It has been an extraordinarily busy start to the year with a large number of Government consultations underway on the back of December’s policy announcements.
There can be little doubt however which subject has occupied most time or column inches.
As you know, in the wake of the Chancellor’s ambitious announcement in his Pre Budget Report that all new homes would be built to zero carbon performance standards by 2016, the HBF has been leading on this issue. Our approach has remained simple and consistent.
When the debate began in earnest last summer we recognised that we could not afford to exclude ourselves from playing a significant role. Why? Because the environmental agenda is here and it is here to stay. The three main political parties are fighting to champion the environmental cause and evidence points to increasing public support for stricter environmental measures as each new and ever more alarming report is published.
We recognised that we have a short window to work with the Government to shape the regulatory framework in a business-friendly way that not only achieves higher environmental standards, but also allows the industry to increase output significantly and manage the cost implications of building to higher standards without damaging margins or returns. If we don’t engage in the debate we will suffer the inevitable consequences of blunt Government regulation.
Our approach is already reaping rewards. In the lead up to the Chancellor’s announcement we successfully argued the case for a ten year timeframe against powerful opposition all calling for a much shorter period. As the consultation continues, we will continue to make this case forcefully as we should not forget that those same opponents will continue to press for less than ten years.
We also persuaded the Government not to introduce Code level 3 and 4 until 2010 and 2013 respectively – again despite significant forces arguing that we should move to level 3 immediately as is proposed for English Partnerships and Housing Corporation sites.
Most recently we have successfully made the case that the follow up to our January summit should be guided by a Task Force that is led jointly by us and Government whose purpose is to fully understand the obstacles to achieving the Government’s targets and identify solutions.
Such solutions also clearly need to be consumer friendly and in that regard we need to dispel some of the fear factor already emerging suggesting that the homes of tomorrow will resemble something from a science fiction movie. Why should they? Our new homes today are some 6 times more energy efficient than those built 100 years ago and yet do not look much different. Why do some people assume that to raise standards to a new high will inevitably lead to radical new designs?
I believe that we have established a position on climate change which provides an unprecedented opportunity to seek solutions that take account of the needs of all our members.
To be successful we will need to secure proper funding for the right research bodies to build the evidence base and inform our decisions and ensure that the Government’s energy policy supports investment in the new forms of energy supply that will probably be needed. There will also be knowledge that needs to be harnessed from outside our industry’s traditional operational sphere and we will need to work in partnership with Government, suppliers and energy companies to unlock this.
Let’s not also forget, that while those companies that can afford to conduct their own research and develop new solutions will always do so, the whole industry will benefit from the totality of their knowledge and properly focused research itself requires the right national framework to support it.
The parallel I would draw is that when Part E of the Building Regulations was introduced, many of the largest home builders contributed funding to find an alternative solution to mandatory sound testing. Every home builder in the country has benefited as a result. Robust Details solutions could not have been adopted, however, unless we as HBF had sold the concept successfully to Government.
I believe passionately that successfully shaping Government policy on this issue and responding constructively – as many leading companies from all sectors of the British economy are increasingly doing - is the most effective way of representing our industry’s interests.
This issue is too important for the livelihoods of our businesses and the health of our sector to disengage from Government, ignore obvious business trends and resort to crude opposition. It is why the HBF moved quickly to bring all stakeholders together for a Roundtable Summit this January…
EXTERNAL AFFAIRS
HBF Environmental Roundtable Summit
Held at the beginning of January, our summit was co-chaired by Yvette Cooper, the Housing and Planning Minister, with senior representatives from the industry, suppliers, Government, regulators, energy interests, and a number of other bodies attending. I was struck by how focused all those present were in addressing this important agenda. Everybody agreed with HBF's view that 10 years' is a sufficiently challenging timescale to move towards "zero carbon" homes, contrary to strong pressures from other groups for even faster progress. It was widely recognized that this is a challenging objective for all parties concerned.
We identified a range of important issues to resolve at an early stage if we are to be successful. These issues include:
the need to agree exactly what is meant by Zero Carbon Homes – a simple definition that both business and consumers can readily understand
the need for a better common database of information about technological capability and related design issues
the policy and regulatory framework for new forms of local and zero carbon energy supply
the regulatory roadmap for suppliers to gear up for the requirements of 2016
a raft of consumer-facing issues, underlining the importance of taking consumers with us
the need for skills development and information dissemination
the importance of restraining local authorities from all imposing their own detailed policies
A strong sense of partnership arose from the discussion, with those present agreeing that no one party could tackle the issues on their own. The Minister is very keen to be involved, and we have now just hold the first meeting of a small and powerful Task Force for the work ahead that I will jointly chair with the Minister. I will, of course, keep you fully up to date with developments on this and our thinking.
Meanwhile, in a period when some other businesses have been subject to significant public criticism over their position on climate change, notably the air transport sector, we have been very successful in attracting a positive press and sustained interest in the approach we are taking. This is, of course, secondary to the imperative need to plot a course that is as commercially friendly as possible, but it is notable that our approach is opening doors much more widely in Government to constructive dialogue with the HBF.
Draft PPS on Climate Change
Connected with the zero carbon target, I also joined Ruth Kelly on a platform on 13 December to launch the final version of the Code for Sustainable Homes and a consultation draft of a new PPS on Climate Change. The Code and the draft PPS should very much be seen as complementary elements in a package of climate change measures from Government.
To a large extent, CLG (“Department” has now been dropped from its name) have taken on board our perspective in their approach to all these measures particularly the proposed ten-year timetable for zero carbon building standards as reported above.
Equally importantly, the draft PPS contains provisions which go a long way to trying to prevent local authorities adopting their own versions of detailed building standards through their planning policies. A key question we will be discussing with you in the consultation period is whether this framework is as robust as it needs to be, but our starting point is undoubtedly comparatively strong.
Thames Basin Heaths Special Protection Area
The scrutiny of the evidence base associated with Natural England’s draft delivery plan for the Thames Basin Heaths continues at the EIP for the South East RSS. In addition to our ecological evidence, we have now submitted a written legal opinion from Robin Purchas QC, setting out his view of the correct interpretation and application of the habitats regulations. Notably, he concludes that the tests entailed in the regulations appear to have been incorrectly applied by Natural England; with the result that he believes the draft delivery plan itself is probably unsound. We have, of course, given this legal opinion wide circulation, including to local authorities in the area, as well as submitting it to the enquiry itself. Attention is now focused on the report of the technical panel considering the SPA issue, due to be submitted to the full EIP on 19 February.
Home Information Packs (HIPs)
We have recently circulated a new briefing note to members setting out advice and guidance on a number of issues related to HIPs raised by members in the meetings we held late last year with the CLG. I hope this guidance will assist you in coping with the new requirements, which will be operative from 1 June.
On 25 January, however, the Government also announced a new consultation – running until 19 February - on HIPs. In the light of the area trials so far undertaken this consultation indicates a further shift in CLG’s position. Because local authority searches have often not been available quickly in the trials, sellers will be able for an initial transitional period to market their home as soon as an Energy Performance Certificate (EPC) and key legal documents are provided as long as searches and leasehold documents (where relevant) have been commissioned. In addition an ‘Interim Energy Assessment’ rather than a full EPC is proposed for new homes that are sold off plan, which would be accompanied by a warning that the completed home may not necessarily have the predicted energy performance rating. Full details of the EPC itself are still awaited.
We are continuing to follow developments on HIPs closely and are liaising actively with CLG on issues of concern to the industry.
ECONOMIC AFFAIRS
Planning-gain Supplement (PGS)
To help prepare our submissions to the three consultation papers, HBF’s PGS Working Group members are holding meetings during January and February with HM Treasury, the CLG, HMRC and RICS. Discussions will take place at various member meetings, including a specially convened meeting of the National Planning Committee.
Barker II: Review of Land-use Planning
In consultation with the National Planning Committee, we will be preparing for the CLG a statement of our views on the 32 recommendations in the final report of Kate
Barker’s review of land-use planning.
Merger of English Partnerships and the Housing Corporation
The key test for Communities England will be its contribution to ensuring that adequate land is brought forward to meet the Government’s housing targets.
John Callcutt, until recently Chief Executive of EP, is to head up a review of house building and its ability to meet the Government’s 200,000-plus homes target. HBF will work closely with this Review.
Customer satisfaction
The OFT has now given written agreement to the model contract terms HBF submitted at the end of November and they will shortly be distributed to members. Meanwhile the results of our second customer satisfaction survey (but the first one covering a full year) will be announced in the second half of March
Affordable housing
The Affordable Housing Policy Group is to hold one further meeting to finalise a paper outlining its policy proposals before circulating these to the wider membership.
Barker 33: MMC
We have approached a number of HBF members and other organisations to sit on a new Housing Production Taskforce. This will examine the production obstacles to achieving 200,000-plus high quality, high environmental performances homes by 2016. It will work closely with John Callcutt’s Review and the proposed new steering group we are establishing to devise a plan for achieving zero carbon new homes by 2016.
PLANNING AFFAIRS
Strategic housing land availability assessments
One of the key wins for HBF set out in PPS3 published in November last year was the requirement for all local authorities to keep up-to-date 5 year housing land availability assessments. We are now working with the CLG and the Local Government Association to produce a good practice guide for the methodology of SHLAA which should be finalized by the summer. I will, of course, be consulting members for their ideas and experience on the issues involved, not least, the amount of involvement required from member companies in the actual assessment process.
TECHNICAL AFFAIRS
Achieving “zero carbon” homes
The consultation document Building a Greener Future: A step change in sustainable home building practice was launched on 13 December 2006. As detailed earlier in this report this proposes that all homes should be “zero carbon” within 10 years.
HBF has established a working party to help assess the feasibility of achieving this target and to formulate the industry response to the document and inform the work of the joint HBF/ CLG taskforce.
Code for Sustainable Homes
This was finally launched and will come into force in spring this year. The technical guidance is expected to be published in February together with the revised Green Guide. Members are reminded that there will be six levels, Level One requiring a percentage increase in the energy performance of the building above the 2006 Part L requirements, Level 3 being approximately equivalent to EcoHomes Very Good and Level 6 being zero carbon.
Building Regulations
The consultation on water conservation was published as part of the suite of sustainability measures issued by the Government in December. HBF has set up a working party to prepare an industry response.
Utilities
HBF met again with CORGI to debate the issue of ventilation for gas pipes in floor voids. The test rig is now completed and approved by the group and testing will take place over the next few weeks.
Innovate for Homes
The third round of applications is due to be vetted shortly. Please contact Dave Mitchell if you are interested.
Waste
The National Brownfield Strategy was launched on 13 December 2006 and the HBF’s representatives were encouraged by its content. HBF also responded to the joint CLG and DEFRA consultation on Planning and Pollution Control and DEFRA’s second consultation on an Environmental Permitting Programme. A meeting of the Contaminated Land Sub Group will be held shortly to discuss any feedback.
Health and Safety
The CDM Regulations are due to change from April this year and members are urged to ensure that their staff are fully aware of the implications. The Approved Code of Practice is to be published any day now - a draft is available. It is extremely important that members understand what the changes are and what their responsibilities are, and once the final version of the ACOP is published HBF will be issuing a briefing paper.
Forthcoming Events
HBF will be holding a one-day policy briefing on 20 March at One Great George Street, London. This event will examine the full spectrum of new Government housing and planning policies and their implications for the future of home building.
The AGM and Annual Lunch will be held on 25 April at the Hyatt Hotel – The Churchill, W1 London. The Annual Lunch will follow the HBF AGM with a drinks reception at 12.30pm and lunch at 1.00pm.
To book a place at either of these events please contact the Events Team on 0207 960 1646.
And finally, attached to this long report you will find a series of key policy achievements where HBF made a difference last year. These have been written in such a way that they can be used with external parties either as one document or as individual information sheets. Please feel free if you wish to distribute them far and wide both within your own organisations and beyond.
As ever please don’t hesitate to get in touch with myself or any of the Senior Management Team members with any questions or comments you might have on any of the items set out within this report of indeed any other matters you want to discuss with us.
PLEASE NOTE: Next month this report will be sent out via email (to those who have supplied an email address) to cut down on paper and reduce costs. If you have email, but would prefer to receive a hard copy please let us know.
Stewart Baseley
Executive Chairman