Friday, 5th November 2010 Top stories this week New research prompts CML to urge FSA to announce responsible lending re-consultation.....read more Chris Huhne: Green Deal is a massive economic opportunity.....read more Stewart Baseley Chairs first meeting of 2016 Task Force under the new Government.....read more Halifax house price index.....read more A decade of change in house building: New report predicts the construction industry's skills and knowledge needs to 2020.....read moreFollow us on Twitter! www.twitter.com/homebuildersfed Quick Links Economic news Government and political news HBF news Housing market news Industry news Events Economic news New research prompts CML to urge FSA to announce responsible lending re-consultation At the launch this week of two major pieces of independent research on the potential impact of the FSA's responsible lending proposals, CML Director General Michael Coogan called on the FSA to make an early announcement before the consultation deadline of 16th November that it will re-consult on a new draft of responsible lending rules, with a full and complete impact analysis. The two new sets of research findings, by economic research consultancy Oxera and by economic and social research consultancy Policis, have been funded by the CML but are independent in their assessments. They, along with the other evidence produced by the CML itself, bring together a wide range of evidence that suggests there would be a range of negative, unintended outcomes from the implementation of the FSA's policy and proposed rules as currently drafted. Michael Coogan commented: "The FSA, like the industry, needs to have a clear steer from the coalition government about what type of regulatory structure is needed to support housing policy and deliver systemic stability in the mortgage market in the 21st Century… Before we go much further on the MMR, or the restructuring of regulatory bodies, we need Ministers to be clear about their intentions. Whether they want regulation to protect the vulnerable minority, or give an opportunity to the majority to achieve their aspirations. They can do both by allowing free access to the market to responsible borrowers, but establishing an effective safety net for the few who have difficulties due to changes in their lives. This is not the approach which the FSA has taken due to its limited focus on its conduct risk strategy. "When we know what the government wants the regulator to achieve, we and FSA officials will be in a better position to deliver the sustainable market for all participants which is flexible for consumers. These two outcomes reflect a shared vision by the FSA and lending industry. The CP proposals have blurred that vision to a point where neither outcome will be delivered by CP 10/16 as drafted. If you agree, write to the FSA, your local MP and relevant Ministers." Read more to top Redrow chairman in mortgages warning The chairman of Redrow Homes has warned that further regulation of mortgages is putting the housing market in jeopardy. In a strongly-worded statement to shareholders at the firm's Annual General Meeting in Flintshire Steve Morgan warned, "the regulators are going too far and the medicine risks killing the patient." Mr Morgan told shareholders that the squeeze on mortgages meant that potentially good buyers were being turned away. "In recent months there has been much scaremongering in the media about the state of the housing market," he said. "Although the market has undoubtedly been affected by the current economic climate, underlying demand remains strong as there are tens, if not hundreds of thousands of people wanting to buy their first home." Read more to top Bank of England: Maintains Bank Rate at 0.5% and size of the Asset Purchase programme at £200bn The Bank of England's Monetary Policy Committee this week voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200bn. The minutes of the meeting will be published at 9.30am on Wednesday 17th November. Read more to top Government and political news Chris Huhne: Green Deal is a massive economic opportunity Liberal Democrat Energy and Climate Change Secretary, Chris Huhne launched the Government's Green Deal programme this week. The programme – whose ideas have wide political support – was also a Liberal Democrat manifesto commitment and sets out a new and radical way of making energy efficiency available to all, whether people own or rent their property. The work to upgrade the property will be paid back from the saving on energy bills. Mr Huhne said that by 2015 up to 100,000 Green Deal workers could be employed in the effort to upgrade Britain's homes. Currently around 27,000 work in the insulation industry. Legislation to start the process of establishing the Green Deal is due to be introduced into Parliament next month. Chris Huhne said: "The Green Deal's about making people feel as warm as toast in their homes. I want Britain to say goodbye forever to leaky lofts and chilly draughts. At a time of increasing gas prices energy efficiency is a no-brainer. "It's also a massive economic and job opportunity which could help Britain's economy turn the corner. With up to 100,000 green jobs up for grabs over the next 5 years, and even more in the long term, this is about growing our economy in a way that's good for jobs, the environment and energy security." The Green Deal, which is expected to be available from Autumn 2012, will be open to homes and businesses and will involve a 3-step process: Step 1 – an independent energy survey of the property, giving clear advice on the best energy efficiency options, such as loft or cavity wall insulation. Step 2 – Green Deal finance to be provided by a range of accredited providers, which will be repaid through savings on energy bills, making properties cheaper to run from day one. Step 3 – Homes and businesses will then receive their energy efficiency package. Only accredited measures will be installed by appropriately-qualified installers, overseen by Government, giving consumers confidence that the deal they are getting is high-quality and will save them money. The Government also announced measures to improve the energy efficiency of the private rented sector. With Green Deal, landlords will face no upfront costs when improving their properties. The forthcoming Energy Bill will create powers allowing any tenant asking for reasonable energy efficiency improvements to receive them from 2015 onwards. It will also allow local authorities, to insist that landlords improve the worst performing homes. Read more Please click here to view Chris Huhne's full speech, made at the LSE this week to top Government response to the Penfold Review of non-planning consents Responding to Adrian Penfold's review of non-planning consents, business minister Mark Prisk and planning minister Bob Neill said the Government will take immediate steps to free developers from burdensome regulation. It will also make sure that those responsible for these consents are sharing best practice. The key conclusions of the Government's response are: In line with the commitment to a 'one-in, one-out' approach to regulation, Government will seek to simplify some existing consents where other new non-planning consents are proposed, to make sure that the overall burden on developers does not increase; Ministers will consider how consents might be streamlined and simplified to make the process simpler and reduce the red tape on businesses; and BIS and CLG will work with other Government departments to drive forward these changes, and will provide an update on implementation in the Spring. Business minister Mark Prisk said: "We must stop putting obstacles in the way of British businesses. They will be the driving force behind our future economic growth. "Adrian Penfold recognised the complex web of red tape and procedures that were a real hindrance to our construction and development sectors. Today we're announcing real practical steps to cut out this unnecessary extra bureaucracy. "Over the coming months, as part of this Government's culture change away from regulation, I will be working closely with my colleagues across Government to streamline the planning and consents system to make sure that Britain is open for business." Planning minister Bob Neill said: "By cutting some of the development consents red tape identified by Adrian Penfold, we can go some way to helping British businesses thrive while at the same ensuring we continue to meet a number of goals, such as delivering a decent road network or protecting endangered species. "It's important we help our businesses and not hinder them with unnecessary burdens, so they can continue to be competitive and invest in communities throughout the country." Read more to top Government backs small business David Cameron has appointed Lord Young to the influential new post of Adviser to the Prime Minister on Enterprise. Calling for an end to the "institutional bias" against small business, the Prime Minister has asked Lord Young to produce a "brutally honest report" on the bureaucratic burdens facing entrepreneurs. The report will look at access to finance, opening up government procurement to SMEs and breaking down barriers to growth. As part of the government's commitment to make the next decade the "most entrepreneurial and dynamic in our history", Business minister Mark Prisk has launched a LinkedIn discussion to hear from businesses and entrepreneurs about the barriers holding back their businesses. Read more to top HBF news Stewart Baseley chairs first meeting of 2016 Task Force under the new Government HBF executive chairman Stewart Baseley chaired the first meeting of the 2016 (zero carbon) Task Force since the election this week. The Task Force has overseen work on the zero carbon policy since 2007 and is jointly chaired by HBF and the Housing Minister, Grant Shapps, who also joined Task Force members for part of the meeting. The Task Force reviewed the Zero Carbon Hub's current important work programme reassessing the proposed level of on-site ("Carbon Compliance") measures under the zero carbon policy and highlighted the need to advance work in parallel on the scope and operation of off-site "Allowable Solutions". to top Local Growth White Paper HBF has published a short summary of the Government's Local Growth White Paper published last week. Please click here to view the Summary*. The White Paper confirms many of the previous announcements by the coalition to reform the planning system and replace the regional development agencies with Local Enterprise Partnerships. The Paper announces the setting up of 24 such Partnerships with the potential for more to follow. Although there is little of great detail in the White Paper the many references to the importance of housing and planning to economic growth are welcome. Much of the further detail of the planning reforms will be in the draft Localism Bill, due to be published before the end of November. *Member only content, please remember to login to view. to top Housing market news Halifax house price index The latest Halifax house price index, published this week, reported that: Prices were 1.8% higher in October than in September following a fall the previous month; Prices in the three months to October were 1.2% lower than in the preceding three months. House price data on a quarterly basis provides a clearer indication of the overall market trends, smoothing out the volatility caused by the reduced number of monthly transactions in all house prices indices' monthly figures. All the major house price indices are indicating an underlying slowdown in house prices notwithstanding a divergence in monthly reporting; Prices in October were 2.3% lower than at the end of 2009 on a seasonally adjusted basis (-1.2% unadjusted); The underlying pace of house price growth has turned moderately negative in recent months. The rate of decline, however, is significantly lower than the quarterly rate of decline of -5% to -6% during the second half of 2008; House prices remain higher than a year ago. Prices in October were 1.2% higher on an annual basis as measured by the average for the latest three months against the same period a year earlier. This continues the recent downward trend from a high of 6.9% in May; House prices in October were 6.6% higher than in April 2009. Despite the recent downturn, prices remain above the trough reached in spring 2009. The average price is now £164,919; £10,256 higher than in April 2009; Housing market activity is softening. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase – a leading indicator of completed house sales – fell for the fifth consecutive month in September. The number of approvals in Quarter 3 was 3% lower than in Quarter 2. Commenting, Martin Ellis, Housing Economist, said: "An increase in the number of properties available for sale in recent months, together with a decline in demand, has put some downward pressure on prices in recent months. We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners. Low rates and stable employment levels are benefiting homeowners." Read more to top Hometrack: House prices fall 0.9% in October Hometrack's latest monthly survey of over 5,100 agents and surveyors highlighted how falling demand and rising supply continue to put house prices under downward pressure. The key findings include: October registered the fourth consecutive monthly decline in house prices - down -0.9%; The extent of house price falls increased over October with prices down across 56% of the country, this compared to 34% in September and 30% in August; Rising supply and faltering demand off the back of concerns over the economy and cuts in Government spending have led to deteriorating market conditions; Demand for housing dropped by -2.0% in October - the fourth monthly fall in a row; Despite the weakening outlook, the supply of homes coming to the market continues to grow. October saw supply grow by 1.9%; Over the past six months the supply of homes for sale has grown by 14% while demand has fallen by 8%; Across the country the North West saw the greatest extent of price falls (71% of postcodes registered falls) followed by the West Midlands (66%); Weakening market conditions have resulted in the average time on the market rising to 9.6 weeks - the highest level since May 2009; The East Midlands and Wales now have an average time on the market of over 3 months; The proportion of the asking price being achieved has dropped to 92.7% the lowest level since September 2009; Wales (91%) and the North East (91.3%) have the weakest underlying pricing in terms of the proportion of asking price being achieved. Read more to top Industry news A decade of change in house building: New report predicts the construction industry's skills and knowledge needs to 2020 A new report presented this week to the 2016 Zero Carbon Task Force reviewed Zero Carbon hub work on carbon compliance and highlighted the need for speeding up work on allowable solutions alongside this and calls for an urgent upskilling for all parts of the new homes industry to deal with a decade of change ahead. Home Building Skills 2020 is a joint initiative between NHBC, Zero Carbon Hub and ConstructionSkills, supported by the Home Builders Federation. It was set up 18 months ago to investigate the likely changes affecting the new homes industry and to advise on how the various professional, trade and technical roles should prepare in terms of training and qualifications. Following a year of research and consultation, the Home Building Skills report sets out a series of scenarios predicting the future of home building up to 2020. Based on these scenarios, checklists have been drafted for eight key roles in the home building supply chain – from architects and planners to product suppliers, specialist trades and inspectors – outlining the likely core skills and knowledge that each role will require, and their Continuing Professional Development (CPD) needs for the future. The report calls for the industry to unite in defining and confronting the knowledge gaps that could hinder progress towards zero carbon homes and the other significant changes on the horizon. NHBC, Zero Carbon Hub and ConstructionSkills are also pledging to launch a new online portal next year to help signpost employers and others to the training providers, colleges and universities that offer courses and qualifications to meet the industry's future skills and knowledge needs. 'Home Building Skills 2020 – report and recommendations' is available as a PDF download from www.homebuilding-skills.com to top UK-GBC launches legal frameworks for sustainable community infrastructure task group Experts from across the built environment began work this week on a new UK Green Building Council task group, with the goal of cutting costs and improving delivery of district heating and other types of sustainable community infrastructure. Run in partnership with the Zero Carbon Hub, the group will produce guidance on the legal arrangements for delivering Sustainable Community Infrastructure (SCI). The work is supported by the NHBC Foundation, E.ON and Berkeley Group. The work will be a crucial step forward in supporting the development of community infrastructure schemes such as the one at Dalston Square in Hackney, London, where E.ON have delivered heat to 550 residents via a community heating network which could reduce carbon emissions by up to 25% and cut heating and hot water bills by up to 23% The Local Government Group (LG Group) is supporting the aims of the group and will be engaged throughout the process to provide a local government perspective. Speaking ahead of the first meeting, Paul King, Chief Executive of the UK-GBC said: "In order for developers, utilities and local authorities to rise to the challenge of delivering community scale infrastructure, we need better guidance and standardised arrangements on the legal complexities. This new Task Group will help power up the community infrastructure revolution that the UK needs to reduce emissions from our built environment." Neil Jefferson, Chief Executive of Zero Carbon Hub & Advisory Board member NHBC Foundation said: "There will be an increased reliance on community and district energy solutions to serve developments of new low and zero carbon homes, certainly those built to greater densities. The need to have a suite of 'off the shelf' legal and administrative frameworks to speed deployment and reduce costs is a key deliverable on the critical path towards 2016 and the work of this Task Group is vitally important." Read more to top RICS publishes its views on proposed Tariffs for England and Wales RICS has published a paper outlining its recommendations for the UK Government's proposed tariffs, which will replace the Community Infrastructure Levy and s106 agreements in England and Wales. The paper, "Tariffs and the property market", is the product of substantial consultation among members, and is aimed at providing independent expert advice to Government in the development of its proposals on Tariffs - which it has committed to before and after the 2010 General Election. Tariffs are a payment by the owner of land to be developed to the local planning authority, which may be used to provide infrastructure or other capital works in the local area. Key points Planning obligations, by reducing the value of land for development, have the effect of reducing the amount of development in an area. Conversely, where the planning obligation receipts are used to provide infrastructure necessary to make other sites viable they can encourage development. Planning obligations produce receipts in a boom but contribute to more rapid collapse in development activity in a downturn; Planning obligations must achieve a balance between effectiveness and simplicity. For tariffs this is a judgement on the best way of maintaining sustainable development supply by maximising the number of viable sites, allowing flexibility and enabling unviable sites, minimising planning costs and maximising infrastructure provision; The provisions for tariffs in the forthcoming Decentralisation and Localism Bill and its subsequent guidance should allow and encourage local authorities to set different levels of tariff for different uses and different parts of their areas Read more to top CLG: Housing and planning key facts, England This quick reference leaflet is published quarterly and contains a snapshot of the main housing and planning data. Detailed housing and planning data may be found in the live tables. Read more to top Joseph Rowntree Foundation: Major changes in the house-building industry needed if zero carbon targets are to be met Meeting the Government's zero carbon housing targets by 2016 will be extremely difficult unless major changes are made within the house-building industry, according to a new report out this week. Low Carbon Housing: Lessons from Elm Tree Mews, by a team from Leeds Metropolitan University, looked at the features and performance of a low carbon housing scheme in York, developed by the Joseph Rowntree Housing Trust. Elm Tree Mews was built with the aim of providing affordable, high-quality housing to meet proposed energy and carbon standards for 2013. The research project, commissioned by the Joseph Rowntree Foundation, aimed to evaluate the overall energy and carbon performance of the scheme, the impact design has on performance and the influence that interactions between residents and their homes can have on performance. Researchers found the actual performance of the properties was not as good as intended. Heat loss was much higher than predicted - 54% more than designed for, the solar systems provided hot water but suffered numerous operational problems, and the ground source heat pump system underperformed. Lead author, Malcolm Bell, Professor of Surveying and Sustainable Housing at Leeds Metropolitan, said: "Although the Government has set ambitious targets for changes to building regulatory standards, which are intended to achieve zero carbon new housing by 2016, there is considerable concern that the policy will be undermined because regulatory standards will not be achieved on the ground. "Many prototype designs for very low and zero carbon housing are untried and untested and do not undergo comprehensive monitoring and evaluation to check whether they have achieved their designed performance in reality. The research project on Elm Tree Mews, where detailed monitoring was undertaken, demonstrates that the gap in performance can be large and that there is a need for fundamental change within the house-building industry to ensure the performance gap between aspiration and reality is closed." Read more to top Joseph Rowntree Foundation: The UK private rented sector as a source of affordable accommodation The Joseph Rowntree Foundation (JRF) has published an assessment of whether the private rented sector could provide an affordable alternative to home-ownership. JRF commissioned this paper to contribute ideas for its Housing Market Taskforce, a two-year programme of work aiming to achieve long-term stability in the housing market for vulnerable households. This paper: Examines features of the UK private rented sector; Investigates the impact of extending security of tenure and introducing second-generation rent controls; Assesses the potential for the private rented sector to provide an alternative to home-ownership for households who are priced out of home-ownership, or for whom risks are too high Read more to top Events HBF Ball – Friday 10th December, London. The HBF Ball will this year take place on Friday 10th December. Traditionally the social highlight of the industry's year it will take place at the Marriott Grosvenor Square, London. Starting with a fantastic reception, the evening includes a three course meal, live music and dancing till 2am. It's the perfect way to start your Christmas celebrations and the ideal time to catch up with industry colleagues. to top The supported charity for this year's Ball is Habitat for Humanity The HBF Ball is kindly co sponsored by H+H and Ibstock Brick. For more details please click here or email events@house-builder.co.uk for a booking form. to top HBF Technical Conference, Birmingham, Tuesday 9th November Redefining the regulatory maze. This year's HBF Technical Conference will this year look at the regulatory burden facing the industry. Discussing the forthcoming changes in the building regulations, the Code for Sustainable Homes and the Flood and Water Management Act. Please click here to book online or download a booking form. Call 020 7960 1646 with any queries. to top Habitat for Humanity – Hope Challenge 2011! HBF's nominated charity Habitat for Humanity has announced that its annual fundraiser 'The Hope Challenge' will take place next year from July 11-13. The event involves a weekend in the stunning Peak District national park where participants take part in a series of challenges and have to build their own shelter in which to spend the Saturday night. Want to know more? Then email hopechallenge@habitatforhumanity.org.uk or call 01295 264240. Read more to top For other HBF events visit the website For HBM events visit to top Rosie Hinchliffe View Previous Weekly News Summary
