Top stories this week *Bank Rate reduced to 5.25% *Halifax report flat prices but sound economics support the market *Amendments to CIL announced Top stories this weekBank Rate reduced to 5.25%....read moreHalifax report flat prices but sound economics support the market....read moreAmendments to CIL announced....read moreQuick LinksEconomic NewsHousing Market NewsGovernment NewsIndustry NewsHBF NewsEconomic NewsBank of England Reduces Bank Rate by 0.25 Percentage Points to 5.25%The Bank of England's Monetary Policy Committee has voted to reduce the official Bank Rate paid on commercial bank reserves by 0.25 percentage points to 5.25%. to topHousing Market NewsHouse Prices remain flat but sound economics support the marketHalifax predict that house prices will be flat in 2008 but that sound economic fundamentals will support house prices. The UK economy recorded its 62nd successive quarter of GDP growth in 2007 Q4, extending the longest running period of unbroken growth on record. The number of people in employment - a key driver of housing demand - has risen by 263,000 over the past year to a record 29.36 million. Halifax predict that the MPC will cut the Bank Rate at least twice in 2008. Lower interest rates should in their view help to prevent the economy slowing too sharply, so supporting the housing market.For January, Halifax reports>House prices were unchanged. Prices in the three months to January were 1.0% lower than in the previous quarter. House prices were 4.5% higher than a year earlier. The average price of a home in the UK has increased by £7,628 over the past year to £197,244. There are continuing signs of weakness in housing market activity. The number of mortgage approvals to fund house purchase in the final three months of 2007 was 35% lower than during the same period a year earlier. View full reportConsumer Confidence falls The Nationwide Consumer Confidence for January was issued this week showing a drop in consumer confidence: -Confidence levels fell to 81 in January - the lowest level on record Expectations of house price growth over the next six months fell to -0.2% in January (from 0.7% in December)The number of people positive about the future employment situation fell from 44% in December to 36% in JanuaryView the full findingsto topBuy-to-let lending increases house prices by no more than 7%The National Housing and Planning Advice Unit (NHPAU), the independent body set up to advise Government on housing supply and affordability, has published research on the impact of buy-to-let mortgages on UK house prices.The report - which studies the impact of buy-to-let since 1996 - shows that the effects have been relatively modest in the context of overall price rises. By the second quarter of 2007, house prices were up to seven per cent higher than they would have been had there been no buy-to-let mortgages. To put this into context, buyers of an average priced home, taking out a 100% mortgage, would pay around £1190 per month rather than £1100 as a result of an increase of this scale. Other key findings of the NHPAU Report include:Investors with access to buy-to-let financing and capital have significant purchasing power and are often competing in the same area of the market as potential first time buyers; andThe results from the model concur with analysts that have suggested that a downturn in buy-to-let lending could potentially create a downward pressure on house price inflation.View full report10% fewer repossessions in 2007 than expectedFewer than 1 in 400 mortgages led to repossession in 2007, according to the Council of Mortgage Lenders. At 0.23%, the repossession rate was less than half the rate experienced throughout the first half of the 1990s. And at 13,500 the number of repossessions in the second half of 2007 was almost identical to the number in the first half of the year (13,600).The CML had previously forecast that there would be 30,000 repossessions in 2007, but the actual figure is nearly 10% lower than forecast, at 27,100. Although repossessions have risen since their remarkable low point of fewer than 10,000 a year in 2003 and 2004, they continue to represent a tiny fraction of all mortgages. Further information and statisticsto topGovernment NewsNew Clause introduced in Planning BillOn the final day of the Committee stage debate on the Planning Bill in the House of Commons this week, the Government introduced a New Clause (NC28) that will allow regional development agencies to take over responsibility for some or all of the functions of regional planning bodies (RPBs).The key responsibility of the RPB (which is, in fact, the regional assembly in each region) is the production of the draft regional spatial strategy (RSS). Thus, this late amendment paves the way for the proposals set out in the Government's review of sub national economic development and regeneration published in July 2007. It precedes, however, the public consultation on the proposals, not expected until later in the year.View the Planning BillAmendments to the introduction of CILAs part of the Committee stage debate on the Planning Bill the Government also introduced a number of amendments with regard to the proposals for the Community Infrastructure Levy (CIL).Amendment 556 introduces a definition of infrastructure that might be included within CIL. As published, the amendment states that "infrastructure includes -(a) Roads and other transport facilities,(b) Flood defences(c) Schools and other educational facilities(d) Medical facilities(e) Sporting and recreational facilities(f) Open spaces, and(g) Affordable housing (being social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008 and such other housing as CIL regulations may specify)."The regulations may amend subsection 1(a) so as to -(a) Add, remove or vary an entry in the list of matters included within the meaning of ‘infrastructure';(b) List matters excluded from the meaning of ‘infrastructure'"The inclusion of affordable housing is an enabling clause for the future (as referred to in paragraph 38 of the Government's explanatory note "The Community Infrastructure Levy") and HBF continues to discuss with CLG officials and others the issues and practicalities of including affordable housing within CIL.View the Planning Bill amendmentsto topNorth East RSS Consultation - Second stage releaseThe Secretary of State has this week released the second stage of consultation on the further proposed changes to the North East Assembly's draft revision of the Regional Spatial Strategy (RSS) for the North East.The consultation lasts for eight weeks and the deadline for submitting responses is 5pm on 2nd April 2008.Further details and to submit responsesHousing Statistics 2007Communities and Local Government has published housing statistics 2007. The statistics include the following highlights:New house building completions in 2006 totalled 161,000 in England. This was 24 per cent higher than in 2001.Total stock in England rose to 22 million in 2006, with 1.5 million of those being added over the past 10 years. 70% of households are owner occupiers, 18% are social tenants and 12% are private renters. The proportion of private renters has risen from 10 % in 2001 whilst the proportion of social renters has fallen from 20%. The proportion of owner occupiers has remained stable. House prices in England rose by an average of 6% from 2005 to 2006. Prices in the three northern regions (North East, North West and Yorkshire and the Humber) and in London increased by more than the average. The greatest percentage change was in Yorkshire and the Humber (8%). Lower quartile house prices stood at 7.1 times lower quartile earnings in 2006, up from 4.2 times in 2001. Comparing median house prices to median earnings gives similar figures (6.9 times in 2006 against 4.5 times in 2001). The number of households in England rose by 21% between 1981 to 2004, and are projected to increase by a further 23% from 2004 to 2026. View the full statisticsto topLaunch of new Government water strategy - "Future Water"Future Water, the Government's new water strategy, has been launched by Environment Secretary Hilary Benn. Future Water sets out a policy framework for water management in England and outlines Government's vision for the future of the water sector.Accompanying the strategy is a full public consultation on draft statutory Social and Environmental Guidance to Ofwat plus a consultation on surface water drainage. This is one of the means by which Future Water's priorities can begin to be delivered. The consultation on this Guidance will run for a full 12 week period, ending on 30th April.HBF will be asking members for feedback in due course.Future Water: the Government's water strategy for England Improving surface water drainage: consultation to accompany proposals set out in the Government's water strategy, Future Water Consultation on draft statutory Social and Environmental Guidance to the Water Services Regulation Authority (Ofwat) to topIndustry NewsEcobuild 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.ukto topHBF NewsHBF Budget Submission 2008HBF has made its submission to the Treasury for the 2008 budget, outlining measures to stimulate the housing market including: - Increase in Stamp Duty Threshold to £250,000Encourage RSL Purchases of New Build PropertiesFunding for English Partnerships (EP) First-time Buyer InitiativeFiscal Help for First-time BuyersResidential Investment through SIPPS Contaminated Land ReliefView the full recommendations and submission > (members only)Weekly News Summary Survey - Prize DrawHBF is reviewing its communications with members to ensure that we are providing information in the way you would like to receive it and which is most helpful to you and your business. We are conducting a short survey to obtain member feedback on the HBF Weekly News Summary. All answers will be confidential; both the names of respondents and their companies will be kept private.*All completed surveys returned by the February 29 will be entered into a prize draw to win a case of wine*The survey is short and simple and takes just a couple of minutes to answer.Please click here to complete the survey.To ensure your feedback reaches us please complete by February 29. The winner of the prize draw will be announced in the Weekly News Summary on March 7.to topHousing Futures - 13th MarchEast Midlands Conference Centre, NottinghamA one day conference and debate on the issues facing the industry for managers of regional businesses to attend with their senior team. Confirmed speakers include: Sunday Times, Economics Editor, David SmithMarket guru and HBF Economist, John StewartPlaces for People, CEO, David CowansEnglish Partnership, Director of Policy, Steve CarrHBF, Executive Chairman, Stewart BaseleyStewart Milne group, Design Director, Ross Peedle Plus Barratt Homes, Senior Land Manager, Ben Cook and HTA, Head of Sustainability and Innovation, Rory Bergin talking about their winning Carbon Challenge scheme.For more information and to bookThe Future of Building Control - 10 April 2008 Austin Court, BirminghamThe Government is proposing major changes to the way that Building Regulations are enforced. These changes will affect everyone involved in house building - builders and developers, architects and designers, specialist consultants and building control professionals. This conference sets out the reasons why change is thought to be necessary, why the current system doesn't appear to be working properly and what improvements the government would like to see. Delegates will be able to contribute to the debate by challenging the views of the speakers and voting electronically For further details or to book please contact the HBM Events Team on 0207 960 1646 events@hbmedia.co.uk to topHBF Graduates Conference - bookings now being takenThe annual HBF Graduates conference is a one-day conference for graduates and trainees within the home building industry. This year's conference will be held on Wednesday 2nd July at Holywell Park Conference Centre, Loughborough University The day is designed to create understanding of current challenges and issues facing the industry, facilitate constructive group discussion and networking amongst graduates from different companies, backgrounds and disciplines. Download a booking form Alternatively contact Rosie Hinchliffe on 0207 960 1607 or email rosie.hinchliffe@hbf.co.uk to book a place For other HBF events visit the website http://www.hbf.co.uk/index.php?id=eventsandmeetings For HBM events visit www.hbmedia.co.uk to topJo Weston
