This weeks top industry news. Quick LinksHousing Market NewsGovernment NewsEonomic NewsIndustry NewsHBF NewsHousing Market NewsLittle movement in house prices during January, according to NationwideThe latest house price index from Nationwide reports the following: -House prices fell by a modest 0.1% in January, the third consecutive monthly decline The annual rate of house price inflation edged down from 4.8% to 4.2% Housing market conditions have loosened further, but there are tentative signs that demand may have bottomed out More informationAccess to the housing market 351% worse than 1996The RICS accessibility and affordability index for January 2008 has found that the cost of becoming a home purchaser in Great Britain has worsened by 351% since the most accessible point in 1996.A first-time buyer couple, both on lower quartile earnings (totalling £26,595 after taxes), will now have to save up to the equivalent of 104% of joint take-home pay, to build up the £27,729 needed for up front buying costs on a typical home including the deposit, fees and stamp duty. This equates to a substantial rise from the low point of 23% required in 1996.The key drivers of the worsening accessibility picture were the slight reductions in loan-to-value ratios that lenders were offering first-time buyers, as well as the continued burden of stamp duty and the costs of buying a home.View RICS press releaseHousing-related costs average £143 per weekUK households spent an average of £143 a week on housing-related costs in 2006, according to analysis in Family Spending, published this week by the Office for National Statistics (ONS). The ONS calculation is based on a comprehensive definition of housing and its related costs and includes £52 a week spent on mortgages, £24 on council tax, water charges and other local taxes and service charges, £23 on housing alterations and improvements and £17 on rent, net of rebates and benefits. View full reportto topNation of 'home hoppers' according to Halifax mortgagesA third of British homeowners have owned four or more homes, and the majority are looking to move up the property ladder. This is the key finding of new research from Halifax, which found that an overwhelming majority of the population (77%) are still in pursuit of their ideal home. According to the research, by the time we reach 65, many of us (35%) will have owned six or more homes. Based on the current average house price in the UK of £197,039, such regular movers will have spent the equivalent of a staggering £1.2 million on homes during their lifetime.View the full research findingsBank of England lending to individuals in DecemberLatest figures from the Bank of England show that the increase in net lending secured on dwellings in December (£8.6 billion) was above the increase in November but below the previous six-month average. The twelve-month growth rate fell to 10.0%. The three-month annualised growth rate also fell, by 0.4 percentage points to 8.7%. The numbers of loans approved for house purchase (73,000) and for other purposes (56,000) were lower than in November, but those for remortgaging (97,000) were higher.Record gross lending in 2007CML have released their market commentary for 2007: - 2007 was a record year for gross mortgage lending, with volumes rising by 5% to close to £364 billion from £345 billion in 2006. Net lending was £108 billion, just 2% lower than the £110 billion in 2006. The level of mortgage debt outstanding rose by 10% during the year, to £1,187 billion. Gross and net lending performed differently because the composition of lending changed. The share of lending for house purchase decreased and the remortgaging share increased. The share of lending accounted for by other specialist lenders rose from 16.8% to 17.5%, that of banks rose a fraction and that of building societies declined. Towards the end of 2007, market activity was affected by financial market dislocation. Mortgage approvals fell away sharply, and in the final months of the year even gross lending fell below the levels of a year earlier.View full CML reportto topGovernment NewsBudget 2008 - date announcedHM Treasury has announced that the Chancellor will make his Budget speech to the House of Commons on 12th March 2008 at 12:30pm.2006 Land use change statisticsCLG published the latest update to Land Use Change in England for residential development in 2006.The report states that, in 2006, 75% of new dwellings were built on previously developed land (compared to 77% in 2005). Regional variations range from 61% in the South West to 92% in London. In 2006, new dwellings were built at an average density of 41 dwellings per hectare (dph) compared to 40 dph in 2005 and 25 dph between 1996 and 2002.Download full reportHouse Condition Survey shows non-decent homes reduced by 3 million and energy efficiency has improvedThe CLG's 2006 English House Condition Survey Headline Report was published this week including the following highlights: -The number of non-decent homes across England was reduced by 3 million from 1996 to April 2006.The energy efficiency of homes has improved from an average SAP rating of 42 in 1996 to 49 in 2006. Social sector homes are on average much more energy efficient than those in the private sector (57.4 compared to 46.8 respectively) and are improving at a faster rate. The survey also found that over two thirds (70%) of the current housing stock has an energy efficiency rating of 'D' or 'E' based on Energy Performance Certificate banding. Less than 10% achieve a rating of 'C' or higher while a fifth of homes are in the most energy inefficient bands of 'F' or 'G'. More information to top"Merton Rule" Bill passes second readingIn the second reading debate on Michael Fallon MP's Planning and Energy Bill on 25 January, the Government said it did not support the Bill. Sufficient supporters of the Bill were, however, present to secure its passage to Committee stage. The Bill, which would provide a statutory power for local authorities to adopt "Merton rule" style policies, could now proceed subject to the availability of parliamentary time. HBF is seeking to establish the Government's position on the Bill's future progress and we will update you once the picture is clearer.Homes make the biggest contribution to UK emissions reductionsThe Government announced that total greenhouse gas emissions in 2006 were down 0.5 per cent on 2005 levels, while carbon dioxide (CO2), which makes up about 85 per cent of the UK's total greenhouse gas emissions, stayed virtually the same (a 0.1 per cent fall).Within this total, the biggest decrease in CO2 emissions was in the residential sector, with a fall of 4 per cent on 2005 levels, along with a decrease of 1.6 per cent in the business sector. Other sectors increased, including energy supply (up by 1.5 per cent) and transport (up by 1.3 percent). Environment Secretary Hilary Benn commented:"The fall in household emissions for the second year in a row is very encouraging. People are much more aware of their impact on the climate than they were even a few years ago, and I'm hopeful that these figures will become a continuing trend as we all increase our efforts to cut our carbon footprints at home."to topEconomic NewsCBI report that January sales are sluggish but beat expectationsAccording to the latest CBI Distributive Trades Survey, the New Year sales did not reverse the declining fortunes of the High Street, as retailers reported only a slight growth in sales, The balance of retailers reporting a year-on-year increase in sales is the lowest since November 2006, and continues the trend of slowing volume growth since last April's peak. However, it is a better outcome than the small fall in sales which firms had predicted. In February, retailers expect a pick-up in sales growth although, if realised, this would still be somewhat slower than the average for the second half of 2007.to topIndustry NewsReduced rate available for renovations on empty homes If a house is left empty for two years (previously three years) the work to renovate it can be charged at the reduced rate of VAT.HMRC are enquiring if there is a problem establishing evidence that a house has been empty for 2/3 years. Members with experience or an interest in this issue should email liz.bridge@theCC.org.uk or phone 020 7227 4514.Ecobuild 2008 - zero carbon in a dayEcobuild 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.ukto topHBF NewsHBF discuss follow up to Callcutt Review with CLGThe HBF policy team met the CLG officials responsible for the Government's response to the Callcutt Review this week. The issues covered included possible routes for responding to the Review's recommendations that arrangements for HBF's existing annual customer satisfaction survey should be revisited and for a fresh look at reporting land holdings. We also discussed how to take forward the Review's proposals for promoting regeneration and partnership between developers and local authorities.HBF Policy Conference sell-outThe HBF Annual Policy Conference on Wednesday was a sell-out.Addressing the dual concerns of building 240,000 homes a year by 2016, and building them to zero carbon standards in the same time frame, many home builders turned out to hear keynote addresses from Stewart Baseley, HBF's Executive Chairman, John Stewart, Director of Economic Affairs for the HBF, and Pete Redfern, Taylor Wimpey's group Chief Executive. Delegates received a comprehensive overview of the market and policy issues facing the industry, helping them to make strategic decisions for their companies. Stewart Baseley commented that the home building industry was now "living in interesting times" as a result of the challenging market, but was encouraged by the government's recognition of the crucial role that home building plays. He said, "What we need however, is consistency from government and for it to listen. It must remove the many obstacles that slow down the process of these homes being built."to topHBF Annual Industry Lunch - 10% discount on tables booked before 8th February 23rd April 2008 at the Hyatt Regency-The Churchill, London Please note due to high demand in previous years, places are strictly on a first-come first-served basis and booking early is highly recommended. For further details and to book online please click hereAlternatively contact the events team on 0207 960 1646 events@hbmedia.co.ukHBF Midlands AGM & Lunch 22 February 2008 at Sketchley Grange, HinkleyThis year the AGM is being held at The Sketchley Grange Hotel, Hinckley. This is an excellent chance for everybody working in the housing industry, at all levels, to review the previous year and forward plan for 2008, as well as networking with peers.For further details or to book online please click hereAlternatively contact the events team on 0207 960 1646 events@hbmedia.co.uk to topJo Weston
