This weeks industry news. Quick LinksEconomic NewsHousing Market NewsGovernment NewsHBF News Economic NewsBank of England reduces Bank Rate to 5.5%The Bank of England's Monetary Policy Committee voted yesterday to reduce the official Bank Rate paid on commercial bank reserves by 0.25 percentage points to 5.5%.CALA £120m Management Buy-outScottish-based CALA Group Ltd is now valued at £120 million, following a secondary MBO in which senior members of the management team, over 100 staff and Noble Grossart Investments re-invested £37 million in a new CALA holding company, supported by the Bank of Scotland which has increased its stake from 30% to 40%. CALA was valued at £8 million in a management buyout eight years ago. Chairman Geoff Ball said the intention of the company's five-year plan was to make CALA the premium quality medium-sized house building group in the UK.Full Press Releaseto topHousing Market NewsHalifax House Price IndexThe Halifax House Price Index for November and key accompanying comments are:House prices fell by 1.1% in November. In annual terms, house prices are 6.3% higher than this time last year. The housing market has slowed in recent months as the increase in interest rates between July 2006 and July 2007 has taken effect. Higher mortgage repayments and falling real earnings have put pressure on households' income, resulting in a slowdown in both house price growth and activity.A robust UK economy and the accompanying sound health of the labour market provide strong underpinnings for the housing market. Gross domestic product (GDP) increased by 0.7% between 2007 Q2 and 2007 Q3, the eighth consecutive quarterly increase above the long-term average rate of 0.6%. The economy has now grown for 61 successive quarters. The number of people in employment increased by 69,000 between 2007 Q2 and 2007 Q3 to stand 178,000 higher than in 2006 Q3.Housing market activity is lower. Mortgage approvals to fund house purchase fell by 12% in November to 88,000 (seasonally adjusted). Approvals in November were 32% lower than a year earlier. New buyer interest in purchasing a house fell for the eleventh successive month in November. More informationConsumer Confidence falls 12 points according to NationwideThe Nationwide Consumer Confidence Index fell by 12 points to 86 in November - the most it has ever fallen in a month. Continuing uncertainty about the credit crunch, petrol breaching £1 per litre and higher staple food prices now all seem to be affecting consumers' sentiment.All four confidence indices dropped in November. The smallest fall was in the Present Situation Index, which reflects feelings about the current economic and employment situation - this fell by 8 points. In contrast, the Spending Index (consumers' willingness to spend) and Expectations Index (how consumers feel about the economic and employment situation and income in six month's time) both dropped by 14 points to 63 and 83 respectively.View the full informationto topRaising a deposit represents the biggest barrier to aspirant homeownersRaising a deposit has been identified by building societies as the most significant barrier to first-time home buyers in a survey by the Building Societies Association (BSA).The survey is part of "Stepping up to the Mark", a major new report published by the Association which looks at what building societies are doing to help people buy a home. The survey found societies believe the main barriers are:-Raising a deposit Making monthly mortgage repayments Stamp duty Legal, valuation and other official costsCommenting on the findings of the research, Adrian Coles, Director-General of the BSA said:"It is no surprise that with the average house price being almost £220,000 (CLG figures), raising a deposit is such a barrier for first time buyers. Even a 10% deposit necessitates saving over £20,000, a sum out of reach of many potential buyers who have no existing housing equity. Rocketing house prices are creating a ‘social crisis', Federation warns First-time buyers require an income in excess of £100,000 to buy an average priced home in a quarter of London boroughs, new research published by the London Housing Federation reveals.Rising house prices, now averaging £318,000, are creating ‘nothing short of a social crisis' the Federation warns, as an estimated 330,000 families are registered on waiting lists for social housing in London. More informationto top80 per cent of Britons want action on housing shortage - but fears over new homes still cause confusionEighty per cent of Britain's population believes that urgent action is needed to address the national housing shortage, according to a new YouGov poll conducted by the New Homes Marketing Board (NHMB).Over a third of respondents said the housing shortage was a ‘very important' national issue, and a further 45 per cent felt it ‘fairly important.' Less than 10 per cent thought it unimportant.Despite this recognition, significant numbers of adults in all age groups still believe certain persistent myths surrounding the housing shortage which are not borne out by the facts - such as the idea that the Greenbelt is decreasing and disappearing under concrete, and that house builders are holding on to land which could be built on (‘land banking').David Pretty CBE, Chairman of the New Homes Marketing Board, said: "As a snapshot of the great British public's thinking, this poll is both encouraging and disturbing. People really do now recognise that we have a housing crisis, are understandably worried by it and seem to accept that urgent action must be taken to address it."But when it comes to the detail, significant numbers of people still buy into the hoary old myths about the Greenbelt and countryside disappearing under concrete and builders land banking, and many more are confused or unsure about the implications for themselves, their communities and the nation."Full releaseCML research sees future for long-term fixed ratesNew CML research and analysis looking at long-term fixed-rate mortgages suggests that there is a reasonable consumer appetite for such products.But the costs and constraints of funding the flexible features that would make them more attractive to consumers are likely to continue to constrain their take-up unless the Government incentivises them further.New research commissioned from YouGov by the Council of Mortgage Lenders reveals that 42% of people would choose a fixed rate mortgage if they were choosing a deal now. Only 13% would choose a variable rate, while the rest did not know.View full press releaseEcobuild 2008 - zero carbon in a dayEcobuild returns to Earls Court, London between 26-28th February 2008. The exhibition will be double the size with over 500 exhibitors, more than 75 free seminars and a series of new attractions linked to the key themes - zero carbon, water management and renewable energy.With zero carbon legislation looming, Ecobuild's Road to zero carbon - realised as a series of external wall elevations - shows how different combinations of superstructure, insulation and cladding can contribute to a low carbon outcome. It is anticipated that the Zero carbon house by Zedfactory, which will reach the Code for Sustainable Homes Level 6, will attract the most attention at the show. This teamed with the dedicated zero carbon seminar programme should assist with educating delegates on ways to meet the forthcoming challenges.Register for your free invitation to the show now at www.ecobuild.co.uk to topGovernment NewsNote on HIPs - home builders are not required to provide a HIP for new homes built to 2006 Part LAt the end of October, the date for all new homes to require an Energy Performance Certificate (EPC) on completion was deferred from the 1st January 2008 until the 6th April 2008. There is a distinction, however, between homes built to pre and post 2006 Part L. Taking this into account, the latest advice from Government is given the EPC is the major new item that HIPs provide, builders are not required to provide a Home Information Pack (HIP) for new homes built to 2006 Part L until 6th April 2008.The situation for homes built to pre 2006 Part L is different. These properties do currently need to provide a HIP with a Predictive Energy Assessment (Currently the SAP rating) before completion and a final Energy Performance Certificate upon completion. For further guidance click hereNew funding for community infrastructureCouncils and communities which back new homes will get extra help with infrastructure, Housing and Planning Minister Yvette Cooper announced this week as she set out the allocation of £732m to local councils in the Growth Areas and Growth Points for services like transport, schools, health centres and parks. This funding would be in addition to the new Community Infrastructure Levy (CIL) proposed in the Planning Bill.The Government said further financial support will also be available in the Growth Areas, Growth Points and Eco-towns for local transport projects from the £200m Community Infrastructure Fund. Other councils and communities will also be able to benefit from additional funds through the Growth Points and Eco-towns programmes if their bids are successful.More informationto topMayor opens UK's first 'green homes' service to help Londoners tackle climate changeThe Mayor of London has launched the UK's first ‘green homes' service to help Londoners cut climate change emissions by offering an one-stop-shop for information on how to make homes more carbon efficient.The London Green Homes service is unique to the capital will offer a free comprehensive telephone advice service, a free website and a paid-for green ‘concierge' service to provide a tailor-made package of carbon saving lifestyle improvements.The London Green Homes service is part of the Mayor's Climate Change Action Plan - a comprehensive programme of initiatives to reduce carbon emissions by 60 per cent by 2025, including programmes for the capital's homes, organisations, transportation and energy supply system.More informationA climate of change: final report of the LGA climate change commissionThe Local Government Association has issued a report which evaluates local government's track record on climate change and makes recommendations for local government, central government and other stakeholders on how the local government response can and should in its view be improved. This report identifies four key areas which local authorities need to work on to make the necessary carbon emission reductions: transport; planning; housing; and tendering and re-tendering for new and existing services. The report makes following housing-specific recommendations:The LGA should push CLG to develop a Code for Existing Homes The Government needs to review the regulatory model for enforcing building regulations (including possibly merging planning and building control functions) The Code for Sustainable Homes should be mandatory Local Authorities should ‘extend their engagement with the renewables industry to build a common understanding of the local opportunities, to strengthen the skills base and supply chains'Read the full report: A climate of change: final report of the LGA climate change commission (PDF 436KB)A summary version of the report is also available.to topConservative Energy Paper sets out plans for a decentralised energy revolutionAt the Greenpeace offices on Thursday, David Cameron launched a policy paper which set out plans for a decentralised energy revolution in Britain.The paper, entitled 'Power to the People', calls for a system of feed-in tariffs, by which people are paid for the energy they produce. Speaking at the launch, Mr Cameron talked about creating a mass market for micro-generation:"This is not a pipe dream; it is tomorrow's world."And he stressed the benefits of a move to decentralised energy:Helping fight climate changeMaking our energy supply more secureSaving moneyTransforming consumer awarenessThe policy paper forms part of our commitment to make Britain safer and greener.Merton rule BillThe winner of the annual ballot for Private Members' Bills, Michael Fallon MP, announced that he will introduce a Bill on the application of the Merton rule. Full details of the Bill are not yet available.Report on summer floodings releasedOver 55,000 homes and businesses were flooded this summer and losses are estimated to be approaching £3 billion. The Environmental Agency have reviewed the floods and issued a report highlighting areas where action is needed by Government including: -Strategic overview of inland flooding to provide a clear overview role for urban flooding from all sources to manage urban flood riskCritical infrastructure to ensure key utilities and public services take responsibility for climate change proofing;Flood risk management investment to be increased so we can adapt to our changing climate.For further detailto topHBF NewsHBF briefing on the Planning BillFollowing its publication last week there is now a full HBF briefing on the Planning Bill available on the website please click here(Members only)If you have forgotten your login details please email catherine.wilson@hfb.co.uk HBF's exclusive Callcutt briefingHBF's exclusive member Briefing with John Callcutt provided an opportunity for more than 70 companies to discuss the Callcutt Review recommendations with the report's author. John's presentation focused on the Review's implications for the private sector, particularly the business opportunities presented by his proposal for "mature partnerships" between local authorities and private developers to regeneration low-value urban areas.Link to Callcutt Report Executive Summary and Callcutt Briefing to topHBF meet Number 10 policy staffStewart Baseley, John Slaughter and John Stewart met No. 10 policy advisors on 7 December to discuss the main policy issues affecting the delivery of Government housing objectives.HBF gives evidence to All Party Urban Development GroupThe Chief Executive of Bovis Homes, Malcolm Harris, represented the industry in an oral evidence session organised by the All Party Urban Development Group this week for its inquiry on housing delivery. The session was chaired by Clive Betts MP, a member of the Communites and Local Government Select Committee, and covered issues ranging from the role of the new Homes and Communities Agency to effective working methods with local government, industry capacity, skills in local government and market trends.And meets leading MEP on European Soil DirectiveHBF External Affairs Director John Slaughter met Spanish MEP Mrs Guttierrez-Cortines, the European Parliament rapporteur on the EU Soil Framework Directive, during her visit to London to explain the position of UK home builders on this draft legislation. The key issue for the UK is that the Directive should not adversely affect the ability to use soil sealing as means of remediation subject to normal existing safeguards. HBF is also in close contact with CLG and Defra on this issue in order that our views can be taken into account by UK negotiators on the Directive.to top2008 EventsHBF Policy Conference 2008 - Hitting the Government's housing targets30 January at One Birdcage Walk, LondonFor further details or to book please click hereAlternatively contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF North West Dinner 8 February 2008 at Midland Hotel, ManchesterFor further details or to book please click hereAlternatively contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF Midlands AGM & Lunch 22 February 2008 at Sketchley Grange, HinkleyFor further details please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk Housing Futures 13 March 2008 at East Midlands Conference Centre, NottinghamFor further details or to book please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF Annual Industry Lunch - 10% discount on tables booked before 8th February 23rd April 2008 at the Hyatt Regency-The Churchill, London For further details or to book please click hereAlternatively contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF Midlands Social 9 May 2008, Sketchley Grange Hotel, HinkleyTo reserve a table please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.ukHBF Yorkshire Social Dinner16 May 2008, Sketchley Grange Hotel, HinkleyTo reserve a table please contact the events team: Tel: 0207 960 1646 email: events@hbmedia.co.uk HBF South West Ball7 June 2008, Beaufort Polo Club, Tetbury To reserve a table please contact the events team:Tel: 0207 960 1646 email: events@hbmedia.co.uk to topJo WestonView Previous Weekly News Summary
