Friday, 11th June 2010 Top stories this week Grant Shapps’ housing speech: Supporting aspiration.....read more Greg Clark on “garden development”.....read more BRC-KPMG retail sales monitor May 2010: Sales revive but uncertainty remains.....read more Halifax and Nationwide house price indices.....read more Planning Inspectorate advice on planning position.....read more Quick Links Wales news Government and political news Economic news Housing market news Industry news HBF news Events Wales news Planning Policy Wales (Edition 2, June 2010) Released Updated national planning policy with an increased focus on tackling climate change has been unveiled by Environment Minister Jane Davidson at the Royal Town Planning Institute conference in City Hall, Cardiff. Planning Policy Wales 2nd Edition, provides the strategic policy framework for local planning authorities to use when preparing development plans and determining applications for planning permission. Speaking about Planning Policy Wales, the Environment Minister said: “The main driver for this consolidated version of Planning Policy Wales is to further embed the need to tackle climate change into the planning system. Climate change is one of the most serious global threats facing us today. As a society we must take action to minimise the causes of global climate change as well as understand and deal with the consequences of inevitable change. “Climate change will have potentially profound environmental, economic and social justice implications and failure to address it will make planning for sustainable development impossible. As a small industrialised nation, Wales has the opportunity to lead the way in tackling climate change, and the planning system must play its part.” Read more to top WAG 2008 Population Projections Released The 2008-based local authority population projections for Wales were published on 27th May 2010. These population projections provide estimates of the size of the future population, and are based on assumptions about births, deaths and migration. Please click here to view a summary report of the projections to top Park’s plan for levy on new homes stirs anger A plan to charge developers a levy on new homes in a national park has been attacked by an official who helped it devise its affordable housing policies. Brecon Beacons National Park Authority has put forward a scheme that would involve charging house builders £100,000 for homes built in Abergavenny, Hay-on-Wye and Crickhowell, £75,000 in Brecon and Carmarthenshire and £50,000 in the area of the Heads of the Valleys and the park’s rural south. The charges, which would apply to small developments of one or two houses, would be used to create affordable homes. Read more to top Assembly powers referendum will be held next year A referendum on strengthening the Assembly’s powers will be held next year, Prime Minister David Cameron confirmed this week. The poll – the centre piece of the coalition deal signed by Labour and Plaid Cymru in Cardiff Bay in 2007 – could have happened earlier had the previous government done more preparatory work, Mr Cameron said. The Conservative-Lib Dem administration has come under pressure to speed up the process, with Labour MPs insisting the vote could be held in the autumn. But Ministers insist that a lengthy consultation period is necessary on the precise wording of the question, and enough time allowed for a meaningful campaign. Read more to top Are You Ready for the New Part L? Constructing Excellence in Wales in collaboration with BRE are holding a further series of half day seminars on the new Part L. Tuesday 13th July – Wrexham (afternoon) Wednesday 14th July – Cardiff (morning) Tuesday 14th September – Llandudno (afternoon) Wednesday 15th September – Carmarthen (morning) Even though Wales will devolve the Building Regulations in 2012, the seminars will set out how the latest changes need to be implemented as these will be in place for at least the next couple of years. The session will cover both SAP 2009 and SBEM 2010, and how they have changed, the new requirements of Part L to demonstrate the performance of your thermal bridging details, and much more. For more information on upcoming events, costs and how to register please click here. to top Government and political news Grant Shapps’ housing speech: Supporting aspiration Grant Shapps this week delivered his first key note speech as Housing Minister at an event hosted by the Royal Institution of Chartered Surveyors. Entitled 'Age of Aspiration', the speech was designed to put home ownership back at the heart of the Government's vision for housing. Mr Shapps said that the Government would promote home ownership by cutting red tape, encouraging shared ownership and building more homes. He said 1.4 million people want to buy their own homes adding that "a quarter of a million people can afford a mortgage of at least 80% loan to value but cannot find a lender". He said banks would have to explain to him why this is. Replying to a question from HBF expressing industry concern about the transition from previous planning policies to the government's favoured localism agenda, Shapps said that he understood the concerns and that new "powerful incentives" would encourage home building. He added that he hoped to make a planning policy announcement to parliament within a month. Shapps also offered some comfort to those concerned that HomeBuy Direct would be scrapped, saying that it appeared to be working and he would not "upset the apple cart" on this. Please click here* to view the HBF member briefing detailing the main points raised. Please click here to view a full copy of Mr Shapps’ speech *Member only content, please log in to view to top Greg Clark on “garden development” Minister for Decentralisation, Greg Clark, made a statement on Wednesday implementing changes to PPS 3 to: Change the definition of previously developed land in Annex B to exclude private residential gardens; Delete the national indicative minimum density of 30 dwellings per hectare. The changes take immediate effect with the reissue of the duly revised PPS 3. Greg Clark said: "For years the wishes of local people have been ignored as the character of neighbourhoods and gardens have been destroyed, robbing communities of vital green space. "It is ridiculous that gardens have until now been classified in the same group as derelict factories and disused railway sidings, forcing councils and communities to sit by and watch their neighbourhoods get swallowed up in a concrete jungle. "Today I am changing the classification of garden land so councils and communities no longer have their decisions constantly overruled, but have the power to work with industry to shape future development that is appropriate for their area. "This is just the start of wholesale reform I want to make to the planning system, so councils and communities are centre-stage in a reformed system that works for them, and is not just a tool of top-down policy." Housing Minister Grant Shapps said: "The current system with its push for high density has resulted in developers building one or two bedroom executive flats, when the greatest need is often for affordable family homes. That's why from today communities will be allowed to make their own decisions about what homes are needed in their area, and no longer be victims of a system designed to maximise profits and minimise choice." Read the press release in full Read the Minister’s written statement to top HBF: Ban on 'garden grabbing' unnecessary Responding to Mr Clark’s statement in a press release, HBF has said that this change in policy was unnecessary and counterproductive. HBF pointed out that every Local Authority already has the power under existing planning rules to take into account any consideration they feel necessary when assessing a site specific planning application or when setting policy - and thus can make a balanced judgement on whether to let the development go ahead. HBF Executive Chairman Stewart Baseley said: "Councils already have the powers to accept or reject any application. These unnecessary proposals risk causing further confusion. The country has a housing crisis and the homes we need have to be built somewhere. In many cases developing gardens is appropriate and the best way to provide desperately needed homes. Where not appropriate Councils already have the power to reject applications. Working out how we supply enough land to build the homes we desperately need is the issue that needs addressing. Millions will hope it is.” Read more Read the Government’s proposal to top Government sets out further detail on local government savings The Government has published details of the £1.166bn Local Government contribution to the £6.2bn cross government savings in 2010/11. Communities Secretary Eric Pickles has confirmed that no local authority will face reductions in their revenue grant of more than 2%. Ministers have given consideration to how savings can be found without affecting the quality of key frontline services. The priority has been on driving out Whitehall waste with the brunt of the cuts being borne at the centre. Communities and Local Government has been asked to find £780m savings in 2010/11. Departmental and Arms Length Body running costs are therefore being reduced by 10%; The £29bn general grant, the main source of funding that local government receives every year, is not being reduced. This will help to ensure that key frontline services can be protected and prevent council tax rises; Local Government is being asked to contribute £1.166bn to overall savings. No individual local authority will face a reduction in their revenue grant of more than 2%; Reduction in revenue and capital non-schools ring-fencing this year from 10.7% (£4.5bn) to only 7.7% (£3.2bn) as a first step to giving councils more freedom over spending decisions. In addition, a major scaling back of quangos puts local government centre stage in meeting the needs of local residents. Members should note the cuts include the axing of this year's £146 million allocation for planning and delivery grant. All councils will, by January 2011, be publishing online details of their spending over £500. This will mean local taxpayers will be able to see how councils are spending money-helping protect frontline services, encouraging greater efficiency and shining a spotlight on waste. Read more to top Economic news BRC-KPMG retail sales monitor May 2010: Sales revive but uncertainty remains UK retail sales values rose 0.8% on a like-for-like basis from May 2009, when sales had fallen 0.8%. On a total basis, sales were up 3.0% against a 0.8% increase in May 2009. Food sales returned to growth after April's Easter-distorted fall. Clothing and footwear benefited from the sunny weather, as did outdoor DIY and leisure. Homewares showed some improvement but big-ticket items often struggled, despite further discounts and promotions, in the face of consumer uncertainty about job and income prospects. Non-food non-store sales (internet, mail-order and phone sales) in May were 21.9% higher than a year ago, up from 15.9% in April. Although the best since December, May's gain was against relatively weak growth in May 2009. Read more to top Bank of England: Maintains Bank Rate at 0.5% and maintains the Asset Purchase Programme at £200bn The Bank of England’s Monetary Policy Committee 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 23rd June 2010. to top Housing market news Halifax house price index The latest house price index released by Halifax reported that: The average house price fell by 0.4% in May. This followed a 0.1% decline in April; House prices in May were 6.9% 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 October 2007 (8.9%). Despite May's monthly fall, the annual rate increased from 6.6% in April largely because price movements in March and April compared favourably with the significant declines recorded in the same period in 2009; Prices were 8.3% above their April 2009 trough despite the modest decline over the past two months. The average house price is now £167,570; 16% below its August 2007 peak; The low supply of properties for sale was a key factor pushing up house prices in 2009. The pickup in market conditions has encouraged more homeowners to attempt to sell their property. The recent suspension of Home Information Packs and uncertainty about changes to Capital Gains Tax may also be persuading more homeowners to put their properties on the market. On a seasonally adjusted basis, home sales in the UK fell by 18% between 2009 quarter 4 and 2010 quarter 1. (Source: HMRC.) This decline followed three consecutive quarterly increases from the low in 2009 Q1. Sales in 2010 quarter 1, at 214,000, were 27% higher than in the same quarter of 2009, but were still less than half the number in 2007 quarter 1 (439,000). The return of the lowest stamp duty threshold to £125,000 at the start of the year and bad weather in January and February affected both the overall level, and the timing, of activity during late 2009 and early 2010. It is therefore difficult to gauge the degree to which the fall in sales in quarter 1 represents a trend and how much is due to these temporary factors. Commenting, Martin Ellis, Housing Economist, said: "House prices fell by 0.4% in May. This followed April's 0.1% decline. The mixed pattern of monthly price rises and falls so far this year is consistent with a slowing market and is in line with our view that house prices will be flat during 2010 as a whole. “The relative recovery in house prices in 2009 was driven by a boost to demand from reduced interest rates combined with a lack of properties for sale. These factors have lost some momentum in recent months. Further falls in the number of people in employment are curbing housing demand whilst the pickup in market conditions last year has encouraged more homeowners to attempt to sell their property.” Read more to top Nationwide: House prices now less than 10% below their 2007 peak The most recent Nationwide house price index reported that: The average house price increased by 0.5% month-on-month in May. From £167,802 in April to £169,162; The annual rate of house price inflation dropped from 10.5% to 9.8%; House prices have risen 12.2% since the February 2009 trough. Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: “The price of a typical UK property rose by a seasonally adjusted 0.5% month-on-month (m/m) in May, following a 1.1% increase in April. The smoother 3 month on 3 month rate of increase rose from 1.1% in April to 1.7%, as February’s fall in house prices dropped out of the most recent three month average. The annual rate of house price inflation dropped from 10.5% to 9.8%, which reflects the weaker pace of increase in May 2010 relative to May 2009. Since reaching a trough in February 2009 – following a drop of 19.3% from their October 2007 peak – house prices have risen by 12.2% and are now just 9.5% below the October 2007 peak. “Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months. The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices.” Read more to top Industry news Planning Inspectorate advice The Planning Inspectorate has published advice to its Inspectors on the implications of both the Secretary of State’s letter to Local Planning Authorities regarding the forthcoming abolition of Regional Strategies and the amendments to PPS3: Housing regarding the removal of gardens from the definition of previously developed land and the removal of indicative minimum density of development. This clarification is very welcome in what is a time of great uncertainty and change: Click here to view the advice on forthcoming abolition Click here to view the revision on garden land Members are reminded that HBF is collating information on LPA responses to the Secretary of State’s letter and that any information should be sent to either Andrew.whitaker@hbf.co.uk or james.stevens@hbf.co.uk to top Local Authority Reaction to Changes to PPS3: Housing In one of the more positive reactions to the recent government announcements Hart District Council (in North Hampshire) reported the following to its Councillors: “Dear Councillor The Government has today removed the classification of private gardens as "previous developed land" (i.e. brownfield) and it has also removed the obligation to make sure that new housing development achieves a minimum density of 30 dwelling per hectare. This is welcome news but it does not mean that all development on private gardens is now stopped. Councils now have greater powers to stop inappropriate high density housing development that does not respect the scale, context, density, and character of its surroundings. It also allows Councils to bring forward policies that deliver a range of densities across the District rather than being driven by a single arbitrary, nationally prescribed minimum density standard for new housing development. The advantage of this change is that it allows Councils to use their discretion and work with local communities to deliver through the LDF the right mix of homes for their area so that no one is priced out of place that they live. The reclassification of garden land is not intended to prevent people extending their homes.” This approach concurs with our own view of the implications of the changes to PPS3 and we hope is, or becomes, the universal view of Local Authorities.” to top New study shows support for new homes The British public are far more supportive of new housing developments in their area than commonly thought, according to a new study published this week. The “Public Attitudes to Housing” survey, published by the National Housing and Planning Advisory Unit (NHPAU), finds that more than three quarters of people would support more homes being built in their area, provided that local services such as GP surgeries and schools do not suffer. Good quality housing design is also important to people with 73% saying they would support the building of more homes if well designed and in keeping with their local area. The NHPAU survey also shows that while the vast majority of people aspire to own their own homes, their efforts are still being hampered by the economic downturn. While 82% see home ownership as more preferable to renting and other forms of tenure, three quarters of 25-34 year olds who do not own a home and expect to rent for the next three years, want to buy but cannot afford to do so. Read more Download a copy of the survey to top HBF news HBF Sustainability Group The HBF’s new Sustainability Group met for the first time this week with representatives from a range of member companies. The Group agreed the main elements of its remit and means of working. Its purpose is to ensure the HBF has a clear and pro-active policy-making focus for the growing range of current and prospective sustainability issues affecting the industry. The meeting agreed that in view of Housing Minister Grant Shapps’ wish to settle the definition of zero carbon within weeks, its immediate priority should be to help put together an early HBF letter to the Minister setting out the industry’s view on what a definition that would most help companies work efficiently towards zero carbon would comprise. to top New Homes Month 2010 New Homes Month 2010 will take place between 4th September and 3rd October. We feel that it is imperative that the New Homes Marketing Board and the Home Builders Federation continue to assist our members in every possible way to drive sales in what are still clearly challenging trading conditions. Like previous New Homes campaigns, including last year’s, which proved extremely successful, the objective of the month is to promote the new homes market by highlighting the benefits and superiority of new homes, to help boost site visitor levels and drive up sales. Last year’s campaign resulted in hundreds of positive newspaper articles in regional and local newspapers across the country. This really helped create a positive profile of new build homes and, we believe, played a part in the increase in site visitor levels we saw. The campaign will be driven predominantly through the local media, and we will be developing extensive PR stories around set themes for each and every week of the campaign to generate public interest. As well as developing an overarching strategy, we will be looking to link up with members on a local and regional level, and to support them to develop their own initiatives/ events throughout the week. We will be producing a further edition of ‘New Homes News’, the glossy 16 page colour newspaper that members told us was such a great success with their customers last year. This will be distributed to members in advance of the campaign. In order that you are fully aware of our proposals, including the themes and dates of proposed press releases, could you please ask the relevant member of your staff to email nhm2010@hbf.co.uk and we will send out further details shortly. to top Events HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course There are now just three 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 North West Social Dinner – Friday 10th September 2010 – Manchester The HBF North West Social Dinner will this year take place on Friday 10th September at the Midland Hotel in Manchester. Everyone is welcome at an event that attracts members from across the North and Midlands. Always a lively and fun event, regular attendees are booking keenly for what will be a fun filled industry evening. Please click here to find out more. to top Housing Market Intelligence 2010 – 12th October, 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! EARLY on-line booking is now open – please click here for details or contact events@house-builder.co.uk to top HBF Planning Conference This year’s HBF Planning Conference will take place on Thursday 16th September at the Hilton Hotel in Bristol. More details to follow. to top Housebuilder Awards 2010 - Thursday 28th October, London This years Housebuilder Awards has attracted a record number of entries. Shortlisted schemes will be announced in June. Now in its sixth year - the prestigious 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. The short list and booking form will released in June, but for further information and updates, please visit http://www.house-builder.co.uk/awards/ to top HBF Ball – Friday 10th December – London. The early booking discount ends Friday 16 July – Don’t miss out! The HBF Ball will this year take place on Friday 10th December. Traditionally the social highlight of the industry’s year it will take place at the Marriott Grosvenor Square, London For more details please click here to top Robust Details Roadshows 2010 These Robust Details seminars will provide delegates with a full update on robust details’ developments. As well as the ‘latest news’ affecting Part E and sound insulation, the seminars will anticipate the effects of the new Part L on the design of separating walls and floors. A full panel of experts will be on hand for all your sound insulation concerns The 2010 RDL Roadshows will provide a full update on what we have found 'in the field' and will pass on some of the lessons learned from tests and site inspections. Dates and venues: 30th June - Galpharm Stadium, Huddersfield 1st July - RICOH Arena, Coventry 15th July - Sandown Racecourse, Surrey Importantly, you'll have an opportunity to look at what's coming next. Amongst other things, the effect the new Part L and changes to The Code for Sustainable Homes will have on the construction of separating elements. Please click here for more information, to book a place and to view the agenda, or call events on 020 7960 1646 with any queries. 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
