I wrote to you on 28 February to provide you with an update of HBF activity over the proceeding month. With so much happening over such an important time for the industry, I want to again provide you with an outline briefing of what we have been doing to represent and advance member interests: Political news and developments Housing undersupply Publication of 2003-based official household projections on 14 March, updating the seriously outdated 1996-based projections, was enormously important for the house building industry. These underpin the planning system’s estimates of future housing requirements. Household growth is now put at 209,000 per year 2003-2016, up from 150,000 per year 1996-2016 under the old projections. The Government’s target of 200,000 homes per year by 2016 is now “at least 200,000”. The Budget The Budget did not contain any significant new measures. However, it does restate the Treasury’s commitment to the Planning-gain Supplement. Following our PGS submission, the HBF Board has decided HBF should set up a high-level expert working group to take forward industry thinking and try to influence the Treasury’s PGS work. HBF has also built a good relationship with officials in the Prime Minister’s Delivery Unit (PMDU). We will be contributing to the PMDU’s work on the planning system, as well helping officials write an important paper on the house building industry which will aim to increase Government understanding and address some of the widely-held myths about house building. Conservative housing policy David Cameron’s recent speech recognising the need to build more homes, review the planning system and help those aspiring to enter the property market is a welcome development. We are actively engaging the Shadow team and contributing to the current Conservative policy formulation process to further build on this promising shift in thinking. Policy engagement Thames Basin Heaths Special Protection Area This issue remains of high importance to members. The pace of progress in developing a solution remains a concern and I am writing to the Prime Minister requesting urgent authoritative action. I have also written to the Secretary of State for Trade and Industry seeking a meeting at the shortest possible opportunity. I am determined to forge progress on this issue. Code for Sustainable Homes HBF responded to the consultation on the Code for Sustainable Homes expressing a range of industry concerns, primarily on the way the Code appears to sit with planning and whether or not it will be voluntary. We have also suggested that a wider-ranging review of regulation would be appropriate at this time. Of greatest concern, however, was the announcement made by ODPM just a few days after the consultation closed that the Code would be strengthened. I wrote immediately to Housing Minister, Yvette Cooper MP, affirming our unease over the lack of consultation and re-stating the industry position on a number of key issues. We look forward to hearing back from the Minister on how far her Department will be accommodating our views. Introduction of new building regulations – Part L The new Approved Documents for Parts L and F were finally issued on 15 March 2006. HBF has expressed serious concerns about the impact this late publication will have on output this year, particularly given the limited transitional arrangements reported last month. Alongside HBF’s Technical Director, Dave Mitchell, HBF Board member, Mike Freshney, and Bovis Homes Chief Executive, Malcolm Harris, I met Yvette Cooper MP and Anne Hemming, Head of the Buildings Division at ODPM, to outline our concerns. The Minister has promised to re-examine the situation. HBF’s representation to Government – on both the Code and Part L – has rested on the point that, if the Government is to achieve its own ambitious house building targets, then it cannot afford to interrupt the supply of land. Working in close consultation with the industry is the surest way to ensure that short-term ambitions do not frustrate more important longer-term goals. The Barker Review Following the launch of HBF’s Customer Satisfaction Survey results, we are continuing to work with NHBC to provide participants with more detailed data to help them focus on areas requiring improvement. The HBF Board has decided to continue with the current survey. The next set of results will be published in Spring 2007, although participants will receive a second set of half yearly results in the Autumn. -HBF will shortly launch a Code of Conduct and accompanying Customer Charter, and work on Unfair Terms in Consumer Contracts is progressing. We met the OFT in February to update them on progress with the Survey, Code and Unfair Terms. The Cross-industry Steering Group’s final MMC report, in response to Barker Recommendation 33, was completed in March. We are now concentrating on setting up a body jointly with the Housing Forum to take forward the report’s recommendations. We have also opened discussions with the National Audit Office who are examining the feasibility of Key Performance Indicators for private house building. Feedback from HBF’s Responding to Barker conference on 23 February, with guest speakers David Miliband, Kate Barker, Professor Sir Peter Hall and James Paton, a senior Treasury official, has confirmed this as one of HBF’s most successful conferences. Planning policy Following the hectic pace of the last few months, during which we assembled industry responses to major ODPM consultations on PPS3 and PPS25, there has been a relative lull in formal policy engagement. This is being used to set up meetings with ODPM officials to discuss the way forward on emerging guidance. The associated good practice guides will be critical to ensuring that the new planning processes are put in place consistently across the country and achieve the benefits that the new guidance sets out to achieve. Already it is clear that the new practices will require considerable involvement by individual house builders as well as HBF if we are to take full advantage of this opportunity. Regional planning activity remains focused on emerging regional spatial strategies. The North East Examination in Public closes in early April after a 5 week “run”. The Yorkshire and Humber RSS consultation period ends in mid April and the North West consultation ends in mid June. The EiP into the partial review of the London Plan begins in June with a full review of the plan towards the end of the year. The South East Plan was formally submitted to the Secretary of State at the end of March with public consultation expected over the summer. Home Information Packs The ODPM has recently published a timeline for the introduction of Home Information Packs (HIPs). As yet there remains little detail behind this. We will be working to establish the opportunity for home builders to take part in the dry run arrangements that have been indicated. Politically the Conservatives have made clear their intention to oppose HIPs and, if necessary, to repeal the legislation if elected. The focus for further political debate is likely to be the submission of the HIPs regulations for Parliamentary approval in the early summer. HBF will work with other organisations to ensure that we use this opportunity to represent industry concerns. HBF initiatives New Homes Week As part of New Homes Week, HBF secured regional radio interviews across the country, reaching a potential audience of some seven million listeners. The focus of media interest was the difficulties faced by first time buyers, ways the industry can help address affordability challenges and the longer term solutions to the affordability problem. These messages have resonated well with subsequent statements by both ODPM Ministers and David Cameron. I believe HBF should continue to communicate the industry’s increasingly positive track record in this area. Skills – Qualifying the Workforce An important milestone will be reached on 5 April with the first audit of the extent of CSCS card holding and vocational qualifications by those working on Major Home Builder Group sites. HBF’s CSCS co-ordinator will be collating the results received from companies and the overall outcome will provide an important evidence base for taking the Qualifying the Workforce Initiative forward. Mix and Density Research The NHBC Foundation is taking forward a research proposal submitted by HBF. This proposed examining whether the impact of all types of regulation on mix, density, product, dwelling sizes and parking allows house builders sufficient flexibility to build ‘saleable’ homes in response to market demand across the full range of different site types/locations. A unique feature of the project would be to study house builders’ views and test these against Government policies and the concept of sustainable, mixed and balanced communities. Once again, a short update has become a more extended note – purely on account of the high level of activity being undertaken. Please do not hesitate to contact me or any of my senior management team members if you have further ideas, feedback or questions. This is, as we all know, an important period for the industry to engage the Government, Parliament and the broader policy community. Your input is crucial if we are to make the most of the opportunity on offer. Yours sincerely Stewart Baseley Executive Chairman
