week.
In one of his first major interviews since taking over from Rhodri Morgan as Labour leader, Carwyn Jones said a vote will be held in the Assembly at the end of this month or at the start of February.
Two thirds of AMs must vote in favour of a referendum before a formal request can go to the Secretary of State for Wales.
The precise wording of the motion which will go before AMs is still being decided but Mr Jones insists an autumn 2010 referendum is still possible.
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HCA appoints one-stop-shop partner panel
A variety of house builders, contractors and development consortia have been appointed to the Homes and Communities Agency’s (HCA) new Delivery Partner Panel, it was announced today, January 8.
Aimed at streamlining development on publicly-owned land, the panel is divided into three clusters – northern, central and southern – to provide full national coverage. In addition to working on the HCA’s own projects, panel members will be made available to Local Authorities, Regional Development Agencies (RDAs) and other public agencies to deliver new homes through programmes such as Local Authority New Build and Public Land Initiative.
Eamonn Boylan, director of New Ventures and Partnerships at the Homes and Communities Agency said:
"We hope that this panel will help speed up the procurement process for public sector agencies by providing access to a pre-qualified list of organisations that can assist with all stages of the development process.
From finance and funding of development, design and construction to sales and marketing, the panel can now be used to procure both physical development works and related services in the early stages of a development project."
Click here for more details and a list of appointed companies.
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More cash and more homes says Healey
Housing Minister John Healey said Government funding for house building has hit £2bn since June as he announced a further £278m for an extra 5,000 affordable homes across the country.
In an upbeat end of year report Mr. Healey said that Government backed house building was not only helping to tackle the shortage of affordable homes but also supporting the construction industry when it needed it most - it will protect and create new jobs including 2,800 new apprenticeships.
Money released through the Homes and Communities Agency was boosted by the extra £1.5bn funding for the Prime Minister's Housing Pledge, which saw Government funds switched into the building of new homes.
The Minister also pledged that this housing boost will continue. He confirmed plans to give the green light to a second phase of the biggest council house building programme for two decades, approve more cash to get workers back on building sites of developments stalled by the recession and sign off further funding for housing associations to build more low cost homes for rent or sale.
Mr. Healey also said that he will shortly announce the first Government land for new homes under the Public Land Initiative. This is a new deal for the construction industry where Government and public agencies provide the land, but they take out the upfront costs and risks involved in site purchase and preparation allowing partners to operate at lower overheads and profit margins in the region of 6 or 7% rather than the 15-20% norm for traditional house builders.
Over £245m of this funding for more affordable homes will go to Housing Associations in all regions of the country, creating or protecting jobs or apprenticeships. And, as part of the Government's Backing Young Britain campaign, the Housing Minister has put in place contractual conditions which will mean that the multi billion pound Housing Pledge investment will create not just homes but 2,800 apprenticeships in the housing construction and related sectors.
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Work begins on biggest council house building programme in two decades
Housing Minister John Healey has hailed the start of the biggest council house building programme in nearly two decades as work began this week on the first of over two thousand new homes to help tackle waiting list pressures.
Mr. Healey saw work get underway in Tyneside on the first new site for Government funded council housing in the country. Many more sites across the country will follow in the coming weeks as the £141m council housing drive, which is set to create over five thousand construction jobs, gets underway.
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Coalition warns Tory plans will cut house building
Conservative plans to shift responsibility for housing from regional bodies to local councils would result in fewer homes being built, a new lobby group has warned.
Building Futures, a group of commercial developers, home builders and housing associations launched this week, has carried out research which it says shows councillors would use greater planning powers to limit development.
The full results from the ComRes poll will be published later this month, but Building Futures said councillors in the areas where there is the greatest demand for housing – such as the south east and east of England – are the most strongly opposed to new development.
Building Futures, which includes housing association Places for People, and commercial and residential developers Segro, Land Securities, and Countryside Properties, is arguing for more development in local communities.
Land Securities representative Emma Cariaga said: “The property and development industry makes a huge contribution to the UK economy. Building Futures wants to work with local councillors to make the positive case for development in our local communities.”
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Halifax house price index
The Halifax house price index, published this week, reported that:
House prices increased by 1.0% in December. Prices have therefore increased for the sixth successive month with December's rise slightly below the average for the preceding five months (1.2%);
Prices in the final three months of 2009 were 3.5% higher than in the third quarter. This is the biggest quarterly increase since 2006 quarter 4 (4.2%);
Prices have increased by 9.4% since reaching a low in April 2009; an increase in the average price of £14,552 over this period. This follows a decline of 23% between August 2007 and April 2009. The average house price is now £169,042.
House prices in December were 1.1% higher on an annual basis. This is the first increase in the annual rate of change - measured by the average for the latest three months against the same period a year earlier – since March 2008. The annual rate has turned around markedly from a low of -17.7% in April;
Completed house sales in England and Wales were 11% higher on an annual basis in September, according to the latest Land Registry figures. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase – a leading indicator of completed house sales – increased, on a seasonally adjusted basis, for the twelfth successive month in November. Approvals (at 60,518) were 123% higher than in November 2008 and were at their highest level since March 2008. Nonetheless, approvals remain 53% below their late 2006 peak.
Whilst there are signs that the improvement in market conditions is encouraging more homeowners to put their property up for sale, new supply is still not keeping up with the pace of rising demand. Many homeowners remain reluctant to sell at current prices. Accordingly, the ratio of house sales to the stock of unsold properties on surveyors' books increased for the eleventh month in a row in November. (Source: RICS monthly survey, November 2009.)
Commenting, Martin Ellis, Housing Economist, said:
“The significant cut in interest rates following the worldwide financial upheaval in the autumn of 2008 has markedly reduced the burden of servicing a mortgage for many households. This has helped to stimulate housing demand, albeit from a low base. The recent improvement in the labour market, highlighted by increasing numbers of people in employment in both September and October, has also supported housing demand.
“The prospects for the market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale. Overall, our current view is that house prices will be flat during 2010."
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Nationwide: House prices up 5.9% over 2009
The Nationwide House Price Index, published 31st December, reported that:
The average house price rose by a further 0.4% in December;
Year-on-year house price inflation increased from 2.7% in November to 5.9% in December;
The future outlook for house prices remained uncertain.
Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said:
“House prices rose by a further 0.4% in December, continuing the recent trend of moderate month-on-month increases. The 3 month on 3 month rate of change – a smoother indicator of the near term price trend – dropped from 2.8% in November to 2.1% in December, as house price increases toward the end of the year moderated in comparison to those seen in the summer.
“At £162,103, the average price of a typical UK property has ended the year 5.9% higher than at the end of 2008. Few could have foreseen this development at the start of the year, when the near term price trend was still pointing to a repeat of the double digit annual decline experienced in 2008. Although house prices are still 12.2% lower than their October 2007 cyclical peak, they have now rebounded by an impressive 8.9% since their February 2009 trough.”
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Land Registry: November house prices up 0.9% since October
The November data from Land Registry's house price index shows a positive monthly house price change of 0.9%, which is the sixth month in a row in which the movement has been above nought per cent.
The annual house price change stands at -0.3%. This is the seventh month in a row in which the annual rate of decline has decreased. The average house price in England and Wales is now £161,554.
Four regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the most significant annual price fall was Yorkshire & The Humber with a movement of -4.7%. Wales experienced the greatest monthly rise with a movement of 2.9%. The West Midlands was the region with the most significant monthly price fall with a movement of -0.4%.
The most up-to-date figures available show that during September 2009 the number of completed house sales in England and Wales rose by 30% to 53,482 from 41,302 in September 2008. Transaction volumes, while no longer falling at 2007 rates, remain relatively low.
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Hometrack: First monthly decline in buyer demand since January 2009
Hometrack reported last week that there had been the first monthly decline in buyer demand since January 2009. Hometrack stated that house price growth experienced the usual seasonal slowdown in December on the back of a fall in the volume of sales agreed and the first monthly decline in buyer demand (-2.2%) since January 2009.
Average prices were up 0.1% over the month, following a 0.2% increase in November, although price rises were limited to just 11% of the country. House prices ended the year -1.9% lower than in the same period a year earlier.
Hometrack commented that buoyant demand and a chronic lack of housing for sale were the key drivers of the housing market in 2009. A scarcity of housing for sale is set to remain an important feature of the market in 2010 but it is the prospects for demand that will dictate the outlook for prices in the next 12 months. Over the last year, agents across the country registered a 41% increase in demand while in London this figure reached 70%. In contrast the volume of homes for sale across the country grew by just 7%. In the South East there was a fall in the number of homes for sale while in London and the South West supply grew by 2%.
On the basis of the economic outlook and market evidence Hometrack believes that it is unlikely that the improved market conditions of 2009 will be replicated in the New Year. Hometrack’s central forecast is that UK house price will fall by 1% in 2010, following no growth in prices over 2009.
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Bank of England: Lending to Individuals November 2009
The Bank of England reported this week that the total net lending to individuals rose by £1.1bn in November. The twelve-month growth rate remained at 0.7%.
The three-month annualised growth rate was 0.6%, unchanged from a revised 0.6% for October.
Within the total, net lending secured on dwellings increased by £1.5bn, higher than the October increase of £1.1bn and the previous six-month average of £0.7bn. The twelve-month growth rate was 0.9%, unchanged from a revised 0.9% for October. The three-month annualised growth rate increased 0.1 percentage points to 1.2%. Within total secured lending, secured lending by banks (excluding the effects of securitisations) increased by £4.3bn, above both the October increase (£3.3bn) and the previous six-month average of £2.8bn. The number of loan approvals for house purchase (60,518) was higher than the October figure (57,718) and the previous six-month average; approvals for remortgaging (24,897) were slightly higher than in October but remained below the previous six-month average.
The number of loans approved for other purposes (28,131) was lower than both the October figure and the previous six-month average.
Consumer credit fell by a net £0.4bn, weaker than the previous six month average of a £0.2bn fall. Credit card lending increased by £0.2bn but other loans and advances fell by £0.6bn. The annual growth rate of consumer credit continued to fall, to -0.5%; the three-month annualised growth rate remained at -2.2%.
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BSA: Building society lending steady in November
Gross mortgage lending by building societies was £1.6 bn in November, compared to £1.7bn in October. There is usually a reduction in lending from October to November, and when seasonal factors are adjusted for, building society lending was £1.5bn in November, the same as October. Commenting on the lending figures, Adrian Coles, BSA Director-General, said:
“Although the housing market has stabilised slightly in recent months following the drop in activity at the start of the year, lending is still at lower levels than a year ago. Funding conditions for all lenders are improving slowly, but these are still acting as a brake on lending, as is the relatively small number of properties coming to market. Lending activity is likely to remain relatively depressed in 2010 until funding and supply conditions improve.”
Data below are not seasonally adjusted.
Building society gross lending was £1,568m in November 2009 compared to £2,510 million in November 2008;
Net lending by building societies was -£543m in November 2009 compared to £412m in November 2008;
Mortgages approved by building societies in November 2009 amounted to £1,291m compared to £2,171m in November 2008;
Savings balances held by building societies decreased by £597m in November 2009 compared to an increase of £851m in November 2008;
Excluding any interest added to building society savings accounts in the period, £775m was withdrawn from building society savings accounts in November 2009, compared to a net receipt of £636m in November 2008;
Building societies had a net receipt of £32m into Cash ISAs in November 2009, compared to a net receipt of £83m in November 2008.
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Bank of England maintains Bank Rate at 0.5% and continues with £200bn Asset Purchase Programme
The Bank of England’s Monetary Policy Committee voted this week to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to continue with its programme of asset purchases totalling £200bn financed by the issuance of central bank reserves.
The Committee expects the announced programme to take another month to complete. The scale of the programme will be kept under review.
The minutes of the meeting will be published at 9.30am on Wednesday 20th January.
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CML: Winners and losers from the stamp duty holiday
At the end of the stamp duty holiday for properties sold for between £125,000 and £175,000, the CML has looked at which regions have benefitted most and least from the temporary concession. London and the South East are the relative losers, and the total cost of the concession will be much less than the Treasury originally estimated.
In September last year, when the government temporarily raised the nil rate threshold for stamp duty to £175,000, the CML estimated that this would mean the proportion of homebuyers who would not have to pay would rise from a quarter to a half. In fact, at its peak in the first quarter of this year, the concession benefitted even more than this, with 57% of all those buying with a mortgage not having to pay. However, modest house price increases and a shift in the mix of houses bought (towards higher value properties) brought this down to 51% in the third quarter of the year.
The flat nature of the concession - the same in all regions of the country – means that there is a wide geographic variation in the effect. Those areas with generally lower house prices see the greatest benefit. Last year, just before the threshold was raised, the Northern and Yorkshire & Humberside regions both had the greatest proportion of exempt transactions (purchases under £125,000), but in each of these regions this was still under half. A year later, with the higher threshold in place, over three quarters of transactions in the North are exempt from stamp duty.
But at the other end of the scale, London predictably sees much less benefit. Before the measure was introduced, only 2% of transactions were exempt. A year later, with the higher rate threshold in place, still only 17% of London borrowers escape paying. London accounts for 13% of house purchase transactions, but only 6% of borrowers helped by the stamp duty concession.
The CML continues to believe that fundamental reform of stamp duty is necessary. It is a tax that discourages labour mobility, and its “slab” structure has the effect of causing transactions to “bunch” just under each of the tax thresholds. While abolition would be the best option, a move to a graduated structure would be an improvement on the current system, even if done on a cost-neutral basis. While the temporary concession was welcome as far as it went, it is disappointing that the government has not sought to implement this desirable reform of an anachronistic tax.
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Housing beats construction slowdown
A construction index has shown house building activity grew for the fourth consecutive month in December, despite a continuing slowdown across the rest of the sector.
The construction purchasing managers’ index, which is produced by the Chartered Institute of Purchasing and Supply and Markit, found the rate of growth in housing was the strongest since August 2007.
CIPS Chief Executive officer David Noble said: “This suggests that the increase in house prices last year is beginning to have an effect on construction and encouraging new building.”
However the separate Construction Trade Survey says all areas of the construction industry contracted during the last quarter of 2009.
In response the Get Britain Building campaign said the government must do more to support the sector.
Chris Pateman, GBB spokesperson and Managing Director of the Builders Merchants Federation, said: “Government must start to think differently if we are to work and earn our way out of the current crisis. The UK construction industry is well set to be the motor of economic recovery, yet government seems oblivious to the wealth creation opportunities it provides.
“Strategic investment in infrastructure – such as realising the green potential of existing UK housing stock – is just one way we can drag ourselves up by our bootstraps, and one which can only benefit the Treasury from the get-go.”
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CLG: Improving the use and discharge of planning conditions – consultation
The Department for Communities and Local Government has announced that it is consulting on proposals to improve the use and discharge of planning conditions.
The consultation will seek views on a draft policy on the use of planning conditions, including the current arrangements on the fees that local planning authorities (LPAs) can charge. Views will be sought by March 19th 2010.
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CLG: Development Management: Proactive Planning from Pre-Application to Delivery – consultation
The Department of Communities and Local Government has launched a consultation on a draft new Planning Policy Statement (PPS) on development management and on draft policy annexes on pre-application and determination. Views will be sought by March 19th 2010.
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Planning Policy Statement 4: Planning for Sustainable Economic Growth
Planning Policy Statement 4 (PPS4) sets out the Government's comprehensive policy framework for planning for sustainable economic development in urban and rural areas.
This replaces Planning Policy Guidance 4: Industrial, Commercial Development and Small Firms (PPG4) and Planning Policy Guidance 5: Simplified Planning Zones (PPG5) both published on 10th November 1992; Planning Policy Statement 6: Planning for Town Centres (PPS6) published on 21 March 2005; and the economic development sections of Planning Policy Statement 7: Sustainable Development in Rural Areas (PPS7) published on 3rd August 2004.
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CPRE warns on housing planning
Planning for housing should not be based on the "shaky" assumptions on population trends, according to the CPRE.
In a new report the countryside campaign group calls for an objective-led approach to delivering housing which takes greater account of environmental impacts and is more responsive to changing circumstances.
Fiona Howie, Head of Planning and Regions for CPRE, said:
"With a population that is expected to continue to grow we have to use land more efficiently.
"We need to build more homes, especially affordable housing, but we also need to devote space on our densely populated island to producing food and energy, while still allowing people to access and enjoy open and unspoilt countryside.
"Planning for housing is fraught with uncertainties. Current projections fail to take adequate account of wider considerations, such as changing economic conditions and the effect these can have on migration levels."
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HBF: 2010 event diary dates
HBF has announced the return of three of its most popular social events for next 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 further details and ticket information will be issued in the new-year.
http://www.hbf.co.uk/index.php?id=2407&tx_skcalendar_pi1[offset]=1278975600&tx_skcalendar_pi1[view]=detail&no_cache=1&tx_skcalendar_pi1[uid]=593" target="_blank">HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course
http://www.hbf.co.uk/index.php?id=2407&tx_skcalendar_pi1[offset]=1284073200&tx_skcalendar_pi1[targetgroups]=&tx_skcalendar_pi1[categories]=&tx_skcalendar_pi1[locations]=&tx_skcalendar_pi1[organizers]=&tx_skcalendar_pi1[sword]=&tx_skcalendar_pi1[view]=detail&no_cache=1&tx_skcalendar_pi1[uid]=594" target="_blank">HBF North West Social Dinner – Friday 10th September 2010 – The Midland Hotel, Manchester
http://www.hbf.co.uk/index.php?id=2407&tx_skcalendar_pi1[offset]=1291939200&tx_skcalendar_pi1[targetgroups]=&tx_skcalendar_pi1[categories]=&tx_skcalendar_pi1[locations]=&tx_skcalendar_pi1[organizers]=&tx_skcalendar_pi1[sword]=&tx_skcalendar_pi1[view]=detail&no_cache=1&tx_skcalendar_pi1[uid]=591" target="_blank">HBF Ball – Friday 10th December 2010 – Marriott Grosvenor Square, London
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HBF AGM & lunch Wednesday 28th April – the Hyatt Regency Hotel – the Churchill
HBF can also confirm that the HBF AGM & Annual Industry Lunch will take place on Wednesday 28 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 early next year
If you have any queries about any of the above please contact the events team on 020 7960 1646 and
http://www.ddq.org.uk/emailers/skillstraining/index.html" target="_blank">Please click here for more information and details of how to book
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