Friday, 7th May 2010 Top stories this week General Election 2010.....read more Bank of England: Lending to individuals March 2010.....read more BSA: Gross lending at mutuals up 36% in March.....read more Land Registry: House price index.....read more Housebuilder Awards 2010 – entry deadline extended.....read more Quick Links Wales news Government and political news Economic news HBF news Housing market news Industry news Events Wales news General Election 2010: Wales round-up Lembit Opik was the highest profile casualty on a night of high electoral drama in Wales, with the Conservatives making a series of gains. A tight contest in Cardiff North saw Conservative Jonathan Evans take the seat from Labour's Julie Morgan by a mere 194 votes, just after 5am, following a recount at the Welsh Institute for Sport. The Tories boosted their tally of Welsh MPs from three to eight. Although the swing to the Conservatives was smaller in Wales than across the border in England, the party gained Vale of Glamorgan from Labour, and took the new seat of Aberconwy. Read more to top Wales works with European regions to speed up move to greener, cleaner energy Wales will be working closely with regional Governments throughout Europe as part of its efforts to speed up the transition to renewable energy. This was the message from Environment Minister, Jane Davidson who has given her full support to Wales' involvement in the strategic EU RENREN (Renewable ENergy REgions Network) project. The RENREN project will investigate how regional governments can work together to accelerate the shift towards renewable energy and in doing so support aspirations for a greener, cleaner energy future. The RENREN project has been launched at a conference in Kiel, in Germany and will see the network's 14 partners debating how they can play their part in global action to tackle climate change and ensure a secure and sustainable energy supply for this and future generations. Read more to top Government and political news General Election 2010 Yesterday’s General Election has resulted in the UK’s first hung parliament since 1974. The Conservatives have won the most MPs but fallen short of a majority. At the time of writing the implications of the result are far from clear. The three politicians whose remit prior to the election was housing; John Healey (Labour), Grant Shapps (Conservative) and Sarah Teather (Liberal Democrat), were all re-elected. HBF will provide a briefing for members on the full election results and the make up of the new administration as and when it is possible to do so. to top Economic news Bank of England: Lending to individuals March 2010 According to the latest statistics released by the Bank of England this week, total net lending to individuals rose by £0.6bn in March. The twelve-month growth rate was unchanged, at 0.9%. The three-month annualised growth rate was 1.4%, a 0.3 percentage points decrease from February. Within the total, net lending secured on dwellings increased by £0.3bn, below the February increase of £1.8bn and the previous six-month average of £1.5bn. The twelve-month growth rate was unchanged, at 1.0%. The three-month annualised growth rate fell to 1.2% from 1.5% in February. The number of loan approvals for house purchase (48,901) was higher than the February figure (46,882) but below the previous six-month average (54,201). Approvals for remortgaging (27,880) were higher than in February and also higher than the previous six-month average (25,853), while approvals for other purposes (25,484) were slightly higher than in February but below the previous six month average of 26,696. Consumer credit increased by £0.3bn, above the previous six-month average of £0.1bn, but below February’s increase of £0.6bn. Credit card lending increased by £0.2bn, in line with the previous six-month average; other loans and advances increased by £0.1bn, above the previous six-month average of a net repayment of £0.1bn. The annual growth rate of consumer credit increased by 0.2 percentage points to 0.4% and the three-month annualised growth rate was 2.3%, unchanged from February. Read more to top BSA: Gross lending at mutuals up 36% in March The Building Societies’ Association reported this week that gross lending by mutuals increased to £1,597m in March, up 36% compared to £1,174m in February. Approvals were also stronger at £1,677m compared to £1,389m in February – a 21% increase. Other key findings include: Net lending by mutuals in March 2010 was -£764m compared to - £863m in February; Mutuals had a net withdrawal of £318m in March 2010 compared to a net receipt of £623 million in February; Including interest, savings balances at mutuals increased by £534m in March 2010 compared to an increase of £807m in February; Mutuals had a net receipt of £210m into cash ISAs in March 2010 compared to a net withdrawal of £109m in February. Commenting on the lending figures, Adrian Coles, BSA Director-General, said: “Lending activity appears to have gained some momentum following a sluggish start to the year, and the relatively strong approval figures bode well for coming months. However, the mortgage market will remain fragile as there is uncertainty in relation to employment, interest rates, house price inflation, mortgage availability and, conceivably even after the election, the political outlook.” In the savings market, balances held in savings accounts at mutual institutions increased by £534m in March compared to an increase of £807m in February. If interest credited to accounts is excluded, mutuals had a net withdrawal of £318m February. Read more to top BSA: Mutuals optimistic as they stand up to challenges in 2010 58% of mutual Chief Executives say they are optimistic about the year ahead, and are less at the mercy of events beyond their control than they have been in the last two years. At the same time Chief Executives acknowledge the coming year will present challenges, including pressure on margins from unprecedentedly low interest rates. The Building Societies Association’s annual Chief Executive opinion survey reveals that bosses of mutuals expect recent gains in house prices to be retained in 2010, with an average prediction of a 1% rise over the year. They expect the Bank of England’s official interest rate to remain low, (with an average forecast of 0.83% at the end of 2010), which could continue to restrict mortgage funding, although will help those with mortgage repayment difficulties. Chief Executives also believe that the FSA’s Mortgage Market Review could have a negative bearing – through increased costs and potentially cutting out a large section of self-employed borrowers. Chief Executives predict that retail savings balances will grow by only £28bn in 2010 (almost half the £58bn in 2008 and similar to the 2009 figure), and that this will have a negative impact on funding available for mortgage lending. Many respondents strongly believe that Government backed banks and NS&I have an unfair advantage in the savings market because of the implicit guarantee that their direct Government support affords. Adrian Coles, Director-General of the BSA, commented: “Compared to the hectic events of over a year ago, Chief Executives can now plan for the future, notwithstanding the continuing challenging conditions. Mutuals continue to examine how they can cut costs, without compromising on member service. “Mutuals bring democracy, competition, diversity, customer focus and a risk averse culture to the market. There’s never been a better time for these mutual values to challenge the plc banks. “What mutuals really need from any new Government is a guarantee of a level playing field on capital, liquidity and funding. Mutuals should be able to compete fairly with those institutions that required direct taxpayer support in recent years.” Read more to top CBI: Growth in high street sales continues Compared with a year earlier retail sales have grown for a third consecutive month, and the high street expects a similar increase in May, the CBI said this week.. Responding to its latest Distributive Trades Survey, 43% of retailers said that sales volumes in early April were higher than they were over the same period in 2009, while 30% said they were lower. The resulting balance of +13% matched that in March and was broadly in line with businesses' expectations. A balance of 17% of retailers anticipates year-on-year growth in May. The three month moving average of sales volumes stayed positive for the sixth month running (a balance of +16%) and is projected to stay at the same level in May. A net 11% of retailers described sales as poor for the time of year, although they are expected to be more broadly in line with seasonal norms in May (+3%). There was little change in the volume of orders placed on suppliers (+1%), and a balance of 8% of firms expect orders to grow next month. A net 6% of retailers said that stock levels were more than adequate to cover expected demand. In May, stocks are forecast to be broadly in line with predicted sales. Read more to top HBF News HBF addresses BSA annual conference John Stewart, HBF’s Director of Economic Affairs, this week addressed the annual conference of the Building Societies Association (BSA) stressing that new housing matters to the economy, society, the housing market, lenders and the environment. He explained that before the downturn, new house building accounted for 8.6% of total fixed investment in the economy, 1.5% of GDP, and an estimated 335,000 direct jobs. While new homes account for only 10% of housing market transactions, this is a wealth creating 10%, he said, and new homes play a key role in chains. He went on to detail that Britain suffers from a chronic underlying shortage of housing, which has a multitude of adverse consequences for society and the economy. The private sector, he argued, will have to provide the vast majority of new homes over the next few years. He acknowledged that lack of transparency about sales incentives in the boom years had made many lenders cautious about lending on new homes. But he urged lenders to review their approach because the sector had put its house in order in the last two years. He also explained that there were still widespread new home valuation problems, an issue HBF had been working with surveyors, lenders and Government to remedy. Please click here for a copy of the full presentation to top Housing market news Land Registry: House price index The Land Registry’s latest house price index reported that March's data showed an annual house price change of 7.5%, which marks the fifth consecutive month that the figure has been positive. The monthly change is -0.6%, changing the average house price in England and Wales to £164,288. The number of property sales per month has increased since last year, with an average of 58,775 transactions between October 2009 and January 2010, compared to an average of 36,264 in the same period a year before. London's annual house price movement of 13% is the greatest increase of any of the regions. It is also the sixth month in a row in which the capital's figure has been above zero. The monthly change in London is 1.6%, which is the strongest growth in any region (along with the North East). The average house price in London is now £336,409. Read more to top Industry news Monitoring scheme to assess eco claims The Good Homes Alliance has launched a monitoring programme to assess whether new build homes are meeting sustainability targets. The programme will measure the energy performance of five properties on four developments over the next 12 to 18 months. The results, which will be published in autumn 2011, should help house builders ensure their developments meet design standards and perform as intended once tenants have moved in. The project is sponsored by the Energy Saving Trust and the Communities and Local Government department, and will aim to inform the new government’s sustainability agenda. Staff from the GHA, Leeds Metropolitan University, UCL and Oxford Brookes University will monitor the fabric performance of the properties using co-heating tests, pressurisation tests and design and construction observations. A second phase will compare the performance of the properties when occupied against targets set in the code for sustainable homes and standard assessment procedure. Read more to top Building figures suggest recovering market Registrations to build new homes in the first quarter of the year were up 72% on last year, according to figures published by the National House Building Council. The first quarter of 2010 saw 27,974 registrations, compared to 16,232 during the same period in 2009. Imtiaz Farooki, Chief Executive of the council, described the figures as ‘compelling evidence’ of a recovery in the market, although registrations are still significantly lower than before the recession. Mr Farooki said: ‘It will be easier to gain a clearer view of how the recovery will develop following the election, when we should have a better idea of the direction of the economic environment.’ Private sector applications were up 114% on last year, while public sector figures were 26% higher. The figures showed large rises in registrations in the west Midlands, where they rose 153% to 2,349, and in London, where they rose 138% to 3,100. Read more to top RICS: New trends in housing - housing requirements for changing lifestyles During the European Housing Forum lecture held on 14th April, Peter Boelhouwer presented his view on 'New trends in housing: Housing requirements for changing lifestyles'. Peter Boelhouwer is a Professor in Housing Systems at the Delft University of Technology in the Netherlands. As member of the Council to the Dutch Ministry for Housing, Spatial Planning and the Environment, he conducted research on new trends in the Dutch housing market. In his presentation he outlined what needs to be done to make the housing stock fit for the future. This lecture was the second of a series of four lectures on 'Changing Lifestyles, Changing Climate - The Role of Housing' in the EU'. RICS, as co-chair of the European Housing Forum, has taken a keen interest in debating the impact of changes in lifestyle and demography in the field of housing, as well as the (potential) role of the EU in providing better housing conditions. The lecture revealed that several developments have led to three different trends in housing. These are demographic developments, particularly the change in the composition of households - the nuclear family is no longer the most common household, but also population ageing and an increase in ethnic minorities. There have been economic developments such as the current financial crisis, globalisation and localisation and a structural influx of labour migrants. Finally. there have been several socio-cultural developments including people having more choices in society and a growing importance of lifestyle and identity. These developments have led to three different trends in housing: A growing interest in living in communities and in common-interest housing concepts Increasing internationalisation and a growing number of people who own more than one residence A trend towards amenity-based housing: housing that is mixed with other services such as care, leisure, retail and education. Professor Boelhouwer argues these trends need to be picked up by the housing market and recognised by the policy makers. Read more to top VELUX model home 2020 project gets the go ahead VELUX has been granted planning permission by Kettering Borough Council for its pioneering Model Home 2020 project, which involves the build of two zero carbon homes in Rothwell, Kettering. Located within the second phase of the Bovis Homes Charter Park development, the three and four bed semi detached properties have been designed to deliver a 70% reduction in carbon emissions with the remaining 30% of carbon offset by allowable solutions. The homes will be open plan and incorporate high levels of daylight, natural ventilation and renewable technologies. VELUX intends the scheme to act as a standard for future sustainable homes and new communities. It has designed the homes to compliment modern lifestyles and substantially reduce carbon emissions while remaining profitable and simple to replicate for the mass house builder. Construction at Rothwell is expected to start in late May and the completed homes will be open to the public for six months, before being sold and becoming the subject of post occupancy performance monitoring to help inform the sustainable housing agenda going forward. Read more to top Events Housebuilder Awards 2010 – ENTRY DEADLINE EXTENDED The entry deadline for this year's Housebuilder Awards has been extended until 21st May. Now in its sixth year - the prestigious awards bring together the best of innovation and excellence in the house building industry. The Housebuilder Awards are the highlight of the house building calendar, celebrating the very best of the industry and recognising the achievements of those leading the way in innovation. This year the winners will be announced at a glamorous black tie event on the night of Thursday 28th October at the Millennium London Mayfair Hotel. Please click here to visit the website, see all categories and to download the entry form. to top HBF Golf Day – Tuesday 13th July 2010 – Woburn Golf Course There are now just a few team places remaining for the HBF Golf day in July. The event will take place on the stunning Duke’s course at Woburn, for many years home to the British Masters and will see teams from across the industry battling to be crowned the unofficial house building golf champions. Click here for more information; to top North West Social Dinner – Friday 10th September 2010 - Manchester The HBF North West Social Dinner will this year take place on Friday 10th September at the Midland Hotel in Manchester. Everyone is welcome at an event that attracts members from across the North and Midlands. Always a lively and fun event, regular attendees are booking in their droves for what will be a fun filled industry evening. To find out more click here to top HBF Ball – Friday 10th December – London. Also returning for 2010 on Friday 10th December at the Marriott Grosvenor Square, London, is the HBF Ball, traditionally the social highlight of the industry’s year. For more details please click here to top Housing Market Intelligence 2010 – 12th October, Savoy Place, London This year’s Housing Market Intelligence conference and annual report launch will be held on Tuesday 12th October at Savoy Place in London. Now in its eighth year, Housing Market Intelligence has become the leading strategic conference for the house building industry. This year the event is expected to sum up the new political climate nearly six months after the election, as well as providing analysis and insight into the market, the economy, the sustainability agenda, mortgages and all the key issues for house builders and associated companies. Full details will be published over the summer but note the date in your diary today! to top HBF Planning Conference This years HBF Planning Conference will take place on Thursday 16th September at the Hilton Hotel in Bristol. More details to follow. to top Robust Details seminars RD has announced a series of regional seminars. They will take place; 30th June – Huddersfield 1st July – Coventry 15th July - Surrey These 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. To download a booking form or pay online please visit www.house-builder.co.uk/rdl or call events on 020 7960 1646 with any queries. to top Habitat for Humanity’s Hope Challenge 11-13th June 2010 – just one week left to register! Habitat for Humanity, HBF’s nominated charity will again be holding its Hope Challenge event in 2010. This unique and exciting outdoor challenge event will see teams; • Spending two days and two nights in the great outdoors • Sleeping in a self built shelter • Undertaking mental and physical team challenges Last year’s Hope Challenge was a huge success and had the competitors trekking around the Edale and Hope Valleys, with a base camp in the sheltered Vale of Edale. In 2010 HforH are planning a larger and more exciting event with walking routes encompassing the surrounding hills including the Skyline Ridge over Mam Tor and the lower reaches of Kinder Scout. However this is no ordinary weekend of walking! Participating teams will also be tested on their initiative and teamwork… and by building, and sleeping out in, their very own shelter they will experience some of the challenges faced by those who live in poverty housing. Registration for teams wishing to take part in Hope Challenge 2010 will be closing on 14th May. Everyone interested in participating is urged to register their team online at www.hopechallenge.org.uk as soon as possible. Register your team for Hope Challenge 2010. Find out more about Hope Challenge 2010 . Take a look at the photos and video of Hope Challenge 2009. Contact with any questions about Hope Challenge. to top For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetings For HBM events visit http://www.hbmedia.co.uk/ to top Rosie Hinchliffe View Previous Weekly News Summary
