A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
HBF News
Yvette Cooper to speak at HBF’s AGM
The HBF AGM and Annual Luncheon is now under two weeks away on Tuesday 25 April and is being held at the Sheraton Park Lane Hotel, Piccadilly. This an opportunity to hear our confirmed luncheon guest speaker - Yvette Cooper MP, The Minister for Housing & Planning, ODPM.
For further details or a booking form please contact the Events Team on 020 7960 1646 or Email: events@hbmedia.co.uk
HBF welcomes HIP dry run
HBF welcomed the government’s announcement of a dry run of the proposed Home Information Packs prior to implementation next year. HBF Executive Chairman Stewart Baseley commented: “We welcome the fact that the Government will be trialling Home Information Packs. It is crucially important that we have an accurate idea of the impact these will have on the market. While no-one could object to seeking improvements to benefit consumers, the cost of these packs could result in fewer homes coming on to the market. In the context of the current housing shortage, this would damage consumer interests most of all.
I hope that the Government will give an objective and dispassionate analysis of the results, and be prepared, if necessary, to drop the idea completely. We need to ensure that consumers do not become the unintended losers of a scheme set up to serve their interests.” HBF Press Release
New Homes Week exceeds targets
The final figures for New Homes Week showed it was a huge success in promoting the benefits of buying a new home. The objectives were met for this year and targets exceeded, with a total press cutting value of £307,000 and a circulation of 12,232,077 - considerably higher than a value of £112,000 and a circulation of 3,897,000 last year. 7 million listeners were reached via radio.
The week was also covered for the first time in the National and Consumer media including: Evening Standard, Times, Sunday Express, Your New Home, Your Home and Rightmove. There was also a 2-day competition in the Daily Express (6000 entries) and full page competition in Location, Location magazine. (New Homes Marketing Board Website)
Thames Basin Heaths Special Protection Area (SPA)
The South East England Regional Assembly (SEERA) issued a press release confirming that it is investigating how new homes can be built in the areas affected by the SPA without having an adverse effect on the protected habitats. SEERA has commissioned Land Use Consultants to investigate options to provide extra recreational space to reduce pressure on habitats. The work will be completed by the end of July 2006. SEERA Planning Committee Chairman, Councillor Christine Field, said: “The Committee recognises that there is a serious problem with delivery of housing in the Thames Basin Heaths area, so we are aiming to find a way forward by summer.”
Commenting on SEERA’s announcement, HBF Executive Chairman Stewart Baseley said: While we welcome the South East England Regional Assembly’s involvement in co-ordinating this investigation, the fact remains that development could be held up for over two years while a permanent solution is sought.
“A delay of this magnitude threatens the viability of many home building and associated businesses based in the Thames Basin - with clear consequences for many hundreds of jobs. It also puts at risk 40,000 new homes over the next ten years - including 12,000 units of affordable housing - in a region facing the country’s worst affordability problems outside London.
“We need the Government to take urgent authoritative action to unlock the freezes on new housing while the process of finding a mutually agreeable longer term solution is undertaken.” HBF Press Release
Economic News
Unemployment continues to rise
The ILO measured rate of unemployment rose to 5.1% in the three months to February, up from 5.0% in the preceding three months and 4.8% a year earlier. The claimant count measure of unemployment rose by 12,600 in March, the thirteenth increase in the last fourteen months, as the rate of unemployment rose from 2.9% to 3.0%.
Headline average earnings growth picked up quite sharply, rising by 4.2% in the three months to February compared to the same period a year earlier, from 3.6% in the three months to January. However, once bonus payments are excluded from the calculations, the rate of earnings growth was unchanged at a more modest 3.8%. (April Labour Market Statistics)
More gloom on the high street
UK retail sales were down 1.4% on a like-for-like basis in March compared to the same month a year ago, according to the British Retail Consortium (BRC). However, this was in comparison to a strong month in 2005 when Easter boosted sales. Total sales rose by 1.6% on the same comparison.
Kevin Hawkins, Director General of the BRC, commented: “The probability is that, after adjusting for the timing of Easter, the underlying trend in like-for-like sales is, at best, flat. Although the housing market has been talked up for the past few months, none of this has, as yet, fed through to the DIY sector. Nor is there any sign of the Bank of England’s expected growth in consumer spending.” (BRC Retail Sales Monitor)
Housing Market
House price growth slows
The annual rate of UK house price growth slowed to 3.6% in February, down from 4.3% in January, according to the Office of the Deputy Prime Minister (ODPM). The ODPM reported that prices fell by 1.2% in February, although as the index is unadjusted, and has seen a fall in this month in each of the three preceding years, this fall is not particularly significant. The rate of annual price growth in London decelerated quite sharply from 5.3% to 1.9%, while the Northern regions continue to see faster price growth than the South of the country. (February House Price Index)
Other News
Most private landlords let property as a sideline rather than a profession
Two-thirds of privately rented dwellings are owned by private individuals, raising “questions about how well equipped are private landlords to deliver a high standard of service”, according to the English Housing Conditions Survey (EHCS) 2003 - Private Landlords Survey, published by the Office of the Deputy Prime Minister (ODPM). The remaining third are split between companies and other organisations. Homes owned by companies who specialise in residential lettings account for 8% of all privately rented dwellings.
Companies tend to own a higher proportion of older housing stock than other types of landlords and hence have higher rates of “non-decency”. An increasing share of privately rented homes are owned by landlords who are new to the sector, with 16% owned by landlords who have been in the sector for two years or less. (Full EHCS 2003-Private Landlords Report)
£51m pledged for new infrastructure in the East and South East
The Department of Trade and Industry (DTI) and Office of the Deputy Prime Minister (ODPM) announced that the East and South East of England are to receive £51m from the Community Infrastructure Fund to support new and existing communities.
ODPM Minister Phil Woolas said: “Over the last 30 years we have seen demand for new homes increase by a third as house building rates have halved. This is simply not sustainable. For the sake of the next generation we must act now; however, providing new homes is not just about bricks and mortar, it’s about building communities supported by the right infrastructure - transport, education, healthcare and green spaces. The projects we are announcing today will ensure that around 10,000 new homes will be delivered hand in hand with new transport infrastructure." (ODPM Press Release)
Work begins on £60,000 home competition
Work on the initial sites of the Government’s Design for Manufacture Competition (which challenged builders to construct a good quality home for £60,000), is due to begin. The competition has seen more than 300 homes designed and receive planning permission, with development work now starting on site. Almost 700 homes will also be created across another eight competition sites. Construction work will soon begin on sites at Allerton Bywater, near Leeds and Upton, Northampton by Barratt Developments Plc. (English Partnership's Press Release)
Singletons wait for partner before buying their first house
Research by Alliance & Leicester Mortgages shows that one in four (28%) single first time buyers are putting off buying their first home until they have met their long-term partner. Over a third (39%) of those who would prefer to buy with their future partner view sharing a mortgage as a symbol of love and commitment. Alliance and Leicester Press Release
Consultation/Key Publication Dates
Code for Sustainable Homes Consultation 5 December - 6 March
Implementation To be advised
Home Information Packs (HIPs) Consultation Closed 31 December
HIPs Dry Run Timeline published 16 Mar
HIPs Introduction 1 June 2007
Barker Review of Land Use Planning 25 January - 28 March
Energy Review Consultation 25 January - 14 April
Part L Implementation date 6 April
HBF Events
Annual General Meeting and Luncheon 25 April
For all full list of HBF events please visit the HB Media website click here
Paul Samter
Senior Analyst - Economic and Policy Affairs
Home Builders Federation
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