Top stories this week
John Healey doubles council house-building cash.....read more
CML: Proportion of income needed for new mortgages at five-year low.....read more
RICS: House prices continue to rise albeit at a slower pace.....read more
New orders in the construction industry, November 2009.....read more
NHBC: UK's top site managers are named by NHBC.....read more
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Senedd to debate holding referendum on law-making powers for Wales
The National Assembly will hold a debate over a referendum on full law-making powers within a month, the First Minister announced this week.
But Carwyn Jones stopped short of confirming the debate would be followed by a vote to pave the way for a poll of the country.
The prospect of an historic vote on giving the Assembly freedom to make laws without having to ask the permission of Westminster is at the heart of the coalition pact between Labour and Plaid Cymru.
First Minister Carwyn Jones – flanked by Plaid leader Ieuan Wyn Jones – announced that a debate on a referendum will be held in the Senedd on 9th February.
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Has stamp duty rise put the dampeners on housing market?
Confidence in the housing market could be weakening among Welsh property professionals, with fewer predicting a rise in house prices and completed sales.
Despite a pick-up during the final months of 2009, the Royal Institution of Chartered Surveyors (RICS) has said that just 11% of its members in Wales believe the number of property sales will rise.
The figure has slipped slightly since the group conducted its last market survey a month earlier, when 12% of home sellers reported hopes of a jump in transactions.
But in December 1% fewer chartered surveyors forecast an increase in instructions to sell, and the balance expecting a leap in property prices fell from 3% to -7%.
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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Fewer homeless in Wales
New figures published this week by the Welsh Assembly Government showed a three per cent decrease in the number of households accepted by councils as homeless in July - September 2009 compared to the same period in 2008. John Puzey, Director of Shelter Cymru said:
"While three per cent is a relatively small drop, any decrease in homelessness is to be welcomed. It is a reflection of the hard work by councils and their partners to deal with the problem of homelessness in Wales.
"However, despite the overall downward trend we've seen over the last couple of years, the number of people approaching their council and those accepted as homeless are both up on the previous three quarters.
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Index of Production and Index of Construction for Wales: Quarter 3, 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 September 2009 relating to quarter 3.
The key messages from the release are:
The longer term trend for the Index of Production for Wales show a fall of nearly 12% when comparing the latest four quarters to the previous four quarters. The UK figures show a similar pattern. The short term quarterly movements show a rise of 4% for Wales and a decline of 1% for the UK;
The longer term trend for the Index of Construction for Wales shows construction output has continued to fall over the last year. The short term quarterly movements in the construction industry indicate a fall of just over 2% in Wales and a rise of 2% in the UK.
Whilst there is a positive quarterly growth in the production output for Wales, it is too early to tell if this will be sustained. The quarterly estimates can be volatile and should be interpreted in the context of changes over several quarters rather than in isolation.
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New house building and social housing sales, July to September 2009
The latest National Statistics on new house building and social housing sales produced by the Welsh Assembly Government were released this week according to the arrangements approved by the UK Statistics Authority.
Statistics on both the number of new dwellings, started and completed, and the number of social housing sales include data for Wales for the period April to June 2009.
The latest release updates the statistics previously released on 16th September 2009.
The key points from the latest release are:
Dwelling stock
At the 31st March 2008 there were 1.33 million dwellings in Wales. Between 1st April 2008 and 30th September 2009, a total of 10,161 additional dwellings were built, 89% of which were private sector dwellings;
Between 1st April 2008 and 30th September 2009, a total of 576 socially rented dwellings have been transferred into the private sector through the sale of 209 local authority and 367 registered social landlord dwellings via Right to Buy and other schemes.
New House Building
Whilst the number of new dwellings completed continues to fall (a decrease of 28% compared with the same period last year), the number of new dwellings started have been increasing over the last three quarters and has increased by 6% compared with the same period last year.
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John Healey doubles council house-building cash
Housing Minister John Healey announced this week that he is doubling Government funding for new council homes.
Mr Healey announced that 73 councils covering every region of England will share an extra £122.6m of Government money. Councils will match this second round Government grant bringing investment in this round to £246m, and total public investment in the programme as a whole to over £500m to build more than 4,000 new council homes for 8,000 people.
Thirty-five of the 73 councils receiving funding in this second wave will extend their council house building work which is already underway after successful round one bids, while 38 councils receive this government backing for the first time. Eighty-six councils bid for the second round of house building with projects totalling more than double the funds earmarked. On a visit to the Thames View Estate in Barking to launch the extra funding, John Healey said:
"Councils have shown they're ready and willing to build new homes, so I'm ready to back them. This year's Government spending for affordable housing will be the largest for at least two decades.
"More affordable homes for rent are needed in every part of the country. We're using the power of public investment to help economic growth by building the homes we need and creating jobs and skills for the future. And we must get the most for every taxpayer's pound, so I am requiring all councils getting this government money to offer new jobs and apprenticeships to local people.
"Today's announcement also signals a new style of council housing that adds to the mixed make-up of local neighbourhoods. Forty per cent of the homes being built will be three and four-bedroom family homes which are designed to high energy efficiency standards and will often be built alongside existing private housing."
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Lib Dems make manifesto pledge on empty homes
Liberal Democrat leader Nick Clegg, Shadow Chancellor Vince Cable and Shadow Housing Minister Sarah Teather launched an election manifesto pledge on Thursday to bring a quarter of a million empty homes back into use.
The policy would form part of the Liberal Democrats proposed £3.6bn economic stimulus package for the first year of the new parliament. People who own the empty homes would get a grant or a cheap loan to renovate them so they can be used: grants if the home is for social housing, loans for private use. The party estimated that this policy could create 65,000 jobs.
Nick Clegg commented:
“Allowing thousands of houses to sit empty when millions of families have been waiting years for a home is nothing short of a scandal.
“The cost of bringing these homes back into use is just a fraction of the cost of building new ones, yet the Government is sitting idly by while they fall into disrepair."
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CML: Proportion of income needed for new mortgages at five-year low
Home buyers in November needed to use less of their income to cover their mortgage interest than at any time for more than five years, according to new data released this week by the Council of Mortgage Lenders.
In particular, home movers are experiencing a low debt burden by historical standards. They typically needed only 10.6% of gross income in November 2009 to cover mortgage interest payments, down from 11.1% in October. Other than a brief low of 10.2% in the middle of 1996, this is the lowest debt burden on home movers since the CML started recording this data in 1974.
The debt burden on first time buyers also reduced, with 14.4% of gross income needed in November, down from 15.1% in October - the lowest it has been since May 2004.
Lending volumes experienced a seasonal dip in November. Even so, although the 53,000 house purchase loans represented a 4% decline on October, the number was an emphatic 66% increase on November 2008. On the other hand, the 31,000 loans for remortgage fell 6% from October with a drop of 39% year on year, showing a continuation of the "two speed" market for house purchase and remortgaging.
Loans for house purchase in November accounted for 60% of total new lending, the highest proportion since 2001. While the share of house purchase activity has grown considerably from the record low of 27% seen at the start of 2009, low interest rates and tight lending criteria have meant that remortgage demand has gone in the opposite direction. From January 2009, the percentage of loans for remortgage has dropped from 53% to 31% in November.
Commenting on the data, CML Director General Michael Coogan said:
"It is encouraging to see that mortgage interest payments are so affordable for home movers and first-time buyers. But with substantial deposits still needed to secure a mortgage, the market will continue to be relatively restrained for some time to come.
"With refinancing still unattractive or unnecessary for many borrowers due to continuing low rates, we are now seeing a much more house purchase-focussed market, a profile much more like the beginning of the Noughties than its latter years."
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NAEA comment on latest CML figures
Following the publication of the latest CML figures, President of the National Association of Estate Agents, Gary Smith commented:
"The figures are encouraging given that mortgage loans have increased by 67% since November 2008 however that was possibly the nadir of the housing market. It is hardly surprising that the percentage of income on mortgages has decreased given the general interest rate cuts.
“The average income multiple has remained the same over that time for both general and first time buyers but that multiple of course is far lower than at the peak in 2007.
“Whilst responsible lending must remain key it should not be used as an excuse to constrain the market especially the first time buyer segment already adversely affected by the recent end of the Stamp Duty holiday.”
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BRC-KPMG Retail Sales Monitor December 2009
The latest statistics released by the British Retail Consortium (BRC) showed that:
UK retail sales values rose 4.2% on a like-for-like basis from December 2008, when sales had dropped 3.3%, due to turmoil in financial markets hitting consumer confidence. On a total basis, sales rose 6.0% against a 1.4% decline in December 2008;
Food sales growth picked up to its strongest since June, partly reflecting higher food price inflation. Wintry weather gave a good boost to clothing and footwear. Home wares sales showed further gains but against larger declines a year ago. Furniture slowed but health and beauty picked up, helped by Christmas gifting;
Non-food non-store sales (internet, mail-order and phone sales) in December were 26.5% higher than a year ago compared with 16.9% in November. Some benefited from shoppers buying online when snow prevented them getting out.
Stephen Robertson, Director General, British Retail Consortium, said:
"These are stronger figures than we dared hope for. After a surprisingly muted November, this is the best total sales growth for a December since 2005 and goes well beyond just making up for the sales fall the sector suffered a year ago. The figures were certainly helped by the comparison with last December's terrible results but customers clearly felt more confident about spending than they have for some time. Sales growth was also helped by the VAT cut dropping out of the 12-month comparison, December being the first and only month where the 15% rate is the same as a year earlier.”
"Snow kept people away from the shops for a time but they made up for that in the days just before Christmas and as sales events began immediately afterwards. But, with customers now reacquainting themselves with concerns about jobs and tax rises there is a risk that a healthy December may be only a temporary respite on the painful road to recovery."
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RICS: House prices continue to rise albeit at a slower pace
House prices in December rose at a slower pace as the gap between supply and demand narrowed, says RICS latest UK Housing Market survey.
In December, 30% more Chartered Surveyors reported a rise than a fall in house prices down from 35% in November. A significant majority of surveyors are still recording price increases in London, the South East, the South West and East Anglia. However, more surveyors in the North and the West Midlands are seeing falls in house prices indicating that the recovery in the market is less entrenched in some parts of the country than others.
For the seventh consecutive month, more Chartered Surveyors are reporting that the number of new instructions is increasing rather than falling. 17% more Chartered Surveyors reported a rise than a fall in new instructions. Fresh demand for property is still outstripping new supply but the gap has narrowed. 20% more surveyors stated that enquiries from potential purchasers are rising rather than falling but enquiries rose at the slowest pace since January 2009.
Other demand indicators are also losing some momentum, although they remain in positive territory. The newly agreed sales balance slipped to 22 from 24 while the sales expectations net balance dropped to six from 20.
Transaction levels were little changed in December. The number of sales per surveying firm is still hovering around 19 for the fourth consecutive month while the closely watched sales to stock ratio - a measure of market slack and a lead indicator of future prices- fell back slightly.
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CLG: House Price Index - November 2009
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 November 2009.
The key points from the release are:
UK house prices were 0.6% higher than in November 2008 and 1.7% higher than in October 2009 (seasonally adjusted);
The mix-adjusted average house price in the UK stood at £200,454 in November 2009 (not seasonally adjusted);
UK house prices rose by 3.5% in the quarter ending November 2009. This compares with a smaller rise of 2.6% for the quarter ending August 2009 (seasonally adjusted);
Annual average house prices rose in England (0.6%), Scotland (2.4%) and Wales (2.2%), but fell in Northern Ireland (-11.6%);
Annual average house prices paid by first time buyers in November 2009 were 3.9% higher than a year ago. By comparison average house prices paid by former owner occupiers were 0.7% lower;
Annual average house prices paid for new properties in November 2009 were 0.4% higher than a year ago and average house prices paid on pre-owned dwellings were 0.7% higher.
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New orders in the construction industry, November 2009
According to the latest data released by the Office for National Statistics, orders in the three months to November 2009 rose by 1% compared with the previous three month period. Orders in the 12 months to November 2009 fell by 14% compared with the previous 12 months but orders in the three months to November 2009 rose by 4% compared with the same period a year earlier.
Private housing orders in the three months to November 2009 rose by 56% compared with the previous three month period and rose by 23% compared with the same three month period a year earlier. Private housing orders in the year to November 2009 fell by 30% compared with those in the previous 12 months.
Public housing and housing association orders in the three months to November 2009 fell by 30% compared with the previous three month period but rose by 9% when compared with the same three month period a year earlier. Public housing and housing association orders fell by 6% in the 12 months to November 2009 compared with the previous 12 months. All comparisons in this sector are affected by large variations due to its relatively small size.
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NHBC: UK's top site managers are named by NHBC
The UK's best site managers have been named in the finals of NHBC's Pride in the Job Awards. Four winners scooped the top award from more than 13,000 entrants, having maintained consistently high standards during the year-long judging process.
These individuals, who are at the top of their trade, have been selected for consistency, expertise and exceptionally high standards of site management. Winning sites will now fly the Pride in the Job flag on their site, a hallmark of a successful site and a good indication that those homes have been constructed to an excellent standard making it one of the best in the UK today.
Four winners were selected one in each category of: large builder, medium builder, small builder and multi-storey builder. This year's winners include the first Supreme Winner from Northern Ireland in 15 years, plus two winners return from last year to secure their reign.
Announcing the awards, NHBC Chief Executive, Imtiaz Farookhi, said:
"Despite the economic downturn and its impact on the sector, we have been struck by just how many site managers have maintained their high standards and commitment to building quality new homes.
"Winners have exceeded [expectations] in producing excellent standards despite unprecedented pressure, challenges and uncertainty, which is testament to their skills and dedication. It's an honour to reward them with the ultimate industry accolade."
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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.
HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course
HBF North West Social Dinner – Friday 10th September 2010 – The Midland Hotel, Manchester
HBF Ball – Friday 10th December 2010 – Marriott Grosvenor Square, London
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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 events@house-builder.co.uk
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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.
Take a look at the photos and video.
Contact HfH with any questions about Hope Challenge.
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TSY: Delivering design quality skills training programme
Transform South Yorkshire have developed the delivering design quality skills training programme – a free programme providing practitioners from the private sector, RSLs and local authorities with training that meets all levels of expertise.
The programme's approach will be practical, and aims to give professionals the tools they need to continue developing their design skills when they leave the session. The case study is at the heart of the teaching approach.
Please click here for more information and details of how to book
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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/
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Rosie Hinchliffe
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