As you know, our industry has entered a crucial period of policy engagement with the Government. Not only has the HBF been leading on a number of policy issues, but we have also been working to get across the industry case in response to a raft of consultations and policy proposals. Other important issues have also surfaced in the last few weeks. I therefore want to take this opportunity to give you both an outline briefing and update:
Industry strategies
HBF customer satisfaction strategy
Kate Barker’s Review of Housing Supply (March 2004) called on the industry to address the issue of customer satisfaction and charged HBF with developing a specific strategy.
At our Response to Barker Conference last week, we announced the results of HBF’s survey, undertaken in partnership with NHBC, showing that 76% of purchasers are satisfied with the overall quality of their home and 75% would recommend their builder to a friend. While depicting high levels of overall satisfaction, the survey also points to clear areas for further improvement.
The survey, which measures individual builders according to a star rating, will be undertaken on an annual basis. As part of our strategy, we intend to introduce a voluntary Code of Conduct and model Customer Charter in partnership with NHBC, as well as guidance for home builders to ensure their purchaser contracts comply with the Unfair Terms in Consumer Contracts Regulations (1999).
HBF skills strategy
HBF also launched its new skills strategy at the conference last week.
The strategy is partly a response to the Barker Review recommendation on skills, but also seeks to establish a pro-active approach to skills issues on behalf of the industry. The key to its success will be developing partnerships between the HBF and its members and other key organisations.
As well as communicating existing skills initiatives, including those adopted by the Major Home Builders Group, the strategy aims to influence the wide range of new skills initiatives being promoted by Government and CITB-ConstructionSkills to ensure that they meet the industry’s needs effectively. We will be seeking to work with you to this end.
Consultation responses
Planning Gain Supplement
Following a detailed and wide-ranging consultation with members, we have concluded that the Government’s PGS proposals will not work. It is, of course, difficult to judge how some aspects of the supplement would work out in practice, but overall there is a considerable risk that the proposed scheme would fail to deliver the Government’s and industry’s shared objectives.
We have made clear, however, that the industry is anxious to work with the Government to find a solution, which meets our common objectives. With adequate industry input and the involvement of all the relevant stakeholders, I am confident that we can progress on this issue.
Planning Policy Statement 3: Housing
Once again, the HBF has been conducting an extensive consultation with members to ensure that all views are fully taken on board.
Our submission concentrates on two major concerns. Firstly, we seriously question whether it is possible to plan for mixed and balanced communities without specifying house type, size and affordability; and secondly, we must use this opportunity to discuss new models for affordable housing provision - reflecting innovative industry practice and taking account of housing market assessments.
We have called for continued discussion with ODPM and local government representatives to ensure that the new policy is both practicable and deliverable.
Code for Sustainable Homes
HBF has been formulating its response to the Code for Sustainable Homes and we retain a number of concerns - not least with regard to the way the Code sits with planning and whether or not it will be voluntary.
Other issues
Introduction of new building regulations – Part L
On 22 February, the Minister for Housing, Yvette Cooper MP, announced that transitional arrangments had been cut from the usual maximum of three years to just 12 months, and that all new buildings without full building plans approved by 6 April must comply with the new Part L building regulations from 6 April 2006. This has two serious consequences.
Firstly, by setting the deadline for remaining 2002 Part L approvals so soon, housebuilders intending to submit applications in the coming days and weeks under the 2002 requirements are highly unlikely to receive approval.
Secondly, the 2006 Part L is still a draft approved document and the commercial software to implement it is not available. Housebuilders are therefore in a position whereby they are not able to submit any applications under this new Part L or, of course, have these approved.
I have sent an urgent letter to Rt Hon David Miliband MP, Minister of Communities and Local Government, seeking his intervention to create a further window to deposit submissions under the 2002 Part L requirements and a clear indication of when the necessary information for the 2006 Part L requirements will be available. This is a critical issue that requires immediate Ministerial attention. I will keep you closely informed of developments.
Thames Basin Special Protection Area
Recognising the seriousness of this issue, the HBF undertook immediate action some months ago, involving both senior HBF staff and members. The strategy involves liaising closely with the eleven affected local authorities, English Nature, Government Departments and relevant politicians as well as raising awareness in the media.
Home Information Packs (HIPs)
Following the submission of a HBF response to the ODPM consultation on the draft regulations for HIPs in December, HBF has discussed the position with other interested organisations including the Council of Mortgage Lenders, the National Association of Estate Agents and NHBC.
While the NAEA is formally opposed to HIPs and the CML is not, there is general concern that the ODPM has not yet provided a clear implementation plan - including arrangements for a properly organised dry run. HBF has issued public statements on this issue and drawn attention to the need for the market impact to be properly assessed. We will continue to work closely with other organisations to seek a suitable implementation plan.
Planning & Compulsory Purchase Act 2004
As an industry, we have long been demanding a greater role in policy formulation and implementation. The roll out of the new planning system through the implementation of the Planning & Compulsory Purchase Act 2004 offers us this opportunity.
Pre-application discussions, housing market assessments, housing land availability assessments and brownfield strategies will now require direct industry involvement. The HBF stands ready to cajole, co-ordinate and counsel, but we need early and sustained engagement from our membership.
Nations and regions
Wales
In Wales, we continue to work hard on our liaison with the Environment Agency to ensure that they do not make erroneous objections to development thought to be in flood plains that are later agreed not to be.
Regional spatial strategy inquiries
Regional Spatial Strategies dominate two of the regions. In the Eastern Region, the Examination in Public closes at the beginning of March and we then eagerly await the Panel's Report. The report is expected in the summer. Almost seamlessly, the inquiry into the North East RSS begins in early March and continues throughout the month.
Clearly such inquiries are resource intensive, not just for the necessity of staff attendance but in the preparation and submission of our own evidence and the significant task of reading and assimilating other submitted documentation.
HBF has continued to support the SWHI, a broad coalition also involving the CBI, NHF, RTPI and CIH among others, all committed to arguing the case for an improved housing supply for the region. The coalition is having an impact with regional decision-makers and will prospectively be an important additional voice in the forthcoming Examination in Public of the SW Regional Spatial Strategy.
We continue to concentrate on distinct regional agendas and I look forward to keeping you closely informed of issues as they develop. HBF’s regional policy managers are able, of course, to deal with specific concerns.
I intended this letter to be a short one, but the sheer scale of activity demands a longer update.
On a broader note, I am confident that we are making progress in both winning the case for increasing house building and helping to achieve the fiscal and regulatory framework by which this can done. In the last month, the Conservative Party has torn up its pre-election policy of opposing house building in the South East. Shadow Chancellor, George Osborne MP, has said that that he wants recast Conservative policy predicated on the need to build more homes. This is certainly welcome news.
I believe that we have an unrivalled opportunity to build on this new political consensus. To do this effectively, we need your feedback and input. Please do not hesitate to contact me or any of my senior management team colleagues on these, or any other issues.
Yours sincerely
Stewart Baseley
Executive Chairman