Top stories this week *CLG House Price Index - May 2008....read more *Halifax House Price Index.....read more *Bank of England maintains Bank Rate at 5.0%.....read more *Daily Express backs HBF's call for a stamp duty... Top stories this weekCLG House Price Index - May 2008....read moreHalifax House Price Index.....read moreBank of England maintains Bank Rate at 5.0%.....read moreDaily Express backs HBF's call for a stamp duty holiday.....read moreQuick LinksWales NewsHousing Market NewsEconomic NewsGovernment NewsIndustry NewsEventsLynn WilsonIt is with great regret that we have to inform you of the death of Lynn Wilson, who was president of the HBF in the early 1980's, following a car accident earlier this week. Following his appointment as managing director of the family construction firm Wilson Connolly, he grew the business in to one of the country's leading home builders before selling it to Taylor Woodrow in a £500m deal in 2003. A keen sports fan he was president and chairman of Northampton County cricket club. Our thoughts go to his wife and family. Wales NewsMinister delivers updated blueprint for the future of WalesThe blueprint for how the people and places of Wales will develop over the next two decades was endorsed by Assembly Members on 8 July after being presented by the Finance Minister, Andrew Davies.Read more Future for skills in Wales unveiledA bold new strategy outlining how Wales will drive up its skills levels in the future, has been unveiled by Deputy Minister for Skills. Read more to topAssembly Government issues a Direction to modify the Powys County Council Unitary Development PlanA letter on behalf of the Minister for the Environment, Sustainability and Housing, Jane Davidson, has been sent to the Acting Chief Planning Officer of Powys County Council issuing a direction to modify the Powys Unitary Development Plan under Section 17 (1) of the 1990 Town and Country Planning Act. Read moreto topHousing Market NewsCLG House Price Index - May 2008The latest UK house price index statistics produced by Communities and Local Government were released on Tuesday 8 July 2008. The release includes data based on mortgage completions during the month of May 2008.The key points from the release are:The mix-adjusted average house price in the UK stood at £218,151 in May 2008, down from £218,875 in April 2008 (not seasonally adjusted).UK house prices grew by 3.7% in the year to May 2008, down from 4.9% in April 2008. Annual house price growth was 7.8% in London in the year to May, up from 7.5% in April. By country annual house price growth was highest in Scotland (+6.9%) and lowest in Northern Ireland (-7.8%). Annual house prices grew by 1.5% in Wales, and rose by 3.8% in England. UK house prices grew by 0.5% in the quarter ending May 2008. This compares with a fall of 0.6% for the quarter ending February 2008. Read more to topHalifax House Price IndexThe Halifax House Price Index reported this week that:On an annual basis, house prices in June were 6.1% lower. UK average prices have returned to the level they were at in August 2006. The UK average price remains slightly higher (2%) than two years' ago, more than 10% higher than in June 2005 and almost 40% above that in June 2003. House prices fell by 2.0% in June compared to 2.5% in May, a slight moderation in the recent rate of decline. UK house prices have risen by 196% (£119,379) since the trough of the 1990s housing market downturn in July 1995. Prices increased for 48 consecutive quarters between 1995 Q4 and 2007 Q3 with the exceptions of 2000 Q2 when prices fell slightly (-0.1%) and 2005 Q2 (0.0%).The housing market continues to be underpinned by sound fundamentals. The research indicates that the labour market is the key driver of the housing market. Employment is at a record high of 29.55m. Total employment increased by 76,000 over the three months to April compared with the previous quarter and by 446,000 over the past year. A combination of borrowers putting down bigger deposits and the significant increase in house prices in recent years has resulted in homeowners building up very substantial levels of equity in their homes. The Bank of England recently reported that 70% of mortgage holders have at least 50% equity in their homes (Financial Stability Report, April 2008). Download the Halifax House Price Index to topRICS Accessibility and Affordability Indices July 2008The RICS indices report worsening housing market accessibility, driven by the reductions in loan-to-value ratios that lenders are offering buyers, as well as the continued burden of stamp duty and the other costs of buying a home. Lenders are forcing would-be buyers to put up more money for deposits and given that real income growth has stagnated, getting onto the housing ladder is now only slightly below the all time worst level seen in Q3 2004.RICS senior economist David Stubbs said:"Access to the housing market has deteriorated as the credit crunch has taken hold of the mortgage lender sector. With mortgage approvals declining, the picture does not look like improving in the latter part of 2008 and first time buyers will find their path to home ownership increasingly blocked."Those who are able to access the housing market, will find that a bigger deposit will mean that mortgage repayments are reduced but with real incomes stagnating this will seem like light relief only."Read more Allow social landlords to buy unsellable housesCouncils and other registered social landlords should be encouraged to engage in large scale acquisition of houses that cannot be sold in the current depressed housing market, in order to provide homes for the homeless or for those who cannot afford to buy or rent in the private sector, according to Liberal Democrat Treasury spokesman Vincent Cable MP.In the Institute for Fiscal Studies Annual Lecture, Dr. Cable argued that in addition to addressing social need, such a scheme would provide a cash-flow injection to the troubled house building sector and would help banks cope with the crunch. Dr. Cable also pressed the Government to increase its response to the current housing market problems at this week's Prime Minister's Questions.Read more View Prime Minister's Questions transcript to topEconomic NewsBank of England maintains Bank Rate at 5.0%The Bank of England's Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 5.0%.HBF comment on interest rates and support for the industryThe HBF took part extensively in radio and television interviews on Thursday and Friday before and after the Bank's decision. These interviews provided good opportunities to make the wider economic case for a reduction in rates, and to call on the Government to take further steps to assist the market - including help for first-time buyers and a stamp duty holiday. Stewart Baseley was interviewed on the BBC Radio 4 Today Programme and John Slaughter on the Radio 5 Live breakfast show. HBF also commented on ITN, BBC2's Working Lunch and Sky TV.Listen again to the BBC Radio 4 Today Programme Listen again to Radio 5 Live to topCML: Lending for house purchase lifts but remortgaging dropsLending for house purchase increased slightly from April to May, according to the Council of Mortgage Lenders. Loans for house purchase increased by 4% in volume to 52,700, and by 2% in value to £7.9bn; although both were 44% lower than May last year. However, there was a steep decline in remortgaging from April to May. There were 71,000 loans for remortgage, down 14% from April and 23% from May 2007. The value of remortgage lending declined by 13% in May to £9.6 billion, which represented 39% of all lending compared to 42% in April.The number of loans to first-time buyers rose by 4% from April to 19,200, but was 41% lower than May last year. Home movers took out 33,500 loans, up 4% from April, and down 46% from May last year. Gross lending declined to £24.5bn, down 6% from April and 22% from May last year. This is the seventh consecutive month that gross lending has been lower than its position a year before. CML director general Michael Coogan commented: "Lending levels continue to be lower than last year and any recovery is still some way away, with little sign of the special liquidity scheme increasing the flow of funds to the industry or lowering the cost of funds as hoped. We look forward to an early, positive report from the Crosby review on how the market should address these issues with the support of the tripartite authorities." Read more Nationwide: Economic uncertainty continues to affect UK consumer confidenceThe Nationwide Consumer Confidence Index released this week reports that:Confidence levels dropped to 61 in JuneThe biggest shift was in consumer sentiment around the future economic situationMore than half (53%) believe the economic situation will be worse in six months' time - the highest number this year and 24% more than this time last yearThe number of consumers who think now is a good time to make a major purchase such as a house or car increased to 18% in June, the highest level since July 2007Read more to topGovernment NewsCLG publish "Communities in control: real people, real power"Communities Secretary Hazel Blears published a White Paper on 9 July setting out proposals which aim to deliver a fundamental shift in power, influence and responsibility into the hands of communities and citizens."Communities in control: real people, real power" sets out how the Government plans to give citizens and communities more rights and more power through:more information and greater influence over the local decisions that affect them; new means of holding politicians and councils to account; and, where they choose, more opportunity to get directly involved in managing and shaping how local services are delivered. Read more The Mayor of London: "Planning a better London"The Mayor of London Boris Johnson announced on 9th July his direction of travel for future development in London. Entitled "Planning a better London" the report builds on his election promises and sets out how the Mayor will revise the existing London Plan - the capital's regional spatial strategy.While much emphasis is given in the document to collaboration between the public, boroughs and developers, pivotal to the new agenda is strengthening of local power and community. Much greater protection is to be given to the Green Belt and other open spaces, to heritage and to local character. The Mayor has announced the creation of an Outer London Commission to give the suburbs a much greater voice. While suburban local authorities had felt vulnerable to development pressure under the previous Mayor, it now seems they will be given a much greater say on the nature, scale and character of future development and in the implementation of the revised London Plan strategies. The GLA has separately told the HBF that it is no longer able to insist that adequate supplies of land for housing should be found in places where there was market demand (e.g. deliverable and developable areas like Richmond, Kingston, Bromley, Barnet).While the Mayor's announcement to relax the London Plan's 50% affordable housing target is welcome, we may therefore see less land coming forward in some desirable development locations. This may carry the risk of higher affordable housing quotas being set in more deprived boroughs in order to meet the overall 50,000 affordable homes target by 2011.The document is now out for consultation. Comments to the GLA by 10 November 2008.Read more to topMayor of London announces £60m to tackle empty homesA £60m ‘rescue' package to tackle the capital's empty homes problem was announced by the Mayor of London, Boris Johnson, to help deliver his manifesto commitment to reduce long-term empty homes to 1% of London's total housing stock.The funding will focus on bringing long term abandoned properties, derelict buildings and listed buildings at risk back into residential use to provide much needed affordable homes. In doing so it will benefit neighbourhoods by tackling properties that have become an eyesore and a magnet for anti-social behaviour.An audit of London's dilapidated and abandoned buildings will also be commissioned to draw attention to the worst properties and encourage action to be taken against them. Read more to topIndustry NewsDaily Express backs HBF's call for a stamp duty holidayLed by a front page article today, the Daily Express has come out in support of the campaign by the HBF and other housing organisations to introduce a stamp duty holiday to assist the housing market and the wider economy. The article quotes Steve Turner, HBF's Head of Media:"A stamp duty holiday would give real impetus to the property market and have implications for the wider economy. The Government must act to address the stark reduction in the number of transactions. Suspending stamp duty has been successful in the past and could work again. It is in everyone's interests that this is done."Citing that such a move had successfully boosted the economy during the recession in 1992, the HBF reiterated its call for a suspension of stamp duty on all properties worth less than £1m. Read more to topGreen Housing Upgrades would create £3.5 billion market for builders, says Oxford UniversityBuilding firms, product manufacturers and suppliers could stand to tap into a new market worth between £3.5 and £6.5 billion per year if the UK developed policies, skills programmes, and financial incentives to upgrade our existing housing stock to make it greener and more energy efficient. In addition a refurbished housing stock would help reduce escalating household energy bills as well as making a real difference to climate change. These are the conclusions from a new research report, "Building a Greener Britain - Transforming Britain's Housing Stock", commissioned by the Federation of Master Builders (FMB) from the Environmental Change Institute, at Oxford University.The report's recommendations include:New government housing policy to demonstrate its commitment to low-carbon refurbishment of existing homes, so that manufacturers and suppliers can invest with confidence in the development of the necessary supply chains Cut VAT from 17.5% to 5% on housing refurbishment across the UK as soon as possible. Introduce Council Tax rebates to promote energy efficient homes Introduce a feed-in tariff to stimulate greater uptake of micro-generation technologies Review of Energy Performance Certificates to improve accuracy and reliability Energy efficient work to be carried out at the same time as other refurbishment work. Read more Download "Building a Greener Britain - Transforming Britain's Housing Stock" NHBC launches Callcutt Task Group on Customer SatisfactionThe National House Building Council has joined forces with John Callcutt to launch a new initiative aimed at supporting the house building industry in its quest to make further improvements in the standards of finishing and customer service it offers to new home buyers. The remit of the Callcutt Task Group on Customer Satisfaction will be to address market surveys which show that customer expectations are rising in a climate where the Callcutt Review of Housebuilding Delivery and the OFT market study have put the spotlight on customer satisfaction. Read more to topNFRL merges with NLA to create UK's largest landlord associationThe National Landlords Association (NLA) and the National Federation of Residential Landlords (NFRL), who together represent nearly 20,000 landlords, have announced they are to merge creating the largest representative body for landlords in the United Kingdom.Read more Britain needs to build the right houses in the right placesA new report from the Centre for Cities calls on the Government to deliver on its pledge to build 3m new homes by 2020, by tailoring new housing to the needs of city economies. Read more Download a copy of the report to top16 further ALMOs approved for access to new build funding16 Arms Length Management Organisations have been pre-qualified to access to funds to enable them to build new homes. The decision by the Housing Corporation brings the total number of ALMOs approved to access the housing grant from the £8.4bn National Affordable Housing Programme to 22 across the country. Read more Have you been asked to duplicate CIS statements or provide information for sub-contractors?If you have been asked by a sub-contractor or his accountant to duplicate a Statement of Deduction, or to provide details of the payments made to him within CIS for the tax year 07-08, could you please send a short note to liz.bridge@theCC.org.uk. The CC is trying to establish whether there has been an increased workload. (HMRC have recently refused to provide information from their systems to accountants acting for sub-contractors who have lost their records of payments made within CIS).to topCIS: Many firms losing gross payment status - check your payment historyThere is considerable upheaval underway for many long-established and respectable construction firms. There are about 107,000 such firms with "CIS GROSS" status in construction. HMRC are reviewing the taxpaying history of about 12% of those firms each month and so far 1 in 5 firms are failing their review and having to move from "CIS GROSS" to "CIS NET".Please check that your business has its cheque for PAYE and CIS deducted in the hands of HMRC by the 19th of each month (not just in the post). If you pay by BACS transfer check that HMRC has its money by the 22nd.Scottish Building, the National Federation of Builders and the Major Contractors Group have all had members affected and this is becoming a serious concern.URGENT - HMRC issue new fuel rates from 1 July 2008 The rising cost of fuel has forced HMRC to issue new advisory fuel rates. Although these rates are described as "from 1 July", employers can refund mileage undertaken after 1 June at these rates. Engine Size Petrol Diesel LPG 1400cc or less 12 137 1401cc - 2000cc 1513 9 Over 2000cc 2117 13 Petrol hybrid cars are treated as petrol cars.to topEvent NewsHBF Annual Planning Conference 2008Wednesday 10 September - The Kassam Stadium, OxfordThis year's conference will discuss the combined challenges of climate change and the new planning act. The day is designed to provide delegates with both vital knowledge from the plenary sessions and practical guidance through our interactive workshops on the Community Infrastructure Levy and the PPS1 supplement on Climate Change.For further information please contact the events team on 020 7960 1646 or events@hbmedia.co.uk to topHousing Market Intelligence15 October - Savoy Place, LondonThe annual Housing Market Intelligence conference is the housebuilding industry's leading event for discussion of the strategic and macro issues facing housebuilders and is a must for anyone involved in the business of housebuilding."For further details please contact the events team on 020 7960 1646 or events@hbmedia.co.uk HBF Technical ConferenceWednesday 12 November, University of York2008 has seen the government propose major changes to the way that Building Regulations are enforced. With many regulations under consultation, it is important to keep informed of the current and future legislation. The morning section of the conference will provide delegates with up to date information on Parts G & L, the Code for Sustainable homes as well as examining the future direction of travel for building regulations.The afternoon is to be devoted to the delivery of Zero Carbon Homes with the agenda to be set by the new zero carbon hub. For further details please contact the events team on 020 7960 1646 or events@hbmedia.co.uk For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetingsFor HBM events visit http://www.hbmedia.co.uk/ to topRosie HinchliffeView Previous Weekly News Summary
