HBF Weekly News Summary Friday 13 June 2008

Friday, 13 June 2008Top stories this weekResurgence of fixed-rate loans in April....read more

RICS - Transactions fall further.....read moreCML introduces new process for conveyancing and valuing newly-built properties.....read more Quick Links Housing Market News Industry News Government News HBF News Event News Housing Market NewsResurgence of fixed-rate loans in April

Fixed-rate loans became more popular in April suggesting that borrowers are looking for security over future mortgage payments, according to the Council of Mortgage Lenders. The proportion of borrowers taking out fixed-rate products increased to 59% in April, from 54% in March. This is the largest proportion since December last year.

There was a monthly increase in lending volumes in April, although activity remains weaker than a year ago. Gross lending increased by 8% in April to £26.1 billion, from £24.1 billion in March, after two consecutive months of decline. This was 5% down from April 2007, but this annual rate of decline was lower than in recent months; gross lending in March 2008 was 24% lower than March 2007.

There were 50,700 loans for house purchase worth £7.7 billion in April, up 9% in volume and 10% in value from March. There were 18,500 loans to first-time buyers, up 4% from March but 36% lower than April last year. There were 32,300 loans to home movers, up 13% from March and 38% lower than April last year.

Remortgaging accounted for 42% of gross lending in April and has continued to perform better than house purchase as large numbers of borrowers exit fixed-rate mortgages. There were 83,000 loans for remortgage worth £11 billion, up 14% in volume and 11% in value from March.

to topHBF - BBC Radio 4 Today Programme

John Slaughter, Director of External Affairs at the HBF, appeared on the Today programme twice this week. On Wednesday he made the case for an interest rate cut in a debate with Professor Willem Buiter. On Thursday he commented on the reasons for the slowdown and the need for Government action to safeguard capacity against the long-term need to improve housing supply.

Listen again to Wednesday's interview

NLA - Buy-to-let is not the UK's 'sub-prime crisis'

The National Landlords Association (NLA) has said that the fundamentals of UK buy-to-let remain strong.

David Salusbury, Chairman, NLA, commenting on NLA Mortgages, said:

"The NLA does not subscribe to the view that the end is in sight for the buy-to-let market. On the contrary, we believe now is a good time for the professional portfolio landlord, many of whom will be benefiting from increased demand and rising rents."

to topBSA to expand mortgage service

The Building Societies Association (BSA) announced this week that it is to expand the work which it does on behalf of building societies by representing their interests in the mortgage and housing markets.

Commenting John Goodfellow, Chairman of the BSA said:

"Recent events have accentuated the distinctiveness of building societies. We have attracted record inflows of new savings in recent months and operate a robust and long standing business model.

"This expansion of representation is a natural step for the BSA and will reinforce the standing of building societies in the financial sector. It will help to ensure that the differences between building societies and banks are more widely understood.

"This is an exciting time for building societies and the BSA and we look forward to fully representing the interests of the sector."

RICS - Transactions fall further

The main points in the RICS Housing Market Survey published this week were:

92.9% more Chartered Surveyors reported a fall than a rise in house prices, a decrease from 94.7% in April.The average number of transactions per surveyor (over the last three months) was 17.4, the lowest figure since 1978 and the net balance of new agreed sales remains in negative territory.Demand remains weak with the balance of surveyors reporting new buyer enquiries still well into negative territory. However 51% more Chartered Surveyors reported a fall in buyer enquires compared to a balance of 69% in April. With mortgage arrears still low, until the worsening economic picture filters through into the employment market, this lack of supply will prevent significant declines in house prices. The net balance of Chartered Surveyors reporting new instructions to sell property fell to -26%, the second lowest figure since the question was asked in April 1999.

Commenting, RICS spokesperson Jeremy Leaf said:

"While demand remains weak and housing transactions continue to evaporate, there is a very real danger to the wider economy. The property industry will not be the only casualty in the fall out from the credit crunch, with the high street and purveyors of a range of household goods, including furniture and white goods also feeling the pinch. Construction workers such as plumbers and bricklayers will start to see employment opportunities dry up as the pace of housing transactions continues to abate."

View press release

View RICS Housing Market Survey

to topNAEA - There is a need to look regionally for a clear picture of the housing market

Following the release of the RICS survey this week, Chris Wood, President elect of the National Association of Estate Agents (NAEA), said:

"The RICS report issued today illustrates that an aggregated national snapshot of the market can only tell part of any story. In order to gain a clearer picture there is a need to look regionally. We are already aware from our own members that house prices are being affected differently throughout the country so to see that the report showed an aggregate drop in house price comes as no surprise. However, there is a real need to keep this in perspective. The picture is mixed across the country and some areas will be more affected than others, so people really need to look to their local markets to get a true picture."

to top Industry NewsCML introduces new process for conveyancing and valuing newly-built properties

The CML is introducing new standards for industry professionals who act for lenders on newly-built property transactions. The new procedures, which come into effect on 1st September, will ensure that the conveyancing and valuation processes capture the true value of the property, reducing risk for both borrowers and lenders.

Commenting on the planned changes, the CML's director general Michael Coogan said:

"We are introducing these measures to help sustain confidence in the market for newly-built property. Lenders need to know about discounts and other incentives so they can be sure that the decision to offer a mortgage is based on a reliable valuation of the property. The new measures will provide additional security and safeguards for borrowers, as well as lenders."

"We welcome the support of RICS and house-builders in implementing this solution. Responsible builders and developers understand that lenders must have confidence in the valuation process. They are supporting our initiative because they understand that, in making these changes, we will reinforce confidence in the new-build market."

to topReaction to CML announcement

In a joint response to the CML's announcement regarding a Disclosure of Incentives form to be completed by home builders, the Home Builders Federation (HBF) and Homes for Scotland (HFS), who were consulted by CML throughout the process, said:

"The steps announced by the CML build upon the amendments introduced earlier this year by HBF and HfS to strengthen their Codes of Conduct, and underline the industry's commitment to transparency. These initiatives will ensure that housing developers maintain the confidence of mortgage lenders, and help facilitate the process of buying a new home."

RICS to ensure that their members account for incentives in their valuations

As part of the new arrangement, from 1st September 2008 RICS will make it mandatory for their members to ask the seller, builder or developer on site, or their selling agent, for copy of any ‘disclosure of incentives' for the new home property under consideration. The form, prepared in accordance with guidance from the Council of Mortgage Lenders (CML), will consist of 12 questions which disclose the full details of all financial and non-financial incentives and also details of any third party interest in the transaction.

to topRICS set to transform process of appointing a surveyor

With the introduction of its Consultancy Appointment Forms RICS (Royal Institution of Chartered Surveyors) is looking to simplify and improve the process of appointing a surveyor.

The forms comprise a Standard Form of Appointment, a Short Form of Appointment, explanatory notes and co-ordinated services for building surveyors, CDM co-ordinators, employer's agents, project managers, project monitors and quantity surveyors.

RICS Awards 2008 shortlist announced

Some of the best building and conservation projects from around the world make up the shortlist of the RICS Awards 2008. Selected following regional heats the shortlisted entries now compete to become overall category winners in Building Conservation, Regeneration, Sustainability and Community Benefit. One shortlisted entry will win the top prize of Project of the Year - a prestigious award presented to any entry that is judged to have excelled in any or all of the main categories.

to top Government NewsCLG announce planning partnership guide

Planning Minister, Iain Wright said:

"The pressures on housing supply and the challenges faced by those involved in delivering high quality, sustainable development continue to increase"

"We are committed to improving the planning processes which is why we introduced Planning Performance Agreements. They make a real difference to bringing forward quality new development through better project management."

Andrew Whitaker, Head of Planning, HBF, welcomed the development of PPAs. He said:

"PPAs are a positive tool for genuine partnership working between the private and public sectors ensuring that, for what are often complex development projects in an ever increasingly complex policy environment, the planning process becomes more transparent and timely."

View best practice guidance and case studies on Planning Performance Agreements

DBERR launches Strategy for Sustainable Construction

Business Minister Shriti Vadera launched the joint industry-Government Strategy for Sustainable Construction which sets out targets to be delivered by industry. These include commitments to:

Recruit 230,000 additional trained construction workers by 2010 Cut the number of work-related deaths by 10 per cent year on year Supply an extra 13,500 apprenticeship placements by 2010 Achieve a 50 per cent reduction in the amount of construction, demolition and excavation waste to landfill Ensure 25 per cent of materials used in construction projects are responsibly sourced by 2012 Ensure all construction projects over £1m have biodiversity surveys carried out and instigate the necessary actions by 2012

to topPlanning Policy Statement 25: Development and Flood Risk - Practice Guide

The PPS 25 practice guide launched this week is complementary to Planning Policy Statement 25: Development and Flood Risk (PPS25) and provides guidelines on how to implement development and flood risk policies by the land use planning system. The guide also includes working examples through case studies.

This replaces the Development and Flood Risk: A Practice Guide Companion to PPS25 'Living Draft' - A Consultation Paper published on 19th February 2007.

to top HBF NewsMember Briefing - OFT New Homebuild Consumer Survey Draft Report of Findings

As part of its Market Study of homebuilding, launched in June 2007, the OFT commissioned a survey of 1,000 UK new home buyers in the previous two years. Interviews were carried out between 24 October and 30th November 2007.

Please click here to view the HBF Briefing to members regarding the draft report.*(member only)

*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

Correction: Member's Briefing PPS12

In the original briefing, referred to in the last edition of the Weekly News Summary there was an error regarding the abolition of the Issues and Options stage of DPD preparation. It is actually the Preferred Options stage of plan preparation that has been removed allowing LPAs to move from Issues and Options straight to the submitted plan.

Please click here to view the amended document *(member only)

*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 top Event NewsWater: Regulation changes and the Code - Practical Solutions

Tuesday 15th July, Thinktank, Birmingham

The Government is seeking a major step change in water efficiency in new homes.

This seminar will examine the proposals enshrined in the amended Building Regulations Part G now subject to consultation, as well as the water aspects of the Code for Sustainable Homes and ways of securing maximum points to achieve higher Code levels.

Available to book on line at http://www.hbmedia.co.uk/

HBF Annual Planning Conference 2008

Wednesday 10th September - The Kassam Stadium, Oxford

This year's conference will discuss the combined challenges of climate change and the new planning act. The day is designed to provide delegates with both vital knowledge from the plenary sessions and practical guidance through our interactive workshops on the Community Infrastructure Levy and the PPS1 supplement on Climate Change.
For further information 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=eventsandmeetings

For HBM events visit http://www.hbmedia.co.uk/

to top

Rosie Hinchliffe

View Previous Weekly News Summary