A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
HBF News
HIPS meeting arranged to discuss trials
The Association of Home Information Pack Providers (AHIPP) has advised HBF that details of the Home Information Pack trials will be available shortly for the trials' commencement this November. HBF has asked AHIPP for full details of the arrangements as soon as possible to circulate to members.
In light of this a meeting is being held on 16 November at 2pm at HBF’s London offices to discuss the details of the trials, how the new homes industry can get involved and to clarify issues that members would wish us to raise with AHIPP or the Government (a representative is scheduled to attend from both parties)
If you would like to attend the meeting please email jo.turner@hbf.co.uk
NB: Any information or notes resulting from the meeting will be available to download at hbf.co.uk/homeinformationpack
Government News
Stern review recommends drastic action to combat climate change
Sir Nicholas Stern's report released this week into the economics of climate change has called for carbon pricing to be a top priority, emphasising the specific need for certainty in combating climate change.
In his recommendations for remedial action, Stern focuses on the following:
Carbon pricing - predictability is the key for business. The same price for carbon across industries is also essential, ensuring a level playing field for business (no specific mention of housing/planning is given).
Technology policy – innovation in low-carbon technology is also tied to certainty over the price of carbon.
Behavioural change and efficiency – including energy efficiency, this is where housing-specific measures are mentioned:
Regulation – this should be encouraged in the building sector because it "reduces uncertainty, complexity and transaction costs," and "induces technological innovation."
The report also states that the spread of high-density building uses less energy than other developments, as well as fewer car parking spaces - incentivising the use of public transport and disincentivising car use.
Information – a wider adoption of energy use meters and displays will encourage behavioural change.
Individual behaviour can be shaped by Government policy, through educating the public of the causes of climate change and offering practical steps to mitigate its effect on the personal level.
Finance – taxation of negative externalities should be preferred over subsidy of preferable outcomes.
Woking Council is held up as a model of how the public sector can encourage energy efficiency, particularly in buildings. Stern recommends targets to encourage energy efficiency, as well as coordination of infrastructure and energy systems to produce energy savings.
Whilst the report only contains suggested directions for the Government, Gordon Brown has been keen to associate himself with the findings of the report, signaling an intention to review the fiscal regime with regards to carbon emissions. He has said he wishes to see European-wide reduction in emissions of 30% by 2020, and the existing aspiration of a 60% reduction by 2050 to be the minimum.
David Miliband MP, the Environment Secretary, indicated that climate change also presents an opportunity "for new markets, new jobs, new technologies and new exports," in line with recent Government speeches on this topic.
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HBF comment: the report’s views on regulation in construction are close to the thinking recently set out by HBF Executive Chairman on the future of building regulations in the environmental field.
Wicks gives a helping hand to green householders
There will be £6.2 million more funding available under the Low Carbon Buildings Programme (LCBP) for people who want to install micro-wind turbines, solar panels and other microgeneration technologies on their homes, Energy Minister Malcolm Wicks announced this week.
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CLG Committee announce PGS inquiry report date
The Communities and Local Government Select Committee have announced that their inquiry into the Planning Gain Supplement – to which the HBF gave oral evidence - will be published on Tuesday 7 November 2006
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Review of Sustainable Construction published
The Department of Trade and Industry has published their 'Review of Sustainable Construction.'
It sets out the different initiatives undertaken by Government in the area of sustainable construction.
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Housing Market
Abbey research shows extent of first time buyer crisis
Research from Abbey has claimed that 17.3 million people are unable to access the property ladder. The main findings are:
17.3 million people can't get on the property ladder
of these, 6.9 million people cannot afford the deposit while 2.1 million people cannot find the right mortgage. 6 million people just don't want the commitment
2.7 million first-time buyers end up compromising on the property they buy
…and announces the re-launch of its lending proposition
In conjunction with the new research findings, Abbey has announced the following changes to its mortgage product and lending policy to assist more First Time Buyers purchase their first home:
The introduction of an exclusive First Time Buyer product range, which includes mortgages that offer 5 % cash back, mortgages that can help with up-front costs and mortgages for customers with as little as 3% deposit.
Standard income multiples have increased, and are now linked to the customer's credit score and not loan to value. Customers with a high credit score will be able to have the same income multiples whether they are joint or single applicants. Plus Abbey can now lend up to 5 times income, subject to affordability.
Increased maximum loan limit at 95% LTV from £250,000 to £285,000.
Increased maximum loan limit at 97% LTV for first time buyer products from £150,000 to £250,000
NAEA lettings agents report a strong lettings market for the third quarter of 2006
The National Association of Estate Agents (NAEA) has launched its new quarterly lettings survey, which will regularly report on movements within the residential lettings market. NAEA state that with buy to let currently booming in the UK and a raft of new legislation being put in place the sector has seen considerable growth recently.
NAEA lettings agents revealed that the rental market in the third quarter of 2006 was buoyant and strong. The increase in property prices that consistently acts as a barrier to first time buyers, matched with the influx of Eastern European immigrants is continuing to fuel this sector of the property market.
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Leap in housing applications continues to slow UK supply
Housebuilders are increasingly being forced to apply twice, three times or even more for planning consent on residential schemes - further slowing the supply of new homes in the UK at a time when the government is trying to speed the process up.
New research shows that the number of schemes needing multiple planning applications to secure consent has doubled in the past two years. Around 33% of schemes now require more than one application before they are given the go-ahead - twice as many as in 2004. Triple applications now account for 8% of schemes, up from just 2.3% in 2002.
The stark figures have been uncovered by research undertaken for the 2006 Housing Market Intelligence report, which has revealed that the situation is particularly acute in the South East, where fewer than 55% of applications are given the green light on the first attempt.
The full results of the research appear in the report which also includes the Top 75 Housebuilders listing and industry analysis by HBF, EC Harris, Savills, Hometrack, Hoare Govett, NHBC and the Future Foundation among others. For full information and to order a report go to
www.housingmarketintelligence.com or call Helen Board at Housebuilder Media on 020 7960 1634.
Economic News
House price inflation eases, according to Halifax
Annual house price inflation eased back to 8% in September 2006, according to the latest figures from Halifax
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As safe as houses? - PricewaterhouseCoopers LLP projects one in three risk of UK house price fall by 2010
The latest UK Economic Outlook from UK economic Outlook PricewaterhouseCoopers LLP, published today, November 2006 assesses the UK’s current economic situation and prospects for the future. The report includes modelling on house price uncertainty, which suggests there is an approximate one in three chance that UK Table-Summary of UK nominal house prices could be lower in 2010 than economic prospects they are at present.
Moere >
Other News
AHIPP offers reassurance to industry over number of energy assessors
The Association of Home Information Pack Providers (AHIPP) has sent an assurance to industry that there will be sufficient numbers of energy assessors to conduct Energy Performance Certificates (EPCs) by June 2007.
Mike Ockenden, its director general said: 'Suggestions that there will not be enough energy assessors are undermining the value of the EPC. It is a concern that has been taken very seriously and has been reviewed by both the government and AHIPP. Following consultation with a number of our members, we are confident that there will be an adequate supply of Domestic Energy Assessors ready to produce the certificates, ahead of June 07.'
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NAEA members vote on HIPs
93% of respondents agree with Association’s current stance
Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA), invited members to vote on Home Information Packs (HIPs) last week following discussions at recent industry exhibition, PCS Expo. While taking part in a HIPs panel debate Bolton King was accused of not being in touch with the views of the NAEA membership over HIPs, he agreed to poll NAEA agents once again to get their thoughts.
Members were polled electronically on their opinion of the Association’s current stance: that HIPs should be repealed and the Government should look again at ways of improving the home buying and selling process on the basis that the energy performance Certificate can be dealt with outside of HIPs.
When asked whether they agreed with this stance, 93% of respondents replied ‘yes’. Peter Bolton King comments: "We were delighted with the high number of respondents to this poll. We sent the survey out to 7,600 members and 2,240 got back to us with their feedback on our current stance – 200 of them within the first three hours. This is in fact the best response we have had to a survey since we started our electronic polls in 2005, demonstrating this is clearly a subject that our agents feel strongly about."
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Taylor Woodrow appoint new CEO
Taylor Woodrow plc announced the appointment of Ian R. Smith as Chief Executive Officer with effect from January 2nd, 2007.
Mr Smith (52) was formerly CEO of the General Healthcare Group which he joined in 2004 after an extensive international career covering a variety of industries and markets. From 2002 to 2004 he was CEO (Europe, Middle East & Africa) of logistics company Exel, having been Group Commercial Director for four years of its predecessor company, Ocean Group where he operated in the United States, Asia and Europe.
From 1986 to 1998 Mr Smith held senior positions with the global strategy consultancy, Monitor, which he had joined upon its inception, becoming CEO, Europe in 1993. Prior to this he had begun his career in 1978 working for eight years in the UK and Middle East with the Royal Dutch/Shell group of companies.
Norman Askew, Chairman of Taylor Woodrow said, " We are delighted to welcome Ian and look forward to benefiting from his wide international business experience."
www.taylorwoodrow.co.uk
Find out how the Code for Sustainable Homes could affect your business..
Did you miss the technical briefings at Housebuilding 2006 earlier this month? Need to know more about the Code for Sustainable Homes and how it may affect your business? Confused about building regulations and how you will need to adapt to meet future requirements?
If the answer is ‘Yes’ to any of these then book your place at the HBF Technical Conference.
HBF Technical Conference
9 November 2006
Nottingham Belfry Hotel, Nottingham
To avoid disappointment book your place now
Contact events@hbmedia.co.uk or 020 7960 1646.
Register your place online
Consultation/Key Publication Dates
Code for Sustainable Homes Implementation Early 2007
Home Information Packs (HIPs) Regulations - Revised regulations published 14 June, further revisions required
HIPs Trials November 2006 onwards
HIPs Introduction 1 June 2007
Implementation of new DCLG structure went live 2 October
Housing and planning incentives To 17 October
Planning and Pollution Control Consultation Closes 6 December
Part B of Building Regs - Document Autumn
Implementation April 2007
Water Regulations Consultation Document Autumn
For details of HB Media events click here
For a full list of HBF events please visit HBF Events & Meetings
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Joanna Turner and John Slaughter