Top stories this week *Strong retail sales show economy is buoyant....read more *Consultation on Building Control announced.....read more Thursday, 20 March 2008Top stories this weekStrong retail sales show economy is buoyant....read moreConsultation on Building Control announced.....read moreQuick LinksEconomic NewsGovernment NewsHousing Market NewsHBF NewsEventsEconomic News Strong retail sales show economy is buoyant The minutes from the 6th March Monetary Policy Committee (MPC) meeting show that seven members voted for no change and two for a quarter percent cut. Most members were concerned that a March cut would have implied MPC members were more concerned about the downside risks to growth at the expense of the medium-term outlook for inflation. The MPC is trying to balance the risk of slower economic activity against the risk of higher inflation. Today's remarkably strong retail sales figures, which show the volume of sales in February up 1.0% on January and 5.5% on a year ago, taken alongside yesterday's strong labour market data, suggest the widely anticipated economic slowdown has not yet begun. A Bank Rate cut in April now looks less likely. However a slight easing in average earnings growth in January should provide comfort to the MPC that pay growth is not a threat to medium-term inflation.But the credit crunch rolls onThe markets reacted favourably to the US Federal Reserve's three-quarter percent cut in interest rates to 2.25% on 18th March, following the crisis atmosphere created by the near-collapse of Bear Stearns at the end of last week. Both events highlight the continuing fragility of the financial markets, and how rapidly events can change. In the UK, the mortgage market still appears to be tightening, with reports of mortgage terms becoming more restrictive, mortgage interest rates not falling in line with the recent cuts in Bank Rate, and mortgage offers being subsequently withdrawn when buyers come to reserve a property. UK CPI rises to nine month highConsumer price inflation rose sharply to a nine month high in February as statisticians changed the way they accounted for increases in gas and electricity tariffs, official data showed on Tuesday. The Office for National Statistics said the consumer prices index rose 2.5 per cent in the year to February, in line with analysts' expectations but above January's 2.2 per cent reading and further above the Bank of England's 2 per cent target.View the statisticsto topGovernment NewsConsultation on building control announcedThis week Housing Minister Caroline Flint announced a consultation on the Future of Building Control.The Future of Building Control consultation recommends a more efficient risk-based inspection process for local authorities and a more systematic approach to the review of building regulations, to give the industry more certainty and allow better forward planning.Housing Minister Caroline Flint said:"Home owners have the right to expect their homes to be built and renovated to minimum standards set out in building regulations. I want to make life more difficult for the cowboy builders that are out there whilst letting the high-quality majority of the industry get on with the job. This should reduce the cost and burden of the process on both the industry and local authorities."The consultation proposes a more efficient building control system delivering sustainable buildings, including:Statutory notification stages for LABC will be removedBuilding Regulations will be reviewed in a more systematic wayThe use of Building Notices will be more restrictedThe time limit for enforcement action under Building Regulations will be extended to 2 yearsLAs may be able to issue fixed penalty or stop noticesNew guidance on extensions and conversions for homeownersImprove the relationship between planning and building control, mainly by "more e-enabled internet services". Visitors to the Ideal Home Show (14/3-6/4 Earls Court, London) will get the chance to respond to the consultation directly, through an interactive touch-screen kiosk at the Communities and Local Government stand.HBF has been arguing for some years that the current Building Control system is too onerous with too many documents changing too frequently. We have also expressed concerns that the existing system of inspection and enforcement is overstretched and if the Government wants to increase the number of new homes being built there is a need for change. HBF is preparing an industry response but members are also urged to send their own. The closing date for consultation responses is 10 June 2008. View CLG's press releaseView the consultation documentHousebuilder Media are running on a Conference on the ‘Future of Building Control' - see events section below.to topHBF - Changes to Building Control a ‘welcome move'The Home Builders Federation (HBF) has welcomed the consultation on Building Control. Commenting on the consultation Stewart Baseley, Executive Chairman of the HBF said:"This consultation is a welcome move to simplify and target building control measures so that home builders can provide much-needed new homes efficiently and an opportunity for the Government to lessen the regulatory burden in the process.We particularly support the proposals to end the current system of piecemeal changes to building regulations - something which can currently significantly impair house builders' ability to plan effectively for the future. Ensuring a clear understanding on the roles of planning and building control to provide a seamless overall service will also benefit consumers and industry alike.We look forward to working with Government to develop the detail of these very welcome proposals."Proposed changes to North West RSS publishedOn 20th March 2008 the Government published its proposed changes to the North West Regional Spatial Strategy.The government have accepted as many of the Panel recommendations as possible but have made some changes. Two of the most interesting are:Housing Figures - it is proposed to accept the Panel's recommendations for overall housing provision of 416,000 net additional dwellings in the period 2003-2021 but to remove the ceiling to housing figures, in line with the more flexible approach of Planning Policy Statement 3, to enable additional growth and current government initiatives of Housing Growth Points and Eco Towns to be accommodated.Decentralised Energy - it is proposed to replace the on site renewable energy policy, with a new policy (EM18) on decentralised energy supply.Consultation on the proposed changes runs until 23rd May 2008.Download the full documentto topNew EPC regulations coming into force for new homesFrom the 6 April 2008 all new homes will require an EPC and Recommendation Report when physically complete.The EPC will be based on the SAP rating which is currently required to comply with Building Regulations. This demonstrates that new homes meet the targets for energy performance that are part of the Building Regulations. The EPC must be produced by an Energy Assessor who is accredited for On Construction Energy Assessment. The EPC is based on SAP rather than RdSAP which is used for existing homes.Other key facts issued by CLG: -When the home is physically complete, an EPC should be produced and given to the owner of the home. Building Control will not issue a completion certificate until they are sure this has been done.If you are marketing a home off-plan, you will need to have a PEA (Predicted Energy Assessment) in the HIP to provide to potential buyers. Once the home is physically complete the PEA in the HIP should be replaced with an EPC and Recommendation Report.PEAs should be based on the predicted SAP rating for the home. This will be available from calculations done at the design stage and is a number between 1 and 100. A spreadsheet template is available to be able to represent the rating in a graphical form for potential buyers.Each building within a development will require its own EPC (although reports can be cloned for identical dwellings and will not need to be inspected individually).HIPSMarketing may start without a HIP being in place but only where one has been requested. Where this exception applies the duty to have a pack begins when the EPC is received. View the latest CLG guidance on HIPs and EPCsto topHousing Market NewsGross lending declines in February Gross lending declined to an estimated £24 billion in February, down 7% from £25.9 billion in January and 6% from £25.6 billion February 2007, according to the Council of Mortgage Lenders. The Bank of England approvals data for January showed subdued levels of house purchase activity and a sharp rise in remortgage approvals, which is likely to be supporting current lending volumes. More informationHouse prices will fall say property industry expertsLeading figures representing the property market believe that house prices will fall in the next year, according to a poll that took place at The Wriglesworth Consultancy's third annual Great Housing Market Debate in London this week. Out of the 150 delegates consisting of lenders, economists, estate agents, brokers and property investors, only one believed that house prices will increase this year. However, despite the gloomy predictions for house prices, the experts all agreed that a recession is very unlikely. Several of the panellists also stressed that any house price correction could be a good thing, as it will help first-time buyers back to the market. The panellists at the debate included, Michael Coogan, Director General of CML; Evan Davis, Economics Editor of BBC; Richard Donnell, Director of Research of Hometrack; Fionnuala Earley, Chief Economist of Nationwide; and David Miles, Managing Director of Morgan Stanley.to topHBF NewsHBF writes to Prime Minister about growing regulatory burdenIn response to growing industry concern about the escalating burden of regulation on development viability, HBF Executive Chairman, Stewart Baseley, has written to the Prime Minister explaining that regulation poses a serious threat to achievement of the Government's housing targets. His letter concludes that central and local government are going to have to face up to some very hard choices between meeting the housing numbers target, affordable housing, funding infrastructure, the zero-carbon target and a range of other policy objectives.Out of site means peace of mindHBF has released a new interactive educational game, ‘How to avoid a construction catastrophe', to raise awareness of the potential hazards on building sites. Aimed at children between the ages of 8 and 11, the game is designed to warn them of the dangers of entering sites near where they live.Launched just before the start of the Easter holidays, the game has been developed in recognition of the increase of new building sites on brownfield land, which children may once have played on, and are now frequently found close to existing housing. This initiative is part of the industry's commitment to supporting the communities within which it works.The game is available both online (please click here to view) and on Interactive CD, and teachers in particular are encouraged to play the game with their pupils.Stewart Baseley, Executive Chairman of the Home Builders Federation, said:"The HBF is committed to promoting health and safety on construction sites. This new game is engaging and informative, and we hope it will educate many children about the dangers of playing in and around building sites."For further information please contact Jo Weston at Jo.Weston@hbf.co.uk or on 0207 960 1612.Swedish seminar on low and zero carbon homesThe HBF/ UK Trade and Investment seminar on the Swedish experience of promoting low carbon homes and low carbon energy solutions was held on 17 March in London. An audience of home builders, public sector and local authority representatives, academics and other experts took part in discussions following presentations from UK and Swedish speakers. We are clarifying details of how the presentations used can be made available. to topHBF EventsThe Code for Sustainable Homes explainedHBF in association with The British Electrotechnical and Associated Manufacturers Association (BEAMA) are running some free seminars on the Code to look at practical methods for energy compliance within the Code for Sustainable Homes and guidance on how to reach Code levels 3 and 4. The dates and venues are as follows: 16th April Birmingham (Moor Hall Hotel) 23rd April London (Hilton Dartford Bridge) 24th April Bristol (Redwood Hotel) 29th April Darlington (Aston Hotel) 30th April Manchester (Copthorne Hotel)Further detailsIf you wish to attend any of the seminars please email vera@beama.org.uk stating your name, job title, organisation, contact details and desired venueRenewable Energy Technologies seminar for House Builders The Home Builders Federation and Renewable Energy Association are running a joint one day seminar on 3 April at the Sharp UK PV factory in Wrexham.The seminar is aimed at encouraging dialogue between house builders and renewable energy installers who will be increasingly working together as we move towards the goal of zero carbon homes by 2016 and the steps towards that goal.It will give an overview of renewable technologies. There will be presentations on technical aspects for installing equipment, new products and the robustness of the supply chain. There will also be a tour of the Sharp PV factory. Also to be discussed are policy drivers for renewable energy on buildings, and set out some of the legislative impacts on the renewables and home building industry - e.g. impact of air quality directives within the planning process. Dave Mitchell, HBF Technical Director and John Slaughter, HBF Director of External Affairs will be attending the event.There is a maximum of 30 people able to attend, so bookings are on a first come first served basis. To book a place please contact Liz Sleeper at the REA on 0207 747 1842.to topThe Future of Building Control ConferenceThursday 10 April 2008, Austin Court, BirminghamThis conference provides delegates with the unique opportunity to voice their opinion on the Building Control Consultation paper announced this week and question the panel of speakers on the subject.Speakers include: Paula Higgins, Communities and Local GovernmentDave Mitchell, HBFPaul Everall, LABCNeil Cooper, NHBCDave Baker, RDLJohn Tebbit, Construction Products AssociationFor a booking form please go to http://www.hbmedia.co.uk/ or alternatively contact a member of the HBMedia events team on 020 7960 1646. 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
