HBF Wales Weekly News Summary Friday 13 March 2009

Friday, 13th March 2009Top stories this weekHousehold projections to 2031, England.....read more New orders in the construction industry.....read more

CML: Lending declines further in January.....read moreRICS: Buyer interest continues to grow.....read moreQuick LinksWales news Industry news Economic news Housing market news Government and political news HBF news Events Wales newsWales Launches Zero Carbon Hub

The new Wales Zero Carbon Hub was launched on Monday 9th March 2009. The aim of the Hub is to promote the reduction of carbon emissions from buildings in Wales and provide the necessary training and skills to those involved within the process.

The HBF attended the launch seminar on the 9th March and has been invited to sit on the Zero Carbon Hub Steering Group, which will contribute to the work programme. At the launch meeting, the Minister - Jane Davidson AM - updated the members on progress of the sustainable buildings agenda and indicated that the devolution of building regulations is in the final stages of completion. Francois Samuel from Assembly Government and Rob Pannell of the UK Zero Carbon hub also updated on progress of the consultation on the definition of Zero Carbon - please click here for further information.

New house building, October to December 2008

Statistics released this week on the number of new dwellings started and completed include data for Wales for the period October to December 2008, as reported by local authorities. The latest release updates the statistics previously released on 10th December 2008. This information is based on the reports of local authority building inspectors and the National House Building Council (NHBC). It does not include information from private approved inspectors. The key points from the latest release are:

Starts:

During the October to December 2008 quarter 677 new dwellings were started;

The number of starts has decreased by 620 (48%) from the previous quarter and decreased by 2,150 (76%) from the same quarter of the previous year;

The private sector accounted for 618 new dwellings started, some 91% of all activity. Of the remaining dwellings, 59 were started by registered social landlords. There were no dwellings started by local authorities;

During the quarter, the highest numbers of starts across all tenures were seen in Cardiff and Powys, whilst Denbighshire and Swansea saw the lowest number of starts

Completions:

1,691 dwellings were completed during the October to December 2008 quarter;

The number of completions decreased by 103 (6%) from the previous quarter and decreased by 598 (26%) from the same quarter of the previous year;

1,529 dwellings (90%) were completed by the private sector. The remaining 162 dwellings were completed by registered social landlords. There were no dwellings completed by local authorities;

The highest numbers of dwelling completions, across all sectors, were seen in Cardiff and Swansea whilst the lowest were seen in Torfaen and Denbighshire.

Click here to download a copy of the statistics

to topWelsh housing statistics 2008

The key points in the Welsh housing statistics released this week were:

The total number of dwellings in Wales at 31st March 2008 was estimated to be 1.33 million;

There were 10,135 new dwellings started during 2007-08, an increase of 11% on the total number started in 2006-07;

During 2007-08 there were 52 statutory sales of RSL dwellings, with 58% being sold via the Right to Buy scheme;

In 2007, households buying with a mortgage in Wales had an average recorded income of £43,600. On average they received a mortgage of £115,400, which was 68% of the average house price of £169,800;

During 2007, 36% of mortgages in Wales went to first-time buyers but only 10% of all buyers in Wales were under 25 years old;

During 2007-08 the total number of transactions decreased by 12% to 54,173 from 61,645 in 2006-07;

House prices for all dwelling types rose to an average of £162,173 in 2007-08, from £154,940 in 2006-07, an increase of 5%.

Download a copy of the statistics

Finance Minister to discuss economic recession and budgetary pressures with counterparts from other UK governments

Finance and Public Service Delivery Minister Andrew Davies met the Chief Secretary to the Treasury and the Finance Ministers of the other devolved administrations on 12th March to discuss the current economic situation.

The meeting, which was held in Edinburgh, was due to discuss the efficiency savings announced by the UK Government before Christmas, and the impact these could have on Wales, Scotland and Northern Ireland.

to topNew affordable homes

Jocelyn Davies AM, Deputy Minister for Housing, today met some of the first people to move into new social housing bought with some of the £42m funding, aimed at helping to boost the economy.

In December, Ms Davies announced that the Strategic Capital Investment Fund (SCIF) money would be available for Housing Associations to buy unsold homes and plots from private builders.

The money has been given to Local Authorities to create up to 500 new affordable homes. This will help the Assembly Government to reach its ambitious target of creating 6,500 more affordable homes. Ms Davies explained:

"One of our aims was to help the most vulnerable families in Wales to get good quality affordable housing. This action has also provided a cash flow to the construction industry, keeping people in work and supporting jobs."

The funding allows Housing Associations to increase the number of affordable homes and inject liquidity into the construction industry. Registered Social Landlords will be seeking to meet housing need in the economic crisis while achieving value for money

Major investment to develop transport for Wales

The Minister for Economy and Transport has this week announced grants of more than £95m to improve roads, develop sustainable transport and encourage walking and cycling across Wales.

Under this year's allocation of Transport Grants to local authorities road schemes receive more than £63million, sustainable transport packages get £21m and £10m has been awarded for walking and cycling projects.

to top Industry newsHousehold projections to 2031, England

The latest National Statistics on the projected growth in the number of households in England and its regions to 2031 were published this week. The figures in this release are based on the 2006-based population projections and replace the 2004-based household projections released in February 2008.

Key points from the latest release are:

The number of households in England is now projected to grow to 27.8 million in 2031, an increase of 6.3 million (29%) over the 2006 estimate, or 252,000 households per year;

Population growth is projected to be the main driver of household growth, accounting for nearly three-quarters of the increase in households between 2006 and 2031;

One person households are projected to increase by 163,000 per year, equating to two-thirds of the increase in households;

By 2031, 32% of households will be headed by those aged 65 or over, up from 26% in 2006;

By 2031, 18% of the total population of England is projected to live alone, compared with 13% in 2006;

The South East region is expected to see the largest absolute increase in households of 39,000 per year from 2006 to 2031, a 28% rise from the 2006 level;

The North East region shows the smallest growth in households, at 8,300 per year from 2006 to 2031, or a 19% rise from the 2006 level.

Download a copy of the statistics

to topHBF: Action needed NOW to get home builders building

In a press release on the new household projections, HBF said the Government household projection figures demonstrated that the need for Government action to tackle the major causes of the current supply constraint has never been clearer.

We said that if it is to avoid significant problems in the future, and a further loss of house building industry capacity, the Government must as a matter of urgency;

Use the influence it now has in the banking sector to ensure some sensible levels of mortgage lending return - the key issue affecting supply;Look to use public money in a range of innovative ways to kick start housing sites of all types.

Stewart Baseley, Executive Chairman of the HBF said:

"Today's figures are a stark warning of the need to get builders building again. Housing supply is being strangled by the lack of mortgage availability at the very time we should be increasing output. The Government needs to act now, otherwise further jobs and industry capacity will be lost - and let us be clear there is no one else apart from the private house building industry going to build these desperately needed homes".

New orders in the construction industry

The key points from the latest statistics on orders for new construction, produced by the Office for National Statistics, are:

Orders in the three months to January 2009 fell by 12% compared with the previous three month period;Orders in the 12 months to January 2009 fell 20% compared with the previous 12 months and orders in three months to January 2009 fell by 32% compared with the same period a year earlier;In the three months to January 2009 compared with the same period a year earlier, private housing orders fell by 55% and public and housing association housing orders fell by 45%.

Download a copy of the statistics

HomeBuy Direct official launch

HBF is discussing with the HCA an official launch for HomeBuy Direct. This is expected imminently.

to top Economic newsCML: Lending declines further in January

Mortgage lending activity continued to reduce in January with only 23,400 loans for house purchase completed, down from 32,400 in December and 48,600 in January 2008, according to new data from the Council of Mortgage Lenders.

The decline in house purchase lending was spread evenly between first-time buyers and home movers. There were 14,500 loans to home movers, down from 20,200 in December and 30,600 in January 2008. There were 8,900 loans to first-time buyers, down from 12,200 in December and 18,000 in January 2008.

The CML also said that lending criteria were tightened further in response to the worsening economy and falling house prices, creating a barrier for many first-time buyers wishing to enter the market. The typical first-time buyer deposit in January was 24%, the largest amount on record.

But at the same time lower interest rates and income multiples have made payments easier for those able to obtain credit. First-time buyers typically borrowed 3 times their income in January and the average loan was £97,000. The typical first-time buyer spent 15.8% of income on mortgage interest payments, the lowest proportion since July 2004.

The average home mover borrowed £117,300 and spent 11.9% of their income on interest payments, the lowest proportion since March 2004.

to top Housing market newsRICS: Buyer interest continues to grow

Buyer enthusiasm continued to grow in February with interest in London at a high not seen for more than two years, says RICS' UK housing market survey published this week.

Interest in the market increased for the fourth consecutive month. 20% more Chartered Surveyors reported a rise than a fall in new buyer enquiries up from 15% in January. Interest is strong in nearly every region with London and the south of England leading the way. In fact interest in London reached levels not seen since October 2006. 44% more Chartered Surveyors reported a rise than a fall in new buyer enquiries in London up from 25% in January. The rise in interest reflects both the drop in asking prices and continued interest rate cuts. As house prices fall, those with finance are looking to pick-up bargains

However, this pent up demand has not yet translated into sales. The average number of transactions per agency (over the last three months) was at 9.5, a drop from 9.8 in November, and the lowest figure since the survey began in 1978. The balance of surveyors reporting house price falls increased slightly in February with 78.3% more Chartered Surveyors indicating a fall than rise in house prices, from 76.6% in January.

to top Government and political newsMargaret Beckett urges councils to take a stand on empty homes

Councils are being given more support to help them bring empty homes back in to use in the current economic climate, announced Housing Minister Margaret Beckett this week.

New guidance is being published with the Empty Homes Agency, setting out the range of strengthened powers local authorities have to deal with the problem of empty homes, including the use of Empty Dwelling Management Orders (EDMOs).

While the number of long term empty homes has fallen by 9% over the last decade, Mrs Beckett is calling on councils to take firmer action to tackle the blight of empty homes and re-use properties. The guidance sets out how local authorities can use the tools at their disposal for dealing with empty homes, including:

Increasing pressure on owners to bring their empty properties back into use. The guidance makes clear councils should try to track down owners of empty properties, for example by placing adverts in newspapers, visiting their home address, or using professional search agencies if appropriate;

Encouraging local authorities to issue an EDMO as a last resort where other measures have failed, by explaining clearly how they can be used. EDMOs allow local authorities to take over the management, not the ownership, of a property. The guidance shows that even the threat of an EDMO can have a significant impact on encouraging owners to work with councils to bring homes back into use;

Acting on local residents' concerns and petitions to bring empty homes back into use through a range of powers, including EDMOs. Under the Local Democracy, Economic Development and Construction Bill going through Parliament at the moment, local people will be able to petition councils to bring empty homes back into use.

to topEast Midlands Regional Spatial Strategy

Plans for delivering the new homes, jobs and infrastructure the East Midlands needs up to 2026 were announced by Communities Minister Sadiq Khan this week. The key points in the East Midlands Regional Spatial Strategy include:

Higher housing growth to deliver 430,300 new homes by 2026 to address household growth and affordability issues in the region. At least 60% should be built on brownfield, previously developed, land;

A range of affordable housing targets across the region with at least 32% of all new housing across the region affordable;

The Plan sets out the need for a strategy for the coastal districts of Lincolnshire to consider flood risk, housing, regeneration and infrastructure needs. Limited growth levels until a coastal strategy is drawn up and agreed;

Inclusion of a target for 10% of new developments' energy to be secured from local renewable and low carbon sources;

Rejection of the Panel's recommendation to scrap much of the Green Belt around Nottingham. Instead a full review of land availability should be done to establish the capacity to accept new building in the existing built up area of Nottingham and around the conurbation;

Eco-towns are not part of the Regional Plan but will be looked at in the next Partial Review of the Plan which is due to be published in autumn 2011.

The Plan focuses growth in the three cities of Nottingham, Derby and Leicester, where almost half of the region's population live, and Northampton and Lincoln. It states that significant levels of development should also be concentrated in the Growth Area towns of Corby, Kettering and Wellingborough.

HBF response to the Secretary of State's original proposals can be found on the website. Click here to view

Adjournment debate on housing and construction in the downturn

Gordon Banks MP held an Adjournment Debate in the House of Commons on 9th March to draw attention to the significant impact of the downturn on the housing and construction industries and to call for Government action to help maintain capacity. HBF briefed Mr Banks ahead of the debate so that he was aware of our latest assessment of the situation and the actions we are seeking.

Read more (scroll down to view)

to top HBF newsSection 38 Highways Act 1980 - Commuted Sum Payments

The HBF has produced a position statement regarding Section 38 of the Highways Act 1980 commuted sum payments.

The statement has been prepared by a group set up by the HBF Board as a result of the substantial increase in the number of times these payments are being demanded by highways authorities. It explores the history of highway adoption and the role and influence of planning and Building Regulation decisions upon this. The paper is available to members on the HBF website, please remember to login before following the link below.

HBF comment on the business finance position

John Slaughter was interviewed on the BBC Radio 4 Today Programme on Wednesday morning about the difficulties sound businesses are experiencing in obtaining normal business finance facilities and the impact this has on activity levels and employment.

Listen again

to top EventsHBF ‘Building towards a brighter future' conference - Shapps and Kerslake to speak.

Tuesday 17th March 2009, Central London

Conservative Shadow Housing Minister Grant Shapps heads a heavyweight list of speakers for this year's HBF Policy Conference that includes HCA Chief Executive Sir Bob Kerslake, CML Director General Michael Coogan, housing expert John Callcutt, Zero Carbon Hub Chief Executive Neil Jefferson and, fresh from completing the Killian Pretty review David Pretty. Other speakers include economic experts Richard Donnell and Christopher Hill who will be joining HBF's John Stewart to further develop issues raised in a highly successful session at last year's Housing Market Intelligence conference.

The conference will be chaired by HBF Executive Chairman Stewart Baseley and will look at a range of issues and challenges currently facing the industry.

For more information and details of the full agenda please click here or contact the events team on 020 7960 1646 or events@hbmedia.co.uk

Zero Carbon, Part F and Part L - The cost and impact on housebuilders

Wednesday 20th May 2009 - Think Tank, Birmingham

With the consultations for Building Regulations Parts F & L and the zero carbon definition taking place this year, this conference will help housebuilders understand the impending changes and their cost and impact on the industry. It will also provide delegates with valuable and practical insight into the future of Building Regulations.

This full day event will specifically examine zero carbon, Part F and Part L over three morning sessions. The afternoon session will concentrate on the introduction of the new SAP methodology later this year with real life examples and a software demo. The conference will also analyse the real cost of sustainable housebuilding, looking at delivering to code level 3 and 4 and higher level schemes

To book online please click here or for further information please contact the events team on 020 7960 1646 or events@hbmedia.co.uk

to topHope Challenge: 12 - 14th June 2009, Peak District

HBF's nominated charity, Habitat for Humanity, which builds safe, decent homes for families living in poverty, is organising a fundraising event to take place in the summer. Taylor Wimpey, Bovis and HBF are amongst the teams already registered for the Hope Challenge 2009, and they are looking for more house builders to enter an event that was born out of industry activity. It is a challenge event for teams of 3-6 people that 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 outdoorsMental and physical team challengesThe Shelter Build challenge - sponsored by NHBC1000m of hill ascent and 20 miles of trekkingA balance of fitness, strategy and team work

HFH is 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

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

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