Housing Minister - “New Homes Week off to a flying start” The Home Builders Federation’s latest survey released today shows that July’s new homes reservations were up strongly on a year ago, the fourth successive month of year on year growth - and that builders expect a rise in their new homes sales in 2009. And with builders already reporting a busy August, the survey demonstrates the clear improvement in both the market and industry confidence and comes as a major boost for the industry as it launches New Homes Week 2009. The week will see events taking place on 2,000 housing sites across Britain as builders demonstrate the many benefits of new homes. The HBF’s latest monthly Housing Market Report also shows that: The rate of decline in net new homes prices has eased markedly The summer period was busier than usual with visitor and reservation levels falling only modestly between June and July compared to the usual large summer season falls The HBF new home survey results support other evidence from the sector that the housing market may well be past the worst, including: July homes sales across the whole housing market, including second hand properties, were up on a year ago for the first time in two years - Office of National Statistics. Mortgage approvals for house purchase in July were up more than 50% on July last year - Bank of England Estate agents have been reporting rising levels of interest from new buyers for the last nine months - RICS Speaking today, New Homes Marketing Board Chairman David Pretty CBE, said; “These latest HBF survey results continue the trend of positive reports that have been emerging in recent months. As we launch New Homes Week, which will see events and promotions aimed at demonstrating the many benefits of new homes taking place on 2,000 sites across the country, industry confidence is at the highest it has been for some time. It is early days yet, but the trends are very encouraging.” The figures in the report reveal that a positive balance (see note 4) of 28% of home builders reported improved year on year reservations for July. A negative balance of 4% reported lower reservations in July compared with June. Last year’s balance was -42%, a clear indication that customers are starting to return to the market this year. A positive balance of 24% of home builders expect a rise in their new homes sales in 2009 as industry confidence, so battered through the recent economic downturn, starts to return. Stewart Baseley, Executive Chairman of the HBF said; “These figures are very welcome after what has been a tremendously difficult two years for our industry. The need for new homes in Britain has not gone away, and it is only the private home building industry that can deliver them on the scale that is needed. New Homes Week is an opportunity for our industry to celebrate what is good about the product it provides and look ahead to better times.” Housing Minister John Healey said: “This increase in sales and confidence is setting New Homes Week off to a flying start. Coupled with the recent increase in construction orders it shows that things are improving in the sector, helped along by massive government investment in the industry. That’s why I'm determined support for the sector will continue, from the £500 million investment for over 5,400 new affordable homes I confirmed last week, to our billion pound drive to get stalled developments back on track through the Kickstart programme. This is key to not only building the homes the country needs but also helping people into jobs and helping the country through the recession.” -Ends- For media enquiries, or to arrange an interview, please contact Steve Turner on 020 7960 1606 / 07919 307 760 or steve.turner@hbf.co.uk Notes to editors: 1. The Home Builders Federation (HBF) is the principal representative body for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk 2. New Homes Week 2009 is a promotional initiative being run by the NHMB aimed at highlighting the benefits of new build homes. It will run from September 12-20th 2009. 3. The New Homes Marketing Board (NHMB) was established in 1982 by the Home Builders’ Federation to promote its activities to consumers. The NHMB promotes the need for new housing to the general public and raises awareness of the benefits of new homes. In promoting a positive image of the housing industry’s aims and activities the NHMB supports the HBF’s political and media campaigns. It also campaigns on behalf of buyers on a range of consumer related issues - particularly for first time buyers. 4. David Pretty has for many years campaigned to highlight the plight of first-time buyers and the causes of the housing shortage. He was CEO of Barratt Developments PLC until October 2006, and was made a CBE for services to house building In the Queen's Birthday Honours List 2007. He is a Director of the Home Builders Federation (HBF), Chairman of the New Homes Marketing Board, a trustee of The Prince’s Regeneration Trust and an appeal board member of Shelter, the homelessness charity. He contributes regularly to trade publications and is an occasional advisor to Government and financial institutions on housing issues. Most recently he jointly headed the Killian-Pretty Review into the planning applications process, which reported at the end of 2008. 5. A balance is the difference between the proportion of home builders reporting an increase and the proportion reporting a decrease. A positive balance indicates growth, a negative balance decline. 6. 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