Friday, 12 December 2008Top stories this weekCLG announce further changes to the Home Information Pack (HIP).....read more LGA argue for new funding to support housing delivery.....read moreCLG House Price Index.....read moreOFT to seek views ahead of home buying and selling market study.....read moreQuick LinksWales newsGovernment and political newsHousing market newsIndustry newsHBF newsEventsWales newsFurther action to support mortgage rescue announcedThe Deputy Minister for Housing, Jocelyn Davies AM has announced an extra £4.5 million for the Assembly Government's Mortgage Rescue Scheme, taking the fund to £9.5 million a year.Ms Davies said that action was being taken as a response to the growing number of homeowners who now face difficulties as result of the ‘credit crunch'.Read more £3.9 billion for Council services in WalesLocal Government Minister, Dr Brian Gibbons has set out the final details of the £3.9 billion local authorities in Wales will receive in core funding for the services they deliver in the coming year.Announcing details of the final settlement for 2009-10, Dr Gibbons said that he was providing funding to ensure that no authority in Wales would receive a settlement increase of less than 1.5%.Read moreHouse-buyer inquiries are up for the first time since 2006Potential house-buyers in Wales have begun "window shopping" again in advance of the new year, providing a glimpse of good news for the property industry.Figures published by the Royal Institution of Chartered Surveyors (RICS) have revealed that new buyer inquiries are finally beginning to rise for the first time since October 2006.Read moreGovernment and political newsCLG announce further changes to the Home Information Pack (HIP)CLG has announced a series of changes to the HIP following a consultation in the summer.A key change is the required introduction from 6 April 2009 of a standardised Property Information Questionnaire (PIQ) in the pack to provide a summary of information about the marketed property. Following HBF comments, CLG has recognised the different circumstances relating to the sale of new and existing homes and is therefore introducing a separate version of the PIQ for new homes. CLG consider the PIQ will help buyers make decisions about whether to view a property, and ultimately whether to make an offer.Other changes include:Ending the first day marketing exemption for HIPs from 6 April (this exemption currently allows a property to be marketed for up to 28 days provided a HIP has been ordered);Expanding HIP content - details in the PIQ will include flood risk information, gas and electricity safety, service charges, structural damage, and parking arrangements.Housing Minister Margaret Beckett commented:"Home Information Packs are potentially a vital aid to consumers who are seeking to purchase a home, and I am firmly committed to ensuring they work as well as possible. That is why the changes made today will make sure consumers are better protected, better informed and better assisted when buying a home."It is essential that all buyers are able to see the HIP as early as possible to ensure they are benefiting from this important information, and that sellers are getting to see the pack they are paying for."Read more to topGovernment announces funding for housing growth areasHousing Minister Margaret Beckett has announced £605M of funding allocations spread across 163 local authorities with long-term plans to increase housing supply.The money - which will be managed for Government by the new Homes and Communities Agency - includes confirmation of 2009/10 allocations and provisional awards for 2010/11 for local authorities with Growth Point or Growth Area status. The funding enables authorities to invest in services to support new housing including transport links, schools, regeneration of town centres and the provision of parks and green spaces.Commenting, Mrs Beckett said:"In these difficult economic times we must not lose sight of the long-term need to build more homes. Yet if the support for these new homes is not in place, their construction will be delayed when we need them most, hampering the economy's recovery."Read moreTreasury provides more details of Homeowner Mortgage Support SchemeThe Treasury has released further details of the new Homeowner Mortgage Support Scheme, first announced by the Prime Minister last week.The scheme will allow lenders to reduce a borrower's current monthly mortgage payments, with the deferred payments rolled up, added to the principal, and paid at a later date when the borrower's financial circumstances have improved. The Government will guarantee the lender against a proportion of any loss incurred on the deferred interest payments in case the borrower defaults.Included in the qualification criteria for this voluntary scheme, the borrower must:have suffered a loss of income from employment or self-employment of a scale which now makes full mortgage payments difficult, but which is not expected to be a permanent loss of income;have been in dialogue with their lender, including over the use of existing forbearance policies, and have been making some level of regular payment;have taken out a mortgage of up to £400k; have savings below £16,000, (which is the same as for the existing Support for Mortgage Interest scheme (SMI)); not be in receipt of SMI or mortgage rescue assistance; Read moreto topLGA argues for new funding to support housing deliveryThe Local Government Association (LGA) has proposed that the Government sets aside a £1.5bn fund to help around 60,000 first time buyers onto the property ladder, as part of a package of proposals to kick start the housing market and cut the council house waiting list.In a speech in London, Councillor Margaret Eaton, Chairman of LGA, called on ministers to step up the speed and scale of intervention in the housing market. She argued that a targeted £1.5bn scheme could build on existing ‘Homebuy' projects and help around a quarter of potential first time buyers put down a deposit on a property.Councillor Eaton said:"Thanks to the credit crunch, the first time buyer is now an endangered species and the knock-on effects have helped to cause the complete stagnation of the housing market. Falling prices have done little to help hundreds of thousands of people get a foot on the ladder because they are now unable to get a mortgage unless they have a hefty deposit."A well targeted and selective deposit scheme wouldn't just help out tens of thousands of people get a house they can call a home, it would also go some way to unblocking the housing market that has ground to a halt."The LGA is also calling for a range of other measures, including extra freedom for councils to be able to borrow against their assets to build new council houses.Read moreto topHousing market newsCLG House Price Index: October 2008The latest UK house price index statistics produced by Communities and Local Government were released on Tuesday 9 December 2008.The latest statistics release includes data based on mortgage completions during the month of October 2008.The key points from the release are:UK house prices were 7.4 per cent lower than in October 2007. The mix-adjusted average house price in the UK stood at £203,539 in October 2008 (not seasonally adjusted). UK house prices fell by 5.3 per cent in the quarter ending October 2008. This compares with a fall of 1.6 per cent for the quarter ending July 2008. Annual average house prices fell in England (-7.3 per cent), Wales (-7.8 per cent), Scotland (-4.5 per cent) and Northern Ireland (-20.5 per cent). Annual average house prices paid by first time buyers in October 2008 were 9.7 per cent lower than a year ago. By comparison average house prices paid by former owner occupiers were 6.6 per cent lower. Download a copy of the CLG house price index to topCLG planning applications figures - Sept 08 quarter.Planning applications statistics for the September quarter 2008 were released this week by Communities and Local Government. The latest statistics included:The number of planning applications received by district level planning authorities decreased by 19 per cent when compared with the September 2007 quarter. District level planning authorities saw a decrease of 15 per cent in the number of applications decided when compared with the same quarter a year ago. Decisions on planning applications (granted or refused) for residential developments (dwellings) decreased by 14 per cent in the September quarter 2008. Authorities that undertake county level planning activity determined 377 applications; a decrease of 1 per cent when compared with the same quarter a year ago. The proportion of applications granted was marginally down by 1 percentage point to 92 per cent compared with 93 per cent a year ago. Download a copy of the Planning Applications documentRICS: Sales edge a little lower but buyer interest picks upThe average number of transactions per surveyor fell again in November but buyer interest rose for the first time in over two years, says RICS' UK housing market survey published this week.The balance of surveyors reporting house price falls fell back slightly in November with 76.5% more Chartered Surveyors indicating a fall than rise in house prices, a decrease from 81% in October. Meanwhile, the number of transactions slipped further as lenders continued to keep a tight grip on finance. The average number of transactions per agency (over the last three months) is now at 10.6, a drop from 10.9 in October, and the lowest figure since the survey began in 1978.Significantly, interest in the market turned positive for the first time since October 2006 while expectations that sales volumes will pick up also remained positive - although surveyors were less optimistic than in October. 14% more Chartered Surveyors reported a rise than a fall in new buyer enquiries up from a negative balance of minus nine.Commenting, RICS spokesperson Jeremy Leaf said:"Many are starting to see the current market as an opportunity to purchase a previously unaffordable property despite the worsening economic picture. But, unless people feel relatively confident about their job prospects, they're unlikely to even try to obtain mortgage finance unless of course trading down or seeking to release capital. Vendors still have to accept the inevitable fact that house prices are falling and re-price their property to suit current market conditions."Read more Download a copy of the RICS' housing market survey to topMPC member talks of a return to nineteenth century model of boom and bustIn a speech given in his personal capacity, MPC member Andrew Sentance has shared his analysis of the factors that lie behind the current financial and economic slowdown.Speaking at the MPR Monetary Policy and the Markets Conference on 9 December, Mr Sentance said:"I think it is quite plausible that in a world where inflation is generally low and stable, financial cycles may once again re-emerge as the main cause of macro-economic volatility, just as they did in the earlier (pre-first World War) period of price stability underpinned by the gold standard. In analysing and understanding these cycles, we will probably need to pay more attention to measures of money and credit and the channels through which they affect the real economy and inflation..."Talking about the period from the early 1990s on, he added:"Unlike previous booms, this was a much more slow-burning "boom" - which showed itself in property price inflation and financial imbalances rather than through more traditional measures of inflation."Read the full speechCLG consultation on costs awards in appealsCLG has issued a consultation on a revised Circular on costs awards in appeals. The consultation runs until 20th February 2009. HBF is seeking members' comments - to Andrew.whitaker@hbf.co.uk.Read the consultation documentto topIndustry newsOFT to seek views ahead of home buying and selling market studyThe OFT has announced that it intends to launch a market study into home buying and selling, looking at traditional estate agency models and alternative ways of buying and selling homes.Ahead of this, the OFT is writing to stakeholders to ask for their views and engage with them to discuss the scope and scale of the study, which will commence in early 2009.The OFT proposes that the market study should take a comprehensive look at home buying and selling in terms of:Competition on price and quality between service providers;The prospects for new entry by, in particular, internet property retailers;The extent to which consumer interests are protected by the existing regulatory framework. The study may also cover the relationships between estate agents, and mortgage brokers, surveyors, solicitors and other professional advisors.Read more to topNAEA welcomes OFT studyThe National Association of Estate Agents has welcomed the OFT study. Chief Executive Peter Bolton King, commented:"We welcome the news that the Office of Fair Trading is to launch a market study into the housing market. We will of course work as closely as possible with any study of the market - and we are hopeful that any such study will raise consumer awareness about the reality of the market."There is nothing to stop anybody from becoming an estate agent and there is a real need for consumers to be aware of this. Buying a house is probably the largest investment that a person will make, so they should make sure that they use property professionals and that is why we ensure all NAEA members follow our Rules of Conduct."The NAEA has long called for appropriate regulation of the market and I hope that the OFT will recommend the same when it concludes its study."NHBC invites members of the public onto its CouncilNHBC has written to 100 of its Buildmark policy holders at random, inviting applicants to join the broad range of stakeholders that already form NHBC's Council.Imtiaz Farookhi, NHBC Chief Executive commented, "For more than 70 years NHBC has helped to raise the standard of new homes and provided consumer protection for homeowners. Buying a home is the biggest, most important purchase any of us are likely to make and with the economic downturn continuing to affect building activity severely on site and calls for homes to be built to tougher environmental standards, it has never been more important for the consumers' voice to be heard on issues relating to the quality of homes and consumer protection."Employers and public sector to create 10,000 apprenticeship placesSkills Secretary John Denham announced that at least 10,000 apprenticeships will be created in spite of the contraction in the economy. Alongside plans by major retailers to increase their number of apprentices, new Government commitments on public procurement are expected to see upwards of 7,000 new apprenticeships in the construction sector as a whole. Mr Denham confirmed the Government's wish to continue to increase the number of apprenticeships and said:"This shows that we are well on the way to making apprenticeships a mainstream option for young people who want to get on. We anticipate that one in five of all young people will be undertaking an apprenticeship by the end of the next decade."Read more Member note: The clearing house established to assist existing apprentices at risk of redundancy in the slowdown has a national telephone helpline number (0844 875 0086). This can be circulated to employing organisations for their own use or to pass-on to apprentices or parents as the contact point for the matching service. to topCML seeks greater clarity as the lending slump continuesThere were 39,900 house purchase loans in October, worth £5.5bn, according to new data from the Council of Mortgage Lenders. This was an increase of 14% in volume and 10% in value from September, but represented an annual decline of 52% in volume and 57% in value.The rise in house purchase lending was evenly spread across first-time buyers and home movers. There were 15,400 loans to first-time buyers and 24,500 home mover loans in October, up 15% and 14% respectively from September. A modest rise would typically be expected between September and October, but uncertainty in the summer about a stamp duty holiday may also have inflated October completions compared with September.There were 70,000 remortgage loans worth £9.4bn, an increase of 12% in volume and 11% in value from September and a decline of 31% in volume and 28% in value from October 2007. Gross lending rose slightly to £18.6 billion, up 6% from September but 44% lower than October last year.Michael Coogan, CML Director General, commented:"To different degrees lenders are facing conflicting pressures to recapitalise against possible future losses, service government's preference shareholdings at 12%, pay a premium to access the Bank of England Special Liquidity Scheme, show forbearance to borrowers in arrears, follow base rate moves down to help their existing borrowers, keep savings rates high to support existing savers, and provide competitive rates to new borrowers and savers to maintain economic activity in a recession..."Current policy objectives are conflicting and incoherent. The government needs to decide on its key priority. The tug of war with lenders being pulled in every direction at once needs to end."Read more to topHBF NewsHBF's offices will close for Christmas at 12.30pm on Wednesday 24 December and reopen on Monday 5 January 2009.As in previous years HBF will not be sending traditional Christmas cards but has instead made a donation to its nominated charity ‘Habitat For Humanity'.to topEventsHBF Policy ConferenceTuesday 17 March 2009, Central LondonThe HBF Policy Conference will look at the current challenges facing the industry. A full list of speakers and further details will follow shortly. If you have any questions then please contact the events team on 020 7960 1646 or events@hbmedia.co.uk HBF Annual Industry Lunch 2009Wednesday 22 April, Central LondonThis year's HBF AGM and Annual Industry Lunch will take place on Wednesday 22 April. Further details and a booking form are now available on the HBF site please click here.If you have any questions then please contact the events team on 020 7960 1646 or events@hbmedia.co.uk to topHope Challenge: 12 - 14 June 2009, Peak DistrictHBF's nominated charity, Habitat for Humanity, which builds safe, decent homes for families living in poverty, is organising a fundraising event to take place next summer. Hope Challenge 2009 is a challenge event for teams of 3-6 people and will test your initiative, your teamwork and your fitness. And by sleeping in your very own shelter you will experience some of the challenges faced by those who live in poverty housing. The event involves:2 days and 2 nights in the great outdoors Mental and physical team challenges 1 overnight shelter to build, and sleep in 1000m of hill ascent and 20 miles of trekking A balance of fitness, strategy and team workWe are looking for teams of people who want to rise to the challenge of raising funds in support of the 2 billion people living in poverty housing around the world.Click here for more information and entry requirements Housebuilder magazine Are you a member of the Home Builders Federation? As a member you are eligible to receive a free copy of Housebuilder magazine each month. Housebuilder is a leading source of information for people working in house building, containing all the latest industry news and analysis. Click here to claim your free copy 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
