Friday, 4th September 2009 Top stories this week Conservatives write to Party members on housing policy intentions......read more Hometrack: House prices rise for first time in 2 years.....read more Bank of England: Lending to individuals July 2009.....read more CLG: Clearer rules for builders.....read more New Homes Week – site packs issued – please distribute to sites!.....read more Quick Links Government and political news Housing market news Economic news Industry news Events Government and political news Conservatives write to Party members on housing policy intentions Several sources have confirmed this week that Shadow Communities Secretary Caroline Spelman has written a letter to Conservative MPs and party activists setting out her position on housing policy. The letter confirms our understanding that, if elected, a Conservative Government would abolish the current Regional Spatial Strategies, their targets and the current regional planning process as part of a first year legislative programme. The letter also suggests that even before such legislation local authorities would be able to go slow on elements of current RSSs they find undesirable and advises councils that prior to the General Election they need not rush to advance “controversial” elements of current regional plans or to respond to Government calls that are not legally binding requirements. It states that no compensation would be paid to “speculative developers” as a consequence to changes in planning policy. The Observer ran a front page story about the letter last Sunday and asked HBF for a quote. Our statement – which we have also issued in response to requests for comment from the trade press was: “If true [as the letter was not copied to us by the Conservatives], the letter gives rise to real concern - there is no recognition of the desperate need in all parts of the country for more homes of all kinds and tenures or of the responsibility of local authorities to make provision for these. - rather local authorities are being encouraged to put such considerations aside if they want to - hard-pressed first-time buyers and those on the growing waiting list for social housing would suffer in particular - the timing is unfortunate: housing providers have been through the worst downturn in living memory and the letter would lead to a hiatus in planning for housing that could only exacerbate the supply crisis we already face.” Read the article in full to top Conservative Party: Regenerating our inner cities In a speech at the Royal Institute of British Architects (RIBA) this week, Shadow Housing Minister Grant Shapps spoke about shifting emphasis from top-down "decent homes" targets to the creation of "decent neighbourhoods". This would be done by "empowering local people to drive the change and lead on design". He said the mistaken belief that there is a single solution to complex problems has become "a hallmark of the government’s approach" - an approach that has been "to spend money, set targets and ask questions later". Setting out the Conservative approach, Shapps said "we will send a signal to every struggling neighbourhood that instead of sitting tight and waiting for bureaucrats to come to the rescue, we will actively back local groups who demonstrate a vision to improve the place and community they call home". He criticised the idea of regeneration flowing down through a series of complex quangos and layers of impenetrable bureaucracy. Instead he said Conservatives "will encourage power to be exercised at the very lowest levels of local government, by which I mean Parish, Ward, but also street level in order to force faster change directed by the very people it will most affect". These ideas clearly therefore mirror the Conservatives’ general policy approach on housing supply. Read more to top Housing market news Hometrack: House prices rise for first time in 2 years The latest Hometrack survey results have shown that following three consecutive months of no price change, house prices grew in August by 0.1%. This represents the first monthly increase since July 2007. The year on year rate of growth currently stands at -6.7%. Hometrack’s analysis shows that headline figures are being skewed by price rises that are restricted to relatively small pockets of the market suffering from a lack of housing for sale - primarily in London and the south east. Price increases in August were limited to just 11% of the country with London and the south east making up three quarters of the areas which posted price rises - this in contrast to 89% of the country where prices remained static. In August prices were limited to just 3 regions - London, the south east and East Anglia - and were unchanged across the remaining 7. In London average prices rose by 0.3% on the back of a rapidly dwindling supply of quality homes for sale and rising demand. Recent Hometrack surveys show that over the last 4 months the London market has seen a 2.6% fall in the number of homes for sale compared to a 34% increase in demand. In the south east there has been an even larger 5% decrease in supply over the same period. But in all other regions of the country, supply has risen, limiting upward pressure on prices. Hometrack comment that while average house prices are down by 12% over the last 2 years some of the fundamental obstacles to a sustainable housing market still remain. Mortgage availability continues to be an issue and unemployment levels - set to rise further - will continue to impact on buyer confidence and suppress demand. Read more to top Economic news Bank of England: Lending to individuals July 2009 According to data released by the Bank of England this week, total net lending to individuals fell by £0.6bn in July, showing a net repayment for the first time in the series. The twelve-month growth rate continued to fall, by 0.3 percentage points to 0.9%, and the three-month annualised growth rate also fell, by 0.5 percentage points, to 0.0%. Within the total, net lending secured on dwellings showed a net repayment of £0.4bn, weaker than the June increase of £0.1bn and below the previous six-month average. The twelve-month growth rate fell further, by 0.3 percentage points to 0.8%. The three-month annualised growth rate fell to 0.0%. The July growth rates and the net repayment were all series lows. Within total secured lending, secured lending by banks (excluding the effects of securitisations) increased by £2.1bn, above the £1.9bn increase in June. The numbers of loan approvals for house purchase (50,123) and for remortgaging (35,206) were both higher than in June and above the previous six-month average. The number of loans approved for other purposes (27,278) was lower than in June and below the previous six-month average. Consumer credit fell by a net £0.2bn, below the previous six month average. Credit card lending increased by a net £0.1bn and other loans and advances fell by £0.3bn. The annual growth rate of consumer credit continued to fall, to 1.4%; the three-month annualised growth rate fell by 0.8 percentage points to 0.2%. Read more to top BSA: Building society gross lending rises, but funding constraints will limit activity The Building Societies Association reported this week that: Building society gross lending was £2,067m in July 2009 compared to £3,566m in July 2008; Net lending by building societies in July 2009 was -£577m compared to -£112m in July 2008; Mortgage approvals in July 2009 were £1,490m compared to £2,636m in July 2008; Savings balances held by building societies decreased by £912m in July 2009, compared to an increase of £1,935m in July 2008. Commenting on the figures, Adrian Coles, Director-General of the BSA, said: “The mortgage market continues to show signs of some sort of recovery when compared to the first few months of this year. However, activity remains very depressed when compared to previous periods. “The BSA expects the mortgage market to remain similarly subdued over the remainder of 2009. This is primarily because of the difficulties all lenders face in raising funds for mortgage lending. We warned back in March, when Bank Rate was cut to its present level that the flow of funds into the mortgage market would be restricted as savings inflows decline as a result of very low interest rates.” Read more to top CML comment on Bank of England July lending data Commenting on the latest approvals data from the Bank of England, CML noted that the number of loans for house purchase rose 5% from June to 50,123. This represents a 50% increase from a year ago when the housing and mortgage market was in a sharp downturn, but compares to a monthly average of 104,000 in the 10 years to the end of 2007. The negative net lending figure in July (-£418m) is in line with CML’s forecast for -£5bn in net lending in 2009. CML are also forecasting gross lending to total £145bn in 2009. CML Economist Paul Samter observed: “Activity still remains weak, but has improved from the historic low levels of turnover at the beginning of the year. We expect volatility in net lending levels over the rest of the year and there may be other months in which negative net lending occurs as the recovery is likely to be sporadic and shaky at first. “Overall however, the figures are consistent with our view of a slowly improving house purchase market, yet still constrained by a lack of available funding and the fragile economic backdrop.” Read more to top Industry news CLG: Clearer rules for builders The Government set out plans this week, aimed at making it easier for builders to understand what standards are expected of them and to ensure buildings comply with high standards of safety and sustainability. The measures were set out in Communities and Local Government's “Future of Building Control Implementation Plan”. Building Regulations Minister Lord McKenzie said: "These changes help us to tackle long term challenges. A growing population and the need to tackle climate change mean we need to build more homes, and to ever higher standards of safety and sustainability. These improvements to the building control process mean that the high standards we set on paper are also delivered on the ground, and with all new homes to be zero carbon from 2016 this is an essential step." The measures aim to cut red tape and support builders through the recession by giving councils greater freedoms to let responsible builders get on with the job and to focus instead on builders where a history suggests work not necessarily met required standards. At present builders have to contact their building control inspector up to nine times during each construction project, irrespective of its size and complexity. A new approach is being developed which will allow councils and private building control bodies to focus their attention on the highest risk projects and therefore reduce the number of inspections required for simpler projects. Lord McKenzie said: "The Government fully recognises the economic climate is difficult at the moment and these measures will also support responsible builders through the recession by cutting the amount of red tape they face. But for the minority incompetent builders things are going to get even tougher through enhanced inspection powers for local authorities. The Government also pledged to limit changes to the Building Regulations to every three years from 2010, providing greater certainty to builders and house builders. New guidance to be published will help builders and homeowners to meet the rules Read more to top Construction PMI at 18 month high Construction activity contracted in August at its slowest pace in eighteen months, a leading survey showed this week, raising hopes that the economy will grow in the third quarter. The CIPS/Markit construction purchasing managers’ index (PMI) recorded 47.7 in August, compared to 47.0 in July. However, it remained well below the 50 mark, which signals growth. David Noble, Chief Executive at the Chartered Institute of Purchasing & Supply, said: “Though August saw a reduction in the rate of deterioration in the construction sector, it is still the sick man of the UK economy.” Read more to top Monthly statistics of building materials and components The latest national statistics of building materials and components produced by the Department for Business, Innovation & Skills were released this week according to the arrangements approved by the UK Statistics Authority. The release includes data for England, Scotland and Wales for the period up to the end of January 2009. The latest release updates the statistics published previously on 5th August 2009. Please click here to access the latest release in full to top Output in the construction industry 1st quarter 2009 The Office of National Statistics released the monthly data regarding output in the construction industry in Great Britain. According to the release the total volume of construction output in the first quarter of 2009 was 9% lower compared with the fourth quarter of 2008. New private housing work was 10% lower and new public housing was 8% lower over the same period. All new work fell by 10% while repair and maintenance fell by 9%. The total volume of construction output in the 12 months to the first quarter of 2009 fell by 6% compared with the previous 12 month period. The total volume of new work in the 12 months to the first quarter of 2009 was 9 per lower compared with the previous 12 months and was 10 per cent lower in the first quarter when compared with the previous quarter. The total volume of repair and maintenance work fell by 1 per cent in the 12 months to the first quarter of 2009 compared with the previous 12 months, and was 9 per cent lower in the first quarter of 2009 compared with the previous quarter. New private housing work in the 12 months to the first quarter of 2009 was 25% lower compared with the previous 12 months and the first quarter of 2009 was 10% lower compared with the previous quarter. New work in the public housing sector in the 12 months to the first quarter of 2009 was 8% lower (on a small base figure) compared with the previous 12 months and the first quarter of 2009 was also 8% lower than the previous quarter. Read more to top Events New Homes Week – site packs issued – please distribute to sites! Just under 2000 site packs were this week sent to sites that registered to receive them for New Homes Week. The packs were sent in two parts – newspapers and leaflets direct from the printers, and a separate pack containing flags, posters, balloons and pens from HBF. All deliveries were made to regional offices as specified so please ensure these are now issued to the relevant sites. The New Homes Week media pack has been issued to the national, regional and local media. The pack contains five press releases highlighting different benefits of new build 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 7960 1606 to top Housebuilding Innovation Awards 2009 - BOOK NOW! - JUST 1 WEEK TO EARLY BOOKING DEADLINE 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 the booking price. For further information or a booking form please contact the events team on 020 7960 1646 or visit www.house-builder.co.uk to top 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. 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. to top Housing Market Intelligence Conference – Housing Minister confirmed - JUST 1 WEEK TO EARLY BOOKING DEADLINE 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 Minister Grant Shapps MP, Shadow Housing Minister Sir Bob Kerslake, Homes & Communities Agency Stewart Baseley, HBF Michael Coogan, Council of Mortgage Lenders John Stewart, HBF Imtiaz Farookhi, NHBC For further information or a booking form please contact the events team on 020 7960 1646 or visit www.house-builder.co.uk to top HBF Annual Technical Conference 2009 – The TechnoCentre, Coventry The Building Regulatory Agenda – from here to 2016 Wednesday 18th November 2009 The conference aims to look at the forthcoming amendments to the Building Regulations, addressing CLG’s policy overview and in particular concentrating on the recent Parts F & L consultation. Expert speakers from CLG, BRAC, NHER, Zero Carbon Hub and BRE will be there to answer your questions on all building regulation issues. For further information please visit www.house-builder.co.uk or contact the events team on 020 7960 1646 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/Steve Turner View Previous Weekly News Summary
