HBF Wales Weekly News Summary Friday 8 May 2009

8 May, 2009

Friday, 8th May 2009

Top stories this week

HBF meet HCA on mothballed sites...read more

CLG: New single planning policy for economic growth.....read more

HCA launches a private rented sector initiative.....read more

Halifax house price index.....read more

Bank of England: Lending to individuals March 2009........read more

Quick LinksWales news

Government and political news

Housing market news

Wales news

Minister announces new policy on sustainable buildings

The Minister for Environment, Sustainability and Housing, Jane Davidson AM, has launched the final Ministerial Interim Planning Policy Statement (01/2009) “Planning for Sustainable Buildings”, which sets out new planning policy in relation to housing linked to the Code for Sustainable Homes.

Download a copy of the document

Alongside the final MIPPS (01/2009) the Minister has also launched the consultation on the draft Technical Advice Note 22 “Planning for Sustainable Buildings”. The consultation ends on 31st July 2009.

The key requirement of the MIPPS is that planning applications for residential developments of 5 or more dwellings received on or after 1 September 2009 will be expected to meet Level 3 of the Code for Sustainable Homes and obtain 6 credits under the Code's energy provisions - that is, a 31% or greater energy efficiency improvement on Part L 2006. Applications for 1 or more dwellings will be expected to meet the same requirements on or after 1 September 2010.

HBF was asked to comment on the challenges involved in meeting these requirements on BBC Radio Wales following yesterday's policy launch.

Expert and easy advice on environmental and sustainability issues

Expert but easy-to-follow advice on environment and sustainability issues will be available to all Welsh businesses through a new service launched this week by the Welsh Assembly Government.

Through a dedicated section of the Welsh Assembly Government's Flexible Support for Business website - or via Flexible Support for Business's central advice line - all businesses will now be referred rapidly and directly to the best source of support to help them tackle any problems and seize any opportunities presented by environmental and sustainability factors.

Report published by the Wales Employment and Skills Board

Private sector growth must be stronger than for generations if Wales is to recover from the recession, says a major report published this week.

The report, “A Wales that Works”, argues that a much stronger private sector is crucial if Wales is to be competitive with other UK nations and regions – and Europe.

It calls on the Assembly Government to give the highest possible priority to transforming the Welsh economy and to focus its skills policies firmly upon fuelling a “dynamic private sector”.

HBF news

HBF meet HCA on mothballed sites

HBF and a number of member companies this week held a meeting with the Homes and Communities Agency team responsible for implementing the new £400m programme announced in the Budget to help kick-start currently stalled sites. The meeting discussed eligibility and assessment criteria for such support and the situations in which it could be of greatest use taking into account existing business finance arrangements. The HCA will be moving quickly to refine its initial proposals in the light of feedback as a part of a tight timetable for inviting and assessing bids under the scheme. We will continue to work closely with the HCA and keep members informed of developments.

HBF action on the revision of the EU Energy Performance of Buildings Directive (EPBD)

HBF is taking a leading role in raising industry concerns about the implications of the revision of the European Energy Performance of Buildings Directive following a recent vote by the European Parliament to strengthen significantly the European Commission's original proposals. In its vote, the European Parliament has proposed that the existing Directive - which is the source of the legal requirement for Energy Performance Certificates - should set an ambitious timetable for all new buildings to meet a "net zero energy" standard that would be tougher than CLG's proposed definition for zero carbon, for example, by requiring this level of performance to be met solely through on-site measures.

We have raised our concerns with the Government and will be discussing an active European briefing and lobbying programme at the meeting of our European trade association, the UEPC, being held next week. We will keep you informed of developments in the position in view of the importance of the outcome for UK policies in this area.

In terms of process, the revision of the EPBD cannot be completed until the European Council of Ministers and European Parliament have reached a common view on the proposals. Due to the imminent European Parliament elections, it is unlikely that negotiations will come to a head until later this year. In the meantime we have pointed out to Government that the position on the EPBD necessarily creates uncertainty for the final direction of UK policy development and the ability of the industry and supply chain to gear up for zero carbon.

Government and political news

CLG: New single planning policy for economic growth

A new planning policy setting out a comprehensive approach for planning for sustainable economic growth in all parts of the country has been published for consultation by Housing and Planning Minister Margaret Beckett.

The proposed Planning Policy Statement 4: Planning for Prosperous Economies aims to streamline existing guidance to create a coherent and modern planning framework which will enable communities to meet the economic challenges they are facing now and in the long-term. It encourages positive and proactive planning for sustainable economic growth in urban and rural areas and promotes investment, competition and innovation while safeguarding city, town and village centres.

The new PPS replaces the existing PPS4, Planning for Sustainable Economic Development, PPG5, Simplified Planning Zones, PPS6, Planning for Town Centres, and the economic development elements of PPS7, Sustainable Development in Rural Areas. Margaret Beckett commented:

"The planning system needs to do everything it can to support the economic aspirations of our communities in cities, towns and rural villages.

"We need a flexible and responsive system with local authorities and business working together to understand the economic challenges they face and to exploit the opportunities they identify.

"That's why for the first time we have brought together all of our key planning policies relating to the economy in one place.

"This gives us a coherent and modern set of policies which provide the flexibility needed to tackle the current economic uncertainty and exploit the opportunities available through global competition for jobs and investment, rapid advances in technology and in working patterns."

Secretary of State publishes the final Regional Spatial Strategy (RSS) for the South East

The Secretary of State has published the final version of the South East Plan setting out the Regional Spatial Strategy for the period 2006-2026. The South East Plan sets out a framework for sustainable growth that aims to support long-term economic performance in the region by encouraging the provision of new job opportunities and meeting the region's housing needs.

The Plan deals with the key issues of tackling climate change, including flood risks, and protecting the region's natural and historic environment. It also sets out the region's transport strategy and an overall framework for implementation.

HBF will issue a full briefing note in due course. However, the headline housing provision figure of 32,700 additional dwellings per year is obviously somewhat disappointing given the evidence of the Government's own household projections.

A regional affordable housing target of 35% is expressed as a range of sub regional targets across the region. Similarly, the regional target for 60% of development to be on previously developed land will vary throughout the region.

Download the final version of the Plan

Mayor of London and HCA invest £16m to 'kick start' development

The HCA London Board, chaired by the Mayor of London, Boris Johnson, has agreed to invest over £16m in the latest two projects from its programme to ‘kick start’ developments in London that have been affected by the economic downturn.

The Board allocated over £13m and £3m respectively to Clapham Park in Lambeth and Hale Village in Haringey to enable the immediate progression of these projects in spite of adverse market conditions. Both schemes will contribute to the Mayor’s affordable housing targets. The Mayor of London, Boris Johnson, said:

“Today we have ensured another two important developments can move forward and deliver more desperately needed affordable housing for our city. This is good news for those who will benefit from the new homes being built and for the many jobs in the construction sector that these projects will sustain. Despite the economic downturn, it is vital that we keep investing in our city and improving our infrastructure. Investment like this will support and help our economy grow so that London is fighting fit to compete in the global market place when the upturn comes.”

Consultation on the draft Flood and Water Management Bill

The Government has published the draft Flood and Water Management Bill for consultation, with responses due by 24th July 2009.

From the perspective of the house building industry the Bill raises some major issues in the area of the management of surface water and sustainable drainage as well as how sewers will be adopted in the future to align arrangements for new sewers with the transfer of all private sewers. All of these issues will need some changes in primary legislation and look to revolve around Section 106 of the 1991 Water Industry Act and the ‘Right to Connect’.

The HBF will be holding two workshops to discuss the consultation - one in London and another in the Midlands/ North of England in mid-June. If you wish to attend one of the workshops or submit any comments regarding the consultation please contact rosie.hinchliffe@hbf.co.uk by 22nd May.

Housing market news

HCA launches a private rented sector initiative

The HCA has launched an expression of interest process for a new initiative, which could potentially attract significant investment into the housing market by encouraging institutions to fund new homes specifically for private rent.

The objective of the HCA’s Private Rented Sector Initiative (PRSI) is to create an opportunity for investors – like pension funds – to enter the private rented sector on a large scale for the first time. At a point in the economic cycle where there is strong investor appetite for low risk investment, focused on income distribution and a longer-term investment horizon, many believe that this is the perfect time to expand the private rented sector. The initiative will form a key part of the package of proposals at the heart of the Government’s forthcoming response to the Rugg Review of the private rented sector.

The HCA is seeking to work with financial institutions and other investors to develop a long-term funding model for new private rental housing in England. It is anticipated that the potential investment could come from sources such as pension funds or overseas investors which have not traditionally been involved in UK residential letting.

Halifax house price index

Key facts reported in the Halifax house price index, released this week, include:

House prices declined by 1.7% in April. This was slightly less than the 1.9% fall in March. The UK average price returned to where it was five years' ago in April 2004 (£154,511);

House prices in April were 17.7% lower on an annual basis;

The house price to average earnings ratio has declined by 27% from a peak of 5.84 in July 2007 to an estimated 4.26 in April 2009. The ratio is at its lowest level since September 2002 (4.14). The long-term average is 4.0;

Prices in the three months to April compared to the previous three months - an indicator of the underlying trend - were 3.3% lower. This was slightly below the quarterly rate of decline of 5-6% recorded consistently between June 2008 and January 2009;

There were tentative signs of a stabilisation in activity, albeit at a very low level. Bank of England industry-wide figures showed that the number of mortgages approved to finance house purchase increased by 19% between the final quarter of 2008 and the first quarter of 2009, on a seasonally adjusted basis. Approvals in March, at 39,230, were the highest since May 2008, but were still 34% lower than in March 2008;

The temporary increase in the lowest stamp duty threshold from £125,000 to £175,000 was extended to the end of the year as announced in the Budget. According to Halifax estimates, around 45,500 homebuyers in England and Wales (26% of the total) were exempt from paying stamp duty over the five months between September 2008 and January 2009 because the threshold was £175,000 rather than £125,000. Nearly six in every ten (57%) home sales during the period were below £175,000 compared with three in ten (31%) below £125,000.

Nationwide consumer confidence index

The Nationwide consumer confidence index reported this week that:

Consumer confidence rose by eight points to 50 in April, the largest single monthly rise for almost two years;

The expectations index increased by 13 points to 70, a rise on this scale has not been seen since May 2007;

The present situation index, which had been falling since June 2008, recorded a one point increase to 21;

Just over a quarter (26%) of those questioned now believe that the economic situation will be better in six months’ time;

The percentage of those believing the situation will be worse in six months dropped back from 41% in March to 32% in April.

Economic news

Bank leaves rates on hold

As expected, the Bank of England's Monetary Policy Committee voted to keep the official Bank Rate paid on commercial bank reserves at 0.5% at its monthly meeting yesterday. The Committee also voted to continue with its programme of asset purchases financed by the issuance of central bank reserves (quantitative easing) and to increase its size by £50bn to a total of £125bn. The minutes of the meeting will be published on 20th May.

Bank of England: Lending to individuals March 2009

According to data released by the Bank of England, the increase in total net lending to individuals in March (£0.9bn) was lower than the February increase and below the previous six-month average. The twelve-month growth rate continued to fall, by 0.4 percentage points to 2.2%, and the three-month annualised growth rate fell by 0.3 percentage points to 1.0%.

Within the total, the increase in net lending secured on dwellings (£0.8bn) was lower than the February increase and below the previous six-month average. The twelve-month growth rate fell further, by 0.4 percentage points to 2.0%. The three-month annualised growth rate fell by 0.4 percentage points to 1.0%. The number of loans approved for house purchase (39,230) was higher than in February and higher than the previous six-month average. Approvals for remortgaging (31,746) were higher than in February, but below the previous six-month average, and those for other purposes (30,002) were lower than in February and below the previous six-month average.

Consumer credit increased by a net £0.1bn, unchanged from revised February figures and below the previous six month average. Net credit card lending increased by £0.3bn and net other loans and advances fell by £0.1bn. The annual growth rate of consumer credit continued to fall, to 3.2%; the three-month annualised growth rate fell by 0.4 percentage points to 0.6%.

CML comment on Bank of England lending data

Commenting on the Bank of England data, CML Head of Research Bob Pannell observed:

"The good news is that a positive net lending outturn in the first quarter makes our £25bn negative net lending forecast for the year look pessimistic. We anticipate revising this forecast over the next couple of months.

"But prospects remain subdued. Realistically, the most reasonable expectation is for a period of lending that stabilises but "bumps along the bottom" at relatively low levels for some considerable time."

Industry news

Environmental Permitting Programme: Consultation on Government Guidance

This joint Defra/DECC consultation invites your views on the structure and content of several pieces of draft Government Guidance for the Environmental Permitting Regulations.

This guidance has been drafted or amended as part of the second phase of the Environmental Permitting Programme (EPP2) which is a Better Regulation initiative designed to reduce costs for operators and the regulator by cutting unnecessary red tape, while continuing to protect the environment and human health.

The documents are aimed at the Regulator, the regulated community and any others who may be interested. The Environment Agency will produce separate technical guidance for the Environmental Permitting Programme.

Recyclers and manufacturers set for economic and environmental boost with release of new non-packaging plastics quality protocol

A new quality protocol published by the Waste Protocols Project, a joint WRAP (Waste & Resources Action Programme) and Environment Agency initiative, aims to simplify the recovery of waste non-packaging plastic – such as plastic pipes, toys and garden furniture - and make it easier for manufacturers to incorporate the material into new products.

Compliance with the quality protocol, which applies in England and Wales, will give plastics recyclers the opportunity to assure the quality and consistency of the materials they produce. This will help them take advantage of a range of business and environmental benefits, including potentially lower energy costs, increased revenue and significant reductions in the amount of carbon dioxide created through production processes.

Visit the Environment Agency’s website

Entries open for the best new places to live

Entries for this year’s Building for Life awards are now open.

Now in their seventh year, the Building for Life awards publicly celebrate schemes committed to high design standards and place making. In difficult times, they aim to reward those who are delivering high aspirations, recognise quality and showcase quality housing schemes.

The awards are organised by CABE and the Home Builders Federation. All entries are formally assessed by some of Britain’s leading housing experts using the Building for Life criteria. They select outstanding schemes to present with a Building for Life Award at a prestigious ceremony later in the year.

Deadline for entries: 30th June 2009

Please click here for details of how to enter the Building for Life awards or alternatively email enquiries@buildingforlife.org

Councils prompted on longer consents

The DCLG Chief Planner has written to all councils to remind them that they can grant permissions for more than the usual three years in response to the recession.

Steve Quartermain's letter, sent out late last week, stresses that while the default period for consents is three years, planners should use their discretion to grant longer timescales if appropriate. This discretion exists under sub-clauses of section 91 of the Town and Country Planning Act 1990.

The DCLG is currently considering changes to allow this so the building industry does not have to resubmit schemes that have been halted because of the economic downturn. Consultation is expected early in the summer.

Housing and Planning Key Facts - May 2009

This quick reference leaflet is published quarterly by CLG and contains a snapshot of the main housing and planning data. Detailed housing and planning data may be found in the live tables on the CLG website.

Events

The Housebuilder / HBF ‘House Building Innovation Awards 2009’ – ENTRY DEADLINE EXTENDED TO MAY 15TH!

The entry deadline for the prestigious House Building Innovation awards 2009 has been extended by a week due to huge industry interest.

The awards, run by Housebuilder Magazine and HBF and in conjunction with the NHBC, have become recognised as the most coveted of the industry awards and are endorsed by Government.

Entry is FREE and there are eight categories covering all aspects of the industry including sustainability, marketing, design, customer satisfaction and partnerships.

To download a copy of the entry form go to www.hbmedia.co.uk/hbm_awards.php

HBF Midlands AGM

Friday 12th June – Sketchley Grange Hotel, Hinckley, Leicestershire

The HBF Midlands Annual General Meeting and luncheon is being held at the Sketchley Grange Hotel, Hinckley, starting at 12.15 pm. This is an excellent chance for everybody working in the housing industry, at all levels, to review the previous year and forward plan for 2009, as well as networking with peers.

Please contact Marian MacDonald (020 7960 1605 or marian.macdonald@hbf.co.uk) for further details and booking information.

Zero Carbon, Part F and Part L – The cost and impact on housebuilders

Wednesday 20th May 2009 - Think Tank, Birmingham

With the consultations for Building Regulations Parts F & L and the zero carbon definition taking place this year, this conference will help housebuilders understand the impending changes and their cost and impact on the industry. It will also provide delegates with valuable and practical insight into the future of Building Regulations.

This full day event will specifically examine zero carbon, Part F and Part L over three morning sessions. The afternoon session will concentrate on the introduction of the new SAP methodology later this year with real life examples and a software demo. The conference will also analyse the real cost of sustainable housebuilding, looking at delivering to code level 3 and 4 and higher level schemes

To book online please click here or for further information please contact the events team on 020 7960 1646 or events@hbmedia.co.uk

‘New homes week 2009’

The New Homes Marketing Board has announced that it is proposing to hold ‘New Homes Week 2009’ between 14th and 20th September.

Like the previous New Homes Weeks in 2005 and 2006, which proved extremely successful, the objective of the week will be to promote the new homes market by highlighting the benefits of new build homes, which will hopefully result in increased visitor levels to sites and thus drive sales.

It is imperative that the New Homes Marketing Board and the Home Builders Federation assist its members in every possible way to drive sales in such challenging trading conditions.

Last year it was felt that the environment was just too turbulent to justify such a campaign, and whilst clearly a challenging environment remains, increased consumer interest dictates that every option should be explored to convert that interest in to reservations.

The campaign will be driven predominantly through the local media, and the NHMB will be developing stories around set themes for each day of the week to generate public interest.

As well as developing an overarching strategy, NHMB 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.

In order that members are fully aware of the proposals it is requested that the relevant member of staff emails nhw2009@hbf.co.uk and further details will be sent out shortly.

Hope Challenge: 12 - 14th June 2009, Peak District

HBF's nominated charity, Habitat for Humanity, which builds safe, decent homes for families living in poverty, is organising a fundraising event to take place in the summer. Taylor Wimpey, Bovis and HBF are amongst the teams already registered for the Hope Challenge 2009, and they are looking for more house builders to enter an event that was born out of industry activity. It is a challenge event for teams of 3-6 people that will test your initiative, your teamwork and your fitness. And by sleeping in your very own shelter you will experience some of the challenges faced by those who live in poverty housing. The event involves:

2 days and 2 nights in the great outdoors

Mental and physical team challenges

The Shelter Build challenge - sponsored by NHBC

1000m of hill ascent and 20 miles of trekking

A balance of fitness, strategy and team work

HFH is looking for teams of people who want to rise to the challenge of raising funds in support of the 2 billion people living in poverty housing around the world.

If you would like to sponsor the HBF team please click here

Click here for more information and entry requirements

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/

Rosie Hinchliffe

View Previous Weekly News Summary