I much appreciated the chance to meet and talk to so many members at our Annual General Meeting (AGM) on Tuesday 25 May. Once again, it was an important opportunity to come together as an industry and discuss a range of important issues. During my speech, I stated my firm conviction that we needed to work together to tell the whole story. We need to build the evidence base from which to tell our key stakeholders – Government, political parties, the media, customers – the facts: that we are delivering higher quality, better designed and more sustainable homes. I will be putting place a system to collect the information we need from members to present our case across a range of issues. Your help in this exercise will be essential.
Relationships with political stakeholders
The Government
At our AGM, Yvette Cooper MP, the Minister for Housing and Planning, gave a characteristically forceful speech. One point in particular struck me: the Ministers’ references to home builders’ business models and her suggestion that members are not undertaking a robust enough long-term view of the market.
I am seeking a meeting with the Minister to discuss this – as well as other pressing issues – and we will be drawing up a briefing paper for the Minister and senior Civil Servants. As I am sure you will agree, it is crucial that misconceptions of this sort do not gain traction within Departmental thinking.
On a broader level, the HBF has been holding a number of meetings with senior officials in the ODPM, HM Treasury and Prime Minister’s Delivery Unit, discussing a range of subjects including the Thames Basin Heaths SPA and planning obstacles to higher levels of house building. We have also met officials at the National Audit Office to discuss its study of house builders’ use of Key Performance Indicators.
Opposition parties
The Conservative leadership has maintained its new emphasis on the need to deliver more housing and assist first time buyers and we remain engaged with the key figures in their policy-making process.
We have also recently met the new Liberal Democrat Shadow Cabinet spokesman for ODPM affairs, Andrew Stunell MP, to open dialogue on the main housing and planning policy issues. Here too there seems to be a willingness to listen to well formulated views from us.
HBF announcements
Customer Satisfaction
The first important output of our customer satisfaction strategy was the Customer Satisfaction Survey, launched in February. At the AGM last week, we launched our Customer Service Code of Conduct, the second important strategy output.
The Code seeks to help home builders develop higher standards of good practice in customer service. It was written in consultation with the NHBC and draws on guidance from the Office of Fair Trading on developing consumer codes of practice. I am writing to all HBF members, enclosing a copy of the Code, and urging them to adopt it and publish a Customer Charter.
HBF initiatives
Planning-gain Supplement (PGS)
Comments by Ministers and officials suggest the Government is firmly committed to introducing some form of Planning-gain Supplement. An announcement is likely in the December Pre-Budget Report. To try to influence Treasury thinking, we have formed a high-level expert working group to try to find solutions to the flaws in the Treasury's current proposals. We are also discussing a PGS joint research project with the CBI, BPF and RICS.
Industry issues
Thames Basin Heaths Special Protection Area
We have continued to lobby Government hard. I have written to the Prime Minister, the Secretary of State for Trade and Industry and MPs affected by the issue. I was also invited to take part in an important recent meeting between Michael Gove MP, the Shadow Housing Minister, and Yvette Cooper MP which positions HBF well to influence current efforts to lift the planning freeze.
Part of our strategy has also included a media campaign to raise the profile of the issue and place pressure on the Government and English Nature to facilitate a solution. There has now been significant coverage in the local and national press (Sunday Times, Financial Times, The Independent, Daily Mail) as well as the broadcast media (London Tonight, BBC South East, Meridian, BBC Radio 4 Today programme). We will continue to build on this high level of media interest.
Code for Sustainable Homes
Following our meeting with Yvette Cooper MP, we are continuing our efforts to propose improvements to the Code and also to persuade the Government to look at proposals for an alternative way of regulating the industry.
Introduction of new building regulations – Part L
As I reported last month, I and other HBF representatives met with Yvette Cooper MP and officials where we expressed serious concerns about the impact late publication will have on output this year, particularly given the limited transitional arrangements reported last month. We have since received a letter back from the Minister, expressing sympathy for our position, but stating that changes would not be made to alter the situation as it stands.
Home Information Packs
It has become clear that the Government is likely to rely primarily on pack providers to undertake a voluntary dry run through local and regional trials. We are seeking to discuss the position with the Association of Home Information Pack Providers (AHIPP) and Government in order to continue to advise members about the impact these measures will have when they are introduced in June 2007.
Planning
Planning and Compulsory Purchase Act 2004
On 12 April, ODPM announced a package of changes to the General Development Procedures Order 1995 (GDPO), implementing more of the Sections of the Planning and Compulsory Purchase Act 2004.
Perhaps the most useful thing to come out of this package of mostly technical changes to planning regulations is the reiteration of the start date for monitoring application processing times. This is now categorically stated as being the day after the application is received by the authority. Thus, authorities that have tried to delay starting the clock until registration of the application are reminded of the statutory period that ODPM wish to monitor.
This does, however, reopen the debate over what constitutes a valid application and HBF is following up on earlier discussions with ODPM regarding the proposed inclusion of “any other information required by the LPA” as a requirement for validity of an application.
Technical affairs
Utility provision
There has been growing concern (particularly in the North West where multi-utility first made an impact) that the levels of service being provided by utilities have not seen any improvement since the introduction of more competition. Indeed, in some areas the time taken to obtain service connections has deteriorated to a position where it can take a minimum of 36 weeks to obtain services for a new development.
This is obviously having a detrimental effect on output and will, if not addressed, make it difficult to achieve the growth in housing that the Government seeks. This is due to be discussed at our National Technical Committee later this month. HBF will be pursuing this with Government to see what can be done to reduce this time period to a more acceptable level.
Sewers for Adoption - Edition 6
This has now been published and will take effect from 1 May 2006. HBF participated in the WRC seminars to promote the new document and is currently liaising with sewerage undertakers to set up some more regional events for our members to discuss any issues arising. A briefing paper on the changes will be published shortly.
Innovate for Homes
The joint HBF/CPA initiative launched earlier this year has already made an impact and the Panel will meet next month to consider the first round of submissions.
Once again, please do not hesitate to contact me or any of my senior management team members if you have further ideas, feedback or questions.
Yours sincerely
Stewart Baseley
Executive Chairman