Thursday, 1st April 2010 Top stories this week Consumer Code for Home Builders.....read more John Healey: further announcements bring Government investment in housing to £4.2bn.....read more Bank of England: Lending to Individuals February 2010.....read more NHBC: Home building levels getting back on track.....read more Nationwide house price index.....read more Housebuilder Awards 2010 - call for entries.....read more Quick Links Wales news Top Story Government and political news Industry news Economic news Housing market news Events HBF news Wales news Index of Production and Index of Construction, Quarter 4 2009 The latest National Statistics on the Index of Production and the Index of Construction produced by the Welsh Assembly Government were released this week according to the arrangements approved by the UK Statistics Authority. The Index of Production and the Index of Construction for Wales show the short term movements in the output of industries in the production and construction sectors within Wales including new data for the three months to December 2009 relating to quarter 4. The key messages from the release are: The longer term trend for the Index of Production for Wales shows a fall of 13.6% when comparing the latest four quarters to the previous four quarters. The UK figures show a fall of 10.2% over the same period. The short term quarterly movements show a fall of 1.3% for Wales and a rise of 0.3% for the UK; The longer term trend for the Index of Construction for Wales shows a fall of 11.7% when comparing the latest four quarters to the previous four quarters. The UK figures show a fall of 9.3% over the same period. The short term quarterly movements in the construction industry indicate a fall for both Wales and the UK of 1.3% and 0.9% respectively. Read more to top Dwelling Stock Estimates, 2008-09 The latest Dwelling Stock Estimates produced by the Welsh Assembly Government were released this week, according to the arrangements approved by the UK Statistics Authority. This statistical release presents estimates of dwelling stock numbers in Wales by tenure and local authority as at 31st March 2009. The latest release updates the statistics previously published in March 2009 in chapter 1 of the annual publication Welsh Housing Statistics. Key results for 2008-09 show: The total number of dwellings in Wales at 31st March 2009 was estimated to be 1.34 million which represents an increase of 8% since 1996-97; At 31st March 2009 the majority of dwelling stock, 71%, was owner occupied. A further 12% was privately rented, 8% was rented from local authorities and 8% was rented from registered social landlords; In the private sector, the largest increase since 1996-97 has been in the number of privately rented dwellings rising from 8 to 12% of all stock by 31st March 2009. Over the same period, the proportion of owner–occupied stock remained more or less the same though numbers did increase from around 891,000 to 955,000; In the social sector both the number and proportion of dwellings rented from local authorities has fallen by almost a half since 1996-97, whilst the number and proportion rented from registered social landlords has more than doubled over the same period. This has been predominantly influenced by the large scale voluntary transfers of stock from local authorities to RSLs. Read more to top Deputy First Minister publishes first ever National Transport Plan The Deputy First Minister Ieuan Wyn Jones, has launched the final version of the National Transport Plan which sets out how he will deliver the One Wales vision of a modern and sustainable transport system for Wales. Delivering the first ever National Transport Plan, the Minister for Economy and Transport explained how the Welsh Assembly Government will deliver the Wales Transport Strategy over the next five years. The aim of the plan is to ensure a system of transport fit for the 21st century based on three key principles: To meet the demand for enhanced mobility which will enable economic growth and improve the quality of life we seek for the people of Wales; To put transport onto a more sustainable and less carbon-intensive path; To use transport funding more effectively in light of increased pressures on public finances. Read more to top Major investment in Regional Transport Plans £22m of investment for Wales’ four Regional Transport Plans was announced this week by the Welsh Assembly Government. The funding will be shared between the four regional transport consortia that represent local authorities. Each of the consortia has submitted a Regional Transport Plan to the Assembly Government that outlines how they will maintain and improve the transport network in their area. The allocations by region are: SEWTA £9.152m SWWITCH £4.909m Taith £4.928m TraCC £3.014m An example of the projects funded through the regional transport plans include: £3.25m for Swansea Transport Package, including completion of the improvements to the Quadrant bus station in Swansea £900,000 to improve the Pont Briwet Bridge in Penrhyndeudraeth. £620,000 for the Bridgend Transport interchange. £1 million for Park and Ride at Cardiff East and Cardiff South West. £600,000 for Prestatyn bus station. Read more to top New research centre will be ultimate in sustainable construction A unique centre is to be established in Wales to develop the ultimate in low carbon, low energy, sustainable construction technologies where the actual façade of buildings – the walls and roofs - are used to transform the buildings from being energy consumers into energy generators. The Sustainable Building Envelope Centre (SBEC) will be a showcase for sustainable products and used to test and monitor new integrated heating, energy and ventilation systems on the fabric of the building. The centre is one of the ground breaking research projects to come out of the £34m Low Carbon Research Institute (LCRI) Energy programme, which is supported by European funding through the Welsh Assembly Government. Read more to top Top story Consumer Code for Home Builders The “Consumer Code for Home Builders” goes live today (1st April). The Code has been developed by a consortium of key industry and trade bodies, including warranty providers NHBC, Premier Guarantee & LABC New Home Warranty, along with the Council of Mortgage Lenders (CML) and HBF. The Code reinforces protection already provided by existing new home warranty schemes. It also formalises industry best practice for customer care and includes a new Independent Dispute Resolution Service. Full details of the Code, including an E-Learning Training Package, are available on the Code web site: www.consumercodeforhomebuilders.com to top Government and political news John Healey: further announcements bring Government investment in housing to £4.2bn Housing Minister John Healey yesterday announced a total of £263m additional funding for new affordable homes, the second round of the Kickstart scheme for stalled developments, and announced that three new publicly-owned sites are to be made available for housebuilding under the Public Land Initiative. He also confirmed every one of the 141 stalled housebuilding sites in the first round of the Government's Kickstart funding have workers back on site building over 10,000 new homes. Since June, Mr Healey has given the go-ahead for £4.2bn Government investment to build over 75,000 much-needed new homes across the country. In total it is estimated that this cash injection will create and safeguard 88,000 new jobs and 3,000 apprenticeships. John Healey said: "From Barnsley to Brighton, the power of Government investment has meant that in the teeth of recession, we have kept Britain building. That's why today I can confirm I've given the go-ahead for £263million to create and safeguard 5,500 jobs, build much-needed new homes and help strengthen the economic recovery. "We've been ready to take unprecedented Government steps to help the country through the recession and today's extra funding takes total Government housing cash to £4.2billion since June. This investment will now help economic recovery in every region of the country. "This public investment has been a vital boost to jobs and housebuilding during the recession, and it's equally important to economic growth in the future. The new money confirmed this week includes: £236m for housing associations and others to build over 4,300 new homes, £27.5m for 24 kickstart sites, Three new sites under the new Public Land Initiative at Telford, Tower Hamlets and Birmingham: Read more to top Industry news Planning Applications: December Quarter 2009 (England) The latest national statistics on Planning Applications were released under the auspices of the UK Statistics Authority on 26th March. The statistics show that in the December quarter 2009: The number of planning applications received by district level planning authorities increased by around 0.5% when compared with the December 2008 quarter; District level planning authorities also saw a decrease of 9% in the number of applications decided (granted or refused) when compared with the same quarter a year ago; Decisions on planning applications for residential developments (dwellings) decreased by 19% in the December quarter 2009 compared with the corresponding quarter in 2008. Decisions on major residential developments (10 or more dwellings) fell by 20% over the same period; The percentage of major applications determined within the 13 week target was 71% in the year ending December 2009 compared with 72% in the 12 months ending December 2008; Authorities that undertake county level planning activity determined 379 applications, an increase of 5% when compared with the same quarter a year ago. Read more to top Joseph Rowntree Foundation: Ideas and proposals for how to deliver more new housing, especially affordable housing. The Joseph Rowntree Foundation (JRF) has published a report which states that the planning system is seen as one of the main barriers to the delivery of new housing. The report also highlights the problems in the current system, and pulls together suggestions for change from a range of organisations, and from housing and planning academics and practitioners. The suggested ways forward include: Moving away from national targets towards a more localised incentives-based system of land-use planning; Simplified contributions to infrastructure and affordable housing that include a narrowly defined Section 106; Encouraging local housing trusts, community land trusts, self-build and other local initiatives, which can deliver more housing and empower local communities. Read more to top Flood and Water Management Bill – update The Business Managers in Parliament have secured a third Committee session for the Bill in the House of Lords on the 6th April. This will give Peers the opportunity to scrutinise the remainder of clauses they did not reach in the previous two sessions. Progress of the Bill and transcripts of all the previous Parliamentary stages of the Bill are available from the Parliament website please click here to top Government responds to Donaghy report into construction deaths The Government has this week published its response to Rita Donaghy’s report into construction deaths. The response follows widespread consultation across government, trade unions, business organisations and the construction industry. Secretary of State for Work and Pensions Yvette Cooper said: “I would like to thank Rita Donaghy and her team for their excellent work and their wide ranging recommendations. I hope that the action set out in the response further improves the safety record in the construction sector and provides comfort to the families of those who have been killed by construction-related accidents. “This response is not an end in itself though, and we must continue to work together – government, business, unions and workers – if we are to ensure that jobs in construction are as safe as any other.” Rita Donaghy’s report contained 28 far-reaching recommendations for improving safety in the construction industry, covering safety representatives, building control, the legal system, training and competence, and public procurement. The Government fully accepts 23 recommendations made by Rita Donaghy including support of Common Minimum Standards throughout publicly funded construction projects; mutual recognition between pre-qualification schemes; and support for greater worker participation. It will look further at the recommendations to introduce more legal duties on company directors and to extend licensing regulations to the construction industry. The Department for Work and Pensions commissioned Rita Donaghy’s inquiry to see what more could be done to reduce deaths and increase safety in the construction industry. Read more to top Economic news Revised GDP estimate for fourth quarter of 2009 According to the latest statistics released by the Office for National Statistics, UK gross domestic product (GDP) in volume terms rose by 0.4% compared with the previous quarter. This was revised from a rise of 0.3% published last month. GDP in volume terms fell by 4.9% during 2009, the largest fall on record, compared with a rise of 0.5% in 2008. The total volume of output in the production industries rose by 0.4 per cent, within which manufacturing output rose by 0.8%. The household saving ratio was 7.0% in the latest quarter, compared with 8.4% in the previous quarter. Real household disposable income fell by 1.0% in the latest quarter, following a 0.6% increase in 2009 quarter three. Construction output decreased by 0.9% in the latest quarter to a level 6.0% below the same quarter of last year. The latest quarter compares with a rise of 1.8% in the previous quarter. Read more to top Bank of England: Lending to Individuals February 2010 According to the latest data from the Bank of England, total net lending to individuals rose by £2.1bn in February. The twelve-month growth rate ticked up to 0.9%. The three-month annualised growth rate was 1.5%, a 0.2 percentage points increase on January. Within the total, net lending secured on dwellings increased by £1.6bn, above the January increase of £1.5bn and the previous six-month average of £1.4bn. The twelve-month growth rate was unchanged, at 1.0%. The three-month annualised growth rate was also unchanged, at 1.4%. The number of loan approvals for house purchase (47,094) was lower than the January figure (48,099) and below the previous six-month average (55,130). Approvals for remortgaging (27,297) were higher than in January and also higher than the previous six-month average, while approvals for other purposes (25,017) were higher than in January but still below the previous six-month average. Consumer credit increased by £0.5bn, above the previous six month average of a net repayment of £0.1bn, and also above January’s net increase of £0.3bn. Credit card lending increased by £0.4bn and other loans and advances increased by £0.2bn. The annual growth rate of consumer credit increased by 0.3 percentage points to 0.2% and the three-month annualised growth rate increased by 1.4 percentage points to 2.1%. Read more to top CML comments on Bank of England mortgage data CML Senior Economist Paul Samter observed: The average rate on mortgages advanced in February fell to 3.83%, from 3.90% in January, and has declined each month from 4.34% last August. The largest falls have been on shorter-term fixed rates. The average rate on all outstanding loans was unchanged at 3.67% in the month. This is slightly higher than the low of 3.56% in October, but still extremely low on any historic comparison and is likely to help keep arrears rates relatively low; Approvals for house purchase fell a little to 47,100, down 2% on the month, but up 20% on a year earlier. This is very much in line with the CML forecast for activity to remain subdued early in the year in light of the rush to beat the end of the stamp duty holiday late last year, and uncertainty over the economic and political outlook. The new stamp duty exemption for first-time buyers on properties up to £250,000 is likely to boost activity in the coming months, although it is extremely difficult to assess how many potential buyers will qualify and what the impact will be. Remortgage activity picked up a little, with 27,300 loans approved in the month, a 12% rise from January but down 21% on a year earlier. The CML continues to expect refinancing activity to remain subdued throughout most of this year with official interest rates (and therefore most variable mortgage rates) unlikely to rise for some time yet. Gross lending came in very close to the CML's £9.2bn estimate at £9.3bn (nsa) while net lending, on an unadjusted basis, was in modestly negative territory in the month – however, the seasonally adjusted figure was £1.6bn, a similar level to that seen in recent months. Read more to top Housing market news NHBC: Home building levels getting back on track The house building sector's recovery has thawed following the big freeze, with registrations for new homes in the month of February up 73% (to 9,556) compared to last year (5,526), according to the National House Building Council. Applications to build new homes across the UK during the three months December 2009 to February 2010 were up 66% to 24,105, in comparison to 14,537 registrations for the same period last year. The rate of recovery had dipped in January as extreme weather conditions impacted on registrations. But with spring approaching, the private sector appears to be showing signs of recovery. Imtiaz Farookhi, Chief Executive of NHBC commented: "As we enter the spring building season, there is a cautious optimism about the signs of improvement in the sector… "The average daily home sales are increasing when compared with this time last year, which given the difficulties surrounding mortgage availability is a positive statement of intent. There is a palpable sense of the property sector working together to do all it can to continue and sustain recovery." NHBC statistics show that recovery was remarkably evenly spread across the UK, with almost all regions reporting higher levels of registrations for the three months December 2009 to February 2010 than the same period in 2008/9. NHBC statistics for the three months to the end of February 2010 also show that the recovery is largely driven by the private sector, which was most affected by the recession. Private sector applications at 16,669 for the three months to February 2010, were up 110% when compared with the same period last year (7,931); Public sector figures for the three months to the end of February were 7,436 – 13% higher than the same period a year ago (6,606). Read more to top Nationwide house price index Nationwide’s latest house price index, released this week, reported that house prices have reversed February’s dip. The key findings from the release are: The average house price increased by 0.7% month-on-month in March The annual rate of price inflation remained relatively high at 9.0%; The savings on stamp duty stand at £1,368 for a typical first-time buyer. Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: “The price of a typical UK property rose by a seasonally adjusted 0.7% month-on-month (m/m) in March, largely reversing the 0.8% m/m fall measured in February. The smoother three month on three month rate of inflation edged down further from 1.8% in February to 1.6% in March. At £164,519, the average price of a typical property is 9.0% higher than a year earlier. “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales. Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather. With greater than usual political and economic uncertainty ahead of the upcoming general election, potential homebuyers are proceeding cautiously. At the same time, the number of homes for sale has not increased appreciably, meaning that the impact of lower buyer activity on house prices has not been too negative. If this trend continues, we are likely to see relatively few properties changing hands, but with prices.” Read more to top Events Housebuilder Awards 2010 - call for entries Entries can now be submitted for this year’s prestigious Housebuilder awards. Now in its 6th year - the Housebuilder Awards bring together the best of innovation and excellence in the house building industry. The Housebuilder Awards are the highlight of the house building calendar, celebrating the very best of the industry and recognising the achievements of those leading the way in innovation. This year the winners will be announced at a glamorous black tie event on the night of Thursday 28th October at the Millennium London Mayfair Hotel. Please click here to visit the website, see all categories and to download the entry form. Entry is free - deadline Friday 7th May 2010 to top Housing Market Intelligence 2010 – October 12th, Savoy Place, London This year’s Housing Market Intelligence conference and annual report launch will be held on Tuesday 12th October at Savoy Place in London. Now in its eighth year, Housing Market Intelligence has become the leading strategic conference for the house building industry. This year the event is expected to sum up the new political climate nearly six months after the election, as well as providing analysis and insight into the market, the economy, the sustainability agenda, mortgages and all the key issues for house builders and associated companies. Full details will be published over the summer but note the date in your diary today! to top HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course There are now just a few team places remaining for the HBF Golf day in July. The event will take place on the stunning Duke’s course at Woburn, for many years home to the British Masters and will see teams from across the industry battling to be crowned the unofficial house building golf champions. Please click here for more information to top Return of industry Balls proving popular This year sees the return of two very popular HBF social events – and both are selling well. September sees the HBF North West Social Dinner, which will take place on Friday 10th at the Midland Hotel in Manchester. Although it didn’t take place last year, regulars are booking in their droves for what is always a fun evening. To find out more click here. Also returning on Friday 10th December at the Marriott Grosvenor Square, London, is the HBF Ball, traditionally the social highlight of the industry’s year. For more details please click here to top HBF AGM & lunch Wednesday 28th April – the Hyatt Regency Hotel – the Churchill There are now just a few seats left for the HBF AGM & Annual Industry Lunch, that 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 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. 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 HBF news Construction ‘On Thin Ice’ Mark Starling, Safety, Health & Environmental Manager, Kier Partnership Homes is now on an adventure to the 1996 Position of the Magnetic North Pole covering a distance of 360 nautical miles. In March 2010 he will set out from Resolute Bay in the high Canadian Arctic heading to the Magnetic North Pole. If successful the expedition will be the first all British team to attempt the pole completely unsupported. Unsupported means the team will be pulling all of their food and equipment throughout the trek on pulks; there will be no resupplies or checkpoints en route. The course will take Mark through the high Canadian Arctic on the sea ice where he could experience temperatures as low as -50°C and will be travelling through the home of the polar bear. This is one of the harshest yet most beautiful environments in the world. This is an exciting union between COINS and Kier Group, with an objective to raise minimally £50,000 that will go directly to COINS Foundation projects. Mark’s place has been sponsored by COINS and the Kier Group have given Mark five weeks leave of absence to train for and complete the expedition. The COINS Foundation seeks to work in genuine partnership to address the needs of the most excluded communities in the world, building schools, hospitals and homes. If you would like to sponsor Mark in this epic expedition, you can at: www.justgiving.com/markstarlingnorthpole2010 You can follow the Team on a map located at www.coinsfoundation.org or www.arcticexpeditions.co.uk For more information please contact: Jo Franklin, COINS Marketing Director on +44 (0) 1753 501000 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
