Friday, 14th May 2010 Top stories this week General Election - the new Government.....read more CML: Arrears and repossessions down, but vulnerability remains.....read more CML: Buy-to-let activity settles after stamp duty holiday.....read more CITB-ConstructionSkills confirms changes to its Grant Scheme.....read more Housebuilder Awards 2010 – Just one week left to enter.....read more Quick Links Wales Government and political news Economic news Housing market news Industry news HBF news Events Wales news Eleventh Wales Economic Summit The HBF attended the eleventh Economic Summit this week which was chaired by the First and Deputy First Ministers. The First Minister stated that the Summit was to be the final Summit in this particular format. He also stated, however, that a newly structured Summit will take its place going forward. The new structure has not been formalised as yet and will be subject to consultation, but the First Minister stated it will be in place before October this year. In terms of the discussions, housing and construction were key topics for debate. The First and Deputy First Ministers recognised that we have a serious housing crisis in Wales, which transcends the problems that were exacerbated by the recent recession and committed to focussing their agenda onto trying to solve the problems the industry faces. In this respect, we gained a commitment from the Deputy First Minister to look directly at the issues affecting the house building industry in Wales and to formulate a program of action in order to address them. The WAG agreed to look into setting up a HBF/WAG Housing Forum, which will listen to the industry and help to identify issues and ways to tackle them. It was agreed that we would discuss the detail of this forum further when we meet the Deputy Housing Minister at the end of May. In terms of other discussions, there was a presentation from the WAG’s Chief Economist, along with a detailed discussion on how the new Liberal/Conservative Coalition Government might affect Wales, with particular reference to funding and prospect of public sector spending cuts. to top Cheryl Gillan is the first female Welsh secretary Cheryl Gillan has been appointed the Secretary of State for Wales Mrs Gillan is Conservative MP for Chesham and Amersham in Buckinghamshire, but was born in the city suburb of Llandaff. Before entering parliament in 1992 Mrs Gillan was a marketing executive. She has previously served as Parliamentary Under Secretary of State at Department for Education and Employment (1995-97), and then opposition spokesman on trade and industry, foreign affairs and home affairs. Mrs Gillan is one of the Conservative Party's senior female MPs and has served as Shadow Welsh Secretary since 2005. Read more to top PM calls First Minister Carwyn Jones Prime Minister David Cameron has spoken to Welsh First Minister Carwyn Jones to express his “enthusiasm to work productively” with the Assembly. After the call to Mr Jones, Downing Street said: “The First Minister congratulated David Cameron on his appointment as Prime Minister and looks forward to working with him. “The Prime Minister confirmed his commitment to devolution and his enthusiasm to work productively with the Assembly." Read more to top Government and political news General Election - the new Government Following the extraordinary events of the last week, HBF has prepared a Members' briefing note that sets that out the key appointments in the new Conservative–Liberal Democrat Coalition Government formed on 11th May and the actions HBF is taking to ensure the most important issues facing the industry are brought immediately to the attention of new Ministers. Please click here for the full confirmed list of the new Cabinet. Key figures will be Communities Secretary Eric Pickles, Chancellor George Osborne, Business Secretary Vince Cable and Energy Secretary Chris Huhne. Grant Shapps will be Minister of State for Housing, whilst Greg Clark will be Minister of State for Planning. to top HBF action HBF Executive Chairman, Stewart Baseley, has written to Eric Pickles, Grant Shapps and Greg Clark setting out our ‘Day One’ priorities for the new Government in order to secure an improved housing supply. Please click here for a copy of our policy priorities. We have also issued a press statement calling for the new Government to tackle the barriers to an increased housing supply in view of the scale of the national housing crisis. The release also reinforces our call not to introduce VAT on the sale of new homes. Please click here to view a copy of our press release. It is unclear at this stage to what extent the Conservatives and Liberal Democrats have discussed their position on housing and planning policy. The published agreement they reached in forming a coalition does not refer to housing or planning. This may reflect the fact that they appear to share broadly similar objectives in terms of abolishing existing regional plans and housing targets and moving to a localist planning system, as well as the relatively low priority attached to housing in the election campaign. Our working assumption is that we need to continue the work we undertook with the Conservatives before the election to seek to make a localist approach as workable as possible. There is, however, a major potential concern relating to the Liberal Democrats’ pre-election proposals to equalise VAT on new build homes and refurbishment. The published agreement between the coalition partners is silent on VAT as a whole, but there is much speculation among economists that an increase in VAT is a likely response to tackling the budget deficit. We are therefore prioritising action to make the case against any introduction of VAT for new housing. We are writing separately to the Chancellor and other senior ministers about this. Please click here for a full version of HBF’s members’ briefing on the new Government. to top Economic news CML: Arrears and repossessions down, but vulnerability remains The number of mortgages in arrears and the number of repossessions both fell in the first quarter of 2010, according to the Council of Mortgage Lenders. But this decline gives the CML no cause for complacency as a large number of households, who are just coping, still remain vulnerable to shocks that may arise from the economic uncertainty ahead. Repossessions as a proportion of all mortgages remained steady at 0.09% in the first quarter, the same proportion as in the previous quarter and down from 0.12% in the first quarter of 2009. The number of repossessions was 9,800, down from 10,600 in the previous quarter and 13,200 in the first quarter of 2009. The proportion of mortgages in arrears also fell. The total proportion of loans with arrears equivalent to 2.5% or more of the mortgage balance was 2.38%, down from 2.52% in the previous quarter and 2.81% in the first quarter of 2009. The number of loans in arrears was down from 206,800 at the end of the first quarter of 2009 and 196,400 at the end of last year to 186,300 at the end of the first quarter of this year. However, the fall was more marked in the lower arrears bands than among those with more substantial arrears, where the reduction was only very modest. This suggests that low interest rates and relatively stable employment have been helping to prevent new households falling into difficulty, but that many households with more entrenched problems are still struggling to restore their financial position and repay arrears. This debt overhang will require careful management over an extended period. Against a backdrop of significant continuing economic uncertainty, the CML is cautious about revising its forecasts for the number of arrears and possessions cases in 2010, although it expects to do so later in the summer. However, if current levels of government support continue, if interest rates do not rise, and there are no new economic shocks, CML say the 53,000 repossessions forecast for the year is pessimistic. CML Director General Michael Coogan commented: "With all eyes on the new government and what steps it will take to address the fiscal deficit, we cannot emphasise too strongly the importance of continuing to fund the support mechanisms that are proving effective in containing mortgage arrears and repossessions. "We hope and expect to be able to revise down our 53,000 forecast for repossessions in 2010, but we are acutely conscious of the beneficial influence that low interest rates and the package of support have played so far. The dampening effects on households and the wider housing market that fiscal tightening is likely to exert are still to be felt, but it should be a key priority to support borrowers most in need and maintain funding for the government’s housing policies." The BSA, CML, Citizens Advice and Shelter have subsequently written to the new Chancellor George Osborne and the new Business Secretary Vince Cable, urging the Government to make a clear commitment in its first budget to continue to support homeowners in financial difficulty. The letter advises that the modest reduction in mortgage arrears and repossessions is deeply dependent on low interest rates and the public policy measures that currently apply. Read more to top Bank of England: Bank Rate maintained at 0.5% and Asset Purchase Programme at £200bn 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 £200 billion. The minutes of the meeting will be published at 9.30am on Wednesday 19th May. Read more to top Housing market news CML: Buy-to-let activity settles after stamp duty holiday Data published this week by the CML shows that buy-to-let activity in the first three months of this year settled back to former levels, following a modest upturn in house purchase by investors at the end of last year triggered by the stamp duty holiday. As a result, the number of buy-to-let loans declined by 15% to 22,000 in the first three months of 2010. Over the same period, the value of lending also declined, by 12% to £2.1bn. Leaving aside the impact of the stamp duty holiday, however, buy-to-let lending has now remained broadly flat over each of the last five quarters. Compared to the first quarter of 2009, the value of buy-to-let lending in the first three months of this year is unchanged, while the number of loans declined by just 2%. The CML states that low interest rates are continuing to contribute to a modest improvement in buy-to-let arrears. The number of buy-to-let properties taken into possession in the first quarter of 2010 totalled 1,400, an increase from 1,200 taken into possession in the preceding three months but unchanged from the total a year ago. Meanwhile, cases where a receiver of rent had been appointed totalled 11,200 at the end of March, down from 11,900 three months earlier but up from 9,200 a year ago. These cases are similar in many ways to a lender taking possession of a mortgaged property, with the landlord being removed and the receiver collecting rent and passing it on to the lender to apply to mortgage payments. Commenting on the figures, the CML's Director General Michael Coogan said: "Ignoring the effect of the stamp duty holiday, the lending figures show that the buy-to-let market has settled into a period of stable, low-volume activity. Generally, prospects for the rental market are good. But uncertainty over house prices, interest rates and the availability of mortgage funding is continuing to hold back the buy-to-let market at this stage. "We also want to see how the new coalition government takes forward the Treasury's initiative to encourage higher investment in the private rented sector, bearing in mind the scope for growth that exists to meet future demand from tenants. There is a case for targeted measures in the Budget, even though the primary focus will be the fiscal deficit." Read more to top CLG: House Price Index - March 2010 The latest UK house price index statistics produced by Communities and Local Government were released this week. The latest statistics release includes data based on mortgage completions during the month of March 2010. The key points from the release are: UK house prices were 9.7% higher than in March 2009 and 0.7% higher than in February 2010 (seasonally adjusted); The mix-adjusted average house price in the UK stood at £205,598 in March 2010 (not seasonally adjusted); UK house prices rose by 2.8% in the quarter ending March 2010. This compares with a rise of 2.9% for the quarter ending December 2009 (seasonally adjusted); Annual average house prices rose in England (10.1%), Scotland (7.2%) and Wales (8.1%) but fell in Northern Ireland (-6.9%); Annual average house prices paid by first time buyers in March 2010 were 12.6% higher than a year ago. Average house prices paid by former owner occupiers were 8.6% higher; Annual average house prices paid for new properties in March 2010 were 1.3% higher than a year ago. Average house prices paid for pre-owned dwellings were 10.3% higher. Read more to top NAEA: Post-budget bounce boosts housing market The housing market experienced a post-Budget boost in April that saw increased numbers of buyers and sellers and strong sales, according to the National Association of Estate Agents (NAEA). The average estate agent branch had 62 registered sellers, building on the 60 registered in March, which was itself the highest number for six months. The number of house hunters registering to look for property also increased from 274 in March to 277 in April. The number of sales agreed across the month remained strong at eight, the same number as in March. Around 21% of sales were made to first time buyers (FTBs), down from 23% in March. President of the NAEA, Gary Smith, said: “A major housing trend over the past six months has continued to be the relatively low numbers of sellers coming to market. “For three months, however, the number of sellers has increased steadily. At the same time demand has stayed strong, as have the number of sales being agreed. “The level of first time buyers has dropped slightly, and the NAEA will push hard for more measures to help this group from the new Government […] “All of the trends reported by our members point to reasonably sunny prospects for the summer housing market.” Read more to top Industry news CITB-ConstructionSkills confirms changes to its Grant Scheme After months of consultation with the industry, the CITB-ConstructionSkills Board has agreed a new look Grants Scheme, which will provide a total of £113m grant funding in the new Grant year commencing in August for businesses that train. The revised Grants Scheme has been redesigned to be future proof for the industry against the impact of the recession on CITB Levy income. Following a series of changes to the scheme last year, the Industry’s Training Board carried out a fundamental review to make sure that the scheme continues to provide relevant training grants that help businesses increase their productivity, compete at the highest level post-recession and, importantly, improve upon and maintain Health & Safety standards. Work on reducing the organisation’s own cost base is being pursued simultaneously. Chris Jones, Learning and Development Director at BAM Construct UK Ltd, Chairman of the Grants Scheme Working Party and member of the Training Committee and Board said: “The recession has changed our industry significantly and we need to make sure that we continue to keep pace and provide training that will help businesses to succeed and prosper. New skills are required and the board has been tasked with providing a grants system that is fair to all and to help businesses take advantage of new and exciting opportunities that are on our doorstep. “Our grants scheme has served us well for 40 years, but it is in everyone’s business interests to review it, to make sure that it is relevant for a modern and progressive industry.” Following extensive consultations – the industry-led board has approved a new scheme, which includes a number of changes. These include: Setting the total apprenticeship package at £9,000 over 3 years to simplify the Scheme; Setting a maximum of £6,000 support for undergraduates in their placement year ; Setting a single achievement rate of £275 for vocational qualifications at level 2 and above; Limiting the average number of grant aided training days on a training plan and short duration training at three days – slightly above the current industry average. For example for 100 employees, 300 days maximum grant; Awarding an additional £7.50 per day for BTEC and HNC students; Setting a 10% supplementary payment across all grant rates to simplify the scheme; Plant technical tests to be preserved but rates to be reduced by 25%. Read more to top RDL and the BBA: Thermal Bridging and Approved Document L1A Robust Details and the BBA announced in 2009 their intention to join forces to offer a quality-assured accredited detail scheme to deal with thermal bridges should such an approach be called up in regulations. With the publishing of the Part L Approved Documents, Mike Freshney, Chairman of RDL, and BBA Chairman Digby Harper have now exchanged a letter of intent confirming this joint venture which will be seeking Government approval for such a scheme at the earliest opportunity. The intention is that RDL and BBA will seek Government approval for the scheme under the ‘accredited construction details’ approach contained in the new Approved Document L1A, providing the construction supply chain with a cost effective way of complying with the new Part L requirements. Dave Baker, CEO of RDL outlines the potential benefits: “Using approved Robust Thermal Details will allow designers to use realistic values in their SAP calculations with complete confidence. Where such details undergo subsequent inspection under the scheme builders will be able to use such details without incurring the 25% ‘penalty’ that will apply to non-assessed details. “An RTD scheme, once approved, should provide a builder with cost certainty and will also allow us to provide the kind of ‘knowledge transfer’ benefits that have led to continuous improvement under the Part E model. Greg Cooper, CEO of BBA explains the basis for assessment and sets out how the scheme will work: “The prototype scheme we have developed to date provides for the approval of details based upon the use of thermal modelling (supported if needed by testing) coupled with a risk based assessment of practicality of construction. The scheme will be designed so as to accept reliable external input at both the detail development and inspection stage. “New properties that are registered under the scheme will be given a unique number and targeted sampling of RTD-registered sites during construction will enable compliance with the scheme to be monitored. Additionally, suppliers and manufacturers will have a transparent route to the approval of their products, systems and components.” The BBA and RDL will be discussing options with industry stakeholders, with a view to bringing forward proposals for Government approval as soon as possible. to top RICS localism survey RICS has launched an online questionnaire to collate views on the impacts of localist policies of the political parties in Westminster. After three weeks, many RICS members have completed the localism questionnaire and a number of key views have begun to emerge. Read more to top HBF news Small Developers Group The next HBF Small Developers Group meeting is being held on Wednesday 9th June at HBF’s office in London. Speakers will be Mike Freshney who will update the meeting on progress with the Consumer Code; and Paul Cooper from new warranty provider Checkmate. For more details please contact Marian MacDonald on 0207 960 1600 or marian.macdonlad@hbf.co.uk. to top South West MDs meeting The Managing Directors of HBF’s South West members met this week. Zero-carbon housing was a major topic of discussion, following a presentation by Rob Pannell of the Zero Carbon Hub. to top Events Housebuilder Awards 2010 – Just one week left to enter There is now just one week left to submit entries for this year's Housebuilder Awards. 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. Please click here to visit the website, see all the categories and to download the entry form. Entry is free - deadline Friday 21st May 2010 to top Last chance to enter the 2010 Building for Life Awards The closing date for this year’s Building for Life awards is 28th May 2010. Each year the Building for Life awards celebrate the best new homes and neighbourhoods in England. Winning an award is the first step to gaining national recognition for your new housing scheme. Any scheme – or phase of a scheme – can be entered if: It was completed after 1 April 2009 or; It is least 50% complete by 28th May 2010. Building for Life – led by CABE and the Home Builders Federation - is the national standard for well-designed homes and neighbourhoods. It does not demand bespoke or contemporary designs. It is about high-quality homes in well laid-out neighbourhoods and streets with a strong sense of identity – creating attractive, convenient and sustainable places to live in. Anyone can enter an eligible housing scheme for the Building for Life awards, including architects, developers, housing associations and planners. Entering is straightforward. Please click here for further information and to download an application form. Please email bflawards@cabe.org.uk or call Tessa Kordeczka on 020 7070 6769 if you have any questions about entering the awards. 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 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 HBF Ball – Friday 10th December – London. Also returning for 2010 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 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! 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 Robust Details Roadshows 2010 – agenda announced 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 Habitat for Humanity’s Hope Challenge 11-13th June 2010 – just one day left to register! Registration for Hope Challenge 2010 closes today. Anyone who misses this deadline and still wishes to enter needs to contact Andy Barton at Habitat for Humanity on 01295 264240 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. Registration for teams wishing to take part in Hope Challenge 2010 will be closing on 14th May. Everyone interested in participating is urged to register their team online at www.hopechallenge.org.uk as soon as possible. Register your team for Hope Challenge 2010 Find out more about 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/ Rosie Hinchliffe View Previous Weekly News Summary
