I was delighted to see so many members at our policy conference last month: <b>A new agenda for home building.</b>
As you know, it was staged to cut through the stream of recent announcements, initiatives and reviews, to help members get a clearer picture of the policy and regulatory framework in which we operate. With close to 180 delegates, it was one of our largest conferences, and I hope it gave members a better understanding of key issues, as well as an opportunity to catch-up with each other
Headline issues
Customer Satisfaction
Results from the second HBF Customer Satisfaction Survey published this week, covering the 12 months from October 2005 to September 2006, show a modest improvement on the first survey which covered the six months from April to September 2005.
For the two key questions, the proportion who were very or fairly satisfied with the overall quality of their home was unchanged at 76%, while the proportion who could recommend their builder to a friend rose from 75% to 77%.
A very positive 78% were satisfied with the qualify of service provided during the buying process, with 73% rating their builder as 'good' in relation to completing their home on time, and 72% satisfied with the condition on moving in day.
As with the first survey, results were weaker when buyers were asked to rate the standard of finish, with 70% describing it as 'good'. On the standard of service provided after moving, 65% of respondents were satisfied.
Talking to house builders who take part in the survey, and looking at the individual company results, I am struck by the impact of the survey on the industry's efforts to improve satisfaction levels. I know from personal experience that this is ultimately a question of company culture, starting from the top at board level, and requiring commitment right through the organisation.
There is further to go, especially with after-sales service. However the latest results, which include a full set of year ends, are most encouraging and I am sure we will see further gradual improvements over the next few years.
As part of HBF's customer strategy, we have also developed a Customer Service Code of Conduct and model contract terms to meet higher customer satisfaction standards.
Establishment of Housing Production Barriers Group
In response to Barker Recommendation 33 on MMC, HBF established a Cross-industry Steering Group to consider the barriers to wider adoption of MMC and to propose solutions to raising these barriers. The report of this Group, published in February 2006, suggested HBF should establish a 'legacy body' to implement its recommendations.
The agenda has moved rapidly since the Group reported. The Government's target is now 200,000 quality, environmentally sustainable homes per year in England by 2016, and MMC is now seen as one possible means to an end, rather than as an end in itself. Therefore the 'legacy body', to be called the Housing Production Barriers Group, will take a broader look at measures to remove the barriers to achieving the Government's target. The Group, established in association with the National Centre of Excellence in Housing (NCEH) will include representatives of key stakeholders, including the home building and construction products industries. I am delighted that Rod MacEachrane, Director of the NCEH, will be chairing the group.
Thames Basin Heaths Special Protection Area (SPA)
Action to seek early implementation of the Assessor's analysis of Natural England's stance on mitigation measures remains a priority. At the South East Plan EiP session on 22 March, HBF called for an early statement by the Inquiry Panel on the weight to be attached to the Assessor's report. We are also seeking urgent discussions with senior CLG officials and a meeting with regional and local stakeholders to press for clear steps to free up the current freeze on planning applications. I believe that a Government commitment to follow up the Assessor's report is critical to taking this forward. We will be taking this up with CLG officials in a meeting this week.
Zero carbon homes agenda
I chaired the second meeting of the 2016 Task Force on 28 March which Yvette Cooper MP also attended. We concentrated on the practical measures required to advance the key issues in achieving the proposed 2016 standard, while also discussing the definition of zero-carbon and the nature of the Concordat between the Government and the main stakeholders which has been proposed for publication in the early summer. HBF will continue to facilitate work to find the most effective means of pulling together research and other valuable information for the industry.
One of our major concerns remains the degree to which regions and local authorities will be able to set their own deadlines for reaching new environmental standards. With nine Government Office Regions and over 350 different local authorities, we have a recipe for unprecedented complexity and chaos. I have raised this with the Minister and her officials and will continue to argue the case strongly for simplicity and uniformity.
The HBF's response to the Government's consultation, Building A Greener Future: Towards Zero Carbon Development has been submitted to CLG. Copies of our submission can be found on the HBF website.
Home Information Packs (HIPs)
Ministers remain committed to the launch date of 1 June 2007. We have focused particularly on resolving issues relating to the introduction of Energy Performance Certificates (EPCs). For the initial sale of new homes prior to physical completion, CLG has been receptive to the need for a simple arrangement for initial predictive energy assessments based on the SAP design assessment already required for Part L (2006) of the Building Regulations. HBF has worked hard behind the scenes on this issue and I believe we are seeing the results of this effort. We will ensure that detailed arrangements are communicated to members in the run up to 1 June.
External and economic issues
Budget 2007
The Budget contained a number of minor announcements of interest to house builders. The zero-carbon new home stamp duty exemption, first announced in December, applies from 1 October 2007 to values up to £500,000, with new homes over this value eligible for a £15,000 reduction. The exemption will be reviewed before it expires in 2012. (Budget Note BN26 on HM Treasury's web site has full details of the exemption). The HBF will make the case to HM Treasury for the development of more effective incentives to facilitate the achievement of the zero-carbon objective.
The landfill tax rose to £24 per tonne on 1April. HM Treasury is consulting on tax incentives for brownfield land development, with a submission deadline of 20 April. We are consulting members and will be making a submission in due course.
Household Growth
The Government's estimate of household growth in England has been revised up to 223,000 per year from 2004-26. The previous projections, published only last year, put growth at 209,000 per year. The 1996-based projections, which were in place from 1999 until early 2006, projected growth of only 150,000 per year from 1996-2021.
Net migration gains from the rest of the UK and overseas account for one third of the projected growth in households.
Every region except the North East is expected to see strong growth in households over the next two decades, with the biggest increases in London, the South East, South West and East. There is a substantial gap between current house building levels and projected household growth in every region except the North East.
The new figures suggest the Government's ambitious target of 200,000 new homes per year by 2016, even if achieved, will still fall far short of housing need. The gap between projected household growth and last year's 160,000 completions in England is now more than 60,000.
Political Engagement
We continue to have good relations with Ministers and senior officials on the major issues. Yvette Cooper MP was the dinner guest of the Major Home Builders Group on 5 March and this provided a valuable opportunity to discuss a range of issues relating to the delivery of a sustained increase in housing output and the zero carbon homes agenda. Shadow Housing Minister, Michael Gove MP will be attending the next MHBG dinner.
Planning
Supplementary Planning Guidance
There are a growing number of examples where members are being faced with a requirement to meet local authority planning policies which have been adopted solely as supplementary planning documents rather than being taken through the full local development document process. Not only is the SPD route faster but it has no independent inquiry stage to test for soundness, allowing Authorities to go through the process of consultation but, ultimately, adopt the policy as drafted.
I am pleased, therefore, to have secured a meeting with CLG officials this month to discuss this growing problem. I will be raising whether further guidance is necessary for local authorities or better enforcement procedures, either through government office scrutiny or in the weight placed on such documents by the Planning Inspectorate at appeal.
Housing Corporation Grant to Developers
As I reported last month, the Housing Corporation are holding a briefing event for prospective new partners on 17 April 2007 in London. If you wish to attend please contact Felicity Stormont at the Corporation. Tel: 020 7393 2134 felicity.stormont@housingcorp.gsx.gov.uk
National Planning Applications Register
CLG, via the Planning portal, is embarking on a project which seeks to centralise the statutory register of applications for all local authorities. The project has the potential to measure, in a consistent and timely way, similar statistics to those that we collected for the planning process timeline project. We will be keeping a special eye on the emerging project in order to ensure that it produces outputs that are as useful to the industry as they are to central and local government monitoring processes.
Guidance for Strategic Housing Market Assessments
On 29 March, CLG published the long awaited practice guidance for strategic housing market assessments. It was accompanied by an advice note entitled "Identifying sub regional housing market areas". Alongside strategic housing land availability assessments (SHLAAs), on which HBF is jointly involved with CLG and the LGA to produce the practice guidance, SHMA is a critical part of implementing PPS3. As I have been stressing for some months, the industry must rise to the challenge of being involved as a key stakeholder in these new processes. HBF will continue to co-ordinate member involvement as both SHMAs and SHLAAs are begun across the country.
Technical Issues
Water Efficiency in New Buildings
The HBF's response to the consultation, Water Efficiency in New Buildings, has been submitted to CLG. The main thrust of this consultation document is whether there should be a 'whole house' or 'individual fittings' approach to water conservation. We have pointed out that, whichever approach is used, it should not conflict with the water requirements contained in the Code for Sustainable Homes. Copies of our submission can be found on the HBF website.
Code for Sustainable Homes
We still await the Technical Guidance to the Code as well as the updated version of the Green Guide to Materials. The Code goes live from 10 April 2007. It remains to be seen if this signals the way for future building regulations as suggested in the document.
Utilities
Ofgem's recently announced plans to speed up connections to new homes are certainly welcome. New standards should mean that utility companies could be fined large sums for failing to meet targets for connections. Meetings we held with the regulator are now being followed up by meetings with utility companies. We will be talking to Ofwat to see if they can introduce similar measures to those introduced by Ofgem, while closely tracking any improvement in service through our members.
Innovate for Homes
The Housebuilder Panel met on 13 March 2007. Links to products viewed will be sent out to all Technical Contacts. The Panel has requested that we try to find products that fit into the Sustainability Agenda. If anyone would like more details please contact Dave Mitchell.
Health and Safety
CDM2 becomes effective in April 2007. They aim to simplify the original regulations and improve clarity. They will focus on processes, planning and management, strengthen co-operation and co-ordination and simplify competence assessments. HBF will be publishing a briefing paper on this.
Manual for Streets
Manual for Streets was launched on 29 March 2007 in London. This launch will be followed by seminars in Newcastle, Taunton, Cardiff, Coventry and Manchester. The document replaces DB32 and has a more flexible, team-based approach to highway design.
In short, it has been another busy month, with HBF representatives participating on an ever-increasing number of conference and media platforms - all of which are important for engaging stakeholders in the policy community and communicating industry arguments.
As ever, please do not hesitate to get in touch with me or the senior management team here at St James's Street if we can help further.
Stewart Baseley
Executive Chairman