Friday, 21st August 2009 Top stories this week House building: June Quarter 2009, England......read more New Homes Week - 1800 sites now signed up!.....read more Rightmove house price index.....read more CML: Gross mortgage lending up 26% in July.....read more Bank of England: Trends in Lending.....read more Quick Links Industry news Housing market news Economic news Government and political news HBF news Events Industry news House building: June Quarter 2009, England The latest CLG quarterly housing statistics were released this week and show that seasonally adjusted housing starts in the June quarter 2009 were up 63% on the previous quarter but 9% lower than the June quarter 2008. The latest statistics report on the period April to June 2009 and update those previously released on 21st May 2009. Key points from the latest release are: There were an estimated 29,980 seasonally adjusted housing starts in England in the June quarter 2009, up 63% on the previous quarter but 9% lower than the June quarter 2008. This was the second successive quarterly rise in seasonally adjusted housing starts;Private enterprise housing starts (seasonally adjusted) were 73% higher than in the March quarter 2009, but 12% lower than in the June quarter 2008;Annual housing starts figures for England continued to decline. They totalled 87,190 in the 12 months to June 2009, down 41% compared with the 12 months to June 2008 and 53% below their 2005-06 peak;Housing completions in England were up by 24% to an estimated 39,320 (seasonally adjusted) in the June quarter 2009 compared to the previous quarter. Compared with the June quarter 2008, completions were up by 7%;Private enterprise housing completions (seasonally adjusted) were 27% higher in the June quarter 2009 than the March quarter 2009, and one percent higher than in the June quarter 2008;Annual housing completions in England totalled 136,140 in the 12 months to June 2009, down by 16% compared with the 12 months to June 2008. Read more to top HBF: Figures show positive trend emerging - but mortgage availability key to a sustainable recovery Reacting to the quarterly house building statistics announcement by CLG, the Homes Builders Federations' Director of Economic Affairs John Stewart said: "The figures provide further support for the more positive housing market reports we have seen in recent weeks, and show that home building industry confidence is gradually improving. However whilst the rises in housing starts and completions are encouraging, if any recovery is to be sustainable we will need to see the banks return to more sensible levels of mortgage lending so that people realise their ambitions of home ownership. The Government also needs to address continuing shortages of permissioned land, and the cost impact of regulation and policy on development viability, both major barriers to a sustained recovery in house building." New Homes Week - 1800 sites now signed up! Nearly 1800 of the UK's house building sites have now signed up to receive New Homes Week site packs. Packs will be distributed in early September to all registered offices in time for the New Homes Week which takes place from 12-20th September. Anyone not already registered to receive the packs that contain New Homes News newspapers, leaflets as well as other marketing materials, need to register by next Tuesday, 25th August, at the very latest. The press release issued last week alerting the media that New Homes Week is to take place has resulted in a huge level of interest, with journalists from national, regional and local media looking to get involved and run articles about the initiative and the benefits of new homes. Members are urged to take advantage of the media profile New Homes Week will generate for the industry by organising events on their sites during the week. If they then contact their local newspaper with details of the events this should dovetail well with the umbrella media campaign being run by the New Homes Marketing Board and generate some positive and interesting news stories for the local and regional media that is of real interest and benefit to their readers - and hopefully lead to an increase in site visitor levels. The New Homes Marketing Board has taken out advertising to promote the new homes market and New Homes Week across the national and regional media. Members are also being urged to carry the New Homes Week logo on their own advertising to generate some real momentum for the initiative. And don't forget that the www.new-homes.co.uk search engine site is free until the end of September. As the site that will be promoted by the New Homes Marketing Board on all its literature and materials, if members want to ensure they reap the full benefits they need to make sure their sites are registered. For more information about New Homes Week contact nhw2009@hbf.co.uk or visit www.nhw2009.co.uk or call Steve Turner on 020 79601606. to top Housing market news Rightmove house price index The Rightmove house price index, published this week, stated that: The average asking price for a house fell by 2.2% (£5,102) as summer sellers price more realistically;Rightmove saw record traffic throughout the month as ‘marginal' buyers searched hard for property that meets their restricted loan parameters and the ‘creditworthy' trawl for limited supply of quality homes;Sentiment continued to improve as 75% of home movers don't expect prices to fall in the next 12 months;New sellers in August were 48% below pre-credit crunch numbers as tight mortgage lending criteria continued to restrict transactions and stifle property coming to market. Miles Shipside, Commercial Director of Rightmove commented: "After several months of activity and prices revving upwards from last winter's low point, both will start to hit the limiter without more mortgage finance. In spite of pent up demand, the market and pricing is boxed in by restrictive lending criteria put in place to ration mortgages given the lack of funds available to lenders" "Lenders are looking to remove as much risk as possible from their mortgage book. While the Government's left-hand is waving them on to lend to more home movers and small businesses, the right-hand is effectively flagging them down again by urging lenders to re-build balance sheets and improve capital adequacy". Read more to top Land Registry optimistic despite property slump Land Registry, the Government department responsible for land registration in England and Wales, this week published its Annual Report and Accounts for 2008/9 online at www.landregistry.gov.uk Introducing the report, Peter Collis, Chief Land Registrar and Chief Executive, said: "While it has probably been one of the most difficult periods in our 147 year history, we are looking forward to implementing new plans which will see Land Registry emerge as an even more customer-focused organisation. The current property slump led to a challenging financial year, which has seen our core business collapse by up to 75% in volume. "In the future we envisage a smaller, leaner, more customer-focused organisation dealing with many applications electronically and providing an expanding range of products and services to customers." Read more to top Economic news CML: Gross mortgage lending up 26% in July Gross mortgage lending totalled an estimated £16bn in July, a 26% increase from £12.7bn in June but down 36% from £24.9bn in July 2008, according to new data from the Council of Mortgage Lenders. This is further evidence of a modest improvement in the market over the summer after an exceptionally weak winter. However, activity is still subdued on any historic comparison; this is the lowest July lending figure since 2001 and £11bn lower than the July average over the previous seven years of £27bn. Lending volumes remain consistent with our forecast for £145bn in gross mortgage lending this year. Advances have picked up in June and July as anticipated. There is typically a strong seasonal rise over the summer months as a whole. The increase is likely to have been driven mainly by a rise in house purchase activity, rather than remortgaging activity, as low reversion rates continue to limit the attraction of refinancing. CML Economist Paul Samter said: "Most of the indices point to house prices rising modestly over the summer months. The CML's July gross lending estimate of £16bn is the highest level in nine months and consistent with the rise in house purchase approvals. "But the bounce-back in activity from the extreme weakness around the turn of the year, coinciding with a seasonal bounce, is limited in how far it can go against the current back-drop. We expect improved sentiment to support the market, but a further significant pick-up is unlikely with so many obstacles in place. As a result, we anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge." Read more to top NAEA reaction to CML figures Commenting on the CML figures published this week Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA), said: "These figures demonstrate the extent of the slump in the housing market that estate agents have been battling over the last 12 months. "However they also show that the market may have hit rock bottom and begun to climb. To point to these positive indicators is not to say that the market has recovered - far from it - but the increase between June and July suggests confidence is returning. "The NAEA's own figures back this up and we would call on the banks to do all that they can to ensure that responsible people are given adequate access to responsible lending. That is the only way to develop a real recovery." Read more Bank of England: Trends in lending This Bank of England monthly publication presents the Bank's assessment of the latest trends in lending to the UK economy: The flow of total net mortgage lending remained weak in the official data for June close to its lowest level since the monthly series began in April 1993. And the major UK lenders reported that subdued net lending continued into July. Data collected from the major UK lenders for the Lending Panel provided a split of gross lending (lending before repayments are deducted) between house purchase and the refinancing of existing mortgages (remortgaging). Since the beginning of the year gross mortgage lending for house purchase by the major UK lenders has been rising. Until May that had been more than offset by weaker remortgaging activity. Remortgaging activity now appears to have stabilised at a low level and so overall gross secured lending rose in June and July. The major UK lenders reported, however, that the increase in the flow of gross secured lending in July was more than matched by a rise in mortgage redemptions. The increase in gross mortgage lending for house purchase by the major UK lenders reflects the recovery in approvals for house purchase since the beginning of the year, which continued in July. Some of the major UK lenders reported an improvement in their ability to convert mortgage applications into mortgage completions, consistent with housing market chains becoming less fragile. Demand for remortgaging remained very weak, though some major UK lenders reported tentative signs of their existing borrowers seeking to move off standard-variable-rate mortgages on to fixed-rate products. On the supply side, the major UK lenders reported a further increase in the proportion of mortgages approved. The reported approval rate was around 80% in July, compared to around 70% at the turn of the year. In earlier months some major UK lenders had reported that signs of stabilisation in the housing market, lower than expected arrears, and the spreads prevailing on higher LTV products, had made them a little more inclined to lend at higher LTV ratios. But according to data from Moneyfacts Group, after increasing in May and June, the number of 90%-plus LTV mortgages available was virtually unchanged in July. The major UK lenders confirmed that over the past month there had been no further increase in their appetite to lend at high LTVs. Read more to top Minutes of the MPC meeting 5th and 6th August 2009 The Bank of England this week published the minutes of the Monetary Policy Committee meeting held on 5th and 6th August 2009. At the meeting it was decided to maintain the Bank Rate at 0.5% and increase the size of the Asset Purchase Programme by £50bn to £175bn. The minutes state that: "Overall, on the assumption that Bank Rate moved in line with market yields and that the stock of purchased assets held in the Asset Purchase Facility (APF) reached £175bn, the Committee judged that CPI inflation was more likely to be below target in the medium term than above. In the projection for CPI inflation conditioned on Bank Rate held constant at 0.5%, and a stock of purchased assets held in the APF of £175bn, the risks of inflation being above or below the 2% target at the two-year horizon were broadly balanced, albeit that the path of inflation was rising. "During the month, the Bank had met the MPC's target for purchases of £125 billion of assets financed by the issuance of central bank reserves. Although it remained too early to assess the full effect of the asset purchase programme, there were some promising signs that it was having a positive impact." Read more to top Government and political news Eco-towns - allocations from the eco-towns fund: Consultation This consultation paper published by Communities and Local Government this week, sets out proposals for local authorities and their delivery team partners on how the £60m announced to support locations identified with the potential for an eco-town published in the PPS on 16th July 2009 over the 2009-11 period might be allocated. It also includes guidance on the preparation of an Eco-town Programme of Development to support bids for funding. Given the small number of locations, the extent of earlier consultations on eco-town issues, and that there is general familiarity with the operation of growth funding, a shortened period of consultation is proposed by the CLG - to 25th September 2009. Read more CABE appoints new chair Paul Finch has been appointed as the new chair of CABE and will take over from Sir John Sorrell this December. Paul is Programme Director of the World Architecture Festival, and editor emeritus of Architectural Review and Architects' Journal. He has chaired CABE's London 2012 design review panel since 2006. A former commissioner and deputy chair of CABE, Paul spent five years as chair of CABE's design review panel, and also chaired its regional committee. Read more to top HBF news HBF member seminar: 2009 SAP software HBF has negotiated that members can attend a free seminar with the NHER (National Home Energy Rating - part of National Energy Services) regarding the new 2009 Standard Assessment Procedure (SAP) software, which will need to be used with the new Part L of the Building Regulations due out next year. HBF will be shortly contacting members once details and locations are finalised. to top Events Housebuilding Innovation Awards 2009 - GYLES BRANDRETH to present Housebuilder Media is delighted to announce that Gyles Brandreth, broadcaster, journalist and ex MP, will be presenting at the Housebuilding Innovation Awards on Thursday 5th November 2009. The shortlist for the Awards was unveiled earlier this month, and reveals the outstanding innovative achievements the industry has made in the past year. Click here for full details. The Awards, which are supported by the Government, have become among the most sought after in the industry as they recognise excellence in innovation in all aspects of the housebuilding business. The culmination of the Awards is the announcement of the housebuilding firms deemed to be the overall Innovators of the Year -previous winners have included Redrow, Barratt, Explore Living and Midas. The winners will be announced at a glittering black tie awards ceremony on Thursday 5th November at the Millennium London Mayfair Hotel. Book by 11th September to receive your 15% discount off of the booking price. For further information please contact the events team on 020 7960 1646 or visit www.house-builder.co.uk WHAT HOUSE? Awards 2009 - gala presentation luncheon Tickets and tables are now available for the 2009 What House? Awards, taking place at London's Grosvenor House Hotel on Friday 20th November. The event is one of the highlights of the house building calendar, as the industry meets to salute the best new homes in Britain. To book your seats for this prestigious event please email Derek Smith. ds@globespanmedia.com. Or download a booking form at www.whathouse.co.uk/awards to top HBF Annual Planning Conference 2009 - Staverton Park, Daventry Planning viability 15th September 2009 In the current economic crisis much has been discussed about fiscal policy and incentives but what of planning policy in these challenging times? Is it business as usual or is the current model broken? The 2009 HBF Planning conference will seek to address this and more. Click here for booking details or contact kellie.kent@house-builder.co.uk. Housing Market Intelligence Conference - Housing Minister confirmed Savoy Place, London -Tuesday 13th October 2009 Housing Minister John Healey has now been confirmed as a speaker for October's HMI Conference completing a heavy weight line up of expert speakers for the industry's leading annual policy conference. Confirmed speakers now include: John Healey MP, Housing MinisterGrant Shapps MP, Shadow Housing MinisterSir Bob Kerslake, Homes & Communities AgencyStewart Baseley, HBFMichael Coogan, Council of Mortgage LendersJohn Stewart, HBFImtiaz Farookhi, NHBC A booking form will shortly be available but for further information please contact the events team on 020 7960 1646 or visit www.house-builder.co.uk 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
