This weeks industry news. Quick LinksWales NewsHousing Market NewsIndustry NewsGovernment NewsHBF News Wales NewsWelsh children denied proper housing A Welsh bishop has compared the plight of the poorest families in Wales to the poverty of Mary and Joseph in the Christmas story.The Bishop of St Asaph, the Rt Rev John Davies, said that just as the parents of Jesus found themselves barred from the inn in Bethlehem, so thousands of children are growing up without suitable housing. He called on the Assembly Government to work with new urgency to provide homes. More informationSharp house price dip follows Hips House prices in Wales this month have endured their sharpest falls so far this year, according to lastest figures.Rightmove, the UK’s largest property website, says prices in Wales fell by 2.5% compared to last month, placing the average cost of a home in Wales this month at £180,409, down almost £5,000 from November’s £185,072.. More informationPlanning Approval for 4000-Home Village in Neath The Coed Darcy urban village at the site of the old Llandarcy oil refinery will boast four new schools, health and sports facilities, a community centre and shops as well as some 4,000 homes, including 800 affordable homes.Neath Port Talbot Council has now given plans for the £1.2 billion, 400-hectare development its approval.More informationto topHousing Market NewsA year of two halves – RICS UK housing market forecastRICS expects UK house prices to be broadly unchanged in 2008 but acknowledges that the market could experience some near term weakness. RICS does not believe that any drop in house price will be extended in duration. The Bank of England has already signalled its determination to counter any threat to the economy from the liquidity squeeze by cutting interest rates and RICS expects base rates to be lowered to 5 percent in the first half of 2008. It is also significant that new instructions to sell have continued to slip back, a result consistent with a firm employment picture. As in 2005, unless there is a sharp rise in new instructions to accompany the drop in new buyer enquiries, RICS believes it unlikely there will be a great fall in house prices. Repossessions will rise from 30,000 to 45,000 – amounting to 123 repossessions per day – as mortgage resets begin to bite according to RICs. This is still well below the high water mark of the early 1990’s when repossessions rose to close to 80,000. If labour market conditions remain generally firm, an influx of supply from homeowners forced to sell by increases in their mortgage repayments seems unlikely. RICS believes that there is strong pent up demand from first-time buyers who have been awaiting an opportunity to access the housing market. Should prices soften to any extent, RICS expects that many first time buyers will attempt to capitalise where they have been previously squeezed. In a climate with strong employment conditions, this should provide a boost to a flagging market.Buy-to-let investment could slow into 2008 as the range of mortgage products diminishes in light of the credit crunch. But RICS research shows that there is little evidence of widespread sales of investment properties taking place. 8% decline in gross lending in November according to CMLGross lending declined to an estimated £30.7 billion in November, down 8% from £33.5 billion in October and 8% from £33.2 billion in November 2006, according to the Council of Mortgage Lenders. This is the first time that monthly lending levels have dropped below the same month in the previous year since July 2005, and demonstrates that the market slowdown has started. More Information>HIPs deadline exaggerates price falls according to RightmoveThe Rightmove House Price Index for December shows that the average property asking price stands at £232,396 compared with £239,986 in November. Rightmove attribute the price fall to seasonal factors and HIP-avoiding first-time sellers. The proportion of cheaper 2 bedroom or fewer homes coming to the market increased from 38% to 48%, accounting for about 1.1% of the 3.2% fall in average prices. The London average price suffered greater distortion from HIPs, accounting for 2.3% of its 6.8% fall according to Rightmove.Rightmove says recovery next year is dependent upon continued action by the banking sector to improve liquidity and appropriate pricing by sellers.More informationTenant demand for flats falls away but rents remain firmThe growth in tenant demand for rental property moderated as demand for flats fell away due to an oversupply in the market, says the RICS Lettings Survey published this week.According to the survey rental growth continues to grow as the impetus for would-be-buyers to step onto the property ladder remains subdued by accessibility issues, rising uncertainty and a slowing housing market. to topIndustry NewsHalifax rewards green credentials with competitive mortgage dealsHalifax, the UK's largest mortgage lender, has announced the launch of two new products exclusively available to customers buying their home from selected home builders.The products feature some of Halifax's most competitive rates. They are designed to incentivise buyers who consider builders’ green credentials as part of their home buying decision process. The products also offer extended completion dates up to February 2009, offering borrowers the option to secure a mortgage today even though their property may not be ready for several months.Halifax is believed to be the first lender to launch such products and has the full support in doing so of the Home Builders Federation and WWF.More Information>England’s first eco-village to be built by Barratt homesBarratt Developments Plc has been selected by English Partnerships as the preferred developer for the former Hanham Hall Hospital near Bristol. Homes on the site will meet the Government's most exacting eco standard - Level 6 of the Code for Sustainable Homes. Hanham Hall was the first site identified under the Carbon Challenge, being run by English Partnerships as part of the Government's commitment to tackle climate change. The Challenge will deliver zero carbon homes and communities in advance of this becoming mandatory 2016, and is designed to help the house building sector demonstrate that the targets are feasible and can be commercially viable. As well as zero-carbon homes the Hanham Hall project will create eco lifestyles. It will hand over a listed building to community use, capture rainwater and include sustainable drainage, farmers' shops, a car club and bicycle storage.More Information>Tax Compliance – New CIS – Status Reviews have startedStatus Reviews – checking that firms have a good clean compliance record – and confirming that their ‘Gross Paid’ Status can be re-authorised - have started.Of the first 119 firms tested, 31% failed and will be without gross payment status unless they appeal successfully. If this percentage of failure holds good about one third of gross paid contractors will become net paid in the year ahead.Home builders are advised to look at their compliance record and make sure that they are sending in returns for CIS, IT, CT and PAYE on time – and paying on time.VAT – construction of houses or flats in the grounds of existing care homesHMRC have issued a business brief urging caution to those building and /or selling first major interests of “independent living units” in the grounds of residential care homes.Before the building contract of such units can be zero rated, or the sale of the major interest can be zero rated, HMRC will have to be satisfied: -That no part of their planning permission restricts their use or sale separately from the care homeThat no personal care is available to the residents of the independent units from the care homeHome builders are advised to seek advice when building units in the grounds of care homes. to topGovernment NewsLiberal Democrats announce new cabinetThe new leader of the Liberal Democrats, Nick Clegg MP has announced his Shadow Cabinet team to carry the party’s message throughout the country. The new cabinet includes Julia Goldsworthy who will be Shadow Secretary of State for Communities and Local Government and Lembit Opik, Shadow Housing Minister. PPS on Climate Change published The long-awaited PPS on Climate Change was published this week.The new PPS sets out how planning should contribute to reducing emissions and mitigating and adapting to the effects of climate change in delivering new development sustainably.Announcing publication of the new PPS Yvette Cooper said:‘Moving towards a low-carbon economy is a huge challenge. It requires a revolution in the way that we design, heat and power our buildings, and a concerted effort from a huge number of organisations—from local authorities, to developers, to environmental groups and local communities themselves. It also requires collaborative and responsible working to ensure change takes place alongside delivering the additional homes as well as the new jobs and regeneration we need. The policy set out in the PPS provides a strong framework for that degree of co-operation.’Much of the advance press comment on the new PPS focused on its implications for the “Merton rule” policy. On this, the PPS maintains the line adopted by the Minister in the autumn that any such policies must be robustly justified via public inquiry, consistent with housing supply requirements and adopted in Development Plan Documents.More Information>Kerslake becomes first CEO of the Homes and Communities AgencySir Bob Kerslake will be the first Chief Executive of the new Homes and Communities Agency (HCA). The new agency is seen by the Government as key to delivering the 3 million new homes by 2020 pledged by the Prime Minister. Sir Bob, currently Chief Executive of Sheffield City Council, will initially take responsibility for overseeing the development and implementation of the agency, and will then become its first Chief Executive when the agency begins operating on 1 April 2009.BERR and Ofgem launch consultation on distributed energyThe Department for Business, Enterprise and Regulatory Reform (BERR) and Ofgem published a joint consultation document this week seeking views on proposed measures to encourage the development of new low carbon local energy supply. The consultation runs until 11 March 2008. HBF will be looking at the proposals in relation their relevance to the 2016 zero carbon homes target. The consultation document can be accessed via the link below. Members’ views on this would be welcome.More Information>to topHBF News2016 Task ForceStewart Baseley, HBF Executive Chairman, chaired the latest 2016 Task Force meeting on 18 December. Energy Minister Malcolm Wicks attended to discuss future energy supply issues for zero carbon homes. The meeting also reviewed progress on the Callcutt Review recommendation that a dedicated delivery mechanism should be set up to assist the Task Force.HBF meet CLG and Housing Corporation to discuss Homes and Communities AgencyHBF staff and members met CLG and the Housing Corporation this week to discuss the process for setting up the new Homes and Communities Agency and its role once fully operational in 2009. The main issue raised was the need for the Agency to avoid unnecessary intervention and concentrate on adding value to what the private sector can itself deliver.2008 EventsHBF Policy Conference 2008 - Hitting the Government's housing targets30 January at One Birdcage Walk, LondonFor further details or to book please click hereAlternatively contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF Seminar on the 3 Dragons/GLA Affordable Housing Toolkit 7 February, 30 Warwick Street, LondonHBF, in association with Taylor Wimpey and King Sturge is holding a seminar on the 3 Dragons/GLA Affordable Housing Toolkit. The seminar will be chaired by Terry Fuller, Affordable Housing Director of Partnering for Taylor Wimpey and will include a live demonstration by Tim Cork of Airey Miller Partnership of ways in which the toolkit can be best used from the house builder’s perspective. The event will commence at 6pm with light refreshments and the seminar will start at 6.30pm. The presentation with an interactive question and answer session is expected to last approximately 90 minutes.The event is free to attend and open to HBF members but places are strictly limited and will be allocated on a first-come-first-served basis. If you wish to attend please contact marian.macdonald@hbf.co.uk by January 25th. Places will be confirmed by email.HBF North West Dinner 8 February 2008 at Midland Hotel, ManchesterFor further details or to book please click hereAlternatively contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF Midlands AGM & Lunch 22 February 2008 at Sketchley Grange, HinkleyFor further details please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk Housing Futures 13 March 2008 at East Midlands Conference Centre, NottinghamFor further details or to book please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF Annual Industry Lunch - 10% discount on tables booked before 8th February 23rd April 2008 at the Hyatt Regency-The Churchill, London For further details or to book please click hereAlternatively contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF Midlands Social 9 May 2008, Sketchley Grange Hotel, HinkleyTo reserve a table please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.ukHBF Yorkshire Social Dinner16 May 2008, Sketchley Grange Hotel, HinkleyTo reserve a table please contact the events team: Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF South West Ball7 June 2008, Beaufort Polo Club, Tetbury To reserve a table please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk to topJo WestonView Previous Weekly News Summary
