Friday, 22 January 2010 Top stories this week John Healey calls on councils to use their powers to stop 'garden grabbing'.....read more Bank of England: Trends in Lending.....read more CML: Gross mortgage lending up 14% in December.....read more Rightmove: Century’s lowest stock levels provide a spring window for sellers.....read more Halifax: The UK Housing Market over the past 50 years.....read more HBF to host housing ‘Question Time’ featuring Healey, Shapps and Teather.....read more Quick Links Wales news Haiti earthquake appeal Government and political news Economic news Housing market news Industry news Events Wales news Shelter - Housing crisis in Wales The recession in Wales has led to a record number of people in housing difficulties, says Shelter Cymru. In 2008-09, Shelter Cymru advisers helped nearly 16,000 people, its highest number ever in a single year. The charity's advisers dealt with more than 22,000 housing problems, and managed to prevent homelessness in 86 per cent of cases where it was faced. Director of Shelter Cymru John Puzey said: "This has been an incredibly busy year for our advisers. We have seen more people than ever before and the proportion of clients who are threatened with repossession has shot up. "Although there has been some positive news in terms of the economy, many analysts expect the economic environment to remain harsh for the foreseeable future. Read more to top Number of homeowners in Wales rises 25% in 50 years The number of Welsh homeowners has risen dramatically in the past 50 years, while the private rental sector has been squeezed ever smaller, according to figures released today. Despite climbs in property prices and a freeze in lending, owner-occupation in Wales has increased by a quarter since 1961, an analysis by the Halifax has revealed today. The rise was at its steepest following the Government’s launch of Right to Buy in the 1980s. Discounts of around 40% enticed dozens of aspiring Welsh buyers to take their first steps on the housing ladder through the purchase of a council-owned property, the mortgage lender said. In the years that followed the number of homeowners continued to soar. And between 1961 and 2008, the figure had jumped from 48% to 73%. Read more to top £8m Green Energy Boost for Welsh Communities Over £8m will be made available to help community organisations in Wales invest in new technology to generate clean, renewable energy, Environment Minister Jane Davidson has announced. The funding is expected to create up to 22 jobs. The Welsh Assembly Government initiative is backed with over £7m from the EU’s European Regional Development Fund and will generate an investment of £15m. The Community Scale Renewable Energy Generation project will provide finance of £100k to £300k per project to support the development of community based renewable energy schemes such as wind, biomass and hydro power. Read more to top Anglesey to gain regeneration investment The Welsh Assembly Government is assigning £8m to regenerate Holyhead, Llangefni and Amlwch in Anglesey. The money is part of a £38m North Wales Regeneration scheme to transform towns and communities announced last year. The EU and the Welsh Assembly Government cash will be invested in the three towns in a bid to create jobs, win back shoppers to the town centres and build on tourism projects. Read more to top New £5m flood risk management scheme set for Denbigh A new £5m flood risk management scheme for Denbigh has just been given the green light by the Welsh Assembly Government. Funding will come from the Welsh Assembly Government (51%), the European Union (40%) with the remainder coming from the local authority (9%). The scheme will fund large sections of work throughout the town in a bid to protect homes and businesses from the threat of flooding for future generations. A tributary of the River Clwyd, Henllan Brook runs west to east through some extremely old culverts underneath many of Denbigh’s streets which have limited capacity to cope with flooding. The proposed scheme will be designed to prevent the flooding of such properties and will take account of climate change. Read more to top Haiti earthquake appeal Following the earthquake in Haiti, HBF has launched an urgent appeal to the house building industry on behalf of its nominated charity Habitat for Humanity (HfH). The earthquake has decimated the country’s infrastructure and thus its ability to cope with the devastating impacts. It is a catastrophe of major proportions with early estimates suggesting that up to three million people have been killed, injured or made homeless. Habitat for Humanity has been present in Haiti, working with poor and low-income families in need of decent housing since 1981. It already has a Disaster Risk Assessment Team on the ground, establishing a clear picture of the situation and providing specialist shelter provision and reconstruction assistance. Further information about this is available on their website www.habitatforhumanity.org.uk Whilst appreciating the difficult economic climate in which members are operating it only seems appropriate that our industry should support a charity that specialises in shelter provision, housing repair and reconstruction. How quickly we raise funds will directly affect Habitat for Humanity’s ability to assist now, when their help really is needed. Please help by making a secure online donation today. to top Government and political news John Healey calls on councils to use their powers to stop 'garden grabbing' Housing and Planning Minister John Healey today published new, independent research that shows inappropriate building on back gardens is not a widespread, national problem and is often linked to councils' failure to have local policies in place. He told the small minority of councils who reported issues in "hot spot" areas that the power to act is already in their own hands if they establish clear, local policies. 363 local planning authorities were approached for their views. Of the 127 who responded, less than half (50 councils) considered it an issue in their areas. Of those who reported a problem, only 5% (7 councils) had specific, local policies in place. The report concludes that councils with local plans in place were more successful at stopping inappropriate development on garden land. In 2007-2008, 6892 dwellings were refused on appeal and 1739 were granted permission (approximately only one in five), demonstrating that independent Planning Inspectors uphold decisions to stop development if local policies are in place. Mr Healey said: "If those areas that have reported a problem don't want to see developments on garden land, they are tying their own hands by not having a local plan in place. This evidence shows that planning inspectors will support local authorities in rejecting inappropriate buildings in gardens if there is a clear idea of what the area needs. "Over time, so-called 'garden grabbing' can change the look and feel of a community without giving local people a choice, so it is good news that councils have told our independent experts that it is not a problem in the large majority of areas. I am determined to keep it that way and to see tougher action in a small number of garden grabbing hotspots. "For my part, I am changing the official guidance for planners to make it crystal clear that previously developed or former garden land is not necessarily suitable for development, and that the impact on the surrounding area should be considered." Read more to top Planning fees frozen to help developers on the road to recovery Planning Minister John Healey this week pledged to freeze planning fees on applications to help developers through the economic recovery and keep builders on construction sites by saving them up to £23m a year. To help companies generate jobs and homeowners make improvements to their homes, planning fees will be kept at their current levels. The money saved will provide a valuable cash boost for developers to invest in new projects. Mr Healey also confirmed that fees for planning appeals will not be introduced this year to avoid placing any further burdens on businesses and householders during this difficult economic time. This will mean that businesses will not have to pay for their decision to be reviewed by the Planning Inspectorate if their applications are rejected, and will give companies confidence to expand their business. John Healey said: "At a time when investing in new developments is difficult and when access to funding is hard, it would be wrong to increase the costs of developers who will help drive economic recovery. That's why I've decided to freeze planning fees and put appeal fees on ice. "I recognise that as we start to work through economic recovery, we need to do what we can to keep builders on construction sites and keep plans on the table. It is important that we react to the economic circumstances and listen to the needs of people, industry and developers and we have done just that." Read more to top Economic news Bank of England: Trends in Lending This Bank of England monthly publication presents the Bank's assessment of the latest trends in lending to the UK economy. The latest edition reported that the flow of net sterling mortgage lending by all UK-resident mortgage lenders rose in November to £1.5bn, the largest flow since February 2009, though still well below the average flow in 2008. The three-month annualised growth rate of lending edged up further. However, net lending by the major UK lenders slowed in December, as repayments increased by more than gross lending. Lending Panel data provide a split of gross lending between house purchase and the refinancing of existing mortgages (remortgaging). Gross mortgage lending for house purchase has risen through 2009 and increased further in December. A number of the major UK lenders attributed part of the December rise to some homebuyers seeking to complete house purchases before the removal of stamp duty relief on 1st January 2010. Remortgaging activity, however, has remained very subdued. Effective interest rates on new fixed-rate mortgages and floating-rate mortgages edged higher in November, though the overall rate on new mortgages fell as borrowers increasingly opted for floating-rate mortgages, which over the past year have carried a lower rate than fixed-rate mortgages. In contrast, quoted (advertised) mortgage rates have been broadly stable in recent months and for some fixed-rate mortgage products have fallen. Read more to top Bank of England: Minutes of the Monetary Policy Committee meeting The Bank of England has published the minutes of the Monetary Policy Committee meeting held on 6th and 7th January 2010, at which it was decided to maintain the Bank Rate at 0.5% and continue with the asset purchase programme. The minutes state that: “Committee members agreed that recent developments did not provide grounds for substantially changing their views about the medium-term prospects for activity. Given those prospects, and the significant degree of spare capacity in the economy, Committee members continued to expect inflation to fall below the target for a period once the various near-term price-level shocks to inflation had worked through. The projections and analysis prepared in advance of the February Inflation Report would enable a more comprehensive assessment of the latest information about the supply potential of the economy, as well as the impact of the various headwinds and tailwinds affecting activity and inflation.” Read more to top Housing market news CML: Gross mortgage lending up 14% in December Gross mortgage lending reached an estimated £13.7bn in December, a 14% rise from £12.1bn in November and up 3% on December 2008, according to the Council of Mortgage Lenders. This is the first time the annual monthly comparison has been in positive territory since October 2007. However, other than in 2008, this is still the lowest figure for December since 2001 (£13.4bn). Lending totalled £39.1bn in the fourth quarter, up slightly from £39bn in the previous quarter but down by 14% on the last three months of 2008. There is typically a 6% fall between the third and fourth quarter. For 2009 as a whole, lending totalled £143.7bn, slightly above our annual forecast of £141bn. However, this is down 43% from £253bn in 2008 and the lowest annual total since 2000 (£119.8bn). In this week’s CML market commentary, CML Economist Paul Samter observes: “The December figure is surprisingly strong as there is typically a small decline in the month. Evidence suggests that the rise was driven by a surge in house purchase completions – as remortgaging still remains exceptionally weak. The most likely explanation is that buyers of cheaper property wanted to complete their transactions before the end of the year to beat the end of the stamp duty holiday. “If there has been a “bunching” of sales to beat the rise, mortgage lending may see a larger than usual seasonal drop-off in the early part of 2010. But there is every reason to expect a gradual improvement in the latter part of the year. With a gradual pick up in economic growth and wider access to credit, 2010 will almost certainly be a better year in the mortgage market than 2009.” Read more to top NAEA response to CML’s lending figures Following the Council of Mortgage Lenders publication of its mortgage lending figures, Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA) said: "Mortgage lending rose in December because of a rush of people trying to get onto the housing ladder ahead of the Government's ill-advised removal of the stamp duty holiday. "The real impact of that decision will be known when the figures for January are revealed. If in January there is a large drop in lending, the Government will find it difficult to justify ending the stamp duty holiday and making it more difficult for people to own property.” Read more to top Rightmove: Century’s lowest stock levels provide a spring window for sellers The latest house price index published by Rightmove this week, reported that: 2009 ended with prices 4.1% higher than a year ago; There were early signs of a buoyant start to 2010 as average asking prices rose by 0.4% and search activity set a new record high; The first week of January saw a strong asking price rebound of +1.2% (£2,698) reversing previous weeks’ falls of 0.9%; The lowest stock level of this century has created a window of opportunity for sellers; Rightmove has forecast a 0% price change in 2010, with sellers advised to take advantage of expected price rises before post-election dip. Miles Shipside, Commercial Director of Rightmove commented: “This rise in asking prices is an early indicator that new sellers in 2010 have the confidence to try for a higher price, as the index was lined up for a fall until the turn of the year. We were expecting a drop of about 1%, as the majority of this month’s index falls in December, but the optimism of those early January sellers flipped it around. With home-movers setting new search records on Rightmove and a lack of property for sale, the decision of post New Year sellers to ask for a higher price could be a shrewd move. In spite of problems brewing for later in the year, there are definitely some of the ingredients for a buoyant spring, and a window of opportunity that sellers may wish to take advantage of”. Read more to top NAEA: Seasonal lull can’t mask 12-month recovery The number of people searching for property soared by more than 25% in the 12 months to December, according to the National Association of Estate Agents (NAEA). The NAEA’s monthly market report found that the average estate agent had 251 house-hunters on its books in December, compared to 200 in December 2008. The number of people looking to buy had fallen from 279 in November, as expected during the traditional festive slowdown in the property market. This slowdown saw the number of sales agreed per branch drop from eight (7.6) in November to five (4.9) in December. The number of properties available for sale per branch increased slightly from 58 in November to 59 in December. President of the NAEA, Gary Smith said: "December is always a slow month for estate agents as house-hunters tend to take a break from their property search. “Given the usual seasonal lull, these figures are very much in line with our expectations but nevertheless continue to demonstrate a marked improvement on December 2008. “We are now more interested in how the market will bounce back in January, given that the Government has not responded to our requests to extend the Stamp Duty holiday, which ended in December. Thousands of potential buyers are still in need of help and further, more robust, action is needed to make mortgages more available.” Read more to top Industry news Halifax: The UK Housing Market over the past 50 years As we begin a new decade, Halifax has looked over the past 50 years and identified the key changes in the UK housing market. The analysis starts at the end of the 1950s and commences with the record growth in house building through the 1960s. The new report states that: The average UK house price has increased by 273% since 1959 in real terms (i.e. after allowing for retail price inflation), at an average annual rate of 2.7%. This is faster than the 2% per annum average rise in real earnings over the period; House prices recorded their biggest increase in the latest decade with a real rise of 62% during the 2000s; marginally ahead of the 61% increase in the 1980s. The worst performing decade for house prices was the 1990s when prices fell by 22% in real terms; Pronounced cycles have been a key feature of the housing market since 1959. There have been four distinct periods of rapid real house price growth: 1971-73, 1977-80, 1985-89 and 1998-2007. Each of these periods was followed by a significant fall in real house prices; Owner-occupation in the UK has increased by 25 percentage points from 43% in 1961 to 68% in 2008. The biggest rise in owner-occupation occurred in the 1980s following the introduction of the Right to Buy scheme; The proportion of homes that is privately rented has fallen significantly from 33% in 1961 to 14% in 2008. The private rental sector was bigger than both the owner-occupied and social rented sectors until the mid 1950s. There has been a more recent increase in the private rented sector; from 9% in 1991 to 14% in 2008; The relative size of the socially rented sector in 2008 (18%) was smaller than in 1961 (25%). The proportion of the dwelling stock that is socially rented expanded rapidly through the 1960s and 1970s, peaking at 33% in 1981. A sharp reduction in local authority house building and the sale of council houses have contributed to the sector's contraction since the early 1980s. In addition, the composition of the sector has changed significantly with a marked shift away from local authority provided housing towards provision by housing associations; The proportion of single person households in England has risen significantly from less than one in five (19%) households in 1971 to one in three (33%) in 2009. The proportion of English households occupied by married couples has declined from 70% in 1971 to 42% in 2009, although married households are still the most common form of household. The number of households occupied by cohabiting couples increased from 1% in 1971 to 11% in 2009; The number of houses built in the UK was an estimated 156,816 in 2009; 44% less than the 281,570 built in 1959. House building reached record levels during the 1960s, with a peak of 425,800 units completed in 1968. Private sector completions (226,100) also reached a record in that year. The decline in house building has been driven by a fall in public sector completions; Read more to top Events HBF to host housing ‘Question Time’ featuring Healey, Shapps and Teather 10th March, Westminster The HBF’s Policy conference will this year be a pre-election ‘Question Time’ style debate featuring all three political heavyweights. Housing Minister John Healey, and his Tory and Lib Dem shadows Grant Shapps and Sarah Teather will take part in an open debate to be chaired by HBF Executive Chairman Stewart Baseley. Questions will be taken from the assembled delegates on the key housing issues in what is sure to be a heated and fascinating debate with the General Election looming. It will be followed by a debate featuring an expert panel of leading economists, including Citigroup’s Michael Saunders and Capital Economics Ed Stansfield which will look at the prospects for both the housing market and the general economy. Download a booking form Visit the website to book online to top HBF: Event diary dates HBF has announced the return of three of its most popular social events for this 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 to top 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 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. to top 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 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
