Friday, 31 October 2008Top stories this weekFSA statistics on mortgage lending .....read more HMRC - VAT implications of short term letting....read moreBank of England publishes stats on lending to individuals in September.....read moreLand Registry house price index.....read moreBeckett - 3m target is aspiration, but Government will work towards it.....read moreQuick LinksWales newsEconomic newsHousing market newsIndustry newsGovernment and political newsHBF NewsEventsWales news£95,000 to clear Powys council backlogA private company is being paid £95,000 to help Powys Council clear a backlog of some 300 planning applications, it has emerged.Consultancy firm Capita Symonds is being hired to help the authority following delays, and to help it reach performance targets.Read more at Wales Online Read more at Planning Resource to topEconomic newsFSA statistics on mortgage lendingThe Financial Services Authority (FSA) released statistics on mortgage lending this week. Key statistics are as follows:The total value of outstanding loans was £1,178bn, an increase of 7.5% compared to a year earlier, although quarterly growth continued to slow with a quarter 2 increase of 1%.Regulated loans continued to make up an increasing proportion of the overall loan book and at 68% in quarter 2 it was increased by 8%, year on year.New lending peaked in quarter 3 last year at £102bn before declining to £72bn in quarter 2, leaving gross lending 26% lower than a year earlier.The balance between lending for house purchase and remortgage stabilised in quarter 2. The proportion of new lending used for house purchase in quarter 2 remained virtually unchanged at 44%. As a proportion of new lending commitments however, it was lower at 35%, implying continued weakness in the short term.Numbers of new possessions have grown significantly since quarter 3 last year, with the 11,054 new cases in quarter 2 (after 9172 in quarter 1) being 71% higher than a year earlier. Download a copy of the FSA mortgage statistics to topBank of England statistics released: Lending to individuals September 2008The Bank of England reported this week that the total net lending to individuals in September (£2.4bn) was above the increase in August, but below the previous six month average. The twelve month growth rate slowed further to 5.4%, and the three month annualised growth rate fell by 0.4% to 1.9%.Within the total, the increase in net lending secured on dwellings (£2.2bn) was stronger than the decline in August (revised from a £0.1bn increase published previously), but weaker than the previous six month average. The twelve month growth rate slowed further to 5.3%. The number of loans approved for house purchase (33,000) and remortgaging (72,000) were higher than in August, but those for other purposes (37,000) were lower than in August.Download a copy of the BoE lending to individuals data to topHMRC - VAT implications of short term lettingIn September 2008 HMRC issued guidance (HMRC briefing 44/08 and Information Sheet 07/08) on the VAT implications of undertaking short-term letting of new-build properties, in particular the danger of inadvertently prejudicing the partial-exemption status of developers.HMRC has this week issued further guidance - briefing 54/08 - which gives confirmation that a separate entity outside a developer's VAT group, but under the control of the developer, can be used for short-term letting without the developer suffering a claw-back of VAT on the construction or land acquisition costs during the new build-phase. Read more to topBank of England: Financial Stability Report - issue 24The Bank of England published its bi-annual "Financial Stability Report" this week. The Report analyses the developments that have culminated in the turmoil of recent weeks and the actions taken by the UK authorities and other countries. It sets out the Bank's views on the near-term prospects for the financial system and the reforms necessary to address systemic risks.With a global economic downturn underway and growing signs of distress among some emerging market economies, the Report notes that risks remain in the financial system. The Report also highlights that, over the medium-term, banks will need to adjust their balance sheets and funding models, weaning themselves off current high levels of official sector support. Capital injections and debt guarantees will help this adjustment.Commenting on the Report, Sir John Gieve, Deputy Governor Financial Stability said:"The instability of the global financial system in recent weeks has been the most severe in living memory. And with a global economic downturn underway, the financial system remains under strain. But it is better placed as a result of the exceptional package of capital, guaranteed funding and liquidity support. That is helping to underpin the banking system both directly and by demonstrating the authorities' determination to do whatever is needed to restore confidence."Read more Download a copy of the Financial Stability Report CML comments on Bank of England Financial Stability ReportFollowing the publication of the Bank of England's Financial Stability Report, the Council of Mortgage Lenders (CML) has reiterated its call to the Treasury to publish the outcomes of the Crosby review of mortgage funding.Michael Coogan, CML Director General, commented:"The Bank rightly highlights the positive underlying credit quality of prime mortgage securitisations. Elsewhere, the report also highlights the funding gap between the level of deposits and the level of borrowing. This is an ironic juxtaposition, as this is precisely why we urged steps a year ago to incentivise new issuance of high quality mortgage backed securities. This would have acted as a way of reducing the impact of the inevitable narrowing of the funding gap, and enabling higher volumes of lending to continue, but was unfortunately rejected as a policy measure.""We continue to find it frustrating that in the US, poor credit quality caused the funding crisis, whereas here in the UK the funding crisis has been a major cause of the worsening credit picture. Underlying UK mortgage credit quality has never been the primary issue, yet the reduction in funding to support new lending has had a detrimental impact on the credit quality of existing mortgages, through house price falls, a narrowing of options for borrowers and the prospect of rising unemployment."Read more to topHousing market newsLand Registry house price indexThe Land Registry house price index, published this week, reported an annual house price change of -8% and a monthly change of -2.2%. The annual change in England and Wales has decreased for 13 consecutive months with the average house price standing at £168,814 in September 2008. The index also states that sales volumes have continued to decrease, with the average number of sales per month averaging 57,887 in the months April to July 2008.The Land Registry data for London shows an annual house price change of -6.1%, smaller than the national figure but larger than last month's figure for London. The monthly house price change in London was reported as -1.5%, with an average property price of £328,927 in September. The region with the most significant annual price fall was Wales, with a movement of -10.7%. Wales also had the largest monthly price fall at -5.5%.Download a copy of the Land Registry house price index to topNationwide publishes house price index.Nationwide this week published it's house price Index. The figures show that prices have fallen by 1.4% in October; the reluctance of sellers to reduce asking prices could be hindering market activity and recognition that the UK is heading into recession has led to sharp cuts in rates. View the house price indexto topIndustry newsLand Use Change Statistics (England) 2007 - provisional estimate (October 2008)The latest national statistics on land use change were released under the auspices of the UK Statistics Authority on 30 October 2008.Land Use Change Statistics (LUCS) are annual data. This release provides the second of three revised estimates for 2007 of changes on previously-developed land and the average density of new dwellings. Initial estimates were published in May 2008. Key points from the latest release are:In 2007, on a provisional estimate, 77% of dwellings (including conversions) were built on previously-developed land, compared to 76% in 2006.In 2007, on a provisional estimate, new dwellings were built at an average density of 44 dwellings per hectare, compared to 39 dwellings per hectare in 2006. In 2006 2% of dwellings were built within the Green Belt (unchanged since 2004) and 6% of land changing to residential use (from any use) was within the Green Belt (up one per cent since 2006). In 2006, 10% of dwellings were built within areas of high flood risk and 9% of land changing to residential use was within areas of high flood risk, compared to 10 and 7% respectively in 2006.Download a copy of the Land Use Change Statistics Green builders benchmarkedThe 2008 ‘Next Generation' benchmarks results were announced this week. Next Generation is a multi stakeholder initiative set up in 2006 to look at sustainable house building and each year ranks the performance of 20 top house builders on their approach to addressing climate change.At a ceremony in London this week addressed by Iain Wright, Parliamentary under-secretary in the Communities and Local Government Department, the Berkeley Group, Crest Nicholson, Miller and Inspace were revealed as the benchmark leaders.More detailsto topScottish Planning "shake-up"A wide-ranging package of improvements, aimed at making Scotland's planning system leaner and fitter, was announced this week.The reforms aim to build on work to improve efficiency and ensure planning is geared towards supporting increased sustainable economic growth - particularly important in the current economic climate.Key targets include:Simpler and more transparent processes Government agencies to focus increasingly on matters of genuine national interest Scottish Government and agencies to publish annual reports on performance Up to date development plans that provide investors and communities alike with greater certainty Quicker decision making by councils on high-quality applications A new electronic planning system to be formally launched next SpringRead more to topGovernment and political news Beckett appears before CLG Committee The CLG Select Committee met this week and heard the Housing Minister Margaret Beckett to answer questions on the state of the housing market. Asked about the Government's target to build three million new homes by 2020, Beckett said that it was too early to completely revise targets but that the figure was an "aspiration rather than a concrete target". She added that the Government would continue to work towards the target.Beckett also said that the Ecotown project would continue; and despite calls from Conservative members for the scrapping of HIPs, defended the scheme saying that it "protected customers".View the session in full to topHBF newsHope Challenge: 12 - 14 June 2009, Peak DistrictHBF's nominated charity, Habitat for Humanity (HfH), which builds safe, decent homes for families living in poverty across the world, is organising a fundraising event to take place next summer. 'Hope Challenge 2009' is a challenge event for teams of 3-6 people that will test entrant's initiative, teamwork and fitness. Part of the challenge will involve sleeping in a self built shelter to make entrants experience some of the challenges faced by those who live in poverty housing. The event involves:2 days and 2 nights in the great outdoors Mental and physical team challenges 1 overnight shelter to build, and sleep in 1000m of hill ascent and 20 miles of trekking A balance of fitness, strategy and team workHfH 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 topEventsHBF Technical ConferenceWednesday 12 November, University of YorkThis 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=eventsandmeetingsFor HBM events visit http://www.hbmedia.co.uk/ to topRosie Hinchliffe/Steve TurnerView Previous Weekly News Summary
