Friday, 27 June 2008Top stories this weekRightmove: homes for sale now outnumber buyers 15:1.....read moreOFT publishes new reports as part of homebuilding market study.....read moreZero carbon hub launched.....read moreQuick LinksWales NewsHousing Market NewsIndustry NewsEconomic NewsGovernment NewsEvent NewsWales NewsSue Essex report: Affordable housing in Wales: an independent report to the Minister for Housing The Essex Report, released 24 June 2008, proposes that the Assembly Government lead a ‘programme of change' in order to address the shortage of affordable housing in Wales. Some main issues the Minister believes can be implemented immediately:-1 Registered Social Landlords (RSLs) should have the ability to buy housing stock and the fact that it does not meet the WHQS should not deter the purchase of housing stock.2 Introducing a policy change to use Social Housing Grants to support low carbon and carbon free housing projects in sustainable communitiesSome key recommendations that are seen as crucial to achieving the One Wales agenda:-1 The need to put in place a robust evidence base on housing need; 2 Local authorities must ensure they have capacity to work across traditional boundaries. Every local authority should have a coordinating housing forum that focuses on policy, programmes and deliverability of affordable housing. 3 On the basis of partnership, the Minister needs to regularly meet with all the key partners involved in affordable housing and share performance information etc., so that, if necessary, delivery and investment can be better aligned. Progress on affordable housing and additional housing delivery, in general, should be included in the Government's key indicators.4 The Regulatory framework for HAs in Wales must be urgently revised and updated to ensure it is fit for purpose.5 The Minister should consider whether the planning approach used in the South Shropshire model could be useful for implementation in Wales, and whether the rural exception policy could be applied across Wales (i.e. not just to rural areas), in order to take a pro-active approach in bringing land forward for affordable housing.6 In order to make quick progress on affordable housing targets local authorities should, where appropriate on the basis of evidence of housing need, be able to:• introduce interim policy changes, including revising their affordable housing thresholds and targets; and • negotiate with developers for the provision of affordable housing, individual housing and mixed use sites as part of the development control process. 7 Local authorities should develop an ongoing programme of tackling empty private housing in their area, working with landlords, housing associations and developers where appropriate.8 Where possible affordable housing units should be dispersed and integrated into housing developments. Large areas of 100% social housing should be avoided. Housing Associations should be encouraged to develop greater capacity for flexible tenure.Read more Link to reportto topCommenting on the Essex report the Welsh Liberal Democrat housing spokesperson, Peter Black, said:"Many of these recommendations were in the Welsh Liberal Democrat Assembly manifesto and as such we unreservedly welcome them. However, we now need to see some evidence of the One Wales Labour Plaid Cymru Government delivering on its own promises and targets.""There are approximately 80,000 households on housing waiting lists yet despite this audit commission statistics have revealed that less than 1,000 new social housing units are being built each year. On that basis the Assembly Government will miss its own target of 6,500 new homes by 2011 by a mile. When scrutinised on this the Minister admitted that she still does not have the capacity to properly monitor her own target. That needs to change if we are to hold the Government to account on how they are helping people trying to get on the housing ladder. "The government's record of shelving reports such as this is very worrying. I look forward to this one being implemented."Read more Right to Buy bar would be used sparingly, says Housing MinisterNew powers allowing councils to suspend tenants' right to buy their homes will only be used "sparingly", Welsh Housing Minister Jocelyn Davies has said.The move, which requires Westminster to formally devolve the powers to Cardiff Bay, is intended to ease pressure on the housing market.Read more to topHousing Market NewsRightmove: homes for sale now outnumber buyers 15:1The Rightmove House Price Index, released 23 June 2008, reports that:1 Average property asking price has shown a drop of 1.2% change month on month, from £242,500 in May to £239,564 in June2 Ratio of available property to buyers has doubled year on year to 15:1 as the mortgage famine hits home3 New sellers drop their prices 1.2% in a month, as buyers' affordability continues to drop4 One million properties for sale as poor spring sales push agents' unsold stock to a new record of 75 homes per officeView a full copy of the report to topIndustry NewsOFT publishes new reports as part of homebuilding market studyTwo new reports commissioned by the OFT as part of its market study in to the UK home building industry were published this week.A study by KPMG into the financing of home builders supports previous reports by Barker and Calcutt by concluding that the holding of landbanks reflects builders' need to have a pipeline of land at different stages in the development process, rather than a reluctance to develop or a desire to prevent competition.Read the full report The second report follows a survey of purchasers of new homes. It shows that, overwhelmingly, home builders delivered excellent service to customers, with 86% of people satisfied with the service they received and 90% saying that the quality of the construction of their new home was good or very good. It did find that many home owners experienced defects, but accepted that these were often minor and were in the majority of cases fixed by the builder quickly.Read the full report to topHertfordshire County Council is to mount a legal challenge to the recently published East of England PlanAt their meeting on 23 June the Conservative controlled council voted to challenge the Regional Spatial Strategy published by the Secretary of State on 12 May. Although the details of the challenge are, as yet, unknown, it is likely to be limited solely to the process followed by the Secretary of State rather than the actual strategy. The challenge is reported to be costing Hertfordshire taxpayers approximately £50,000. Read more TCPA calls for eco-town public enquiriesThe Town and Country Planning Association has called for a full local public enquiry to be held into any eco-town proposal not already allocated in a Development Plan. TCPA Chief Executive Gideon Amos said:"Our members are clear - the highest standards can be and must be achieved in any eco-towns that go ahead but key safeguards are needed to the process and we are, therefore calling for a full local public enquiry in any location not already allocated for development."Read more Eco-towns will "become eco-slums of the future" warns new LGA reportA new report by the Local Government Association warns that government plans to create eco-towns were "significantly flawed" and that the developments risked becoming the "eco-slums" of the future without more input from councils. It says that many councils are dismayed at the way local democracy and planning processes are being by-passed to impose the schemes on the public. The report, "Eco-Towns, back to the future?" argues that the Government has failed to learn lessons from the past by falling back on discredited "new town" powers to impose the initiative on the public. Read full press release Read full report BARD: Eco-towns "unlawful"The campaign group against the proposed Middle Quinton eco-town outside Stratford-upon-Avon formally lodged its application for Judicial Review of the eco-town process on 25 June.The Better Accessible and Responsible Development (BARD) campaign is seeking a declaration that the Government's eco-towns programme is unlawful and should be halted until proper and full consultation has taken place.Campaigners call for new regional strategies to have a stronger housing focusIn their joint response to the Government's consultation on its Review of Sub-National Economic Development and Regeneration, the National Housing Federation, CIH and Shelter welcome the Review but call for greater recognition of the links between good quality affordable housing and economic development. The group recommends that the new regional Single Integrated Regional Strategies - which will set out the economic, social and environmental objectives for each region - should explicitly state how they will meet the housing needs and choices of the whole of the regional community.Read more Zero Carbon Hub launchedIn response to a Callcutt Review recommendation, a new independent body, the ‘Zero Carbon Hub', has been established to ensure a joined up approach is taken to finding practical solutions to delivering zero carbon homes. The new public and private partnership is responsible for galvanising action and working with government, councils and industry to overcome barriers to ensure this ambitious policy is implemented.Read moreto topEconomic NewsMortgage approvals for house purchases hit record lowAccording to figures released by the British Bankers Association this week, approvals for house purchase hit a record low as they continued to be well down on the same period last year. BBA statistics director, David Dooks, said of the latest data:"Measures of mortgage activity were lower in May as a result of tighter lending criteria and economic pressures on households. Only remortgaging business is holding up, where people need or want to take advantage of deals with other lenders. People spent more on credit cards, but repayment levels were lower than expected in May and after April's busy month with people putting money into ISAs, personal deposits were not as strong."Read the full report CBI: Disappointing high street sales for third month39% of retail respondents to CBI's latest Distributive Trades Survey reported that in the first half of June sales were lower than a year ago, while 30% said sales had increased.The resulting balance of -9% disappointed expectations of modest growth in sales volumes, but was an improvement on last month's balance of -14% and April's very weak figure (-26%). A slightly slower decline is predicted next month (-7%). The 9% survey balance equates to annual volume growth of just over 2% on the ONS measure.The three-month moving average of sales volumes, which levels out monthly volatility, continued its downward trend to a balance of -16% this month, which is the weakest since December 2005 (-18%).Andy Clarke, the new chairman of the CBI's Distributive Trades Panel, and Retail Director of Asda, said:"High fuel prices and concerns about the economy have blunted consumer appetites, and those retailers linked to the housing market are continuing to endure difficult conditions."Read moreto topGovernment NewsEco-towns Challenge Panel sets out a series of recommendations for potential eco-town developersJohn Walker, Chairman of the Eco-towns Challenge Panel, said in a statement on its recommendations on the eco-town proposals under consideration:"Our brief was to challenge each proposal in a robust and constructive way, and I think we have done a good job on that front. We have seen much to admire, but in all cases we are challenging the developers to take major steps forward. We want the final eco-towns to be better than the best of the current examples that do exist in the UK and the rest of Europe - clearly there is still a lot of work to do."View the full statement View the recommendations NHPAU unveils advice to government on future housing supply rangeThe National Housing and Planning Advice Unit (NHPAU) has published its advice to the Government on the long-run housing supply ranges it believes should be tested in the forthcoming reviews of Regional Spatial Strategies - due to be completed by 2011. The Unit's advice supports the case for 3 million or more additional homes to be provided by 2020. CLG will consider the advice in finalising its formal guidance about the approach to be taken for the RSS reviews.Stephen Nickell, Chair of the NHPAU, said"We are at the beginning of a period of adjustment in the housing market. And while inevitably there is now a focus on the gloomy short-term prospects and some uncertainty arising from this, for the sake of communities and future generations it is vital that planners and decision makers keep an eye on the medium and long term.""This is about acting now in advance of the next upturn. It is about ensuring that plans for new homes to be finalised by 2011 cater effectively for peoples' legitimate expectations and aspirations"Read more Download the NHPAU paper Renewable Energy Strategy Consultation launchedBusiness secretary John Hutton this week launched the UK Renewable Energy Strategy Consultation which seeks views on how to drive up the use of renewable energy in the UK, as part of the Government's overall strategy for tackling climate change, and to meet our share of the EU target to source 20% of the EU's energy from renewable sources by 2020.Responses to this consultation will help shape the UK Renewable Energy Strategy, which will be published in spring 2009, once the UK's share of the target has been agreed.Read more Download the UK Renewable Energy Strategy Consultation Government indicates it will not pursue the introduction of Local Member Review Bodies (LMRBs) through the Planning BillThe Planning Bill proposes the creation of LMRBs to hear local residents' appeals against planning permission refusals, a function that is currently carried out by the Planning Inspectorate. In response to concerns raised by HBF, RTPI and others Housing Minister Caroline Flint told Parliament during the Planning Bill debate that: "We need to consider whether, given the large number of planning reforms that we are asking local planning authorities to implement, it is also right to ask them to focus on the initiative [of setting up LMRBs]... there remain a number of important matters to work through on that proposal, and we may have something further to say when the Bill reaches another place [the House of Lords]."HBF continue to lobby members of both houses over these and other issues in the Bill such as the proposal to charge for appeals and the removal of the right for appellants to choose the appeal process under which to proceed.to topEvent NewsWater: Regulation changes and the Code - Practical SolutionsTuesday 15th 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 now subject to consultation, as well as the water aspects of the Code for Sustainable Homes and ways of securing maximum points to achieve higher Code levels. Book online HBF Annual Planning Conference 2008Wednesday 10th 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.Book online Housing Market Intelligence15 October - Savoy Place, LondonThe annual Housing Market Intelligence conference is the home building industry's leading event for discussion of the strategic and macro issues facing homebuilders and is a must for anyone involved in the business of homebuilding."Book online to topRosie HinchliffeView Previous Weekly News Summary
