A weekly news summary covering all aspects of the housebuilding industry from Pierre Williams, HBF's head of media, available to members only.
Livingstone wants solar panels on most new homes
Ken Livingstone is to issue guidance to force housebuilders to fit solar or photovoltaic panels on the vast majority of new homes built in London. He said: It would be ridiculous if the vast majority did not have solar panels or photovoltaics. Highlighting that this would increase costs at a time when increasing affordability was the principal issue, Pierre Williams for HBF, said: The money would be better spent on improving the energy-efficiency of older stock. This will be a more visible than effective method of energy-conservation. Exactly what proportion of new housing must comply will be specified later in the year. (Independent)
HBF Note: HBF believes the installation of solar panels or PVs should be left to the choice of individual members. In any event, HBF planners believe Livingstone is exceeding his remit on strategic planning by ordering LPAs to make this mandatory. This may yet have to be tested. Livingstone has fitted an estimated 15,000 - 20,000 worth of panels to his own home for which he expects to save 100 a year on bills.
Mortgage borrowers shrug off rate rise fears
Mortgage lending strongly rebounded in December to 6.1bn, up from 5.6bn the previous month. And just over half was for new home loans, suggesting a new surge of confidence in the housing market. However, just 27% of loans went to first-time buyers compared to a 38% monthly average in 2002. Speculation over whether rates will rise to 4% next month continues. But the general view continues that it is not whether a rise is on the cards, but when. A leading analyst said: Households have not lost their appetite for debt, despite higher interest rates and slower real income growth. (FT, Times)
Welsh homes oldest in Europe
HBF launches its key report 'Building Success: The Economic Role of New Housing in Wales'. With a backlog of 33,000 homes worsening by 4% per annum and the oldest housing stock in the EU, the Welsh Assembly must get a grip on the situation if a crisis is to be averted and its aspirations for strong economic growth are to be achieved. All the signs are that, unless action is taken now, Wales is headed for a housing crisis equal to or probably worse than the rest of the UK, said HBF CEO Robert Ashmead. (all media)
Caution makes potential buyers stay put
The number of people looking to move has fallen to its lowest for four years as caution about the future starts to bite. Research by the Alliance and Leicester suggests just 4% of people think they will move in the coming year - down from 6% last summer. Longer term, the picture looks rosier, with 12% planning a move in the next two years, unchanged from the autumn. (BBC)
UK cities failing to attract investment
A report from a partnership of regional development agencies is claiming the UKs eight core cities outside London are failing, with poor transport links, telecommunications, social cohesion and quality of life. The Core Cities group, comprising Birmingham, Bristol, Leeds, Liverpool, Manchester and Sheffield, will use the report to campaign for more government investment outside the South-East, where John Prescott is directing 22bn into his sustainable communities and housebuilding plans. (FT, Independent)
Big rise in planning fees?
Planning fees for major schemes could rise by 450% in a bid to make the planning system pay for itself. A government-commissioned report argues all fees should rise by 39% and also proposes raising the maximum fee for large schemes to 50,000 - up from the present ceiling of 11,000. The government wants to see the system pay for itself with 100% cost recovery. Pierre Williams for HBF said any rise must tally with an equal increase in planning process efficiency. (Trade press)
Housebuilders lay foundations for sustainability
Britains leading housebuilders have started to embrace the sustainability challenge, although their focus is still on short-term results, according to a WWF report: Building Towards Sustainability. According to the study, which was commissioned as part of the groups One Million Sustainable Homes Campaign, Berkeley and Countryside emerge as winners with a rating of more than 70%, compared with an industry average of 35%. The report states that the companies would do better to highlight how much they are doing in the drive for sustainability. (Trade press)
February rate rise still on cards
Further evidence is emerging suggesting interest rates will rise to 4% in February. Latest figures show the economy grew more strongly than expected in December and so the odds are now two to three in favour of a rise. Most analysts expect a further quarter-point rise by the end of the year to 4.25%. (all media)
FSA warns on buy-to-let
The Financial Services Authority has warned buy-to-let investors not to put too much faith in property. It worries that too many are overestimating their investment returns, given the current uncertainty in the market and the forecast rise in interest rates. Using various models of purchase price and rental yields, analysts have demonstrated that an increasing number of investors are relying too heavily on capital growth. However, according to the latest word from letting agents, the average yield and capital growth rate combined is a healthy 9.07%. (Sunday Times, Sunday Telegraph, trade press)
Insurers join calls for flood defences
The Association of British Insurers has joined calls for more flood defences for the Thames Gateway. Failure will mean homes in the region will be uninsurable, it says. The association has previously warned that its members are only committed to continuing cover for the UKs two million homes at risk of flooding if adequate defences are planned by 2007. Pierre Williams for HBF said the government had started long-term work on defences for the Thames gateway, but that it must not be used as an excuse to delay tackling the countrys housing crisis. (Trade press)