Top stories this week *Confidence is key according to Bank of England Report *Halifax House Price Index just released *HBF urge Government to take action Friday, 2 May 2008Top stories this weekConfidence is key according to Bank of England Report....read moreHalifax House Price Index just released.....read moreHBF urge Government to take action....read moreQuick LinksWales NewsEconomic NewsHBF NewsHousing Market NewsIndustry NewsEventsWales NewsWelsh carbon goal stirs delivery issueGreen building targets set by the Welsh Assembly Government are causing uncertainty among developers and could prevent much-needed house building, it has emerged.Under the One Wales coalition agreement, the assembly said it wants all new homes to be carbon-neutral by 2011, five years ahead of England's target date.Developers argue that the assembly failed to consult them before setting the target and has not defined the criteria for meeting carbon-neutral status.Read moreto topBellway Homes appoints new Managing DirectorBellway Homes has appointed a new managing director for Wales. David Smith joins Bellway from Redrow Homes, where he had been managing director since 2006. He will be based at Bellway's head office in Cardiff.Read moreMick Bates AM hosts presentation on renewable energy technologiesMick Bates AM is holding a presentation and discussion on Biomethane Injection into the Grid and Fuel Cells and Lessons in Highly Efficient Renewable Energy Generation from Germany, for WalesSpeakers attending and subjects discussed will include:-Introduction - Guto Owen - Carmarthenshire Energy AgencyFuel cells for zero carbon developments using biogas - Michael Poulain - CFC Solutions, GermanyGenerating pipeline quality gas from municipal waste and agricultural biomass feedstocks - David Williams - Potters Waste ManagementBiogas Potential in Wales - Dr Richard Dinsdale - University of GlamorganThe conference will be held on Tuesday 6th May 2008 from 12:30pm to 1:30pm at the following address: Room 24, National Assembly for Wales, Cardiff Bay, CF99 1NA Light refreshments will be availableto topEconomic NewsThe economy and the impact of the financial credit crunch have remained the key issue this week. We are continuing to receive many media requests for comment.Confidence is key according to Bank of England ReportThe Bank of England published its Financial Stability Report yesterday which predicts that confidence and risk appetite will return. The contents of the report have been summarised as follows:Rising US sub-prime defaults have triggered a broad-based re-pricing of risk and deleveraging in credit markets. An adjustment was needed after the credit boom and was bound to have costs, but it is proving even more prolonged and difficult than anticipated. Prices in some credit markets are now likely to overstate the losses that will ultimately be felt by the financial system and the economy as a whole, as they appear to include large discounts for illiquidity and uncertainty. Conditions should improve as market participants recognise that some assets look cheap relative to credit fundamentals. But with sentiment still weak, the Bank has announced a special scheme to improve the liquidity position of the banking system and to increase confidence in financial markets.Introducing the report, John Gieve, Deputy Governor for Financial Stability, said:"The unavoidable correction after the credit boom is proving protracted and difficult. However the pricing of risk in credit markets seems to have swung from being unsustainably low last summer to being temporarily too high relative to fundamentals. So, while there remain downside risks, the most likely path ahead is that confidence and risk appetite will return gradually in the coming months."View full summary of the reportto topBank of England figures show lending down in March Latest lending figures from the Bank of England for March show that the increase in net lending secured on dwellings (£6.9 billion) was below the increase in February and the previous six-month average. The twelve-month growth rate slowed further, to 9.1%. The three-month annualised growth rate also slowed, by 0.4 percentage points to 7.5%.The numbers of loans approved for house (64,000), remortgaging (98,000) and for other purposes (57,000) were all lower than in February and lower purchase than their previous six-month averages.View full lending figuresHalifax House Price Index just releasedHalifax have released their latest house price index this morning which reports the following:House prices fell by 1.3% in April. Prices were 0.9% lower on an annual basis.Halifax expect a mid single digit percentage decline in UK house prices this year. Price falls should be viewed in the context of the substantial price rises over recent years. The decline in prices is driven by a squeeze on spending power and the rapid rise in house prices in the last few years. These factors have curbed housing demand. A growing - albeit slowing - economy, high employment levels, low interest rates and a shortage of new homes underpin housing valuations. More Bank of England interest rate cuts are expected over the coming months as signs of the expected economic slowdown accumulate. View the full house price indexto topHBF urge Government to take actionHBF is continuing to urge the Government to take action to help restore confidence to the housing market and sustain new home building, beyond the £50 billion Special Liquidity Scheme (announced on 21 April), arguing that more needs to be done to help restore consumer confidence.We have discussed with officials a number of ideas which we believe might assist and have now formally written to the Chancellor to submit these to the Government for consideration and discussion.A copy of our Housing Market Package is available to members on our website please click here to view**If you have forgotten your login to access member only information on the website please type your email address in the 'forgotten password' box on the website by clicking here. If you are still experiencing problems please contact rosie.hinchliffe@hbf.co.uk to topNAEA welcomes Bank of England's view for the futurePeter Bolton King, Chief Executive, NAEA, comments: "It should certainly come as a great boost to consumer confidence to hear this news from the Bank of England. There has been much ‘doom and gloom' reported over the past few months, especially with regards to the global credit crunch. However, to hear that there is light at the end of the tunnel should come as a massive boost to consumer confidence and is the crutch that both consumers and organisations very much need.""We believe that the Bank of England's Special Liquidity scheme will help sustain confidence" say CMLResponding to the mortgage approvals data from the Bank of England, the CML director general, Michael Coogan said: "We believe that the Bank of England's Special Liquidity scheme will help to sustain confidence in the banking system and improve liquidity, but it is not an intervention specifically intended to re-invigorate the housing or mortgage markets."We hope that some of the liquidity will be recycled down into the mortgage market. But it will take some months for this to happen and mortgage lending volumes are going to continue to fall before they improve because of the funding gap of around £30 billion."View full press statementto topCBI report fall in retail salesAccording to the latest CBI Distributive Trades Survey, year-on-year retail sales volumes fell markedly in April. While high street activity has certainly dipped as the economy has slowed, this result needs to be put into context. In contrast to this year, in 2007 Easter fell in April and the country enjoyed a mini-heatwave, which helped lift the balance of retailers reporting year-on-year sales growth to its highest for three years. Looking ahead to May, retail conditions look set to remain tough, with sales expected to decline again - albeit at a slower rate.to topHBF NewsGovernment votes against German-style reward tariff to encourage green installation On Wednesday the Government voted against a proposed amendment to the Energy Bill which would have involved UK energy companies paying householders and businesses for energy generated from renewable energy sources including qualifying CHP, wind energy and photovoltaics. HBF and the Renewable Energy Association called early this week for the German style ‘feed in tariff' to be introduced as part of a range of measures as home builders work towards producing zero carbon homes by 2016. It had garnered cross-party support with some 276 MPs from all parties signing a Commons motion ahead of Wednesday's vote, which resulted in a defeat of 250 votes to 210.View press releaseAn HBF spokesman said: - "Whilst being heartened to have received such strong backing from MPs of all parties, obviously it is disappointing that this opportunity to demonstrate a commitment to renewable energy was not taken. Introducing a feed in tariff would have made a major contribution to promoting investment in the range of renewable technologies. This technology will play a significant role as we work towards the challenging goal of zero carbon housing."HBF meet Baroness Andrews on Lifetime HomesStewart Baseley met CLG Minister responsible for the Government's strategy on housing in an ageing society, Baroness Andrews, to explain industry concerns about the recent announcement on the pursuit of Lifetime Homes standards. HBF set out the reasons why the Government's proposals raised concern in the current context, including the growing regulatory cost burden. We also probed what the Government would regard as a successful market-led adoption of Lifetime Homes - its criterion for determining whether to regulate when reviewing the position in 2010. It was agreed to undertake further work with CLG officials to discuss both the technical standards and the issues of market choice involved.to topHousing Market NewsHousing market weakness stretches into April according to latest Nationwide figuresHouse prices fell for the sixth consecutive month in April The price of a typical house is now 1% lower than this time last year The Bank of England's Special Liquidity Scheme should help to improve wholesale markets More than 5 million borrowers have directly benefited from Bank of England rate cutsView full reportNAEA calls for calm over Nationwide ReportBolton King, Chief Executive of the National Association of Estate Agents (NAEA), said:"This needs to be put into context. We have been experiencing huge price leaps of double percentage points in the housing market in recent years so overall a 1% drop is a tiny proportion of the rise and certainly not enough to throw many people into negative equity the way we saw it in the early ‘90s.... "There is no denying that the credit crunch has affected confidence in the market but it is still important to remember that the underlying factors that support the property market remain: low unemployment, historically low interest rates and a pent-up demand for houses."View full press statementLand Registry reports seventh decrease in house price growthLand Registry figures released this week showed that the average rate of house price growth reduced from 5.3% in February to 3.6% in March. The average house price in the the UK is now £184,798. This is the seventh consecutive decrease in the annual rate of growth. The monthly change for March, accounting for seasonal adjustments, is -0.4 per cent. The volume of transactions was also down 26 per cent from the same period last year, with an average of 81,926 per month between October 2007 to January 2008, compared with 109,969 per month from October 2006 to January 2007. View latest Land Registry figuresto topIndustry NewsCampaign to Save the Great British Builder!The Daily Star is running a campaign to Save the Great British Builder raising awareness of the problems caused by the credit crunch. The paper is running a competition to find the best British building site - with the winner receiving a visit from Page 3 girls, £500 behind the bar of their local and £500 of lottery tickets!Details of how to enterto topEvent NewsThe Housing Crisis, Innovation or Speculation? Houses of Parliament debate - 19th MayA distinguished panel of leading industry speakers, MP's and Peer's will exchange views and focus on the real issues behind the Government's call for more affordable houses in a debate in the Houses of Parliament.This is a whole day event, with lunch and finishes with a networking cocktail party. Keynote speakers include Sir Robert Kerslake, Chairman of the Homes and Communities Agency and Caroline Flint MP plus other leading industry figures from the public and private sector (see full programme).Andrew Whitaker, Head of Planning, HBF will be speaking during the morning session.Download the full programme and booking formWater: Regulation changes and the Code - Practical Solutions Tuesday 15 July, Thinktank, BirminghamThe Government is seeking a major step change in water efficiency in new homes.This seminar will examine the proposals enshrined in the amended Building Regulations Part G which are set to be issued for consultation in the spring, as well as the water aspects of the Code for Sustainable Homes and ways of securing maximum points to achieve higher Code levels. Available to book on line at http://www.hbmedia.co.uk/ to topHBF Yorkshire Social - Friday 16 May Oulton Hall, LeedsDownload a booking form or alternatively contact the events team on 020 7960 1646 or email events@hbmedia.comHBF South West Ball - Saturday 7 June Beaufort Polo Club, TetburyDownload a booking form or alternatively contact the events team on 020 7960 1646 or email events@hbmedia.com 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 topJo WestonView Previous Weekly News Summary
