A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
HBF News
First Housing Supply Workshop held
Stewart Baseley joined HBF members on the first of two workshops chaired by Housing and Planning Minister Yvette Cooper to discuss obstacles to housing delivery with representatives of twenty key southern planning authorities. The workshop covered a wide range of issues including infrastructure provision, capacity and skills, dialogue with members, targets and design. We will report further on the overall outcome and follow up after the second workshop to be held on 26 October.
Minister pursues HBF concerns on utilities
Yvette Cooper confirmed that she has asked her officials to pursue the concerns raised with her by HBF about utility services provision after HBF Director of Economic Affairs, John Stewart brought the issue to a meeting of the DCLG Property Consultative Group. We understand officials are discussing the problems identified by the HBF’s member survey with other Government Departments and the relevant regulatory bodies.
Government News
European Commission unveils its Action Plan on Energy Efficiency
As a major step toward meeting the unprecedented energy challenges facing the EU, the European Commission this week presented its Energy Efficiency Action Plan. The Plan contains a package of priority measures covering a wide range of cost-effective energy efficiency initiatives. These include actions to make energy appliances, buildings, transport and energy generation more efficient. Stringent new energy efficiency standards, promotion of energy services, specific financing mechanisms to support more energy efficient products are proposed.
Commenting on the plan, Liberal Democrat Shadow Communities and Local Government Secretary, Andrew Stunell MP said:
“I welcome this push to improve the energy efficiency of buildings and to see new standards in place from 2009. This is particularly welcome given The Government’s commitment to see the quality of new UK homes become the best in Europe in 10 years.
“The Government’s lack of dynamism will have serious consequences for our climate and our energy bills. We should be making our homes warmer, cutting our fuel bills and saving the planet now, not in 2016.”
Speaking in Berlin, David Miliband called for incentivised energy efficiency to reduce UK domestic emissions:
"The role of Government must be to find ways of providing information, incentives and convenient services that enable citizens to improve energy efficiency, and even contribute to low-carbon energy production through micro-generation. That is why we are examining the role of energy service companies that will help facilitate individual changes in behaviour, and the role of the personal carbon allowances."
PM starts cross-Government policy review
Tony Blair has launched a wide-ranging policy review to set the Government's agenda for years to come.
The prime minister gave a presentation to cabinet members on Thursday morning on plans to set up six working groups in a process Number 10 said would see "every aspect of government policy under scrutiny".
The programme, called 'Pathways to the future', will report back in the spring - months before Blair has said he will stand down as Labour leader.
The six areas they will examine are: economic dynamism; the environment and energy; public services; security; crime and justice; the role of the state; and Britain and the world.
The resulting strategy documents are designed to influence Government business including public service agreements, the budget, the comprehensive spending review and long-term departmental plans.
DTI - Flexible finances for household micro-generation
The Department of Trade and Industry has challenged the banking and energy sectors to provide consumers with flexible finance schemes that could be used to boost the take up of household micro-generation.
Climate Change and Environment Minister Ian Pearson commented 'The Government's recent micro-generation strategy, published by the DTI, highlighted the high up-front cost as a barrier to greater take-up of household wind turbines and solar panels. Everywhere you look these days, there are adverts for sofas, electric goods and kitchens - all offering interest free credit or easy long-term loans. Yet, there are no such offers for micro-generation.'
Housing Market
Assetz survey shows 8.1% annual house price growth in October
The latest Assetz House Price Watch, a conglomerate study of the six major house price indices has shown that:
Average rate of growth in September was 8.1% annually, up from 7.5% in August
Average price of a home in September was £192,787, up from £192,626 in August
House prices are now driven more by the supply/demand imbalance than interest rates
Average price of new home falls in September
According to the latest figures from Smartnewhomes.com, the average price of a new home fell by £2,886 in September to £255,787.
Economic strength swells national price rise ripple
House prices rose for the 11th consecutive month and at the fastest pace in four years says RICS’ UK housing market survey for October.
45.1% more Chartered Surveyors reported a rise in prices than a fall in September, up from 34.9 % in August, and more than double the long run average of 21 %. RICS estate agents reported that price rises are being driven by a combination of would-be buyers returning to the market and the limited availability of property.
Housing Market gets back into gear
The Rightmove house price index, released on Monday reports that asking prices have hit a new national record rising from £214,566 in September to £218,954 in October. This is the highest annual rate so far in 2006 with prices now 11.5% higher than a year ago.
September sees another record month for mortgage lending
Gross mortgage lending hit a new September record of £29.5 billion, according to the latest data from the Council of Mortgage Lenders (CML). Lending was down by 11% on the all-time record reached in August of £33 billion, but up by 7% on September last year (£27.6 billion).
Owner occupation down amongst under-30s, according to DCLG
Figures from the DCLG's Survey of English Housing 2004/5 have shown the following trends:
Private renters now constitute 34% of people aged 25 to 29, up from 19% in 1993
Owner occupiers amongst the 25 to 29 age group have fallen to 50% from 60% in 1993
Couples with dependent children were the most common household group at 36%, with single households being the second most common at 28%
Economic News
Data this week shows evidence of inflationary pressures
Data this week shows more evidence of inflationary pressures, with the RPI measure in particular growing strongly, according to the CBI. However, a slack labour market has prevented second-round effects from taking hold as yet.
Although headline CPI inflation dipped to 2.4% in September (from 2.5%), this masked clear signs of inflationary pressure. The fall in the headline inflation measure can be attributed to a fall in the transport component, which took 0.3% from the annual rate. However, inflation in other components rose, notably a number of goods components such as furniture and household goods.
Other News
First Time Buyers’ burden falls to UK parents
Spiralling living costs mean today's first time buyers are relying on parental handouts and huge loans to get a foot on the property ladder.
New research from Skipton Building Society, carried out as part of its First Time Nerves campaign, reveals that 20 - 35 year olds looking to buy their first property are turning to their parents for golden goodbyes. A quarter (25%) are counting on their parents to contribute to their deposit and more than one in 10 (12%) hope their parents will put the equity in their own property at risk by guaranteeing their mortgage.
This reliance on the 'bank of mum and dad' is down to their own inability to raise capital. Nearly half (40%) say they struggle to save, with almost a quarter (23%) failing to save any of their income each month. Worryingly, almost a fifth (17%) don't have any money to put down as a deposit.
"2056 - what future for Maggie's children?"
The Policy Exchange has published a report entitled "2056 - what future for Maggie's children?”. This collection of essays is based on the premise that those born between 1980 and 1995 are an ‘unlucky generation’. Paying off student debts, struggling to get on to the housing ladder, and have difficulty finding money to put aside for a comfortable retirement, are just some of the pressures that ‘Maggie’s children’ face as they plan for an uncertain future. Continuing friends of family breakdown also suggest that increasing numbers of them will live alone in old age.
Whilst being general in nature, the contribution by Shadow Education & Skills Secretary David Willetts focuses specifically on housing affordability & pensions.
He notes the rising age of first-time buyers, the time needed to save up for a deposit, and the consequent effects on family life of delayed child-rearing. His conclusions and suggestions include the following:
Putting "fairness across the generations as the centrepiece of our approach for spreading ownership" is essential
"If central controls [on planning] were to go we would need a better balance of local incentives and rewards instead, allowing local authorities to enjoy the economic and revenue benefits of allowing development in their areas."
The wealth & power which has been centralised in the hands of the baby-boomers, through pensions and housing, should not be denied to Thatcher's generation
New home buyers now favour the townhouse, says Smart New Homes
Townhouses are proving increasingly popular with new home buyers, attracting young families who have ditched detached properties for a trendier, more affordable new style of home, according to Smart New Homes.
With the average price of a new detached home recorded as £307,875 in September, Smart New Homes say young families are turning to townhouses which offer a similar amount of internal space but are currently £63,000 less than the price of a detached home of similar size.
New forum launched for 'brownfield' practitioners
The Construction Industry Research and Information Association believe that many in the UK construction industry lack confidence in brownfield projects, despite over 10,000 hectares of contaminated land remediation having been carried out in the past ten years.
CIRIA is launching a Brownfield Forum which will seek to provide solutions for contaminated land practitioners involved in the legal, financial, planning and construction sectors, by identifying ways to improve profitability for brownfield projects and by seeking to promote the benefits of brownfield redevelopment.
Bellway reports pre-tax profits of £220.7m
Bellway has recorded its 10th straight year of pre-tax profit growth with a rise of 3.2 per cent on revenue that was up 5.3 per cent to £1.24bn. The group's net asset value per share rose 15.1 per cent to 793p.
Howard Dawe, Chairman of Bellway p.l.c commenting on the Newcastle based housebuilder’s annual results said “I am pleased to report that Bellway has extended its track record of growth…”
On reviewing the year he said “the profit before tax has increased…to £220.7 million and earnings per ordinary share have advanced to 137.5p…both of which are new records for the group”
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
HBF Events
HBF Technical Conference 2006: Codes and Regs – The Way Forward
9 November 2006 - Nottingham Belfry Hotel, Nottingham
For those not attending Housebuilding 2006, the HBF Technical conference offers the opportunity to catch up on the technical issues of the moment. This parallel conference will be once again looking at the hot topics of the Code for Sustainable Homes and Building Regulations, and will address any further developments since HB06.
Current speakers are included from the following organisations: DCLG, LABC, HBF, Robust Details ltd.
For further information please contact events@hbmedia.co.uk or 020 7960 1646. To register your place on-line visit www.hbmedia.co.uk
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