A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
Government News
English Partnerships and Housing Corporation to merge
The Government has announced proposals to merge English Partnerships and the Housing Corporation in a new agency to deliver regeneration and housing in England.
The proposed agency - Communities England - will also have responsibility for a range of work currently carried out by the Department for Communities and Local Government, including delivery in the areas of decent homes, housing market renewal, housing PFI, housing growth and urban regeneration. Legislation will be required to establish the new agency. As a result it is not likely to be formally established until 2009. In the meantime planning for Communities England is to be led by English Partnerships chairman Baroness Ford.
Communities Secretary Ruth Kelly said the new agency will further enhance the Government's ambitious agenda to ensure social mobility and economic inclusion:
"With the expectation of over £4 billion of public spending at its disposal, Communities England will pioneer innovative and more efficient ways of working with our key partners in the public, private and voluntary sector to get better outcomes from public investment in places”
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HBF see delivery as the test
In a press statement on the announcement of Communities England, HBF Executive Chairman Stewart Baseley said:
“The key test for Communities England will be its contribution to delivering the extra homes which, it is now universally agreed, are so badly needed in this country. Experience tells us that the best way for new housing to be delivered is through a light-touch regulatory framework, with developers given the flexibility to respond to the needs and aspirations of home buyers, and this should be the yardstick for judging the success of the new body.
With the Barker Review pointing the way, we very much hope Communities England will help the drive to solve this country’s growing housing shortfall.”
New housing and regeneration agency must let local people decide on local priorities says LGA
Commenting on the Government’s proposals for a new agency to deliver housing and regeneration in England, chairman of the Local Government Association, Lord Sandy Bruce-Lockhart, said:
“This new agency aims to reduce bureaucracy and create a single point of contact within the housing and regeneration sector. But if Ruth Kelly is to honour her pledge for devolution the Government must make sure that Communities England operates at a genuinely national strategic level, giving council-led local partnerships the power to deliver real regeneration and growth in our communities.
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Miliband launches proposed guide for assessing carbon offset schemes
Environment Secretary David Miliband launched a public consultation on the development of a voluntary standard for carbon offsetting schemes to help ensure that such schemes are delivering real benefits.
Mr Miliband said,
“Offsetting isn't the answer to climate change. The first step should always be to see how we can avoid and reduce emissions – through thinking about how we use energy in our homes and businesses, and the way we travel.
“However, some emissions can't or won't be avoided…. People need to be sure that the way they offset is actually making a difference. The Government's standard and code of practice, with a quality mark so people can check easily before they choose an offsetting product, will help to provide that certainty.”
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Economic News
Interest rates may rise again
Consumer price inflation (the MPC's target measure) hit 3.0% in December, with headline RPI inflation running at 4.4%. Some commentators think inflation will rise even further before subsiding later in the year. The MPC is particularly concerned that sharply higher headline inflation will feed into higher wage demands, which in turn will create yet more upward pressure on inflation.
Interest rate futures have risen sharply recently, especially since the surprise interest rate rise on 11th January. By the end of this week, the markets were pointing to bank rate of 5.75% or even higher during 2007 (currently 5.25% after last week's rise).
Real post-tax earnings (i.e. average earnings excluding bonus payments, adjusted for inflation and direct tax changes) are now falling for the first time in three years. In the year to November, real post-tax earnings were 0.3% lower than a year ago.
Housing Market News
DCLG statistics show 0.3% rise in housing inflation level in November 2006
Figures released from the DCLG on house prices have shown that annual inflation rose from 8.6% in October 2006 to 8.9% in November 2006.
The average price of a UK house now stands at £199,500.
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FT house price index reports 'stalling' of inflation in December 2006
The figures from the Financial Times' house price index for December 2006 show that annual inflation fell to 6.8%, down from 7.4% in November 2006. This was the first fall in annual inflation since September 2005.
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Seasonal December housing market is optimistic says NAEA
Members of the National Association of Estate Agents (NAEA) reported an encouraging end to what has been, in many areas of the country, a good year for the residential housing market as the number of those registering an interest in buying property increased, despite December being traditionally the slowest month of the year in estate agency. The NAEA said that on the whole the picture for December was optimistic and seasonal, sales were, as they would expect down from November but encouragingly at a level from the same period last year.
First time buyers once again improved their market share in December compared to December 2005. This improvement from levels reported in 2005 is a continuing trend that has been reported by the NAEA survey for the last eight consecutive months.
The percentage of sales that fell through and the time taken between instruction and completion both decreased in December, as many people endeavoured to move before Christmas.
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RICS accessibility index shows cost of buying first home '230% worse than in 1996'
The latest figures from the RICS's accessibility index have shown that the costs of becoming a first-time buyer are now 230% worse than in 1996. During 2006, accessibility deteriorated by 13.8%
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First-time buyers continue to feel affordability pressures, says CML
Affordability pressures continued to squeeze first-time buyers in November as income multiples reached their highest ever level - 3.29 times the average first-time buyer household income - according to new data from the Council of Mortgage Lenders. This was up from 3.27 times in October, and 3.08 times in the same month last year.
The new figures come on the back of last week's decision by the Bank of England to raise interest rates by 0.25% to 5.25% - the highest level since May 2001. In November, the average first-time buyer mortgage was £113,877 and the latest increase in interest rates will add an extra £17 to average monthly mortgage payments.
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HBF News
HIPS update
HBF organized two meetings with DCLG in November and December 2006 to answer specific questions and discuss matters raised by members concerning HIPs. As a result of the meetings HBF have published a briefing note to assist members preparing for HIPs in the run up to the 1st June 2007.
A copy of the briefing note can be downloaded from the website:
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Get ready for CIS – last chance to book
The CIS Scheme will change on 6 April 2006. Plastic CIS cards will cease to be valid, there will be no CIS 23s, 24s, 25s and there will be two rates of tax to deduct, 20% and 30%. To advise you on this HBF are running two short morning seminars on 12 February in Leeds and 13 February in London.
Final bookings are now being taken so if you would like a place please email events@hbmedia.co.uk or call 0207 960 1646
Other News
AHIPP claim early feedback from HIPs rollout 'proves consumer demand for HIPs’
The Association of Home Information Pack Providers have claimed that feedback from the early rollout of HIPs around the country 'has indicated that consumers are welcoming HIPs.'
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…whilst NAEA call for repeal of HIPs
Charles Smailes, President of the NAEA has lodged a petition on the No 10 Downing Street website, calling for the repeal of HIPs.
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TCPA calls for transparency on use of public land for housing
In a new study “Unlocking Public Land for Housing Supply” the Town and Country Planning Association calls for more surplus public land to be used at lower cost for affordable housing and renewable energy projects. The report also urges Government to lift the veil of secrecy around some £10bn worth of surplus public land.
The TCPA calls for the data on 4,500ha of surplus public land to be made publicly available for the first time. The report also recommends granting Ministers new powers to stop Whitehall selling off land to the highest bidder in order to assist affordability.
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M&S adds to stock of winter greens
Marks & Spencer Group PLC said it will spend £200 million over the next five years on a business-wide 'eco-plan', which it reckons will have an impact on every part of its operations.
It said by 2012, the 100-point plan, dubbed 'Plan A', means M&S will become carbon neutral, send no waste to landfill, extend sustainable sourcing, set new standards in ethical trading, and help both customers and employees live a healthier lifestyle.
"Every business and individual needs to do their bit to tackle the enormous challenges of climate change and waste," said chief executive Stuart Rose.
"We are calling this 'Plan A' because there is no plan B."
While CBI runs into hurricane Jeremy
The CBI’s stance on climate change was meanwhile subject to critical scrutiny by BBC2’s “Newsnight” presenter Jeremy Paxman on Monday in a feature looking at the business response to climate change.
New planning tool will help developers and Local Authorities meet sustainability criteria
A new planning tool for developers and local authorities is being rolled out nation-wide following successful trials in the South East. The new Sustainability Checklist has been officially launched this week by its creators, the South East England Development Agency (SEEDA) and the Building Research Establishment (BRE).
Complementing the Government's recently published Code for Sustainable Homes and WWF's One Million Sustainable Homes initiative, the Checklist is a user-friendly web-based tool that aims to help deliver sustainable developments and speed up the assessment and approval of planning applications.
The Checklist is supported by the Environment Agency, the South East England Regional Assembly, Government Office for the South East (GOSE), and local authorities including Ashford Borough Council. It is also backed by housebuilders such as Crest Nicholson and Countryside Properties, which already have extensive experience of using the Checklist as part of the original South East pilot scheme.
For further information on how to obtain and use the Sustainability Checklist, please log onto www.sustainability-checklist.co.uk
RICS announce creation of new alliance to tackle 'building control' issues
Four leading UK building control bodies have formed an alliance to tackle industry-wide building control issues in a more co-ordinated way.
The formation of the Building Control alliance will give government and the construction industry a more focused approach on issues where greater coherence can make a difference.
The four members:
· Royal Institution of Chartered Surveyors (RICS)
· Association of Building Engineers (ABE)
· Association of Consultant Approved Inspectors (ACAI)
· Local Authority Building Control (LABC)
will expand on existing joint initiatives where a collaborative approach has been successful.
The alliance’s first initiative is to develop a vision for the future of Building Control, including opportunities for improving service delivery to designers and contractors and ways to meet the public’s needs.
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Consultation/Key Publication Dates
Code for Sustainable Homes:
Final document launched 13 December 2006
Implementation Spring 2007
Building a Greener Future (zero carbon homes consultation)
Closes 8 March 2007
Draft PPS on Climate Change Consultation
Closes 8 March 2007
Home Information Packs (HIPs) Regulations:
Revised regulations published 14 June 2006, further revisions required
HIPs Trials November 2006 onwards
HIPs Introduction 1 June 2007
Planning-gain Supplement:
Consultation begins 6 December 06 and ends 28 February 2007
DTI/Ofgem Call for Evidence for the Review of Barriers and Incentives to Distributed Electricity Generation:
Closed 2 January 2007
Part B of Building Regulations:
Approved Document published 19 December 2006
Implementation April 2007
Proposals for
Water Regulations published 13 December
Consultation closes 9 March 2007
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Jo Turner