KEY ISSUES The past month has been an extremely busy period for HBF. One major reason for this has been the extraordinary developments in our national political system with the expenses scandal holding the front pages for weeks, diverting attention from normal policy-making and helping to trigger the recent Government reshuffle in which we have again seen changes in our key Ministerial contacts. On the face of it, it is frustrating and disappointing that one consequence is the arrival of a fourth Housing Minister in less than eighteen months. This does not assist momentum in policy-making nor action to help the industry towards recovery. However the clear political importance of housing was illustrated by this week’s (29th June) welcome announcement by the Prime Minister on additional funding for housing that will see the number of private homes built under the Kickstart scheme more than double. I think it is very pleasing that Government does seem to be realising the significance politically of getting housing delivery correct, and the shifting of funds from other Government departments illustrates this. This may suggest housing could be a big issue for the forthcoming General Election, with clear policy differences now emerging between the two main parties. As Housing Minister, John Healey at least starts with two years’ experience at CLG and was previously a Treasury Minister. I met him last week for an initial discussion to explore how we can best work with him to achieve quick results as the next General Election begins to loom. He does seem very willing to engage and I will report back to you on the outcome and any new initiatives the Government may be considering. The meeting with the new minister was just one of many I and my team have had in recent weeks with officials at CLG and Number 10 on a range of issues important to our industry, the detail of some of which are covered in this report. I will keep you updated on future developments through our usual communications channels. EXTERNAL AFFAIRS Countdown to the General Election Now that the reshuffle is behind us and the recent turmoil affecting the Government seems to have settled down, the countdown to the next General Election has in practice begun. By law the Election must be held by June 2010 at the latest. Barring further unexpected developments it is likely the Government team will remain as it is and, short though any window of opportunity may be, Ministers will clearly be seeking to enhance the Government’s electoral fortunes in any way feasible. This does provide the chance for us to press matters of immediate concern to us with Ministers and we will certainly make every effort to do so. We will also be putting together a HBF policy manifesto for the Election for use with all the main parties and preparing briefing material that you as members can use with your local constituency candidates. In that regard, please let us know if there are any particular materials you would find it useful to have for the Election period. John Slaughter – john.slaughter@hbf.co.uk – would be happy to discuss this with you. Relations with the Conservatives Given the state of the opinion polls we are continuing to invest significantly in building relations with the Conservatives. In the last few weeks senior members have met Shadow Communities Secretary Caroline Spelman, and we have also held meetings with a front bench team on the impact of regulation (see below) and with Shadow Minister for Local Government, Bob Neill, on the forthcoming Conservative green paper on planning and regulation. The picture that emerges makes it very clear that localism – which in our field means a locally-based system for determining and delivering housing requirements without regional plans – is a key plank of the Conservatives’ manifesto for the General Election. This is not a direction of travel we can realistically change – and indeed the other main political parties also espouse their own brands of localism, something likely to be reinforced by the outwash from the political crisis that has beset Westminster. We remain extremely concerned however, based on our discussions with you, that the housing policy so far advanced by the Conservatives would pose potentially significant additional business risk for you as companies, particularly in any transition from the current system to a locally-based one. We have therefore communicated this concern in all our meetings. In addition, we are working on a substantive policy paper of our own putting forward a range of proposals on how a locally-based system could be made workable from the industry’s perspective. We aim to submit this to our front bench contacts shortly with a view to influencing their thinking for their Election manifesto. Preparing for the recovery Throughout Government, we hear the phrase “preparing for the recovery” from ministers and officials. Mindful that many ill-informed attempts are being made to map out the future, often by people who don’t necessarily fully understand the complexities of the issues we face as home builders, we have been working on a report that identifies the key issues for the future of housing delivery from the industry’s perspective. We will be publishing our paper shortly. Burden of Regulation During the last few weeks, HBF staff and members have given their burden of regulation presentation to senior staff at the HCA, and to a Conservative Party front bench team including Caroline Spelman, Shadow Housing Minister Grant Shapps and Shadow Treasury Minister Greg Hands. We also held a working session with the CLG Chief Planner, using our regulatory appraisal model interactively to examine how different assumptions about development costs or regulatory demands affect land values and viability. HCA Initiatives Following the announcements on 29th June, the totality of the Government’s measures over the past year to help private house builders (stock purchase, HomeBuy Direct, Kickstart) will, if successful, have facilitated the sale of 45,000 new homes. At the current low levels of house building this would represent a significant addition to industry output. HomeBuy Direct (HBD) We have continued to hold monthly meetings between HBF members and senior HCA officials to monitor progress and propose improvements. Our June meeting involved a very detailed review of progress to date, both on the customer demand side, as well as looking at HBD processes, such as the performance of HomeBuy Agents. A raft of recommendations was agreed. While we were all encouraged by the high levels of initial interest, we need to see a significant increase in the number of potential buyers going through to legal completion if we are to hit the Government’s target. Kickstart We understand this scheme, to unlock mothballed sites, was massively oversubscribed. The preliminary list of sites will be announced around the end of July. Until then, it will not be possible to judge the likely outcome of the scheme. As with HBD, we are holding regular Kickstart meetings between members and senior HCA officials. These will continue as the scheme progresses. On 29th June the Prime Minster announced the scheme would be extended to bring forward an additional 13,000 homes, including 4,000 affordable and 9,000 private, more than doubling the initial £400 million to fund an estimated 9,000 new homes. We understand some of these additional units will be taken from sites in the first bid round, but that there will also be a second bid round. Industry consumer code You will remember the industry’s consumer Code was published at the end of March, in line with the OFT timetable. Work on the Code has progressed since then. The Board of the new Code body has been formed and the advisory committee is currently being formally established. The next major step will be to establish an information and training programme in September to bring the industry up to speed with the requirements of the new Code which will become active on 1st April 2010. Revision of the Energy Performance of Buildings Directive The revision of this Directive has moved up the political agenda in Brussels and will, we understand, be a priority for the incoming Swedish Presidency of the EU during the second half of this year. Our chief concern remains that the Directive as currently amended by the European Parliament would require all new buildings to be built to a “net zero energy” standard from 2019. This standard is defined as new developments producing at least as much energy on-site as they consume. This is of course roughly where we started on zero carbon in the UK. Domestically, however, we have subsequently been successful in encouraging Government to consider a more practical approach allowing for an appropriate contribution from off-site measures in seeking to meet the zero carbon objective. We now clearly need to make the same case in Europe. We are therefore continuing to press our concern on the EPBD with CLG, but are also working proactively via our European trade association – the UEPC – to explain to the European Commission and the other European bodies why the European Parliament’s proposal would be unachievable. Given the valuable work already undertaken by the Zero Carbon Hub on the practicalities of what is and is not deliverable by developers, I am particularly pleased that the Hub has indicated that it will be able to share its analysis and conclusions with the Brussels institutions and take part in the structured discussions or events we are planning to hold at the European level on the EPBD. I will of course keep you abreast of developments on these important European negotiations through the rest of this year. Definition of zero carbon Following the consultation on the definition earlier this year we had anticipated that CLG Ministers would seek to publish their policy position before the summer parliamentary recess on 21st July. Although a statement within this period cannot be ruled out, it is probably looking less likely now following the reshuffle and the need for the new Housing Minister to consider the issues. If a Government position is not published before the summer recess it would need to be held back until parliament resumes in the early autumn. New Homes Week 2009 (NHW09) - 12th-20th September Preparations for NHW09, which is being led by my colleague David Pretty in his capacity as Chairman of the New Homes Marketing Board (NHMB), are now well underway. The NHMB will be providing a framework, which will involve producing a 16 page glossy newspaper, marketing materials including site flags, pens etc., posters and leaflets, all of which will be available to partaking member companies free of charge. We will also be looking to place editorial and advertising across the national and regional media. As part of the promotional work we will also be looking to drive potential customers to the new-homes.co.uk site. To ensure this is as well populated with as many new homes as possible we are offering all members the opportunity to upload details and information about their developments free of charge until the end of September. I hope you have received a letter about this and if not please get in contact for more details. Already many members have signed up and are developing detailed communications plans of their own to ensure they fully exploit the initiative. I would encourage those of you that aren’t already to get involved. If we could have events going on on sites up and down the country it could really generate some interest and be a real boost for the industry. If you need more information please contact nhw2009@hbf.co.uk or if you prefer call Steve Turner at the HBF on 0207 960 1606. ECONOMIC AFFAIRS New Home Valuations New home valuations remain one of the industry’s biggest immediate concerns. Earlier this year, we persuaded senior officials at CLG that valuations were a serious issue. They were particularly concerned about the detrimental impact on home buyers of down-valuations and lenders’ instructions to value new homes as second hand. In recent weeks, officials have been interviewing a range of home builders, valuers and lenders. On 29th June, they held a meeting to address new home valuations involving HBF and house builders, RICS and valuers, and the CML and lenders. While no definite solutions emerged from the meeting, it was a valuable opportunity for the various parties to air their perceptions, experiences and concerns, and to help identify some of the key problems. Further discussions are planned. While I accept there are no easy answers, I do think these discussions can only help understanding and, hopefully, begin to resolve some of the difficulties faced by home builders. CLG Select Committee HBF’s Director of Economic Affairs, John Stewart, was called to appear before the Select Committee for a second time in its Inquiry into Housing and the Credit Crunch. Among the many topics covered, he was able to introduce the ‘impact of regulation’ into the discussion. PLANNING AFFAIRS Flexibility for planning permissions HBF welcomed the recent CLG consultation on proposals to allow greater flexibility for planning permissions. The proposed changes (and possible future changes to primary legislation) are based on research undertaken by White Young Green for CLG with whom the HBF National Planning Committee met to discuss the various options in March 2009. HBF will be making comments on the consultation in the usual way before the closing date of 13th August. The new provisions will be introduced on 1st October 2009. The proposals will introduce a new process to extend the time for implementation of extant planning permissions. Only one such extension to each permission will be possible but it can be for any period of time as agreed with the local planning authority. The provision would apply to major applications only (i.e. above 10 dwellings or on a site larger than 1.0ha). LPAs can refuse applications but applicants will have the right of appeal. While the fee proposed is a flat rate of £170 the necessary amendments to the fees regulations will take longer than the introduction of the new application provisions and will probably not be in operation until the New Year. Until that time (i.e. between 1st October and adoption of the new regs) the full application fee will be payable. The other proposed changes in the consultation are to allow applications for minor material amendments to permissions under S73 of the T&CPA 1990 and non material amendments under S96A of the Act introduced by S190 of the Planning Act 2008. The first of these would, in effect, allow the substitution of new drawings as specified in the original planning decision notice. The definition of “minor material amendment” will be a matter of discussion between applicant and LPA and will therefore, inevitably, be tested through case law. The final proposal deals with non material amendments and again introduces a new type of application for which a standard fee of £170 is proposed. Decisions should be made within 28 days with the right of appeal against refusal (or non determination). The definition of “non material” is, again, to be left to the discretion of each LPA. Killian Pretty review The proposals to allow greater flexibility for planning permissions (above) are part of the Government’s response to the Killian Pretty Review. A full discussion paper responding to all of the recommendations of the Review (including information requirements for validation of applications and possible alternatives to the current 8/13 targets as a measure of LPA performance) will be published in July. Conservative party policy implications for planning One of the most obvious implications of the Tory party proposals for planning through their localism agenda is the threat to the release of strategic sites. While we are currently seeking legal advice on how quickly existing legislative requirements could be changed following a general election (which we will, of course, pass on to members as quickly as possible) members should be alerted to the fact that many councils are already moving away from the need to meet RSS housing targets thereby threatening their continued support for strategic land releases. Members are, therefore, urged to speak to both officers and members of the appropriate authority to gauge their continued support (or otherwise) in a possible post election Tory planning regime of sites which are currently in the pipeline. According to recent meetings HBF has held with shadow ministers the most obvious sites under threat are Eco-towns (where these are not LA promoted schemes) and green belt revisions to allow development. TECHNICAL AFFAIRS Gas flues in ceiling voids – update The latest meeting of the gas flues group took place on Monday 8th June and was attended by members of the HBF legal group. The HBF note that we issued to members earlier in the year was reviewed and a report of the last Gas Safe Register meeting reviewing the draft TB008 document was given. We will be having further discussions with HSE and the Gas Safe Register on this issue and will report back accordingly. Code for Sustainable Homes HBF’s meetings with the BRE on the process surrounding the Code for Sustainable Homes are ongoing and we are encouraged with the process being made and a document based on the work done by BRE and HBF is now being prepared by the BRE. This will then go to CLG and will hopefully result in a significant reduction in the need for duplication of paper work, so reducing the process time. The CLG Technical Advisory Guide Group and Implementation Group are to be merged. Alongside this new group will sit subgroups which will be set up to investigate particular issues that arise from the code. HBF currently sits on both these groups and we are currently in discussions with CLG regarding the format of the new group. Originally two consultation reviews were due to take place this year with regard to the code, the first focusing on policy, whilst the second one later in the year was to look at the technical manual. There will now be only one consultation later in the year which is intended to cover both these areas. Draft Flood and Water Management Bill. HBF held two workshops/ meetings in London and Birmingham with members to look at and respond to the issues within this consultation. The information received is now being collated and will form the HBF response. We will circulate this to members upon completion. Building Regulations Part F (means of ventilation) and Part L (conservation of fuel and power) On the 18th June the new Housing Minister, John Healey launched the consultation on changes to the Building Regulations Parts F (Means of Ventilation) and L (Conservation of Fuel and Power). These are proposed to deliver the first step towards zero carbon buildings which it is estimated will produce carbon savings of over 3 million tonnes a year from 2020. This is an important step on the roadmap towards the 2016 zero carbon target which will require dwellings to have a 25% improvement in energy efficiency standards from October 2010. (The expected date for this change was originally April 2010) The consultation also proposes a range of measures, including a strategy for training and dissemination, designed to further improve the levels of compliance and performance in buildings. The HBF is organising three seminars regarding these changes to Part F and Part L of the Building Regulations. The events will take place in July/ August. Location and venue will be dependent upon numbers although we anticipate that they will be held in London, the South West and Derby. If you would like to register your interest in attending one of these seminars please contact rosie.hinchliffe@hbf.co.uk Part A (Structural Safety) and Part C (Resistance to moisture and weather) The consultation documents for Parts A and C are still being prepared. The consultations will run together but it is now expected they will be out until later in the year. As with Parts F and L once these are released HBF will set up a working party to consider the industry response. Part J (Combustion appliances and fuel storage) The consultation document for Part J is currently being prepared and is expected to be released around the middle of August. As mentioned previously it is intended to be a light touch look at the current document with a few updates on certain references and standards. It will also include references to biomass and will look at the issue surrounding the use of carbon monoxide detectors. If you have any queries regarding any of the above please contact HBF’s Technical Director Dave Mitchell – dave.mitchell@hbf.co.uk or on 0207 960 1621 AND FINALLY... The traditional holiday period is nearly upon us, and I’m sure many of you are looking forward to a break after what has been a difficult and challenging year for our industry. Hopefully post summer we will start to see a firmer indication that we are through the worse of the downturn, but in the meantime enjoy your break whatever you may be doing - and don’t forget to be ready for the launch of New Homes Week on 12th September! Stewart Baseley Executive Chairman
