HBF Weekly News Summary Friday 12 October 2007

Top stories this weekPlanning-gain Supplement is abandoned following HBF submission... read RICS report weakening demand and constrained supply... readHBF calls on the Government not to ‘bottle-it' over housing growth... read Quick LinksGovernment News Housing Market News Industry News HBF News Government NewsPlanning-gain Supplement is abandoned following HBF submission

The Government announced on Tuesday that it has abandoned the proposed Planning-gain Supplement (PGS) in favour of a local planning charge for infrastructure for new development alongside "negotiated contributions for site-specific matters" (S106).

This represents a major victory for the house building and property industries. HBF had lobbied the Treasury and CLG very hard over the inadequacies of the proposed PGS and joined forces with others in the house building and property industry to propose an alternative local infrastructure tariff/charge; the Government's local planning charge builds on this.

HBF will be consulted on details of the new charge and the legislation, which will be introduced later this year in the Planning Reform Bill.

In a statement on Tuesday, Yvette Cooper, Housing Minister said:

"The Government welcomes the constructive and focused way in which stakeholders have engaged with this challenge since the Green Paper. This has included a clear recognition on the part of the development industry that it is right that they should contribute more to the costs of infrastructure needed to support housing delivery. Many in the industry - including the British Property Federation, the Home Builders Federation, London First and the Major Developers Group have supported proposals for planning charges, building on the current section 106 approach and the tariff models developed by Milton Keynes and other areas. The Local Government Association has also supported a similar approach.

Following these representations, and others, we have concluded that the best way at this stage to increase contributions towards infrastructure alongside greater house building is to take forward the Housing Green Paper option of a statutory planning charge."

Download full HBF briefing on the Planning-gain Supplement plus Yvette Cooper's full statement from the website please click here

If you have forgotten your login or password to the website please email catherine.wilson@hbf.co.uk

to topCoalition of developers and home builders welcome the alternative to the proposed Planning-gain Supplement

In a press statements on the Government's announcement by members of the alliance of the Home Builders Federation, British Property Federation, Major Developers Group and London First the following was said:

Stewart Baseley, Executive Chairman of the Home Builders Federation said:

"We welcome the Chancellor's recognition that the proposed Planning-gain Supplement was unworkable and we look forward to working with Government to develop further a tariff-based approach to help meet infrastructure costs through developer contributions. To deliver the much needed 240,000 new homes per year it is vital we agree a workable system to raise additional funds for necessary infrastructure."

Liz Peace, chief executive of the British Property Federation, said:

"We know from the more than twenty existing local tariff schemes that they can be made to work in a way that secures local support and retains industry confidence while delivering much-needed infrastructure investment to underpin development.

"We hope that the property industry and government can move quickly to agree the detailed implementation of a local charge-based system."

Sir Stuart Lipton, on behalf of the Major Developers Group said:

"PGS threatened to hinder development. In consulting on a charge-based alternative the Government have accepted the need to develop a system that carries the confidence of major developers and delivers much-needed infrastructure investment."

View the key facts on the tariff-based alternative to the Planning-gain Supplement

New Housing Supply Public Service Agreement

The Government has also published a new Public Service Agreement (PSA) to increase "long term housing supply and affordability".
The key indicators (objectives) for the home building industry are outlined in the document as follows:

Indicator 1: Increase the number of net additional homes provided per annum to 240,000 by 2016

Indicator 2: Affordability: the ratio of lower quartile house prices to lower quartile earnings [This does not have a specific objective.]

Indicator 6: Local planning authorities to have adopted the necessary Development Plan Documents, in accordance with their Local Development Schemes, to bring forward developable land for housing in line with PPS3.

The PSA specifically refers to the HBF and the role of the House building Industry:

"CLG will continue regular engagement with representatives of the housebuilding industry, including the Home Builders Federation, and through this seeks to explore and address barriers to housing delivery. The Home Builders Federation, along with other stakeholders, is involved in consultation on the plan making process at all levels."

to topPre-Budget Report: new funds to be provided to achieve 3 million new homes by 2020

The Chancellor has announced this week that the Communities and Local Government budget will rise from £10.3 billion in 2007-08 to £12.1billion in 2010-11. This settlement delivers:

£6.5 billion investment over 3 years in new social housing to deliver 45,000 new social homes per year by 2010-11, a 50% increase compared with 2007-08, with a goal of reaching 50,000 per year during the next spending review period;£1.7 billion over 3 years targeted funding for infrastructure in growth areas, the Thames Gateway, new growth points and eco towns, including a £300 million Community Infrastructure Fund;£500 million over 3 years for the new Housing and Planning Delivery Grant, to incentivise local authorities to increase housing supply and help bring forward local development frameworks. HMI - Yvette Cooper calls on local authorities to avoid delay

Housing Minister Yvette Cooper has set out a strong message to local authorities, stating that they must not delay preparation of housing land availability assessments if local development frameworks are behind schedule.

Speaking at HBF's annual Housing Market Intelligence conference, Cooper said: "Councils can't just wait for local development frameworks. They need to get on with preparing five and 15 year strategic housing land availability assessments (SHLAAs) now.

"The planning inspectorate will take it into account if they fail to produce these land supply plans and to identify developable land even before local development frameworks are in place."

Cooper headed a strong line up of speakers at the conference which included HBF Executive Chairman Stewart Baseley, head of the Callcutt Review John Callcutt and HBOS Chief Executive Peter Cummings.

The conference was held alongside HBF's Housebuilding 2007 Show which attracted 80 exhibitors displaying a wide variety of innovative products for the housebuilding industry. Both events were organised by HBF's media arm Housebuilder Media.

The 2007 Housing Market Intelligence report - which was launched at the conference this week - is now available to buy at a discounted price to HBF members of £245 (normal price £295). This 148 page document includes:

A comprehensive listing of the UK's Top 75 housebuilders Economic and Market trendsRegional analysisKey data on RSLsFull list of M and A activityIndustry contact names and detailsand much more

To buy your report go to www.housingmarketintelligence.com or call 020 7960 1630.

to top HBF calls on the Government not to ‘bottle-it' over housing growth

Speaking at the opening of the 5th Annual Housing Market Intelligence Conference in London on Tuesday 9 October, Executive Chairman of the Home Builders Federation Stewart Baseley called on the Government to stand up for homebuyers against local opposition to housing development.

Citing new opinion poll evidence which demonstrates public support for Government action to tackle the crisis in housing affordability, Mr Baseley challenged ministers to speed up the planning system to unlock land for housing development. He argued that the Government's response to the draft South East plan will be an acid test of their resolve to stand up for the needs of aspirant homebuyers against local opposition.

The YouGov poll for the New Homes Marketing Board revealed that the ‘Facebook' generation of 18-24 year old first time voters are looking to Government and home builders equally to respond to the shared challenge of ensuring that affordable homes are available to first-time buyers.

View information on the YouGov poll

View Stewart's full speech

Time for a greener green belt, says Natural England

Natural England, the Government's statutory advisor on landscape, has assessed the case for a review of green belt policy as part of a fresh approach to greening new development.

Natural England's Board agreed at its meeting of 10 October the need for a housing policy that puts green space at the heart of all new development.

England's 14 green belts surround major urban conurbations and cover 13% of the country. They were established in the 1950s to contain urban sprawl. Since then there has been little environmental improvement in the quality of these areas. They contain much land that is neglected or of poor environmental quality.

The board of Natural England proposes that the following principles are adopted:

England's towns and cities are ‘greened' by putting green spaces at the heart of all new development. The most sustainable solution of where to locate new housing is sought including a review of the role of the green belt, taking into account quality of life, nature conservation, landscape protection, flood mitigation and the impact of a changing climate. The land in and around England's 14 green belts is ‘greened'. England's green belts cover 13% of the country - 1.65 million hectares, or an area bigger than all of England's National Parks combined - and is currently often neglected or of poor environmental quality.

View the full report

to top Housing Market NewsRICS - Demand weakens further but supply remains constrained

House price confidence weakened further with demand slowing but supply remaining very constrained, says RICS' UK housing market survey published this week.

Surveyors reported that house price growth remained negative for the second month in succession. 14.6% more Chartered Surveyors reported a fall than a rise in house prices, down from 3.3 reporting in August - the fastest decline since September 2005 when 19.4 Chartered Surveyors reported a fall than a rise.

New buyer enquiries declined for the tenth consecutive month and at the fastest pace since March 2003. 51% more Chartered Surveyors reported a fall than a rise down from 39% in August.

However, new instructions declined for the fourth consecutive month at the fastest pace since June. 21% more chartered surveyors reported a fall than a rise in new instructions to sell property.

The ratio of completed sales (over the last three months) compared to the stock of unsold property on the market increased to 38.4% in September from 37.7% in August as the fall in stocks was proportionally larger than the fall in sales. Market conditions have eased from the peaks in March, but they are still tighter than the surveys long run average of 37.2%.

View the full report

to topHIPs still impacting on property market report RICS

The number of properties requiring a Home Information Pack (HIP) coming onto the market in September has continued to fall across England and Wales compared with the same month in 2006, according to a new survey of members by RICS.

73% of respondents indicated a decrease in three bedroom or larger properties coming onto the market, with only 8% of respondents indicating an increase.

Respondents who recorded a fall found, on average, that new instructions fell by 37%.

Currently the worst-affected areas were East Anglia and the West Midlands whilst London remained the least affected region.

The Government is talking of a full roll-out of HIPs by the end of the year.

View more information

to top Industry NewsUrgent Warning - New CIS - Major Problems ahead

If you post a CIS 300 Return to HMRC please be sure to

use a large envelopeuse the stamp for a large envelope - first classget proof of posting OR if this is too difficult make a written note of the date on which you posted the return and get someone else to countersign the note on the same day.

There are considerable problems being experienced by members who have posted returns early in the month which have not been logged as received by HMRC until after the time limit - the 19th.

It is essential in these early months that if you are sending in paper returns (CIS 300) you post them by the close of business on the 16th at the latest - AND keep a record of posting dates. If a return is late and you appeal against a penalty you will need to confirm that you took every precaution to get it to HMRC on time - right envelope, first class large envelope stamp - and a sound record of the date of posting.

If you are told by HMRC that you have made late returns and you believe that you sent them in good time please contact Liz Bridge 0207 227 4514 or liz.bridge@thecc.org.uk - we need to know the extent of the problem and collect as much evidence as possible to demonstrate how it is happening to HMRC.

to topNew landfill rules in England and Wales

After 30 October 2007, non hazardous waste landfills will not be allowed to accept liquid or untreated waste. Businesses will need to take more responsibility for ensuring their waste is correctly managed.

Businesses will either need to treat their own waste or ensure it is treated by someone else before it goes to landfill. Many businesses already treat their waste in a simple way, such as collecting waste streams separately and recycling one or more of the separated parts.

There is guidance on the Environmental Agency website to help business and industry meet the changes. There is a fact sheet for any general business producing waste as well as fact sheets for the waste management industry and those handling inert waste, municipal waste and contaminated soils.

To find the fact sheets and other information, click the ‘What's New' link: www.environment-agency.gov.uk/landfilldirective.

to top HBF NewsHBF meet energy suppliers to discuss zero carbon

HBF staff and members met members of the UK Business Council for Sustainable Energy on 11th October to discuss energy supply issues that need to be tackled to achieve the Government's zero carbon homes objective. The meeting identified much common ground on the need for non-prescriptive local policies, better focused and consistent incentives and greater coherence in the policies being pursued by a number of Government Departments. These issues will be raised at a joint industry meeting with Housing Minister, Yvette Cooper next week.

HBF TomTom Sat Nav competition winner

The winner of the HBF Housebuilding 2007 competition to win a TomTom Satellite Navigation system is Richard Bertioli, Technical Manager, Bovis Homes. Well-done Richard!

Bookings now being taken for the HBF Technical Conference

The HBF Technical Conference entitled ‘the road to zero carbon is paved with building regulations' will be taking place at York Racecourse on Wednesday 14th November 2007.

View the full agenda for the day and book online