Top stories this week *PM announces new housing measures *Latest CLG figures show private starts are down by 27% year-on-year Top stories this weekPM announces new housing measures....read moreLatest CLG figures show private starts are down by 27% year-on-year.....read moreQuick LinksHeadline News Economic NewsHousing Market NewsGovernment NewsIndustry NewsHBF NewsEvents Headline News The housing market - and the need for action to assist it - have remained centre stage for HBF this weekPM announces new housing measuresGordon Brown announced the Government's draft legislative programme in the House of Commons on Wednesday. In his statement the Prime Minister said his first priority was to "help family finances" in light of rising food and fuel prices and the effect of the credit crunch on mortgages.His announcement referred to a series of housing measures on which Housing Minister Caroline Flint also made a statement: - £200 million fund to buy private houses and lease them to social tenants£100 million for shared equity schemes, which would be extended to all first-time buyers. Savings Bill to give those on low incomes access to a national savings schemeBanking Bill to give new guarantees to depositors.View full statement to topHBF - Housing Measures are ‘Not Enough'HBF's top priority at present is to persuade the Government, Bank of England Monetary Policy Committee and Mortgage Lenders that urgent action is required to assist the housing market and new homes sector. This week's statement is welcome and shows that the Government is listening to HBF, although clearly more needs to be done. Reacting to the Prime Minister's announcement of the legislative programme, HBF Executive Chairman Stewart Baseley said in a statement:"Whilst welcoming any measures that may boost the housing market, today's announcement is not enough. The current situation demands drastic action and we have been calling on Government to take a range of measures to address the situation. The implications for the wider economy, industry jobs and the Government's long term targets of not acting now are severe." Since the current crisis began to emerge last summer, HBF has closely monitored the situation facing home builders and has fed information through to key officials at Treasury, Bank of England and CLG who we are assured are being kept fully briefed on the new build situation. Following a meeting with Treasury officials HBF drew up a Housing Market Package and submitted this to the Chancellor at the end of April. The package included proposals such as a time-limited stamp duty holiday, a first-time buyer loan deposit scheme and mortgage interest relief for first-time buyers and parents assisting their children to buy. HBF has also been proactively engaging the media to ensure that the industry's concerns are understood by journalists which has resulted in significant coverage across the national, trade and broadcast media.The market will continue to take priority and we will be monitoring new build trends and provide evidence to the relevant officials while continuing to work on other long-term issues. HBF issued a briefing to members following the Government's announcement summarising the action we are taking.View briefing *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 Stewart Baseley appeared on Radio 4's Today programme on Wednesday to discuss the housing market situtation:Listen again Opposition attacks PM's draft legislative programmeResponding to the Government's Draft Pre-legislative Statement, Liberal Democrat Leader Nick Clegg accused the Prime Minister of "scraping the legislative barrel to save himself".View full statementWhilst the Conservative leader David Cameron condemned Mr. Brown's draft Queen's speech as yet another re-launch "to save the Prime Minister's skin".Read moreLatest CLG figures show private starts are down by 27%CLG have published housing figures for the first quarter of 2008. They show:Private starts in England in 2008 Q1 are down 27.6% on a year ago. It is striking that, using a moving annual total, private housing starts have in fact been declining for most of the last two years (i.e. since the moving annual peak in the first quarter of 2006). So more is at work than just the credit crunch and housing market downturn. However the decline accelerated during 2007 and 2008 Q1 as the market weakened;A 24.4% drop in total starts in England in the first quarter on a year ago; Private completions in England down 22.4% in the first quarter on a year ago;Total completions in England down 17.7% in the first quarter;Annual completions in England, the new build figure that feeds into the Government's net additions target, was 167,501 in 2007/08, down slightly from 167,577 in 2006/07;All the English regions recorded a big year-on-year drop in private housing starts.View housing figures to topHBF's commentIn a press statement, HBF said the CLG figures were no surprise and were a stark wake up call to Government with clear implications in the short term for the wider economy and for their long term housing targets. Stewart Baseley, Executive Chair of the HBF said "These figures are further evidence of the deterioration in the housing market. Whilst yesterdays announcements were welcomed, they do not go far enough and if further action is not taken and taken quickly, in addition to the immediate threat to jobs then the Government's long term housing targets are in jeopardy."View press statement to topEconomic News Inflation sharply increases to 3%UK CPI inflation increased from 2.5% to 3.0% in April leaving inflation just 0.1% below letter-writing territory (when the Bank of England Governor has to write to the Chancellor to advise of the situation).This makes it unlikely that the MPC will cut interest rates again in June. In his opening remarks in presenting the Bank's latest Inflation Report, the Governor also said:"The Monetary Policy Committee is facing its most difficult challenge yet. For the time being, at least, the ‘nice' decade is behind us. The credit cycle has turned. Commodity prices are rising. We are travelling along a bumpy road as the economy rebalances. Monetary policy cannot, and should not try to, prevent that adjustment. The Monetary Policy Committee must focus on bringing inflation back to the 2% target in the medium term. As our remit states, "the real stability upon which economic prosperity is founded requires that inflation remain low and stable for a long period of time." Inflation will return to the target and growth will eventually recover to a sustainable rate. But we will need to be patient."View the remarks in fullto topHousing Market NewsCML report that lending for house purchase remains subduedThe number of loans for house purchase declined to 46,500 in March, down 1% from 47,200 in February and 48% from 89,000 in March 2007 according to a new report from the Council of Mortgage Lenders (CML).Gross mortgage lending was £75 billion in the first quarter, down from £83.9 billion in the first quarter of 2007. The number of loans to first-time buyers declined in March to 17,800, down 1% from 17,900 in February and 45% from 32,500 in March last year. Loans to home movers declined to 28,700, down 2% from 29,300 and 49% from 56,300 in March 2007.View the full CML releaseHouse prices fall but decline limited by supply according to RICsThe balance of Chartered Surveyors reporting house price falls increased even further but tight supply is limiting the extent of the decline, according to the RICs Housing Market Survey release on the 13th May.The RICS house price balance dropped for the ninth month in succession. 95.1% more Chartered Surveyors reported a fall than a rise in house prices, an increase from 79.4% in March. The regional picture is even more depressed with surveyors in East Anglia, the North and North West unanimous that house prices are falling. View the RICS surveyMortgage Repossessions up by 16%The Ministry of Justice released figures showing the numbers of mortgage and landlord possession actions in the county courts of England and Wales for the first quarter of 2008:38,688 mortgage possession claims were issued on a seasonally adjusted basis, 16% higher than in the first quarter of 2007 and 7% higher than in the fourth quarter of 2007. 27,530 mortgage possession orders were made on a seasonally adjusted basis, 17% higher than in the first quarter of 2007 and 9% higher than in the fourth quarter of 2007. 47% of mortgage possession orders were suspended, compared to 47% in the first quarter of 2007 and 46% in the fourth quarter of 2007. View the full figures OFT launches market study into sale and rent backThe OFT stated that they will take a detailed look at the characteristics of the sale and rent back product and the circumstances in which these products are sold. The OFT also intends to collect further evidence on homeowners' experience of sale and rent back arrangements and consider whether it is likely that homeowners entering into such arrangements are making informed choices.Read moreto topGovernment NewsGovernment provides details of new support to help first-time buyers.In her statement on this week's housing measures, Caroline Flint said:All first time buyers will have the option to apply for the HomeBuy programme for the first time, subject to a household income limit of £60,000A new initiative will enable the Housing Corporation to allocate up to £200m of its resources to buy new properties on the open market, either to be made available for first time buyers to purchase through the HomeBuy scheme or for social rent. The Housing Corporation and housing associations will work together to ensure new properties are purchased from developers at competitive prices. The Open Market HomeBuy scheme will be expanded so more households will be able to take advantage of a shared equity loan, to buy a new build property on the open market. Read moreThe East of England Plan, the Revision to the Regional Spatial Strategy for the East of England, has been published Hazel Blears, the Secretary of State for Communities and Local Government, has issued the East of England Plan (the Revision to the Regional Spatial Strategy for the East of England) and the Supporting Document. The East of England Plan sets out how the government hopes to deliver 508,000 homes and 452,000 jobs by 2021. As expected the plan's housing target is up from the draft plan target of 478,000. The jobs target is up from 440,000. Harlow is earmarked for 16,000 homes, including proposals for 10,000 homes in north Harlow - although the plan stresses the homes' location will be up to local authorities. East of England Minister Barbara Follett also confirmed £28 million of growth funds for growth towns such as Chelmsford (£11 million) and Hemel Hempstead (£6.5 million). A total of £150 million is already promised for investment in new communities such as Cambridge by 2011. Read more to topIndustry NewsBarratt Green House LaunchHousing Minister Caroline Flint joined Barratt Chief Executive Mark Clare yesterday to launch the Green House - winner of the 2007 Home for the Future Design Award to design and build a Code Level 6 home - at the BRE Innovation Park in Watford. The Minister noted that:"This building is designed to be lived in - accessible and relevant for ordinary families."It will show people that a green home doesn't have to look like something out of the Jetsons. It can also epitomise good design that is comfortable to live with."Read moreUK Green Building Council launch report on zero carbon definitionThe UK Green Building Council launched the results of the work of its Task Group on the definition of zero carbon on Monday. The Task Group, chaired by Mark Clare of Barratt, concluded that a more flexible definition than that currently used for the Stamp Duty exemption and Code for Sustainable Homes is necessary, given likely constraints on meeting Code Level 6 energy requirements from purely on-site or near-site renewables.HBF has welcomed the report as a valuable step forward in reaching an agreed definition of zero carbon, but said further work is also required. Caroline Flint has said that the report will inform the issues the Government will set out in its forthcoming public consultation on the definition promised at the time of the Budget.View full report Redrow Plc issued an Interim Management Statement on 13th MayClick here for more informationBarratt Developments Plc issued an Interim Management Statement on 14th MayClick here for more informationto topHBF NewsHBF meet Minister for the South EastJohn Slaughter and Andrew Whitaker met Jonathan Shaw MP, Minister for the South East, this week. The meeting covered the prospects for the SE Regional Spatial Strategy, the means to improve planning performance, promoting dialogue with local politicians and skills issues. The Minister said he was interested in organising events with HBF and its members relating to housing delivery issues.to topEvent NewsHBF South West Ball - Saturday 7 June Beaufort Polo Club, TetburyFurther information and booking formWater: Regulation changes and the Code - Practical SolutionsTuesday 15 July, Thinktank, BirminghamThe 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 which are set to be issued for consultation in the spring, as well as the water aspects of the Code for Sustainable Homes and ways of securing maximum points to achieve higher Code levels. Book online 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 topRosie HinchliffeView Previous Weekly News Summary
