Top stories this week *Nationwide: House prices continue to fall in August....read more *BBA release July figures for the main high street banks.....read more *CBI: Further sales falls round off a poor summer on the high street.....read more *CML publishes buy-to-let data.....read more
Top stories this weekNationwide: House prices continue to fall in August....read more
BBA release July figures for the main high street banks.....read moreCBI: Further sales falls round off a poor summer on the high street.....read moreCML publishes buy-to-let data.....read moreQuick LinksWales newsEconomic newsIndustry newsHousing market newsGovernment newsHBF newsEventsWales newsProperty prices ‘will continue to tumble down hill'
Data published by Nationwide this week showed property prices across the country have dropped 10.5% over the last 12 months - the fastest rate of decline for almost 18 years.
Estate agents in Wales largely mirrored Nationwide's findings. One suggested that some flats in Cardiff Bay had lost up to half their value since 2007. Barrie James, principal shareholder of Cardiff-based CPS Homes, said:
"We are seeing declines of up to 50% in the Bay.
"In some other cases we have found to get things moving vendors who bought properties at £180,000 are selling them at £110,000, and we come across properties with negative equity every day."
But Trevor Carr, a partner at Wales' largest independent estate agent John Francis, said the decline may not be indicative of the market in Wales as a whole:
"The difficulty with these sorts of figures is they are never the same throughout the market.
"Waterside apartments have probably lost more than 10% of their value, but if we look across the market we will probably see home values which have declined by 5-10%. In West Wales, I think 5% would be a truer figure, and the figures published yesterday [Thursday] are likely to be the result of taking an average across the entire market."
Download a copy of the Nationwide house price index
to topCheap homes for ConwyConwy Council is stepping up its campaign to help first-time buyers and people in housing need get on the property ladder.
Over 30 households have already moved into their own home as a result of putting their names on the First Steps Register and now with a new affordable housing development soon to be available in the Llandudno Junction area, even more people will be celebrating.
Conwy Council runs the First Steps Register in partnership with Clwyd Alyn Housing Association, North Wales Housing Association and Cymdeithas Tai Clwyd who also administer the list.
House demolitions dropThe number of dwellings demolished or closed by local authorities in Wales has declined considerably over the last few years from an average of over 600 each year between 1996-97 and 2003-04 to an average of just over 100 between 2004-05 and 2007-08, according to latest National Statistics.
A total of 99 dwellings were demolished or closed during 2007-08, only 1 of which was identified as having category 1 hazards. Most dwellings reported as demolished were outside formally declared clearance areas.
Local authorities found a total of 2,003 category 1 hazards in the 1,339 dwellings assessed during 2007-08.
At March 2008, local authorities estimated that there were approximately 19,700 Houses in Multiple Occupation (HMOs) in Wales, an increase of 600 (3%) on the March 2007 figure.
to topEconomic newsNationwide: House prices continue to fall in AugustNationwide's house price index reported this week that:
House prices fell -10.5% over the last 12 monthsThe price of a typical house fell by 1.9% during the month, from £169,316 in July to £164,654 in August.More borrowers opt for fixed rate loans to protect their payments in uncertain timesCommenting on the figures Fionnuala Earley, Nationwide's Chief Economist said:
"The price of a typical house fell by 1.9% in August, bringing the annual fall into double digits for the first time since the fourth quarter of 1990. The price of a typical house fell by 10.5% over the last twelve months to £164,654. While the pace of monthly falls picked up during the month, the less volatile three month on three month measure eased very slightly in August to 4.5% from 4.6% in July."
Download a copy of the Nationwide house price index
to topBBA release July figures for the main high street banksThe British Bankers Association this week published the July figures for the main high street banks. In July, mortgage lending rose by £4.3bn; the same as in June. The number of house purchase approvals continues to be very low while those for remortgaging have fallen. Mortgage approvals for house purchase may be stabilising, at a very low level, in July, some 65% lower than a year ago. Approvals for remortgaging were 21% lower than last year but were still approximately 50% of all approvals.
BBA Statistics Director, David Dooks, said of the latest figures:
"The monthly numbers of approvals for house purchase, which have fallen by some two-thirds over the last year, levelled off in July. It would, however, be premature to think that the housing market will now start to recover, because overall approval activity continues to be very low. The pressures on household budgets are reflected in the relatively weak rise in individuals' deposits and, with consumer borrowing growing only slowly it seems that consumers are acting prudently."
to topCBI: Further sales falls round off a poor summer on the high streetThe CBI reported a second month of sharp falls in sales volumes and, with a similar drop expected in September, very weak business confidence. Growth in average selling prices has eased back from a 16 year high, but remains strong.
60% of respondents to the latest CBI Distributive Trades Survey said that sales in the first half of August were lower than a year ago, while 13% said they were up.
The resulting rounded balance of -46% was worse than anticipated (-32%) and the weakest since the survey began in 1983 - although changes in answering practices over the past 25 years diminish this comparison.
The three-month moving average of sales volumes, which smoothes out monthly volatility, continued to decline, and the balance of -30% was a survey low. Sales for the time of year were reported as poor by a net 43% of retailers.
to topIndustry newsCML publishes buy-to-let dataNew buy-to-let lending declined in the first half of 2008, with the sector affected by the same conditions constraining the wider mortgage market, according to new data from the Council of Mortgage Lenders.
There were 144,600 new buy-to-let loans in the first half of 2008, down from 176,500 in the second half of 2007 and 169,500 in the first half of 2007. The shortage of mortgage funding has limited activity across the mortgage market including the buy-to-let sector, which has a significant number of lenders that rely on wholesale funding.
Despite that, the half-yearly decline has been lower than in the wider market, with the number of buy-to-let loans in the first half of 2008 decreasing by 18% from the second half of 2007, while the number of house purchase and remortgage loans in the wider market decreased by 28%.
In response to the CML buy-to-let figures, Adam Sampson, Chief Executive of Shelter, said:
"These figures show the shadow of repossession is no longer just cast over homeowners, but also thousands of innocent renters who have no idea how close they are to eviction."
to topRICS and NAEA call for major reform of HIPsRICS and NAEA have called on the Government to introduce fundamental changes to Home Information Packs to ensure that they are fit for purpose for all properties and in all market conditions.
Working with the National Association of Estate Agents and the Law Society, RICS has formulated a new HIP model which is based on the central theme of giving the right information to the right person at the right time.
The HIP itself would concentrate on consumer information with legal information being taken out and obtained by legal advisers at the appropriate time.
Peter Bolton King, Chief Executive of the NAEA, commented:
"With the economic situation worsening and the property market still suffering, we are calling on the government to take urgent action on HIPs.
"We have long seen HIPs as not fit for purpose and as the wrong answer to simplifying the house buying process. Quite simply, the government tried to force ‘square pegs into round holes' and the slower property market is making this situation worse. For instance, the current call for local searches to be conducted as part of a HIP is madness. Due to the length of time properties are on the market in the current climate, a majority of searches are now out of date by the time the property is sold, which means they have to be repeated at extra cost to the consumer."
to topHousing market newsPoll of estate agents shows stamp duty issue is still causing problems in the marketA second survey of members conducted by the National Association of Estate Agents (NAEA), regarding the indecision caused by a possible Government stamp duty holiday announcement, shows that the crisis is still playing out in the housing market. In the last survey 92% of agents thought the indecision had increased consumers concerns, now 98% of agents believe that consumer confidence has been further damaged, with 56% of them saying they have lost at least one sale since the revelation was made.
Last time 26% of agents thought sales had fallen through as a result of the comments. Now agents go further with 32% saying that they have lost between two and three sales and 92% saying sellers, purchasers and applicants are still asking if they should hold off making a decision pending further information.
House moves delayed following stamp duty speculationAn overwhelming 83% of home movers are pushing back their moving date or postponing their entire move indefinitely, as a result of the Government's failure to confirm the future of stamp duty tax, a poll by Moveme.com shows.
On 11 August, less than one week after it was first leaked that the Chancellor is considering suspending stamp duty payments in an effort to boost the housing market, Moveme.com asked its database of home movers if the news had a) made no difference to their plans, b) pushed back their moving date, or c) postponed their move indefinitely.
Almost 1,500 movers responded by saying that only 17% were unaffected, while 20% had pushed back their moving date and 63% were postponing their move.
Moving dates registered by users on the site have been pushed back from 37 days ahead to 64 days, demonstrating how the Government's refusal to confirm whether a stamp duty suspension is in the pipeline has further stalled activity in the market.
to topUK householders say: Green is the key to opening the property market doorNew research from the Energy Saving Trust reveals that energy efficient homes could be a vital driver to keeping the property market moving, with 'carbon appeal' set to replace 'kerb appeal' when it comes to swaying buyers. The study reveals that half of UK homeowners believe homes with greener features are easier to sell in the current market and 53% of all householders say they would be willing to pay extra for them.
The research reveals however, that estate agents could be under-selling the value of greener homes through a lack of information.
Despite the fact that householders are willing to pay on average £3,350 more for a 'green' home, almost half (49%) feel that estate agents don't put enough value on a home's green features and 56% feel that estate agents don't know enough about energy efficiency performance. There is a clear appetite for clearer information however, as two-thirds (66%) of householders would like more guidance from estate agents on the likely running costs of a home.
Download a copy of the Energy Saving Trust's "Hidden Value Guide"
Liberal Democrats: Government must help thousands on verge of repossessionThe Liberal Democrats announced plans this week, aimed at reducing repossessions and increasing the stock of social housing. The proposals include:
Introducing regulated Mortgage Rescue Schemes to allow families struggling with repayments to sell all or part of the equity in their house and rent it back from a housing association or private firm to help keep them in their homeAllowing councils and housing associations to borrow money to buy up land and empty new homes for use as social housing Courts to be given guidelines to only allow homes to be repossessed in extreme circumstances, making the mortgage lenders' voluntary code binding on all lendersCommenting, Liberal Democrat Shadow Chancellor, Vince Cable said:
"Ministers must act to help the thousands of families struggling to keep a roof over their heads."
"The Government should allow councils and housing associations to buy up land as well as empty homes to help replenish Britain's much depleted stock of social housing."
"Ministers must also tighten up repossession rules, to ensure that people's homes are only ever repossessed as a last resort."
"The Government should introduce regulated Mortgage Rescue Schemes. Under this arrangement, families struggling to pay their mortgage could sell part of the equity in their home and rent it back from a housing association or private firm."
to topShelter responds to the Liberal Democrat housing proposalsIn response to the Liberal Democrat Housing proposals, Adam Sampson, Chief Executive of Shelter said:
"The Liberal Democrats have set out a very positive package that would go a long way to helping thousands of struggling homeowners and potentially kick start the flagging house building industry."
"However, this cannot be delivered using money already earmarked for the delivery of social house building as suggested but extra money must be found to help prop up house builders, first time buyers and the housing market as a whole and not at the expense of social housing."
to topGovernment newsGovernment stands firm in row over empty property ratesThe Government has insisted it has no plans at present to reverse its decision to scrap rates relief on empty industrial property, despite concern over the impact on regeneration.
John Nicholls, Chairman of the chief executives' group of the Government-funded urban regeneration companies (URCs), has warned that owners are demolishing empty buildings to avoid paying tax on them. Nicholls said the change in the fiscal arrangements, which came into force in April, was "...starting to affect the supply of much-needed new property and job-generating property in our urban areas."
The British Property Federation has mounted a campaign against the tax changes which has attracted Parliamentary opposition from some Labour backbench MPs.
A spokesperson for Communities and Local Government said:
"The Government is committed to regeneration which is why, in April last year, new rules were introduced for businesses investing in the economic development of disadvantaged or so-called Assisted Areas. Those businesses that invest in Assisted Areas can claim 100% capital allowance for the cost of renovating or converting long term empty properties.
"We have no plans to reverse the changes to empty property rate relief introduced on 1 April, but as with all taxes we will keep the position under review."
to topHBF newsReminder: CML Disclosure of Incentives Form in effect from 1 SeptemberThe CML Disclosure of Incentives Form must be completed by home builders for all new home sales involving a mortgage for which there is a new mortgage offer made on or after 1 September 2008.
For a copy of the CML Disclosure of Incentives Form, click here.
For Frequently Asked Questions (FAQ) guide to filling in the form, click here.
to topEvent newsHBF Annual Planning conference 2008Wednesday 10 September - The Kassam Stadium, Oxford
This 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.
For further information please contact the events team on 020 7960 1646 or events@hbmedia.co.uk
Housing Market IntelligenceWednesday 15 October - Savoy Place, London
The annual Housing Market Intelligence conference is the house building industry's leading event for discussion of the strategic and macro issues facing house builders and is a must for anyone involved in the business of house building.
For further details please contact the events team on 020 7960 1646 or events@hbmedia.co.uk
to topHousebuilding Innovation awards 2008Thursday 23 October - Millennium Mayfair Hotel, London
Now in their fourth year, the Awards have become firmly established as the most coveted accolade in the UK house building industry. These awards recognise innovation among house builders and their suppliers in categories including ‘best sustainability initiative', ‘best innovation in technology' and ‘best initiative to first-time buyers/ key workers'. The glittering black tie event will this year be hosted by John Humphrys and takes place on 23 October in London.
For further information visit www.hbmedia.co.uk or take advantage of the early booking discount before 22 August, by contacting the events team on 020 7960 1646 or events@hbmedia.co.uk.
HBF Technical conferenceWednesday 12 November, University of York
This year has seen the Government propose major changes to the way that Building Regulations are enforced. With many regulations under consultation, it is important to keep informed of current and future legislation. The morning section of the conference will provide delegates with up to date information on Parts G & L, the Code for Sustainable Homes as well as examining the future direction of travel for building regulations.
The afternoon is to be devoted to the delivery of Zero Carbon Homes with the agenda to be set by the new Zero Carbon Hub.
For further details please contact the events team on 020 7960 1646 or events@hbmedia.co.uk
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 topRosie Hinchliffe