A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
Government News
PPS3 planning reforms aim to respond better to housing requirements
Housing Minister Yvette Cooper has set out reforms to the planning system designed to help local authorities deliver more and better homes - including more affordable and family homes.
Planning Policy Statement 3: Housing (PPS3) specifically seeks to tackle obstacles in the current planning system which mean that not enough suitable sites are available to deliver the homes families and local people need. Under the new policy, Councils will need to plan their housing strategies much further ahead and identify suitable sites more quickly to prevent much-needed houses being held up by unnecessary delays in the planning system.
The new National Brownfield Strategy, which was also published this week for consultation, aims in addition to help local councils bring forward more brownfield land for development.
Under PPS3 local authorities will need to make sure they are getting the mix of homes right and meeting the needs of all of their community. Specifically, councils will need to ensure there are enough family homes and, for the first time, ensure that the housing needs of children are being met, with an emphasis being placed on family-friendly developments including access to gardens, play areas and parks.
New developments will have to take account of the need to cut carbon emissions and to move towards zero carbon development, with higher standards for housing and planning to be set out shortly in the new Planning Policy Statement on Climate Change and the revised Code for Sustainable Homes.
In addition to PPS3 and the National Brownfield Strategy a “Delivering affordable housing" document has also been published, aimed at improving the provision of affordable housing by local authorities.
Yvette Cooper said:
"The new planning rules will support more homes for families. Bad housing for children can haunt them for the rest of their lives, which is why it is so important to ensure there are enough family homes, with gardens, play areas and parks. In London, for example, four out of five new homes are one and two bedroom flats. Whilst we need more new homes for first time buyers and single households, we need to insist on more family homes."
For a copy of the full DCLG press statement:
For a copy of PPS3 policy document:
For further information on the National Brownfield Strategy:
For further information on Delivering Affordable Housing document
Commenting on the Government’s announcement of the new Planning Policy Statement 3: Planning for Housing (PPS3), HBF Executive Chairman Stewart Baseley said:
“The new PPS3 represents a major commitment on the part of Government to delivering the improved supply of new homes our country so badly needs.
We particularly welcome PPS3’s emphasis on identifying sufficient developable land to meet future housing requirements. The lack of a reliable forward land supply is the biggest single issue facing the industry. Ensuring sufficient developable land comes through the planning system is the key to consistently delivering the full range of housing our society wants. It is also crucial if we are to create a climate in which the industry can invest in further improvements in quality and design - as both we and the Government wish to see…”
For the full press release visit: News
To download the HBF members briefing on PPS3 visit the HBF website National Plannig Section
The announcement on PPS3 was welcomed by the HBF as our new research on the planning timeline has shown that planning approval now averages nine months - three times longer than Government targets
These new figures, released at the start of this week show the need to address key issues on planning process alongside the planning policy framework set out in PPS3. HBF’s figures show that:
Local authorities take on average 248 days - nearly nine months - to issue planning approval after the submission of an application. The DCLG performance target for major applications is for 60% of applications to be determined in 91 days.
This process includes an average delay of 17 days between the submission of an application and registration. The statutory target is 24 hours.
It takes on average 475 days - over a year and three months - from the submission of an application to developers starting on site.
The HBF research was conducted on a sample of 580 sites from 24 companies. It is the first of its kind to be published by the industry. It also shows that:
There is an average delay of 98 days - over three months - between a committee resolution to grant permission and the issuing of the decision notice.
Appeals take an average of 309 days - over 10 months - from being lodged to a decision being received.
New planning policy is a step in the right direction, says CPRE
Countryside campaigners CPRE have welcomed the new Government policies on planning for housing but are concerned that the Government will not be policing low density and greenfield housing development to the extent it has in the past
Neil Sinden, CPRE’s Policy Director, said:
“The debate about the level and kind of new housing we need will continue, but we hope this new policy will help planners deliver more of the right kind of homes in the right places.
The location of new housing is a critical factor in minimising its environmental impact. Recycling previously developed, ‘‘brownfield’’ land in our towns and cities can help make them more attractive, liveable and sustainable by improving derelict land, sustaining local services and reducing the need to travel by car. Overall, the new policy should strengthen this 'brownfield first' approach”.
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Conservatives recommend 80% reduction in carbon emissions by 2050, 20% more than the existing Government target
The Conservative Quality of Life policy group has recommended an 80% reduction in carbon emissions by 2050, that is 20% more than the existing Government target, which the policy group says is inadequate.
The group also believes that it is wrong to give up on the chance to limit global temperature increase to 2°C versus pre-industrial levels and that the appropriate long term stabilisation target range for CO2 atmospheric concentration is 400-450ppm CO2-equivalent, rather than the 450-550ppm, cited by the Stern report.
The latest report from the group also stresses that the long-term aspirations are likely to be academic without a shift in the short-term momentum to reduce emissions.
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Housing Market
Nationwide report 1.4% rise in house prices for November
Figures from the Nationwide have shown that house price inflation jumped to 1.4% in November, up from 0.8% in October.
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Hometrack report accelerating price inflation in November
Unseasonally strong growth in housing sales over November and falling levels of supply have resulted in an acceleration in the rate of house price growth according to the latest monthly housing market survey by Hometrack. House prices grew, on average, by 0.6% over November, up from 0.4% over October. The annual rate of growth measured by Hometrack is now 5.3%, the highest since August 2004.
“Buyers may have shrugged off the August interest rate rise, but the prospect of a further increase in November seems to have forced those who were thinking of moving to actually do so. The result has been a sustained increase in market activity over the last 2 months. But set against a background of dwindling supply, house prices have continued to rise, a trend that has now spread beyond London and the South East” comments Richard Donnell, Hometrack’s Director of Research.
After a modest slowdown in market activity over the summer, the volume of sales agreed by agents has now reached levels similar to those seen in the late spring and early summer. Sales agreed over November, compared to October, were up 4.8% with the greatest increases in the Eastern region (10.7%), the South West (12.3%) and London (7.1) - albeit, in the case of the Eastern and South West regions, off a low base.
“The growth in sales means that the supply of homes on the market has declined over November by -3.3%, the sharpest decrease for a year. Unsurprisingly the greatest squeeze on supply has been in London (-4.7%) and the South East (-6%).
Price rises over November were correspondingly strongest in London (+1.2%), and the South East (+0.7%) but also in East Anglia (+0.7%), driven by the imbalance between supply and demand. The number of price rises across the country has also spread with almost two fifths (39.3%) of the 2,300 postcode districts covered by the Hometrack survey seeing prices move higher over the month compared to just 25% in October.
“The fact that the market appears to have retained its momentum despite the August rate rise is most likely a result of the majority of property transactions being carried out by those that are already on the housing ladder or are being assisted in some way,” explains Donnell. “However, we do expect the recent increase in interest rates to impact on levels of activity in the months ahead with the market likely to experience a seasonal slowdown over December.
“We are forecasting that average house prices will rise by 4% over 2007 supported by low levels of housing turnover and prices continuing to be set by the ‘haves’ already on the housing ladder. London and the South East are expected to remain the primary engines for growth, with prices being driven by a continuing supply/demand imbalance” he concludes
Land Registry figures show strong house price growth in October
The latest figures on house price inflation from the Land Registry have shown growth of 1.2% in October, with the average home costing £171,709
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Other News
National Centre of Excellence gets ready for launch
The National Centre for Excellence in Housing, has been established by two complementary bodies NHBC and BRE through the creation of a joint venture partnership. This builds on the successful joint working between the two in developing the NHBC Foundation - the organisation which underpins research and development in the new housing sector. The National Centre will have a significantly wider remit, in identifying practical solutions to the challenges faced by all parts of the UK housing sector.
It will provide three main benefits to the industry:
First its agenda will be developed to address in collaboration the issues of interest and concern to the industry - giving the housing sector a sense of ownership of the issues and a chance to shape a better future.
Second, the decision makers will be supported by authoritative information and guidance. This will generate confidence in decision making, enabling selection of options and approaches which are factually linked to success.
Third, the Centre will be supporting not just those involved in new build housing, but also those wrestling with the complexities of refurbishment of stock, which currently is estimated to account for 60% of the turnover in the sector.
The launch of the National Centre will take place on 12th December 2006 in London from 12noon - 15:30. If you would like to attend or require more information please contact info@homein.org <mailto:info@homein.org> or phone 01923 664775 . www.homein.org <http://www.homein.org/>
WWF publish 'One planet living' suggestions
The WWF have published their report 'One planet living in the suburbs,' highlighting ways in which the Government and consumers can contribute more towards sustainable living.
Key amongst the recommendations is a call for a strong Code for Sustainable Homes, in accordance with their 'One million sustainable homes' campaign.
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RICS approved to regulate Home Inspectors
The DCLG has today approved RICS to regulate those members who wish to carry out home condition reports as part of the government’s proposed Home Information Packs
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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
Planning and Pollution Control Consultation Closes 6 December
DTI/Ofgem Call for Evidence for the Review of Barriers and Incentives to Distributed Electricity Generation - closes 2 January 2007
Part B of Building Regulations:
Document Autumn
Implementation April 2007
Water Regulations Consultation Document Autumn
Full HBF Events Calendar
Review Latest Press statements
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Joanna Turner and John Slaughter