Friday, 4th June 2010 Top stories this week CLG priorities.....read more Shapps confirms zero carbon definition "within weeks".....read more Vince Cable announces action plan to bring an end to excessive regulation.....read more CML warns of downside risk on lending forecasts.....read more NHBC: Home building levels increase UK-wide.....read more New Homes Month 2010.....read more Quick Links Wales news Government and political news Economic news Housing market news Industry news HBF news Events Wales news Organisations sign up for One Planet living Businesses and local authorities in Wales have made a landmark commitment to future proofing lives and communities. A total of 22 organisations have set out their intentions to find long-term sustainable business solutions that protect resources for future generations. They are the first bodies to sign the Welsh Assembly Government’s Sustainable Development Charter, which was launched at the Hay Festival by Environment, Sustainability and Housing Minister Jane Davidson. Ms Davidson said: "One Planet living, where we live and plan for a future that only uses our fair share of the earth’s resources, is a key commitment of the Assembly Government. "Our Charter puts sustainability at the heart of organisations’ development. "By signing the Charter, these first 22 organisations are leading the way. They will ensure their decisions promote the long term, sustainable wellbeing of people and communities. This means moving away from decisions that promote short term fixes that lock us into unsustainable patterns and lifestyles. "I urge others to follow in their sustainable footsteps." Read more to top Deputy Minister sees how investment in Swansea is paying off Deputy Minister for Housing and Regeneration, Jocelyn Davies AM, has visited Swansea to see how regeneration projects in the city’s Strategic Regeneration Area, funded by the Welsh Assembly Government are progressing. The Deputy Minister visited Gwalia Housing Association’s Llys Glas development at the old police station on Alexandra Road, before seeing how plans for Swansea Railway Station and Swansea Castle will contribute to the regeneration of the area. Llys Glas, a listed building, has been redeveloped to house student accommodation, the Citizens' Advice Bureau, artists' space and conference facilities. The latest phase of the project, to develop a flexible community space and café, has received £283,000 of funding from the Welsh Assembly Government, via the Swansea Regeneration Area, towards the overall cost of £508,000. The project will be run as a young person's social enterprise and will create 54 job placements and training places over 18 months. Read more to top Confidence dips, but firms in Wales remain positive Confidence in the Welsh economy fell for the first time in five quarters, but still remains strong, according to a survey of senior business professionals. Firms predicted rising turnover and gross profits – and a positive outlook for job creation during this year, according to the latest Institute of Chartered Accountants in England and Wales (ICAEW) survey. The Business Confidence Monitor (BCM) interviewed 70 senior business professionals in Wales and recorded a Confidence Index score of 25.6 in the second quarterly BCM survey of 2010 – a fall of 3.1 points to fall in line with the UK average. It ends a run of five consecutive quarters of increasing confidence in Wales. David Lermon, ICAEW Director for Wales, said: “The outlook for businesses in Wales is improving with firms forecasting a growth in turnover and gross profits in 2010 after a very difficult 2009. “So we can see signs of a continuing economic recovery, albeit a sluggish one. “There has been a mixed picture in terms of job creation and job losses in Wales. Although I’m pleased that firms who told us they had cut headcounts over the last five quarterly BCM surveys are more upbeat and forecasting growth. “Customer demand is returning to Wales and the current situation is the most positive picture since the second quarter of 2008, just before the world’s financial markets seized up.” Read more to top We’re still in recession, say bosses of Welsh companies However, bosses at more than half of Wales’ mid-market companies believe their sectors are still in recession, according to a new survey. The “Financing Your Strategy” report – by accountants and business advisers Grant Thornton – said that 56% of Welsh company leaders that responded believed that their sectors were still contracting. The survey highlighted major variations across business sectors among companies with a turnover of between £10m and £100m. In the construction industry, 87% of chief executives and finance directors said that the sector was in recession, while 58% of those working in industrials and chemicals said the sector was contracting. But business leaders in so-called fast-moving consumer goods were more positive with 71% of respondents saying that their sector was recovering, followed by 63% who saw growth in technology, media and telecommunications. Read more to top Government and political news CLG priorities At a reception for representative bodies this week, new Communities Secretary Eric Pickles said his Department’s three priorities would be – “localism, localism and localism”. He indicated that the Decentralisation and Localism Bill – the means to introduce a new locally-based planning system - would come forward in the autumn following consultation with interested parties. Further statements about planning change – needed after Mr Pickles’ letter last week to local planning authorities reaffirming the commitment to abolish Regional spatial Strategies – would be made soon. to top HBF press release on Secretary of State’s letter to planning authorities HBF issued a press release at the end of last week following the Secretary of State’s letter to Local Authority Planning Chiefs (please click here to view) telling them that Regional Housing targets are to be scrapped. We stated that clear policy guidance is desperately required from Government if we are not to see a hiatus in house building and a worsening of the Country’s already acute housing crisis. The release cited South Oxfordshire’s immediate decision to scrap work on its core strategy as evidence of the need for further guidance. HBF Executive Chairman Stewart Baseley commented: “South Oxfordshire’s announcement demonstrates the urgent need for clarity on housing planning policy. The Government says it is committed to delivering more homes, but without urgent guidance, this aspiration will not be achieved. Scrapping the existing system without a replacement is a recipe for disaster. We have an acute housing crisis in this country, approaching a shortfall of a million new homes. We just cannot afford a period of confusion to reduce house building still further at a time when we are already building at the lowest level for many decades.” Read more The release achieved coverage in the national and trade press. to top Impact of Secretary of State’s letter The Secretary of State’s letter has already had a significant effect in some local authority areas. Many local authorities have issued press statements welcoming the news that decisions on housing are being returned to the local level without specifying what this will mean in terms of actions they will take (Winchester for example) . Some local authorities (South and West Oxfordshire) have stopped work on their development plans. Others (South Northants) have deferred making decisions on key housing sites whilst awaiting further clarification from the Secretary of State. Unfortunately, the most extreme reaction has been for some authorities (Forest Heath and Wychaven) to refuse planning applications with officers’ recommendation for approval on the basis that there is “no longer a strategic requirement for housing”. In the case of Forest Heath such a refusal was issued on an allocated site in a recently adopted core strategy against the advice of Counsel’s opinion on the implications of the Secretary of State’s letter. We expect to see similar actions in many local authorities over the next few weeks, indeed until the Government clarifies the situation and issues an interim plan for the transition process to the new planning system. We are, therefore, happy to continue to receive examples of these effects from members. We intend to cite all of the examples we receive at our meetings with Ministers and officials over the coming weeks in order to demonstrate the problems associated with moving from one planning system to another without a robust transitional plan. to top RTPI and POS join forces to urge Government rethink on strategic planning Separately, The Royal Town Planning Institute (RTPI) and the Planning Officers Society (POS) issued a press release jointly urging the coalition Government to work with them in devising alternative approaches to locally based strategic planning before it dismantles the existing system. The RTPI and the POS jointly called upon the Government to: Allow a brief, but realistic, period of time for discussion prior to implementing its current plans to abolish the local government based structures for regional planning; Work with them – and with the many other bodies representing the development, investment, economic development and environmental sectors – to devise a way ahead that will retain the strategic planning necessary to help to support and achieve the Government’s programme, help drive economic growth and make best use of the expertise and commitment that already exists; Maintain the funding of the current regional planning teams whilst these discussions are taking place. to top Shapps confirms zero carbon definition "within weeks" Housing Minister Grant Shapps will be publishing a final zero carbon definition “within weeks,” he has said, reaffirming his pre-election pledge. Speaking at the launch of the Triangle, a new sustainable housing scheme in Swindon developed by Hab Oakus and Willmott Dixon, the minister confirmed that all new homes would still be built to zero carbon standards by 2016. “When we were in opposition I said that I endorsed the concept of building all new homes to a zero carbon standard, and that remains my position,” he said. "I know how important it is to industry to have a clear definition as soon as possible so that house builders can buy land with confidence and start to design the homes of the future, and so that the supply chain can gear up production of the technologies that will be needed." He added that a timely definition would allow the industry to “get on and deliver the improved eco-friendly homes we need." to top Vince Cable announces action plan to bring an end to excessive regulation Business Secretary Vince Cable this week set out the first phase of the Coalition Government’s action plan to reduce regulation following the Prime Minister’s commitment last week to “re-open Britain for business”. The action plan: Creates a new Cabinet “Star Chamber” that will lead the Government’s drive to reduce regulation which is stifling growth, especially of small businesses. This Reducing Regulation Committee will enforce a new approach to new laws and regulations, ensuring that their costs are being properly addressed across the entire British economy; Announces an immediate review of all regulation in the pipeline for implementation which has been inherited from the last Government. The cost of implementing this amounts to £5bn annually before April 2011 and £19.1bn per annum thereafter. This will be the first action for the new Cabinet Committee; Establishes a new “challenge group” to come up with innovative approaches to achieving social and environmental goals in a non-regulatory way; Introduces a new approach that will control and reduce the burden of regulation. A “one-in, one-out” approach, designed to change the culture of government, would make sure that new regulatory burdens on business are only brought in when reductions can be made to existing regulation. Vince Cable said: “The deluge of new regulations has been choking off enterprise for too long. We must move away from the view that the only way to solve problems is to regulate. “This is a real challenge and it will not be easy. We need to reduce regulation and at the same time meet our social and environmental ambitions. This demands a radical change in culture away from the tick box approach to regulation only as a last resort. It’s a big task but one worth striving for.” Read more to top Economic news Bank of England: Lending to Individuals, April 2010 According to the latest results published by the Bank of England, total net lending to individuals rose by £0.4bn in April. The twelve-month growth rate was unchanged from a revised 0.8% for March. The three-month annualised growth rate was also 0.8% in April, a 0.3 percentage points decrease from March. Within the total, net lending secured on dwellings increased by £0.5bn, stronger than the March rise of £0.2bn but below the previous six-month average of £1.3bn. The twelve-month growth rate fell to 0.9%. The three-month annualised growth rate fell to 0.8%, from 1.1% in March. The number of loan approvals for house purchase (49,871) was higher than the March figure (49,008) but below the previous six-month average (53,098). Approvals for remortgaging (26,295) were lower than in March but in line with the previous six-month average (26,203), while approvals for other purposes (24,823) were also lower than in March and below the previous six-month average of 26,212. Consumer credit fell by £0.1bn in April, below the previous six month average and the March increase of £0.1bn. Credit card lending increased by £0.2bn, in line with the previous six-month average; other loans and advances fell by £0.3bn, lower than the previous six-month average of a £0.2bn decrease. The annual growth rate of consumer credit fell by 0.2 percentage points to -0.1% and the three-month annualised growth rate fell to 0.7%, from 1.3% in March. Read more to top CML warns of downside risk on lending forecasts Responding to the Bank of England lending data published this week, the CML's Director General Michael Coogan commented: "Now that we have seen mortgage approvals data for the first four months of this year, it is becoming clearer that the risks associated with our lending forecast for 2010 are on the downside. We are predicting gross lending of £150bn this year - and net lending of £15bn - but are keeping our forecasts under review as we are tracking below these levels to date. "So far this year, house purchase activity has been lower than in the last half of 2009, although this reflects the stamp duty holiday, which boosted activity towards the end of last year and caused the quiet start to 2010. Meanwhile, although lower interest rates are benefitting borrowers, they are removing the incentive to remortgage, which is also bearing down on the lending figures. "The data is likely to reflect both the continuing shortage of mortgage funding and weak consumer confidence, and therefore demand. The forthcoming Budget represents an opportunity for the government to prioritise support for home-owners, although we recognise the fiscal position leaves only limited room for manoeuvre. We will update our forecasts later in the summer." Read more to top Markit/CIPS Purchasing Managers’ Index Purchasing managers reporting into the Markit/CIPS Purchasing Managers’ Index for services showed slight gains in May. Activity rose for the thirteenth consecutive month, but was at its weakest for nine months. Levels of new business continued to rise, but employment dropped as companies tried to control costs. David Noble, Chief Executive Officer of The Chartered Institute of Purchasing & Supply said: "It's clear that the political uncertainty following the general election plus increasing fears over the state of the domestic economy have impacted the services sector this month. Whilst on the surface, the recovery of the UK services sector continued at a steady pace, a look under the bonnet reveals some worrying signs and raises concerns about the prospect of double-dip recession. "Most alarming was the slower growth in new business, coupled with ongoing input price inflation drove a number of firms to reduce staff for the first time in three months. What's more, some purchasing managers attributed any positive growth spurts to a rebound in activity following the disruptive volcanic ash chaos. "It's worrying that we're starting to see a two speed recovery, where business-facing service providers are faring much better than consumer-facing firms. The impending public sector spending cuts and likely tax rises will no doubt hit both of these areas hard. "It must not be forgotten that we are still in the middle of a financial crisis, so these erratic times are to be expected. Nonetheless, it's going to be a bumpy ride over the next few years so it's crucial that we steer the ship in the right direction if we are to finally make it to the shore of economic recovery." Read more to top Housing market news Land Registry: April house prices up 0.2% since March The April data from Land Registry's House Price Index shows an annual price increase of 8.5%. This is the sixth month in a row in which the figure has been positive and takes the average property value in England and Wales to £165,596. The monthly change from March to April is a rise of 0.2%. All regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 14.8%. The region with the smallest annual price rise is Yorkshire and The Humber with a movement of 0.7%. The North East experienced the greatest monthly rise with a movement of 3.1%. Yorkshire and The Humber is the region with the most significant monthly price fall with a movement of -2.2%. The most up-to-date figures available show that during February 2010, the number of completed house sales in England and Wales rose by 49% to 40,502 from 27,190 in February 2009. Read more to top Hometrack: Election uncertainty puts dampener on housing market prices The latest Hometrack house price survey, published this week, reported that: Election uncertainty threw a dampener on housing market activity in May with all the key market indicators posting a marked slowdown compared to previous months; The volume of sales agreed grew slightly - by 2% - but this was well down on an average increase in sales agreed of 9.6% per month over the previous 3 months; Demand for housing, as measured by new buyer registrations, grew just 0.5% over May compared to an average 4.2% growth between February and April; The supply of homes for sale continued to grow but at a slow pace. The survey recorded a 1.8% increase in listings over the month; The time on the market remained unchanged - at 8.3 weeks - for the third consecutive month; Despite lower levels of activity, a continued scarcity of housing for sale has kept an upward pressure on prices - a trend concentrated in southern England; Nationally average house prices rose by 0.2% over May following a similar rise in April. The year on year rate of growth stands at 2.0%; Thin sales volumes have amplified the impact of price increases. House price rises were limited to less than a fifth of the market and of those areas which posted gains over May, half (54%) were in London and the South East; Against a backdrop of continued low transaction volumes equity rich households have the capacity to keep the housing market ticking over for the rest of the year; Looking ahead, the greatest threats to the housing market are higher interest rates and the introduction of Capital Gains Tax. Read more to top Industry news NHBC: Home building levels increase UK-wide New home registration levels are on the rise across the whole of the UK, according to the National House Building Council (NHBC). A total of 31,038 new homes were registered during the period February - April 2010. This was a 74% improvement on the same period last year (17,859) and indicates consistent improvement in the house-building sector. Imtiaz Farookhi, Chief Executive of NHBC said: "[NHBC] figures show a steady improvement in the number of homes being built in the UK, indicating that the industry has consolidated and built on the improved conditions seen over the past months. "The challenge will be to sustain this growth against the backdrop of an uncertain environment, as the new coalition settles in and sets out its strategy for meeting the country's housing needs." NHBC statistics for the three months to the end of April 2010 show that both private and public sector demonstrated significant improvements: Private sector registrations were up 113% (at 20,538) when compared with the same period last year (9,627); Public sector registrations were 10,500 – 28% higher than the same period a year ago (8,232). Read more to top HBF news New Homes Month 2010 New Homes Month 2010 will take place between 4th September and 3rd October. We feel that it is imperative that the New Homes Marketing Board and the Home Builders Federation continue to assist our members in every possible way to drive sales in what are still clearly challenging trading conditions. Like previous New Homes campaigns, including last year’s, which proved extremely successful, the objective of the month is to promote the new homes market by highlighting the benefits and superiority of new homes, to help boost site visitor levels and drive up sales. Last year’s campaign resulted in hundreds of positive newspaper articles in regional and local newspapers across the country. This really helped create a positive profile of new build homes and, we believe, played a part in the increase in site visitor levels we saw. The campaign will be driven predominantly through the local media, and we will be developing extensive PR stories around set themes for each and every week of the campaign to generate public interest. As well as developing an overarching strategy, we will be looking to link up with members on a local and regional level, and to support them to develop their own initiatives/ events throughout the week. We will be producing a further edition of ‘New Homes News’, the glossy 16 page colour newspaper that members told us was such a great success with their customers last year. This will be distributed to members in advance of the campaign. In order that you are fully aware of our proposals, including the themes and dates of proposed press releases, could you please ask the relevant member of your staff to email nhm2010@hbf.co.uk and we will send out further details shortly. to top Yorkshire MDs dinner meeting The HBF Yorkshire Managing Directors’ dinner meeting was held this week and discussed a range of issues including market trends, highways and environmental standards and the new Government’s policy programme. The dinner also discussed the new industry consumer code following a presentation from Ian Davis of NHBC. to top Events HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course There are now just three team places remaining for the HBF Golf day in July. The event will take place on the stunning Duke’s course at Woburn, for many years home to the British Masters and will see teams from across the industry battling to be crowned the unofficial house building golf champions. Please click here for more information to top North West Social Dinner – Friday 10th September 2010 – Manchester: Last chance to take advantage of ‘early bird’ discount! 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. EARLY BOOKING discount available until Friday 4th June 2010. Please click here to find out more. to top Housing Market Intelligence 2010 – 12th October, Savoy Place, London This year’s Housing Market Intelligence conference and annual report launch will be held on Tuesday 12th October at Savoy Place in London. Now in its eighth year, Housing Market Intelligence has become the leading strategic conference for the house building industry. This year the event is expected to sum up the new political climate nearly six months after the election, as well as providing analysis and insight into the market, the economy, the sustainability agenda, mortgages and all the key issues for house builders and associated companies. Full details will be published over the summer but note the date in your diary today! EARLY on-line booking is now open – please click here for details or contact events@house-builder.co.uk to top HBF Planning Conference This year’s HBF Planning Conference will take place on Thursday 16th September at the Hilton Hotel in Bristol. More details to follow. to top Housebuilder Awards 2010 - Thursday 28th October, London This years Housebuilder Awards has attracted a record number of entries. Shortlisted schemes will be announced in June. Now in its sixth year - the prestigious awards bring together the best of innovation and excellence in the house building industry. The Housebuilder Awards are the highlight of the house building calendar, celebrating the very best of the industry and recognising the achievements of those leading the way in innovation. This year the winners will be announced at a glamorous black tie event on the night of Thursday 28th October at the Millennium London Mayfair Hotel. The short list and booking form will released in June, but for further information and updates, please visit http://www.house-builder.co.uk/awards/ to top HBF Ball – Friday 10th December – London. The HBF Ball will this year take place on Friday 10th December. Traditionally the social highlight of the industry’s year it will take place at the Marriott Grosvenor Square, London. For more details please click here to top Robust Details Roadshows 2010 – 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 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
