Friday, 27th November 2009 Top stories this week Housebuilders hold further discussions with Conservatives’ housing and planning team.....read more Further recognition for Robust Details - Parliamentary Early Day Motion on Edinburgh Napier University’s Award.....read more NHBC: Consistent improvement for UK house building sector.....read more Treasury: Greater protections for mortgage borrowers.....read more BBA: October figures for the main high street banks.....read more John Healey – Energy efficiency standards under the zero carbon homes policy.....read more Paul Morrell OBE appointed to the new role of Government Chief Construction Adviser.....read more Quick LinksWales news HBF news Industry news Economic news Government and political news Housing market news Wales news Welsh planners and developers urged to work together to deliver affordable housing Environment Minister Jane Davidson and Deputy Minister for Housing Jocelyn Davies, have called on local authorities and house builders in Wales to work together during the economic downturn to deliver affordable housing through the planning system. To assist them updated guidance on ‘Delivering affordable housing using section 106 agreements’ has been published. The original practice guidance was published in July 2008 with the aim of assisting local authorities to improve the development, negotiation and implementation of section 106 agreements so that more affordable housing is delivered through the planning system. Section 106 agreements are made between Local Planning Authorities and developers to influence new-build sites to include, for instance, affordable housing and green spaces like parks. The updated guidance summarises actions by the Welsh Assembly Government to help the housing market and looks at how local authorities can use the planning process to bring forward development and continue to deliver the maximum possible amount of affordable housing. Read more to top Labour promise over UK funding for Wales A new safety net will be added to the way the Assembly Government is funded from the Treasury, Welsh Secretary Peter Hain said this week. Public spending in Wales is higher per head than in England, but a Government report suggested recently it was still some £300m a year too low. The contentious mathematical model that determines spending, the Barnett formula, has an in-built quirk that means Wales will, over time, lose its advantage over England. Mr Hain said that if Labour won the General Election a new minimum level will be set to ensure this does not happen, and would be introduced from 2011. An incoming Tory Government would find it difficult to backtrack on the deal agreed with the Treasury, he suggested. Read more to top Welsh Assembly Government cash benefits north Wales communities Jocelyn Davies AM, Deputy Minister for Housing has outlined how Welsh Assembly Government investment is helping to meet housing needs in north Wales during her visit to Wrexham. Ms Davies highlighted the additional funding while speaking at Wrexham’s Affordable Housing conference. The Deputy Minister said: “We have a target to create at least 6,500 extra affordable homes by April 2011. We always realised this would be a challenge, but since the beginning of the economic downturn it has become even more so. This is why in July this year I was delighted to announce that 3,252 affordable homes have been created, which was more than half way towards our target. Read more to top HBF news Housebuilders hold further discussions with Conservatives’ housing and planning team HBF Executive Chairman Stewart Baseley this week joined senior members in further discussions with Conservative Shadow Housing Minister Grant Shapps and his colleague John Howell MP in a round table meeting kindly organised by Taylor Wimpey. Ahead of the anticipated publication of the Conservatives’ planning green paper, the meeting explored in further detail how a “localist” planning system might work, the provision of major infrastructure, sustainability issues including zero carbon and the Community Infrastructure Levy. to top Industry news Further recognition for Robust Details - Parliamentary Early Day Motion on Edinburgh Napier University’s Award Following the announcement of the Queen’s Anniversary Prize to Edinburgh Napier University for its work with industry on the development of the Robust Details solutions for sound insulation, Edinburgh MP Nigel Griffiths has put down the following Early Day Motion in the House of Commons: “That the House congratulates the achievement of Edinburgh Napier University in receiving the Queen's Anniversary Prize for Higher and Further Education for 2009, awarded biennially to reward universities and colleges that demonstrate work of a world-class standard of excellence; notes this award was made in recognition of the outstanding contribution to knowledge exchange made by the Building Performance Centre for innovative housing construction for environmental benefit and quality of life; and further notes that this recognition complements the world-leading classification awarded to the University's Architecture and Built Environment expertise during the Research Assessment Exercise 2008.” In the HBF’s press release on the Prize, Stewart Baseley, Executive Chairman of the Home Builders Federation commented: "The success of this industry-funded scheme, and the benefits it has bought to hundreds of thousands of new home owners, as well as house builders, powerfully demonstrates the innovatory advantages of the industry working together to develop its own solutions rather than having regulation imposed. This experience has given us a template for the future in terms of developing and mainstreaming means of providing good quality homes in the most efficient way, so delivering an improved product for our customers as affordably as possible.” View the EDM Read more to top NHBC: Consistent improvement for UK house building sector The National House Building Council's October figures show the number of registrations to build new homes has reached 9,163 - the highest monthly level since July 2008. During the three months from August to October 2009, NHBC received 24,896 applications to build new homes in the UK - an increase of 27% on the same period last year. Imtiaz Farookhi, NHBC Chief Executive, said: "It is encouraging that this month’s figures yet again show steady improvement in house building, supporting what many in the industry are saying - that the worst may be over. "However, these figures are still well below the buoyant levels we saw in late 2007 and it is still very difficult to predict when and to what extent recovery will come, especially as we enter the winter period. The coming months will be a testing time for the industry, and it may be some time before we can confidently say that the industry is in recovery." NHBC statistics show that the vast majority of regions have improved on last month's rolling quarter figures, and all regions have improved when compared with the same period in 2008. Greater London appears to be leading the way, with 4,167 registrations during the period August to October 2009, and many other regions are now following. The North East showed a 306% increase on the same period last year, and Merseyside a 120% increase. NHBC statistics for the three months to the end of October 2009 also show: Recovery in the private sector continues. Private sector applications were up 45% across the UK to 16,630 from 11,507 for the same period last year; Public sector figures for the three months to the end of October were also up, at 8,266 – 3% higher than the same period a year ago (8,041); The average number of daily sales of new homes in the UK recorded by NHBC during August to October 2009 was 345 - just 8% lower than the same period a year ago (375) Read more to top Villages call for more affordable homes 47% of rural dwellers believe that people who oppose all new homes in the countryside are damaging the future of their village, according to a survey released this week. The ICM survey, commissioned by the National Housing Federation (NHF), also found that 66% of rural dwellers would support the building of new affordable homes where they live. Other findings include: 62% of rural dwellers believe there is a shortage of affordable housing in their area; 52% of people in rural areas thought only people on the very highest incomes could afford to buy a home in their village, although this figure soared to 62% in the South West and South East; 15% said they knew of a family or friend who been priced out of the countryside and had moved away, although this hit 22% in the West Midlands and 21% in the South West; 66% believe the Government cares more about issues affecting people living in urban areas than those in the countryside; Nearly half of people living in the countryside say they have seen key amenities close in their communities over the last five years. Read more to top Government backs rural communities with best plans for the future Following the publication of the ICM survey, Housing Minister John Healey and Rural Minister Dan Norris announced a new initiative to support rural councils in meeting their housing requirements. A £1m fund jointly provided by Communities and Local Government and Defra will provide expert assistance and training on design, and help councils work closely with local communities to develop masterplans, identifying best practice that will provide a model for rural authorities across the country. Councils with the best proposals for rural towns and villages will be given specialist advice to develop masterplans for new neighbourhoods of high quality housing that will include green spaces, commercial and business premises, shops and services. The new neighbourhoods will make the most of existing buildings, help provide homes for local people and help rural businesses who often find it difficult to recruit and keep staff priced out of rural communities. John Healey also announced a consultation on proposals to encourage rural landowners to release more land that will be used to build affordable housing for local people. Proposals include allowing local landowners to retain the freehold on the land, with housing associations paying an upfront or annual payment for the lease. These announcements are the latest stage in the Government's plans to help rural communities thrive by providing more affordable housing and greater freedom to develop strong local economies. Read more to top Greater flexibility for planning permissions: Guidance Communities and Local Government have published guidance on the measures being taken forward following the consultation on “Greater flexibility for planning permissions”. It covers the extension of time limits for implementing extant planning permissions, non-material amendments and minor material amendments. The guidance is for use by local planning authorities (LPAs) and developers, as well as individuals who wish to use one of the procedures. It sets out the key features and statutory requirements for each procedure, provides a practical guide to their use, and explains how they differ from existing procedures. It also includes a summary comparison table and a list of useful weblinks. Download a copy of the guidance to top CABE publishes new guidance to help planners place good design at the heart of their core strategies CABE has been working with local authorities to see how design quality can best be embedded in their emerging core strategies. It has published new guidance drawing on findings from 50 workshops held with local planning authorities. “Planning for places: delivering good design through core strategies” spells out the need to: first, tell the story of the place; second, set the agenda – say what is wanted for the area and what is expected in terms of design quality; and third, say it clearly: make the core strategy relevant and clear for a wide audience, with easy to read graphics, maps and photographs. Read more to top APS: Best practice guide to the Site Waste Management Plans Regulations 2008 The Association for Project Safety (APS), the UK’s leading organisation for construction health and safety risk management, has produced a Best Practice guide for consultants who are asked to advise and assist clients with regard to their responsibilities under the Site Waste Management Plan Regulations 2008 (SWMP). Clients of construction projects have considerable duties under the SWMP Regulations. The APS believes, however, that with good advice and properly managed, SWM Plans can offer clients considerable benefits on: project costs environmental codes sustainability ratings Designers, CDM coordinators and other consultants will often be asked to act as SWMP Client Advisers. In England the Site Waste Management Plans Regulations 2008 are a legal requirement on construction projects costing more than £300,000. In Wales similar regulations are likely to come into force in 2010. For more information regarding this guide, please visit the APS website: www.aps.org.uk to top Economic news Treasury: Greater protections for mortgage borrowers The protections enjoyed by UK mortgage borrowers would be strengthened under new proposals published by the Treasury this week. Under the proposals borrowers whose mortgages are sold onto third parties will be protected by Financial Services Authority regulations requiring fair treatment of customers. In addition, the Government is proposing the expansion of the FSA’s remit to include the regulation of buy-to-let and second-charge mortgages. The Government has published a consultation document, which sets out the details of the proposed legislation and will close on 15th February 2010. Any final measures will be implemented through secondary legislation. The consultation builds on announcements made in “Reforming financial markets”, which was published by HM Treasury in July of this year and set out the Government’s analysis of the causes of the financial crisis, along with a series of proposals to reform and strengthen financial regulation, and protect and support consumers. The Government will implement these proposals via the Financial Services Bill currently before Parliament. Read more Download a copy of the consultation document to top CML responds to Government proposals to extend mortgage regulation The Council of Mortgage Lenders gave a mixed response to the Treasury's proposals to extend the scope of FSA mortgage regulation to cover second-charge mortgages, buy-to-let mortgages, and the sale of mortgage books to third parties. The CML supports an extension of FSA regulatory scope to second-charge lending – having argued before FSA mortgage regulation was introduced in 2004 that it should cover all secured lending, not just first-charge mortgages. The CML also understands and broadly supports the rationale for extending FSA regulatory scope to the acquirers of mortgage portfolios when they are sold on by the originator - although it said there are bound to be technical issues to be ironed out in this area and that such regulation should avoid creating other knock-on negative effects. CML Director General Michael Coogan commented: "We will now study the Treasury consultation paper in detail, in parallel with the FSA's consultation on potential changes arising from the Mortgage Market Review. 2010 is clearly going to be a year of regulatory change for mortgage lenders - but it's important that change should have a clear rationale and a clear set of outcomes, and not be implemented simply for its own sake as a reaction to past events that conduct of business regulation would not have prevented." Read more to top BBA: October figures for the main high street banks According to the latest data from the British Bankers’ Association new mortgage lending and house purchase approvals increased slightly as mortgage lending continued to grow from the low levels at the end of 2008. In contrast, consumer credit continued to be weak and lending to non-financial corporates fell. BBA Statistics Director, David Dooks, said of the latest data: "The longer it takes to emerge from recession, the longer we will see households and businesses continue to borrow with caution. The banks' mortgage lending, still growing by more than 4% a year, shows one aspect of consumer behaviour but unsecured borrowing is subdued and people are building up deposits. "A mixture of lower business demand, alternative corporate funding and tighter lending conditions, all giving rise to the on-going contraction in lending to non-financial companies, is a reflection of current market conditions." Read more to top CBI: High street sales grow and festive season looks stronger Retail sales grew at their fastest pace in two years, and the high street is expecting growth to pick up further in the run-up to Christmas, the Confederation of British Industry (CBI) said this week. Its latest Distributive Trades Survey also showed that business sentiment about the retail sector over the coming three months is now positive for the first time since August 2007. Responding to the survey, 40% of retailers said that their volume of sales in the year to November had risen, while 27% said they fell. The resulting balance of +13% reflects a second consecutive month of growth and, while not quite as strong as expected (+19%), it was the highest balance since November 2007 (+13%). A balance of 19% of retailers expect that, when compared with last December, sales volumes will improve next month in the critical pre-Christmas period. In light of the growth in sales, the high street is feeling quite optimistic about the outlook for their general business situation. The balance of 13% of firms expecting an improvement over the next three months is the first positive result since August 2007 (+10%) and the strongest since May 2004 (+22%). The volume of orders placed on suppliers (a balance of 12%) rose for the first time since January 2008 and at the strongest rate since November 2007 (+18%). The three month moving average of sales volumes, which smoothes out monthly peaks and troughs, turned positive (a balance of +8%) and is expected to grow further in December (+14%). Read more to top Government and political news John Healey – Energy efficiency standards under the zero carbon homes policy Housing Minister John Healey this week announced the recommendations of the Zero Carbon Hub co-ordinated specialist task group he asked to be set up to look at the energy efficiency metrics and minimum fabric energy efficiency standards that should apply under the zero carbon homes policy from 2016. In a written statement to Parliament, Mr Healey said: “The recommendations are for an energy standard that is measured as the amount of energy required to provide space heating and cooling. The proposed standard is 46 kilowatt-hours per square metre per year for semi-detached and detached homes and 39 for all other homes. “I will be using our forthcoming consultation on updating the code for Sustainable Homes to check that there are no unintended consequences from this standard and to seek views on the energy efficiency standard to be adopted in 2013. By aligning our approach to energy efficiency and zero carbon within the Code, we will smooth the transition to zero carbon homes in 2106.” The Minister also announced an allocation of £3.2m funding from the Technology Strategy Board to boost long-term research into how we design and build energy efficient homes. The research will use new technologies and materials to provide evidence for future standards and how to drive down energy bills. The money will be used by a consortium – including Barratt Developments, Crest Nicholson, Stewart Milne, H + H Celcon, Oxford Brookes University and the Building Research Establishment – to build demonstration homes. These will be built without on-site renewables to test how far progress can be made towards low carbon buildings through energy efficiency measures. The homes will be monitored to find out the savings realised in practice and to learn more about the occupants’ experience of living in them. In his statement, the Minister in addition launched a further and more detailed consultation on policy measures to achieve a zero carbon standard for new commercial buildings from 2019. This policy would broadly mirror the “energy hierarchy” approach for zero carbon homes, adjusted to reflect the differences of non-domestic buildings. Commenting on the proposed energy efficiency standard for future zero carbon homes, Stewart Baseley, Executive Chairman of the Home Builders Federation, said: "The Zero Carbon Hub has done a good job in a short time in considering what a future energy efficiency standard for new homes might look like. Its recommendations are broadly pragmatic: the technology required for delivery already largely exists. The industry will, however, need to assess the merits of specific delivery options and keep a close eye on the cost implications as part of the wider issue of ensuring the zero carbon policy is affordable." Read more View the Minister’s written statement to Parliament to top Paul Morrell OBE appointed to the new role of Government Chief Construction Adviser The appointment of Paul Morrell as the Government’s first Chief Construction Adviser (CCA) was announced this week. The CCA’s role will be to work with Government and the industry, to act as a link between the two and aim to ensure Britain's construction sector is equipped with the knowledge, skills and best practice to make the most of the opportunities which the 21st century will offer. Previously senior partner of construction consultants Davis Langdon, and also former deputy chair of CABE, Paul Morrell brings extensive experience across both the public and private sectors to this broad role. As CCA, Mr Morrell will lead the Construction Innovation and Growth Team. His first task will be to lead the Low Carbon Construction Review, announced by Lord Mandelson on 18th September and due to report its initial findings in spring 2010. This is part of the challenge to bring the industry together to identify how best to deliver the 2020 carbon reduction commitments, to meet the broader challenges of the low carbon future, and to capture the many new opportunities it will bring. Construction Minister Ian Lucas said: “The Chief Construction Adviser will play a vital role in championing the sector with Government and work with industry to ensure we have a strong, sustainable construction sector in the UK. With broad experience across sectors including commercial, health, residential, arts and transport construction, Paul Morrell is well placed to support the industry to take advantage of the growth opportunities offered by the 21st century.” Read more to top John Healey: Further funding for more houses to help tackle waiting lists Housing Minister John Healey announced this week that in October he confirmed the release of a further £290m to assist the building of almost 5,500 affordable homes across the country, helping to tackle housing waiting list pressures, boost the construction industry and support over 6000 jobs. Mr Healey said that this latest installment of Government cash to build more affordable homes brings total Government support for house building since June to £1.8bn. Mr Healey also saw builders get back to work at New Broughton in Salford thanks to £7.3m Government cash to kickstart work on site again after over a year's delay due to the recession. He confirmed that more than 30 stalled building projects across the country have met final conditions to receive Government Kickstart cash. Mr Healey has in addition made clear his determination that every one of the housing associations receiving Government housebuilding cash will be required to provide apprentices. Speaking at a UNISON Conference in Manchester this week, John Healey said: "We're building the homes this country needs, providing new homes for families across the country and helping first time buyers take their first step onto the housing ladder. "We're using the power of government investment to support the construction industry at a time of recession when it needs it most, providing the means to help get the market moving again. And with tough terms for developers to get their cash we're getting the most for every taxpayer's pound, creating new jobs and apprenticeships and safeguarding the future of the industry. "Today's investment to build more affordable homes brings the total government help for housebuilding since June to £1.8bn and I'm determined to keep building homes in the months ahead, with further cash to come for councils, housing associations and developers." Read more to top Research shows Conservative councils less likely to grant planning permission for new homes Residential property developers are far less likely to gain planning permission for new developments in Conservative controlled local authorities according to research by McGrigors, the commercial law firm. Headline results from the research are that: Conservative councils grant just 63% of planning permissions vs. 69 % for others Nine of the ten planning authorities with the lowest rates of planning permission granted are run the by the Conservatives Over the last year Conservative councils approved an average of just 63% of planning applications for major housing developments, a noticeably lower figure than the 69% for applications for major housing developments approved by local authorities not under Conservative control. McGrigors says that this low level of planning permission granted in Conservative controlled areas is significant as Conservative control is most heavily concentrated in the South East of England where housing shortages are the most acute. The research also found that nine of the ten Local Planning Authorities (LPAs) with the lowest percentage of planning permissions granted for major housing developments are run by the Conservatives. These are Rochford, Castle Point, Brentwood and Staffordshire Moorlands with just a 20% of approval rate, Wycombe with 21%, Wokingham with 25%, Forest of Dean with 26%, Bexley with 27% and Canterbury with 28% of approval rate. McGrigors says that with the Conservatives currently controlling 51% of UK councils and prospects that they could win even more ground in the 2010 elections, it could become even harder for developers to obtain planning permission, meaning that Britain could face the risk of even more severe housing shortages in the long term. Read more to top Housing market news Lending to first-time buyers up 26% in Scotland Mortgage lending to Scottish first-time buyers increased 26% in the third quarter of 2009, according to CML Scotland. There were 5,400 first-time buyer loans (worth £471m) in the third quarter, up from 4,300 in the previous quarter and unchanged from the third quarter of 2008. There were 8,300 home mover loans (worth £1bn), up 15% from 7,200 in the second quarter but 15% lower than the same quarter a year earlier. In all, 13,700 house purchase loans were taken out, a 19% rise from the second quarter, but 10% down on the third quarter of last year. In the UK more widely, house purchase activity grew 31% in the quarter and was up nearly a quarter year-on-year. Affordability for those able to access a mortgage in Scotland continued to ease - in third quarter, new borrowers typically had to commit 11.9% of income to cover mortgage interest payments, down from 12.4% in previous quarter and the lowest proportion since 2004. Commenting on the data, CML Scotland Policy consultant Kennedy Foster said: “From peak to trough, house purchase activity in both Scotland and the UK has fallen by around 75%, but the timing has been different. Scotland has lagged behind the UK more widely, first during the decline in lending, and now in its weak recovery. “But the recovery in Scotland has begun and it is encouraging to see a bounce back in first-time buyer activity. Our expectations are for a slow recovery in the mortgage market across the UK as the economy gradually revives.” Read more to top For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetingsFor HBM events visit http://www.hbmedia.co.uk/ to top Rosie Hinchliffe View Previous Weekly News Summary
