Friday, 6th August 2010 Top stories this week HBF calls for urgent clarity on ‘New Homes Bonus’ as part of CSR submission.....read more Garden grabbing concerns raised by new figures .....read more London Mayor saves 16 Kickstart schemes.....read more RTPI coalition: Localism must not miss the bigger picture on planning.....read more Lenders reject nine out of 10 applicants - welcome to the 90 per cent loan .....read more HBF writes to all Local Authorities re Local Enterprise Partnerships.....read more Tim Collins joins HBF.....read more Quick Links Government and political news Industry news HBF news Economic news Housing market news Events Government and political News HBF calls for urgent clarity on ‘New Homes Bonus’ as part of CSR submission HBF this week sent its Comprehensive Spending Review submission to Treasury. It includes a call for Government to urgently provide details on the ‘New Homes Bonus’ incentive system, something HBF has been lobbying hard for in recent weeks. It also highlights the success of HomeBuy Direct and the need for further money to be allocated to help first time buyers; calls for more money for Kickstart; and for clarification on the definition of Affordable Housing; Read HBF’s CSR submission to top Garden grabbing concerns raised by new figures New figures released this week raised concerns over the supposed increase in the number of 'gardens grabbed' for development in the last 12 years. Decentralisation Minister Greg Clark said the statistics show the Government was right to take immediate action to prevent unwanted garden grabbing by changing the planning rules. The percentage of new homes built on previously residential land - which includes back gardens - has increased to 25 per cent, up 14 per cent since 1997, when only one in ten homes was built on similar land. Last month, Greg Clark changed the planning rules to give councils new powers to prevent unwanted garden grabbing by taking gardens out of the brownfield category that includes derelict factories and disused railway sidings. Mr Clark said: "For years local people were powerless to do anything about the blight of garden grabbing as the character of their neighbourhoods was destroyed and their wishes ignored. "We can see from these statistics that last year an even higher proportion of homes were built on previously residential land, which includes back gardens. Building on gardens robs communities of green breathing space, safe places for children to play and havens for urban wildlife. "It was ridiculous that gardens were classified in the same group as derelict factories and disused railway sidings. Now we've changed the classification of garden land, councils and communities will no longer have their decisions constantly overruled, and will have the power to work with industry to shape future development that is appropriate for their area." Read more HBF comment; The figures are misleading as they actually show the percentage of land developed for housing which was “previously residential”. (The figures compare the average for the period 1994-97 (11%) with the average for the period 2006-09 (25%).) “Previously residential” land includes the footprint of dwellings previously on the land (so a single house, or a tower block) and the surrounding land (which might be a garden, a drive, a garage or garage block, open land around a tower block, etc) In addition, the fact that a previously residential site was redeveloped with housing says nothing about how much of that land was developed, and therefore about how much “garden” was grabbed. The new housing built on the site might take up exactly the same footprint as the previous residential building (s), or more, or indeed less. The notion that the whole site went from pure “garden” to totally covered in housing is improbable. to top London Mayor saves 16 Kickstart schemes Sixteen London Kickstart schemes have been saved following a review after the coalition government cut the Homes and Communities Agency’s (HCA) budget by £450 million. More than £51.7 million is now being provided for seven private schemes and nine local authority new build schemes, the latter of which will provide HCA said, 146 new rented homes for 665 people. Each scheme is expected to contribute to London mayor Boris Johnson’s target of 50,000 new affordable homes by March 2012. The mayor said: " Housing must remain a priority which is why we have rescued these schemes from the spectre of the credit crunch and delivered the cash needed to get construction up and running but at less cost to the public purse." HCA said that a number of other London Kickstart schemes were still under review. For a list of the 16 schemes and to read more to top CLG publishes performance and spending data The Department for Communities and Local Government this week published its latest performance and spending data for 2009-10. The data relates to the performance of the previous Government. As a consequence of the change in administration and the ending of the previous Government's performance framework individual Departments are not publishing Departmental Annual Reports this year. Instead each Department is required to publish a table setting out the latest information on its performance and a series of financial tables. Of the 52 indicators included in the table: 21 of the associated targets were on track to be met, seven were deemed to be off track, 12 at risk, one not met and 11 were partially or wholly not yet assessed targets deemed at risk included the number of affordable homes being built and reduction in planning applications subject to appeal the target to have seven out of eight regional spatial strategies (the previous government's strategy to deliver more homes) in place by 2008-09 was not met targets on track for delivery included plans to regenerate East London as part of the Olympic Legacy programme; reductions in the number of fires and fire related deaths and a decrease in the number of people who feel that racial or religious harassment is a problem in their local area The Communities and Local Government Secretary Eric Pickles said: "Complex, ever shifting targets and paper chasing hasn't built homes or created a fairer planning system. For too long those tasked with working for the public have been tied up by red tape that has stifled innovation in favour of indicators. "We are moving away from bureaucratic accountability to democratic accountability. We are doing away with endless tick boxing. We want civil servants to spend less time form filling and more time just getting on with the job. "Fifty something targets and objectives have been replaced by a clear and simple plan. We have set out what this Department is all about and what it is going to do and we will be accountable for delivering that to the people, not the Government machine." Read more to top Grant Shapps: 'freedom pass' for tenants trapped in unsuitable homes Housing Minister Grant Shapps this week announced that the eight million tenants in social housing in England would be given a “freedom pass” that will enable them to move home for work or to be closer to family or for any other reason. The Minister has pledged to introduce a new National Affordable Home Swap Scheme. For the first time this will give tenants the chance to see details of every council and housing association tenant looking to exchange homes - not just in their area but across the country. Grant Shapps said: "Today I'm launching a 'Freedom Pass' for all eight million people in affordable housing in England. Social housing should provide more than a roof over people's heads - it should lift them out of poverty, and free them to take chances to improve the quality of their own lives. Instead, many tenants are left trapped in their own homes, while councils and housing associations turn their attention to record waiting lists.” This approach is backed by a new report commissioned by Mr Shapps in 2009 and published today by the National Housing Federation (NHF). Among its many recommendations on improving social housing mobility, the report concludes that many existing tenants do not apply for a transfer because they believe they will not be re-housed due to having a lack of priority in the allocation scheme. Instead, the NHF report finds that tenants see mutual exchange as the only realistic option for those wanting to move who do not meet a priority category for social housing - and that a national home swap scheme would help tenants in this situation. Read more to top Industry news RTPI coalition: Localism must not miss the bigger picture on planning A wide-ranging group of 29 national bodies have written to the Communities and Local Government Secretary, Rt Hon Eric Pickles MP, to urge national and local government to work with stakeholders to ensure that strategic planning – planning at the ‘larger-than-local level’ - is embedded in any reform of the planning system under the new agenda for localism. Ann Skippers, President of the Royal Town Planning Institute (RTPI) said: “Ministers need to be very careful not to miss the bigger picture as the localism agenda gathers pace. Communities need some level of strategic thinking beyond the local level to deliver many of the things they want, such as hospitals, transport links, waste management and flood protection. The most pressing issues facing the nation, for example, such as the housing crisis, economic recovery, climate change and biodiversity loss, cannot be dealt with solely at a local level.” “We have come together to offer to work with the Coalition Government and local authorities to help to develop thinking, policies and systems for planning to encourage and support joint planning across local authority boundaries so that the localism agenda may be used to enable democratic strategic planning to take place”. The 29 signatories to the letter (see notes to editors) represent key voices in the environment, enterprise and business, communities, development, the professions and planning. A full list is available at the end of this press release. These organisations have noted a number of the recent announcements by ministers which demonstrate a continued role for strategic planning, including the encouragement for local authorities or other groups to work together and statements about Local Enterprise Partnerships and the Regional Growth Fund. However, the organisations feel that some aspects of the planning reforms may also hinder solutions to the housing crisis, to investment in enterprise in different parts of the country, to providing a lead to tackle climate change, to rapidly expanding renewable energy infrastructure and to reversing biodiversity loss. The organisations which have signed the letter understand ‘planning at the larger than local level’ to mean any form of planning – statutory or otherwise – which enables communities and groups of communities to express a vision for the future of an area wider than their own locality. This approach to planning sets out priorities for investment and solutions to problems which must, of necessity, be addressed beyond neighbourhood or district boundaries. Importantly it can provide certainty to investors, infrastructure providers, community initiatives, developers and enterprises and help secure a prosperous and sustainable future for the country. HBF comment: HBF was invited several weeks ago to a meeting to discuss such a letter. While supporting the need for strategic planning and generally agreeing with the broad principles set out in the letter, we decided on balance not to be a signatory. HBF is working closely, in private, with Ministers and officials across a wide range of issues, including the new Local Enterprise Partnerships – and sits on the Conservatives’ planning sounding board. HBF felt that signing a letter offering “assistance“ would be unnecessary, and advised the RTPI of our decision. Read more to top Land Use Change Statistics (England) 2009 - provisional estimates (July 2010) The latest national statistics on Land Use Change were released under the auspices of the UK Statistics Authority last week. Statistics include provisional figures on Land Use Change in England. Land Use Change Statistics (LUCS) are annual data. This release provides estimates for 2009 of changes on previously-developed land and the average density of new dwellings. For some topics 2009 data are not yet robust and so the latest robust data available is presented. In 2009, on a provisional estimate: 80 per cent of dwellings (including conversions) were built on previously-developed land, unchanged from 2008. new dwellings were built at an average density of 43 dwellings per hectare, unchanged from 2008. 2 per cent of dwellings were built within the Green Belt (unchanged since 2004) and 7 per cent of land changing to residential use (from any use) was within the Green Belt (unchanged from 2008). 11 per cent of dwellings were built within areas of high flood risk (an increase from 9 per cent in 2008) and 6 per cent of land changing to residential use was within areas of high flood risk (unchanged since 2007). Read more to top NHF responds to Prime Minister's comments on lifetime tenancies Commenting on the Prime Minister's proposal to end life time tenures for social homes, Helen Williams, assistant director at the National Housing Federation said: 'Changing security of tenure for existing social housing tenants should not be on the table, as people moved in and signed tenancy agreements on the basis that it was for the long-term, but there is a case for looking at what is offered to new tenants, as a way to seeing if over time social housing could help more people. 'It may be for some people that renting from a council or housing association for a short-term could be the base from which they can build up to buy or rent in the private rented sector. But, there are lots of issues to consider, like the impact on people’s behaviour if they thought they might have to move if they bettered their circumstances, for these reasons we would expect government to take its time to discuss these issues with tenant groups and social landlords. 'It is also worth bearing in mind that currently very few people living in social housing are earning the kind of money that suggests they could buy or cover rent levels in the private rented sector, with just 10% of households having incomes of more than £20,900.' Read more To See Shelter’s response click here to top HBF news HBF writes to all Local Authorities re Local Enterprise Partnerships HBF has this week written to all County and District Council Chief Executives asking how they intend to involve the industry in the Local Enterprise Partnerships (LEP) process. The new coalition Government is proposing to abolish the Regional Development Agencies (RDAs) and encourage LEPs in their place. As their name suggests, these new bodies are proposed as a partnership between local authorities and businesses to provide leadership on a number of key issues including housing and planning. HBF is also encouraging members to be prepared to either be contacted by, or to get directly involved with, these emerging partnerships. HBF is discussing with CLG officials the details of the various proposals and models for LEPs. Click here to see a copy of the letter to top Tim Collins joins HBF Tim Collins, Housing Minister Grant Shapps’ former Chief of Staff, this week joined HBF as Deputy Director of External Affairs. Tim will be working with the existing executive team as it looks to strengthen its links with the new Coalition Government and influence the emerging policy agenda. Speaking today, Tim said; “I am very excited to be joining HBF at what is a critical time for the home building industry. The years I spent working with Grant have given me an understanding of the issues facing developers and the great work HBF does on the industry’s behalf. I look forward to using my experience and knowledge to support the existing HBF team however possible.” Stewart Baseley, Executive Chairman of the HBF, said; “We are very pleased to welcome Tim to the HBF at a vital time for our industry. His understanding of both housing matters and how the Government operates will prove invaluable as we look to strengthen our links with the new Coalition. His skills will complement our existing team and ensure HBF is well placed to work alongside Government to develop policies that will lead to a much needed increase in housing supply.” to top Economic news Lenders reject nine out of 10 applicants - welcome to the 90 per cent loan The Independent on Sunday reported that Banks and building societies are taking extra initiatives to be seen as helping first-time buyers, who are arguably the most sidelined group of borrowers since credit crisis hit nearly three years ago. The cost of 90 per cent deals is also declining. On 23rd July, the Yorkshire announced the launch of a market-leading two-year fixed-rate deal for borrowers with a ten per cent deposit, priced at 4.95 per cent with a £995 fee. The lender is also providing a three-year alternative priced at 5.69 per cent. Data from the Council of Mortgage Lenders (CML) paint a relatively bleak picture for first-time buyers, despite recent "improvements" within the 90 per cent lending arena. According to the latest figures, 14,800 loans were provided to first-time buyers in May 2010. This compares to 19,700 in May 2008 and 32,900 in May 2007. Figures from the CML also show that the average advance to first-time buyers is about 75 per cent. Stating that conditions are not likely to improve, Sue Anderson at the CML added: "The amount of lending undertaken on a high loan to value basis will remain more subdued than in the pre-crunch years, even when market conditions are more favourable." Banks are reluctant to acknowledge that 90 per cent lending leads to "bad business". Catherine Laycock at the Co-operative Bank, which offers a three-year tracker at 4.29 per cent, said: "As a responsible lender, we are prudent to lend only what borrowers can afford and, as such, our acceptance rate for 90 per cent deals are slightly lower than for the rest of our lending." Read more Click here to view HBF’s CSR submission press release; to top George Osborne has warned banks they must increase lending to small and medium sized businesses In an interview in the Sunday Telegraph the chancellor said banks had an "economic obligation" to lend and said the government would "not tolerate banks piling the pressure" on businesses. "Every small and medium-sized company that I have visited in recent weeks has had some problem with their bank - either they have found it difficult to renew their overdraft or they demanded additional collateral, often someone's house," he said. "The danger is that, particularly next year, when there is a huge amount of refinancing required, that the small and medium-sized businesses suffer from a lack of access to working capital." Speaking on BBC Radio 4's Today programme this morning Tory MP Michael Fallon said given they had posted profits of around £8bn it was time for the big banks to start lending again. "They’ve really got to get on now and meet their lending targets, in fact they are behind their lending targets," he said. "They’ve now got to help fire up this recovery, they have to show the public that business and home buyers can have confidence in the banks.” Fallon, a member of the Commons Treasury committee said small businesses were now only able to get loans renewed on "much harsher" terms than before. And he suggested that the bigger banks should be broken up in order to facilitate lending. "If the old banks are too big and too slow and too uncompetitive, then maybe we need to look at the structure of banking," he said. Read more to top Banks must be made to help small businesses The Federation of Master Builders supports calls from the Chancellor and the Treasury Select Committee for the banks to increase support for small businesses as news emerges that Britain’s five biggest banks are back in profit. Brian Berry, Director of External Affairs at the FMB said: "The Government is right to be warning the banks that businesses must be allowed to borrow money. Without this funding the banks are delaying the economic recovery and putting more jobs at risk. Small businesses need access to credit on reasonable terms and unless the banks are prepared to act responsibly the Government must take direct action to force them." Berry continued: "Small construction companies are still struggling to survive in the current economic climate in which one late payment from a customer may cause a cash flow crisis that can send a firm to the wall if the bank withdraws its support. Many firms are unable to secure loans or even retain their existing overdrafts, and as a result many are going out of business which is pushing up unemployment in the building sector. It is totally unacceptable for banks to be charging higher rates to small businesses and jeopardizing their futures, in order to fund the return to bonus bonanzas for banks." Read more to top Bank of England maintains Bank Rate at 0.5% and the size of the asset purchase programme at £200 billion The Bank of England’s Monetary Policy Committee today 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 £200 billion. The Committee’s latest inflation and output projections will appear in the Inflation Report to be published at 10:30am on Wednesday 11 August. Read more to top CBI reaction to Bank of England's MPC decision The CBI responded to the announcement from the Bank of England's Monetary Policy Committee (MPC). Lai Wah Co, CBI Head of Economic Analysis, said: "There has been no change to monetary policy, as widely anticipated. The views within the MPC have become more divergent in recent months, with arguments in favour of both further easing and tightening of policy, reflecting concerns about the strength of the recovery and worries about inflation. “After the strong gain in economic activity between March and June, growth is expected to be slower in the second half of this year, but the recovery continues to be supported by the current, exceptionally loose monetary policy. A move towards a gradual withdrawal of the monetary stimulus may be warranted in the coming months.” Read more to top Housing market news NAEA: Strong South Westerly for the Housing Market Estate Agents have this week flagged the encouraging growth of the South West’s property market. The region’s property market continues to perform well in 2010 despite prices elsewhere in the country remaining static according to the National Association of Estate Agents (NAEA). Regional representatives from the NAEA believe that the urban centres of Bath and Bristol are assisting growth but that the more rural areas also continue to see growth. Stephen Morris, of the National Association of Estate Agents who works at local agency Davies and Wray in Saltford, said: “We believe that growth has been maintained by an influx of people coming to the region as a result of the recession and perhaps wanting to leave behind big City life. “Areas such as Saltford are near enough to thriving areas like Bristol and Bath but do provide an alternative to living and working in London, for example.” The average house price for the South West is £227,866 – an annual increase of 13.5 per cent (*statistics from the Land Registry and the NAEA monthly survey) which makes it one of the best performing areas in the country for house prices. This growth has been led by Bath and North Somerset but also the coastal counties of Dorset, Cornwall and Devon. Read more to top Latest House Price Index - July 2010 House prices increased by 0.6% in July. This modest rise offset the 0.6% fall in June. House prices in July were 4.9% higher on an annual basis as measured by the average for the latest three months against the same period a year earlier. This was below the 6.3% increase in June and compares with a recent high of 6.9% in May. Prices in July were marginally (0.8%) lower than at the end of 2009 but are 8.3% above their April 2009 trough. The average house price is now £167,425; 16% below its August 2007 peak. Commenting, Martin Ellis, housing economist, said: "House prices increased by 0.6% in July, reversing the fall in June. Overall, there has been little change in prices during 2010 so far. The mixed pattern of monthly rises and falls over the first seven months of the year is consistent with a slowing market. It is also in line with our view that house prices will be broadly unchanged over 2010 as a whole. The increase in the number of properties for sale over the past few months, boosted by the recent abolition of HIPs, has relieved much of the pressure that was driving up prices in 2009. Low interest rates and a recovering economy, however, are underpinning demand and continue to support the market." Read more to top Events New Homes Month – order your free newspapers now! The New Homes Marketing Board will this year be undertaking a New Homes Month promotional campaign in September. It will look to promote the benefits of new build homes during the key autumn selling season. A series of press releases will be used to raise the profile of the campaign, as well as an updated version of ‘New Homes News’ the 16 page color consumer magazine for members to hand out to potential buyers. Members wishing to order copies of the newspaper need to complete the required form and return it ASAP. For more information contact nhm2010@hbf.co.uk to top Just one month to go until the return of the North West Social dinner There is just one month to go until the return of the North West Social dinner. This event, which has not taken place for the past two years, will see hundreds of industry representatives gather in Manchester for an evening that includes a three course meal, live music and dancing. It takes place on Friday 10th September at the Midland Hotel in Manchester. Everyone is welcome at an event that attracts members from across the North and Midlands. Always a lively and fun event, regular attendees are booking keenly for what will be a fun filled industry evening. Please click here to find out more. to top Housing Market Intelligence 2010 – 12th October, Savoy Place, London This year’s Housing Market Intelligence conference and annual report launch will be held on Tuesday 12th October at Savoy Place in London. Now in its eighth year, Housing Market Intelligence has become the leading strategic conference for the house building industry. This year the event is expected to sum up the new political climate nearly six months after the election, as well as providing analysis and insight into the market, the economy, the sustainability agenda, mortgages and all the key issues for house builders and associated companies. On-line booking is now open – please click here for the full agenda, to download a booking form and to book online or contact events@house-builder.co.uk to top HBF Planning Conference – 16th September 2010, Hilton Hotel, Bristol HBF’s Planning Conference this year will be looking at how the industry can ‘make localism work’’. Delegates will be considering; Will the industry be able to deliver new houses under localism? What are the new tools needed? If we are redesigning the planning system will we also be brave enough to redesign the current planning obligations process? How can we put S106 agreements back into the box now that local authorities expect so much? There will be a range of speakers from central and local government, the industry and its advisors. Please click here to see the full agenda, download a booking form and to book online or contact events@house-builder.co.uk with any questions. to top Housebuilder Awards 2010 - SHORTLIST ANNOUNCED The Housebuilder Awards shortlist has been announced – to see the full list go to http://www.house-builder.co.uk/awards/ Now in its sixth year - the prestigious awards bring together the best of innovation and excellence in the house building industry. The awards are the highlight of the house building calendar, celebrating the very best of the industry and recognising the achievements of those leading the way in innovation. This year the winners will be announced at a glamorous black tie event on the night of Thursday 28th October at the Millennium London Mayfair Hotel. To book your table at the Housebuilder Awards and take advantage of the early booking discount, please visit http://www.house-builder.co.uk/awards/ to top 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. For more details please click here to top For other HBF events visit the website For HBM events visit to top Catherine Wilson View Previous Weekly News Summary
