Top stories this week *Bank Rate reduced to 5.0% *Government announces cash grants for first-time buyers and key workers *Halifax report 2.5% fall in house prices Top stories this weekBank Rate reduced to 5.0%....read moreGovernment announces cash grants for first-time buyers and key workers.....read moreHalifax report 2.5% fall in house prices....read moreQuick Links Economic NewsHousing Market NewsGovernment NewsEventsEconomic NewsBank of England Reduces Bank Rate by 0.25 Percentage Points to 5.0%The Bank of England's Monetary Policy Committee yesterday voted to reduce the official Bank Rate paid on commercial bank reserves by 0.25 percentage points to 5.0%.The next rate decision will be on the 8th May.More informationChancellor launches Mortgage Finance Working GroupSir James Crosby will lead a group of mortgage industry experts, providing advice to the Government on options for improving the function of mortgage finance markets, the Chancellor of the Exchequer, Alistair Darling announced this week.The Working Group will draw on the experience and expertise of lenders, investors and the Tripartite Authorities (the Treasury; the Bank of England; and the Financial Services Authority).The Group will present an interim report to the Chancellor later this summer and a final report at the time of the 2008 Pre-Budget Report.View the full press statement CML welcomes launch of mortgage finance working groupCommenting on the launch of the working group, CML Director General Michael Coogan said:"The working group has been given a broad remit to consider what is needed to restore confidence in mortgage funding markets. Of particular importance is the acknowledgement that the market needs more effective disclosure of the quality of underlying mortgage assets, which in the UK remains good. The reality is, however, that confidence in the market for mortgage-backed securities in particular cannot be restored over night. Meanwhile, the shortage of funding is creating disruption in mortgage and housing markets now. While the working group is developing its proposals, we therefore believe there is a need for more immediate action by the central banks, in particular the Bank of England in the UK, to address market funding problems."More informationto topHousing Market NewsHalifax report fall in house prices by 2.5% The latest house price index from Halifax reports a fall in March house prices by 2.5%:Prices in Quarter 1 were 1.0% lower than in 2007 Quarter 4. House prices in March were 1.1% higher than a year earlier. Regions showing year-on-year rises were Greater London (1.6%), East Anglia (1.4%) and East Midlands (2.2%). There were year-on-year price falls in a number of regions with the biggest falls in West Midlands (-5.0%) and Wales (-4.7%). Halifax expect there to be a modest (low single digit) decline in UK house prices this year. However, they say any declines should be viewed in the context of the significant price rises over recent years. UK prices have increased by 171% over the past ten years and by 51% over the last five years. The average UK price has risen by £120,860 during the past decade from £70,696 to £191,556. Halifax say sound economic fundamentals are supporting house prices. A strong labour market, low interest rates and a shortage of new houses underpin housing valuations. Employment is at a record high and unemployment continues to fall. Employment stands at 29.5 million and has risen by 370,000 over the past year. Unemployment is below 800,000 and has fallen by over 125,000 in the last year. Halifax expect there to be a modest rise in unemployment later in the year, but say that the scale of the increase is unlikely to cause widespread difficulties for households. View the full house price indexto topRICS comment on Halifax house price data"The sharp fall in the Halifax house price index in March highlights the growing pressure on the residential market as lenders continue to scale back their activity in the market. Loan to value ratios are being lowered at the same point as borrowing rates are being raised putting increasing pressure on first-time buyers who are having to find ever larger deposits. There is moreover a real risk that year-on-year house price inflation will turn negative over the next month or two. This will compound the negative newsflow on the housing market."Whilst NAEA urges the market to remain upbeatFollowing the release of the Halifax house price index, Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA) urged people in the West Midlands not to worry:"We are already aware from our own members that house prices are being affected differently throughout the country so to find such regional discrepancies comes as no surprise. However, we do need to keep this in perspective: the report also states that although prices have fallen by 5% in the West Midlands they have also increased by 150% in the last 10 years. Likewise, in Wales a drop of 4.7% was seen, again, against a backdrop of rises of 188% in the last 10 years".to topConservatives call on Government to scrap stamp dutyCommenting on new figures released by Halifax Shadow Housing Minister, Grant Shapps said:"Buying a home has become a distant dream for many couples who simply cannot afford to stump up over £30,000 for the average deposit. Gordon Brown's crippling levels of stamp duty mean it is simply not a possibility for people to get on to the property ladder."Labour should continue with their penchant for stealing our policies and adopt our pledge to increase the stamp duty threshold for first time buyers to £250,000 so that 9 out of 10 people pay nothing."Fixed-rate mortgages decline in popularity, according to CMLThe popularity of tracker rate mortgages increased in February as the proportion of borrowers choosing fixed-rate loans fell to 52%, its lowest level since March 2005, according to the Council of Mortgage Lenders. The proportion of borrowers choosing tracker-rate loans increased to 35%, from 33% in January and 14% in February last year. Floating rate products have become increasingly attractive compared with fixed-rates as consumers expect further Bank base rate reductions in the coming months. to topGovernment NewsGovernment announces new measures for key workers and first-time buyersA package of new measures to support key workers and other first-time buyers into affordable homeownership was announced this week by the Prime Minister Gordon Brown, and Housing Minister Caroline Flint.New cash grants of £1,500 will be offered to buyers who take up a shared equity loan under the Government's Open Market Homebuy scheme (OMHB); The grants will help key workers taking up OMHB with the costs associated with setting up a new home such as solicitor's charges, fees, and furniture. More than £3 million has initially been earmarked for the first wave of grants.The Government also confirmed the disused public sector sites that will provide 30,000 more homes across England, many of which will be affordable. Developers bidding for the sites, which will go through the full planning process, will have to provide a high level of affordable housing, and build to high environmental standards under the Code for Sustainable Homes, with all homes being 25 per cent more energy efficient than those previously built.The Prime Minister said:"We want to do more for people who may need an extra hand to buy their first home. By offering new grants and sharing a stake in their home, we are making the dream of a new home more affordable for thousands of low-income first time buyers and key workers such as nurses and teachers."View full Government press releaseto topNew Government scheme is ‘tokenism' according to Lib DemsCommenting on the Government's new measures to help first-time buyers, Liberal Democrat Shadow Communities and Local Government Secretary, Julia Goldsworthy said: "The Government has already spent £350m on a scheme that has helped just 700 families and now Gordon Brown is proposing that these new grants will be enough to help families into new homes. "This new scheme is tokenism of the worst kind. The credit crunch is preventing many people from getting a mortgage they can afford, not the worry about solicitors' fees".Fees for planning applications riseFees for planning applications in England rose this week following the publication of the Town and Country Planning (Fees for applications and deemed applications) (Amendment) (England) Regulations 2008. Outline application fees rose from £135 per 0.1ha to £170 while detailed application fees for new dwellings rose from £265 per dwelling to £335 for the first 50 dwellings and £100 per dwelling thereafter. Of note is the raising of the maximum fee from £25,000 to £125,000 for outline applications and from £50,000 to £250,000 for detailed applications.The regulations also introduce a new fee for "confirmation of compliance with condition attached to planning permission". This is a set fee of £85 "where a request is made to a local planning authority for written confirmation of compliance with a condition or conditions attached to a grant of planning permission".View HBF briefing on planning fees (*members only)Planning Circular 04/2008: further guidance on the new fews*If you have forgotten your login to access member only information on the website please type your email address in the 'forgotten password' box on the website by clicking here. If you are still experiencing problems please contact rosie.hinchliffe@hbf.co.uk to topEco-towns challenge panel announcedA panel of leading figures announced this week by Housing Minister Caroline Flint will provide expert advice and support to developers whose proposed locations were announced in last week's shortlist of fifteen potential sites. They will also play an important role in challenging the developers to meet the highest standards possible for sustainability and design in their final proposals.The twelve members of the Eco-towns Challenge panel are:John Walker (Chair) - Former Chief Executive, British Urban Regeneration Association. Expert in delivery of large mixed use development; Dr Liz Goodwin - Chief Executive, Waste and Resource Action Programme (WRAP). Expert in use of natural resources and recycling; Stephen Hale - Director, Green Alliance. Environment expert;Sir Peter Hall - President, Town and Country Planning Association. Expert in urban issues, housing and planning;Wayne Hemingway - Founder, Red or Dead. Expert in design and social issues;Stephen Joseph - Executive Director, Campaign for Better Transport. Transport expert;Nick Mabey - Chief Executive, E3G. Expert in energy issues and economic development;Kris Murrin - TV presenter, expert in sustainable transport and children's issues; Sunand Prasad - Royal Institute of British Architects President-Elect. Expert in design and architecture;Liz Reason - Director, Reasons to Be Cheerful consultancy. Expert in innovative approaches to energy issues and climate change;Sue Riddlestone - Director, BioRegional Development Group. Expert in sustainability and sustainable development;Joanna Yarrow - TV presenter, green-lifestyle specialist and founder of sustainability company Beyond Green.to top New study into the future use of landThe Department for Innovation, Universities and Skills has announced a new Government study into the future use of land. 'Land Use Futures' will explore how land use in the UK needs to evolve to ensure sustainable economic, social and environmental benefits. The project will be an in-depth two-year study involving experts and scientists from a wide range of disciplines. The findings will be launched towards the end of 2009. HBF has been involved in scoping work for the study and will also be involved in its reference group.More onlineWeekly News Summary for 4 April 2008 - Clarification of Requirements for Mandatory Ratings under the Code for Sustainable HomesIn last Friday's Weekly News Summary we included an item on the introduction of requirements for a mandatory rating of new homes under the Code for Sustainable Homes to be included as part of Home Information Packs from 1st May.For the avoidance of doubt, we should clarify that it remains the case that there is no requirement for such a rating from 1st May for any home for which the builder has submitted a building notice, a full plans application or an initial notice for the purposes of building regulations before 1st May.We apologise for any confusion Friday's item may have caused, but the position above is the correct one for the purposes of determining your position under the amended Home Information Pack regulations. to topEventsHBF Ball - 10% DISCOUNT ONTABLES OF 10 & 12 BOOKED BEFORE JULY 18Download a booking form or alternatively contact the events team on 020 7960 1646 or email events@hbmedia.comTables of 10-12 are available. If you require a different size table please contact the events team.Housebuilding Innovation Awards - DEADLINE EXTENDED TO APRIL 25 The Housebuilding Innovation Awards provide an excellent opportunity to showcase and reward companies which provide innovative ideas and solutions to the UK new homes marketing. Now is the time to demonstrate what your company is doing to create new and better homes by entering this year's awards.The deadline for entries has been extended to Friday 25 April. Download the awards entry form or visit http://www.hbmedia.co.uk/For further information contact the events team 020 7960 1630 or awards@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 topJo WestonView Previous Weekly News Summary
