This weeks industry news. Friday, 04 January 2008 Quick Links Wales News Housing Market News Government News Industry News Economic News HBF News Wales News Halifax housing hotspots for Wales Halifax have identified Newport and Pontypool as housing ‘hotspots’ for 2008 with an anticipated average price of £146,467 in Newport (-11% difference to regional average) and £148,596 in Pontypool (-10% difference) for 2008. More Info > Estate agents reject price prediction Claims that average house prices in Wales could drop by 10% before next Christmas are misleading, estate agents said yesterday. Analysts at accountants Grant Thornton claim that up to £20,000 could be wiped off the average value of a home during the coming months, meaning that house prices could end 10% below the peak they reached in August last year. But the general consensus from industry insiders in Wales is that the market, which slowed down significantly in the second half of 2007, will be flat for some of this year. But they predict some price increases, however small. Mr Davies, a former spokesman for the Association of Estates Agents in Wales, said: - “People are gaining more confidence in the market,” he added. “There are lots of reasons why the property market was quiet in 2007, many factors to consider such as interest hikes, the introduction of home information packs (Hips), the uncertainty in the market place following Northern Rock’s troubles. Read more > Colwyn Bay's empty flats situation is slammed by councillors Colwyn Bay councillors have lashed out at developers for continuing to push forward apartment schemes for the town. Councillor Trevor Stott said: “Demolition derby development” in which properties are bulldozed to make way for apartments is seeing Colwyn Bay lumbered with hundreds of empty flats. “We need decent family homes, and flats are not the answer in Colwyn Bay.” Research of council tax returns has revealed that around 600 properties are currently empty across the Bay of Colwyn, many of them flats and apartments in Colwyn Bay. Read more > Welsh combined heat and power plant could show the way forward A power station manager says combined heat and power plants could revolutionise the way Welsh homes are heated in future – so long as there is sufficient political will to make it happen. Damien Gilmartin is site manager for npower Cogen at a combined heat and power (CHP) station which has made one of Wales’ biggest chemical plants – Dow Corning at Barry – self-sufficient in energy. Read more > Call for commerce chamber action Businesses are calling for urgent action to find a replacement for Cardiff Chamber of Commerce after it went into liquidation. The organisation, which supported around 1,400 firms, has announced it was unable to pay off old debts. Read more > Housing Market News Halifax forecasts house prices and housing hot spots for 2008 Halifax has forecast house prices to be flat in 2008. House prices have risen by 179% over the past ten years from an average price of £70,000 in late 1997 to £195,000 today. Regionally Halifax forecast modest price growth across southern England and Scotland during 2008. Worsening affordability and weakening economies will cause a modest fall in prices in northern England and the midlands. Halifax has also identified the likely property hotspots for 2008 as well as those which recorded the highest house price growth in Britain during 2007. Southern England and Scotland are likely to record the highest house price growth during 2008. Parts of East London such as Hackney have also been identified as top performers in 2008 due to the regeneration ahead of the Olympics whilst Chatham and Dartford in the South East are also likely to perform well. In the north Liverpool is set to achieve high price growth as it becomes the Capital of Culture in 2008. View the full report > Number of first-time buyers at its lowest since 1980 New Halifax research estimates that the number of first-time buyers (FTBs) is at its lowest since 1980. An estimated 300,000 first-time buyers entered the market in 2007 – 44% less than in 2002 (532,000). The fifth annual Halifax First Time Buyer Review also shows: - • Average house is unaffordable for FTBs in 466 out of 483 towns• For the first time, the proportion of FTBs buying a flat (37%) is the same as that buying a terraced property• Henley on Thames is the UK's least affordable town for FTBs• Bootle in Merseyside is the most affordable town for a FTB• The average FTB in 8 out of 12 UK regions paid stamp duty in 2007 View the full Review > Plight of first-time buyers has become a national disgrace Commenting on the Halifax report David Pretty CBE, Chairman of New Homes Marketing Board, who has long campaigned for special help for First Timers, said: “The news from the Halifax, the nation’s largest mortgage lender, that the number of first-time buyers is the lowest for almost 30 years, is yet another kick in the teeth for tens of thousands of young people right across the country--and it’s very harmful to our nation as a whole. Their plight has become a national disgrace and positive action to help them is well overdue.’ He added: “These figures are yet another set of statistics which have tracked the steady decline in the fortunes of a ‘forgotten generation’ of youngsters under successive Governments. Yet, despite the regular hand-wringing and cries of anguish from all quarters, there has been very little done to effectively address their problems.” “The current market slowdown may well help more young aspiring homebuyers to realise their dream during 2008 but this is likely to offer only temporary relief from the downward spiral in their fortunes.” “The fundamental problem is that we are not building enough homes to keep up with demand and the accumulated backlog. This lack of supply is not going to be solved overnight but I believe there is a range of practical action we can implement now and which could bring much-needed relief to this vital part of the housing market.” David Pretty has called upon the Government to: - Raise the Stamp Duty threshold to £250,000 for first time buyers only. Give tax relief on financial contributions made by parents helping their children buy their first home. Speed up the release of surplus Government-owned and Local Authority land Sell Government land at a discount-in return for a permanent discount on first time homes. Fast-track priority for starter homes planning applications. House prices fall by 0.5% in December according to Nationwide The Nationwide house price report for December reported the following: House prices fell by 0.5% in December, the second consecutive monthly decline The average price of a UK property is nevertheless £8,334 higher than a year ago Rate cuts will help but are unlikely to re-ignite the housing market as in 2005 To view the full report > Buyers take advantage as homeowners rush to beat HIPS according to NAEA The November survey from the National Association of Estate Agents (NAEA) released before Christmas reported the following: - Increase in the number houses available with agents reporting an average of 77 properties for sale in November – compared with the 65 in October and 55 in November 2006. Increase in the number of buyers with 290 buyers registered in comparison to the 282 recorded in October 2007. However, the figure is still down on November 2006, when 342 buyers per agent were reported. First-time buyers increased their share of the market from 9.2% in October to 10.1% in November. Whilst, this figure is down on the same time last year when first time buyers had 13.4% share of the market, it is encouraging to see that this figure has risen. The NAEA attribute these increases to the final phase roll out of HIPs on 14th December, where many owners of one and two bedroom homes were rushing to put their property on the market to avoid the additional costs associated with the Packs and potential purchasers taking advantage of more favourable market conditions. However, the number of sales agreed decreased for the time of year with on average 9 sales reported per agent compared with 10 in October 2007. To view the full report > Almost one third of towns and cities saw double-digit house price growth last year Nationwide’s house price survey of 30 major towns and cities in the UK shows that almost one third of towns and cities saw double-digit house price growth in 2007: - St Albans remains the most expensive town in the UK with an average house price of almost £350,000 Belfast saw the fastest rate of house price growth in the UK – house prices rose by £200 a day Oxford maintains its position as one of the most expensive places to live, while boat race rival Cambridge slips back in the rankings Newcastle and Durham both saw prices fall by 3% in the year View the full report > Fewer transactions and small monthly price increase reflects calmer housing market House prices in England and Wales increased by 0.6 per cent in November, taking the average house price to £186,009, according to the latest monthly figures from Land Registry. London prices rose by 1.1 per cent - more than any other region - taking the average house price in London in November to £355,643. The number of transactions during the period June to September 2007 averaged 108,678 per month, down from 119,580 for the same period last year. More Info > Government News Select Committee criticises Government over Hips The Communities and Local Government Select Committee has criticised the Government for delaying the introduction of Home Information Packs (Hips) on political rather than economic grounds. In its Annual Report issued yesterday, the Committee states that the delay in the introduction of Hips, which were phased in over a four month period, owed “more to a failure of nerve in the face of vocal opposition from the press and others than to the general conditions prevailing in the housing market itself”. The full Hip programme, administered by the department for Communities and Local Government (CLG), was scheduled for launch in June 2007 but was delayed by two months and then initially only applied to homes with four bedrooms or more. The scheme was extended to three-bedroomed homes in September and then to all properties from mid-December. The Government blamed the delay on a shortage of trained energy assessors. Dr Phyllis Starkey, chair of the committee and Labour MP for Milton Keynes South West, has stated that the “tortuous process of introducing home information packs signals a failure of delivery on CLG’s part”. View the Select Committee Report > Industry News C&BE Diploma will be worth as much as 3.5 A Levels With less than a year before the first wave of students begin to take the Construction and Built Environment (C&BE) Diploma UCAS, the body responsible for deciding the points system used to report achievement for entry to higher education, announced the C&BE Diploma would be worth as much as 3.5 A-levels. Schools Minister Jim Knight accepted the recommendation that the new Diplomas should be judged equivalent to 5 GCSEs grade A*-G at the foundation level, 7 GCSEs grade A*-C at the higher level and 3.5 A Levels grade A*- E at the advanced level in the achievement and attainment tables. He went on to confirm an investment of a further £45 million in teacher training to support the roll out of Diplomas and £28 million cash funding in 2008/09. Nearly 4,000 pupils are set to take the C&BE Diploma from September 2008. A large number of employers are already involved including Wates, Balfour Beatty, Lovell, G&J Seddon, CB&I, Kier Group and Bovis Lend Lease, but many more are yet to fully engage. It is hoped that more employers will now be encouraged to engage with the new qualification. For more information on the diploma visit -www.cbediploma.co.uk Ecobuild 2008 - zero carbon in a day Ecobuild returns to Earls Court, London between 26-28th February 2008. The exhibition will be double the size with over 500 exhibitors, more than 75 free seminars and a series of new attractions linked to the key themes - zero carbon, water management and renewable energy.With zero carbon legislation looming, Ecobuild's Road to zero carbon - realised as a series of external wall elevations - shows how different combinations of superstructure, insulation and cladding can contribute to a low carbon outcome. It is anticipated that the Zero carbon house by Zedfactory, which will reach the Code for Sustainable Homes Level 6, will attract the most attention at the show. This teamed with the dedicated zero carbon seminar programme should assist with educating delegates on ways to meet the forthcoming challenges. Register for your free invitation to the show now at www.ecobuild.co.uk Economic News Bank of England reports reduction in availability of credit The Bank of England has issued the Credit Conditions Survey for quarter 4, 2007 which reports that the availability of secured credit to households has been reduced materially over the three months to mid-December. The Bank expects a further reduction in secured credit availability over the next three months. Overall demand for secured lending was reported to have increased over the past three months, though by less than had been expected in quarter 3. Lenders expected demand for secured credit to fall over the next three months. More Info > HBF News 2008 Events HBF Policy Conference 2008 - Hitting the Government's housing targets 30 January at One Birdcage Walk, LondonFor further details or to book please visit our website. Alternatively contact the events team on 0207 960 1646 events@hbmedia.co.uk HBF Seminar on the 3 Dragons/GLA Affordable Housing Toolkit 7 February, 30 Warwick Street, London HBF, 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, Manchester For further details or to book please visit our website. Alternatively contact the events team on 0207 960 1646 events@hbmedia.co.uk HBF Midlands AGM & Lunch 22 February 2008 at Sketchley Grange, Hinkley For further details or to book contact the events team on 0207 960 1646 events@hbmedia.co.uk Housing Futures 13 March 2008 at East Midlands Conference Centre, NottinghamFor further details or to book please visit http://www.hbmedia.co.uk/housingfutures/ . Alternatively contact the events team on 0207 960 1646 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 contact the events team on 0207 960 1646 events@hbmedia.co.uk HBF Midlands Social 9 May 2008, Sketchley Grange Hotel, Hinkley To reserve a table please contact the events team on 0207 960 1646 events@hbmedia.co.uk HBF Yorkshire Social Dinner 16 May 2008, Sketchley Grange Hotel, Hinkley To reserve a table please contact the events team on 0207 960 1646 events@hbmedia.co.uk HBF South West Ball 7 June 2008, Beaufort Polo Club, Tetbury To reserve a table please contact the events team on 0207 960 1646 events@hbmedia.co.uk
