I was very pleased to see so many members at our recent Housebuilding ‘06 exhibition. The programme promised a “two-day extravaganza of ideas, innovation and information”. I hope you felt that it lived up to its billing. I certainly thought so…
Key priorities
The environmental agenda
I wanted to use my address at the conference to squarely place the HBF’s focus on what I believe will be the greatest challenge, and potential opportunity, of the years and decades ahead: the environment.
The vision I articulated is a simple one. No-one can ignore the environmental agenda. All political parties are championing the cause and giving it a primacy in policy development. The Stern Report shows the massive challenges posed by climate change. We have the opportunity to shape and influence the regulatory environment in which we will all have to operate.
As an industry, we need certainty and predictability above all else to guide our decision making. I have called for the Government – in consultation with all stakeholders in this debate – to develop a new framework. Let’s agree where we need to be by a particular time; let’s set the mutually agreed targets. Then the Government must allow us to do what we do best: adapt, innovate and lead. On its side, the Government must uphold the spirit of the agreement by not tinkering or meddling: no new hastily-introduced regulatory measures, no moving goal posts. That, I believe, is the most effective way to deliver results.
Yvette Cooper MP has responded very positively. She made it clear when she spoke at our HMI conference, and in subsequent private discussions, that she enthusiastically agrees with our approach and sees the HBF as key to finding the right solutions in this important area. I believe that we have a stronger and better relationship with Government than we have had for some time. I value this. It matters; and no more so than now.
The HBF will be convening a summit of all our stakeholders to take this idea forward. I will keep you informed.
Home Information Packs (HIPs)
Plans for the six English regional trials scheduled to commence in November are still being worked up by the Association of Home Information Pack Providers (AHIPP) in consultation with the DCLG, who are providing £4 million towards the running of the trials.
We understand some of this money will initially subsidise the cost of packs. We are keeping close contact with AHIPP and Government, with details to be provided as they emerge. We have arranged a meeting with AHIPP and DCLG on 16 November at which members can be briefed directly about the trials and raise any general concerns – and have contacted many of you separately about this.
As you know, there remains confusion as to how the implementation of the compulsory energy performance certificates will work. We are, of course, extremely keen to make sure these do not detrimentally affect our members when they are rolled out.
Thames Basin Heaths and Dorset Heathlands Special Protection Areas (SPAs)
I am pleased to report that Natural England – the successor body to English Nature – has so far adopted a more pragmatic approach to considering the impact of new development around the Dorset Heathlands SPA than it has done in the South East.
While this is welcome, it still leaves us with the very serious problem around the Thames Basin Heaths. We have recently been concentrating on finalising our new research on the Thames Basin Heaths for submission to the Examination In Public (EIP) on the South East Regional Spatial Strategy and will ensure that we have expert representation during the relevant evidence sessions. We have also sought legal advice to ensure that we are deploying our research and taking all other actions necessary to best represent our interests. I will continue to give this issue high priority.
DCLG Housing Supply Review Group
HBF has now participated in two specialist stakeholder group seminars bringing together DCLG officials, home builders and local authority representatives to discuss housing supply and design. These meetings have been well attended and I appreciate the time and effort of members who have taken part. I shall be following up with DCLG officials in early November.
On the subject of the Planning Timeline, we are well advanced in our analysis of the data supplied by a number of members. Thank you for your assistance.
DCLG statistics show the proportion of major (10+ units) residential planning applications in England decided within thirteen weeks reached 67% in the second quarter, the highest figure since records began in 1992. Only 13% were decided within eight weeks.
Just under two thirds (65%) of decisions were to grant permission, down from over 80% throughout the period 1992-2001, although the proportion granted permission – and therefore the refusal rate (35%) - has been fairly stable for the last two years.
Household numbers in England grew by 180,000 per year from 2001-04, 24% ahead of the 145,000 average annual housing completions over this period, according to new DCLG figures.
Office of Fair Trading
A final unfair terms in contract draft has been produced in consultation with relevant members’ legal representatives. This was submitted to the OFT in late September and we will be meeting officials shortly. I will keep you closely informed of developments.
External affairs
Political contact
John Slaughter’s meetings with key Ministerial and front bench spokesmen at the party conferences revealed some interesting trends, with the Conservatives in particular showing encouraging signs of simplifying the regulatory framework. Further discussion with the Conservatives will be sought, which will help us work towards a cross-party consensus on the main elements of a workable climate change strategy for housing.
Skills – CSCS audit
The second audit of MHBG sites to assess the levels of CSCS card-holding and qualifications among the workforce was held on 4 October. We will be reviewing the results with companies at the earliest opportunity, in the context of achieving a fully carded workforce by the end of 2007.
European Union of Developers and House Builders (UEPC) meetings
The current UEPC President, Graham Pye, kindly co-ordinated arrangements for our European trade association to hold its latest set of six monthly meetings in Oxford at the end of September. Productive and wide-ranging discussions included the problems stemming from the EU Habitats Directive and regulations in the Thames Basin Heaths and Dorset. I am pleased to report that the UEPC will shortly be lobbying the European Commission and MEPs on developers’ concerns in this and related areas.
Economic affairs
Can house builders hit the 200,000 new homes target?
At a recent meeting with Yvette Cooper, HBF agreed to work with DCLG officials to prepare an important paper looking at this issue and trying to allay Ministers’ concerns. This would particularly seek to address Governmental concerns about the industry’s ‘business model,’ and its ability to hit the 200,000 per year target for new homes.
Planning Gain Supplement (PGS)
HBF’s PGS working Group, chaired by Berkeley chairman Roger Lewis, continues to examine whether a workable PGS can be devised on the assumption the Treasury will introduce some form of infrastructure levy. Members of the working group will be meeting officials from HM Treasury, the Valuation Office, HM Revenue and Customs and the DCLG in early November to discuss our emerging thinking and to find out more about current Government thinking.
Following our expressions of concern about the continuing use of the disputed Sheffield University research into PGS and S106, HBF and DCLG officials are jointly to try to “bottom out” this issue by examining all the available evidence, including the data we collected from larger HBF members.
PPS3
PPS3 is due to be published before Christmas, although it is still uncertain as to the actual date or, indeed, whether it will form part of the wider package of DCLG announcements associated with PGS or the draft PPS on climate change.
PPS3 will be accompanied by a new housing circular dealing with a number of issues around provision of affordable housing. The guidance on undertaking housing market assessments will also be finalised and published alongside the PPS. However, guidance on housing land availability assessment will not accompany the PPS. This is because DCLG have asked that HBF and the Local Government Association (LGA) collaborate with them over the next few months to produce a methodology that is acceptable to both partners. This, they believe, will eliminate potential conflict at the local development document stages of land allocation. HBF will, therefore, be setting up a member working group to address this important task. We are keen to show that, if allowed to do so, we can make a positive contribution to the production of such vital guidance.
Affordable housing
The HBF Affordable Housing Policy Group (AHPG), chaired by Redrow Executive Deputy Chairman Paul Pedley, has had three of its four planned meetings and is making good progress on developing practical policy ideas.
Planning
Validity of planning applications
As reported in the September Update, HBF responded to the Government’s consultation on proposals to allow local authorities to specify their own requirements for information to be submitted with planning applications before such applications were validated.
HBF were exceedingly critical of such proposals since they would lead to uncertainty, inconsistency and a proliferation of unnecessary expense and administration with no formal process for disagreeing with an authority’s requirements. In addition to responding to the formal consultation paper HBF followed this up with DCLG Director of Planning, Colin Byrne. Unfortunately his response to our concerns is extremely disappointing. In effect DCLG are relying on the fact that Local Planning Authorities will need to consult on their requirements before they become mandatory as being the deterrent against unnecessary or over zealous requirements.
It is clear that DCLG have not learnt from the plethora of experience which shows Local Planning Authorities ignoring any rational arguments made to them as part of any consultation process, let alone this critical stage of submitting a valid application.
DCLG have agreed to meet with us along with other parties who have expressed similar concerns such as The Law Society. We are currently agreeing a date.
Building a consensus
The level of consensus apparent at a seminar between English Partnerships, the Planning Officers Society and HBF at a Housebuilding ’06 seminar, addressing the effect of Kate Barker on the planning systems, led us to consider the merits of a common position.
Obviously such discussions are at a preliminary stage, but it offers real potential to provide solutions to many of the problems arising out of implementation of the new planning system.
Regional issues
Both the South East and the North West Regional Spatial Strategies start their Examination in Public this month, with huge differences between the two. The NW RSS proposes to almost double the level of housing provision of the current RPG whereas the SE Plan proposes to reduce the current rate of housebuilding. HBF (and, indeed, many of our members) are represented at both of the public inquiries that take place over the coming weeks and, in the case of the SE Plan, well into next year.
Technical affairs
National Technical Conference
There are still a few places available for this year’s National Technical Conference in Nottingham on 9 November. Regulations and the Code for Sustainable Homes are the key topics.
Waste
The HBF’s Contaminated Land Sub Group has put forward ideas for the industry response to the joint DCLG and Defra consultation on Planning and Pollution Control and a final draft will be circulated to the group members before the deadline of 6 December. We will also be responding to Defra’s second consultation on an Environmental Permitting Programme.
Utilities
We wrote to the Government about the issues arising from the North West workshop and the HBF’s industry survey. HBF has also been talking to the regulators and other interested parties and a copy of the survey response was also given to the National Audit Office.
The key finding is that nationally it takes 25 weeks on average to get the first properties on a site connected from making an application for the provision of utility services – much longer in some areas.
Yvette Cooper has replied confirming that her officials have been in contact with representatives of the Water, Gas and Electricity industries and that she is treating the issue very seriously.
Code for Sustainable Homes
There is still no firm date for the implementation but we are expecting an announcement from DCLG in November with a possible implementation date as early as April 2007.
Building Regulations
HBF continues its dialogue with interested parties on improving the regulatory system. The latest amendments to Part B will now come into force in April 2007.
The consultation on water conservation is now expected to be published before Christmas.
Innovate for Homes
A second round of successful applications will be presented to the Housebuilder Panel on 2 November 2006. Details of the products submitted in the first round are available - please contact Dave Mitchell if you are interested. Members are particularly urged to propose products that address the current priorities of energy and water saving.
Health and safety
HBF is planning some events early next year to cover the imminent changes to the CDM regulations, which are due to be implemented in April 2006. The regional seminars may also cover other related issues such as progress on CSCS cards and Work at Height.
The trial of the electronic Design Forum has been extended to allow more time for the testers to respond.
Please don’t hesitate to contact me or any of colleagues for feedback, views or ideas.
Stewart Baseley
Executive Chairman