A weekly news summary covering all aspects of the housebuilding industry from Pierre Williams, HBF's head of media, available to members only.
Prescott: Housing Top of the Agenda
Confirming that housing is now at the top of the governments agenda, John Prescott this week pressed the Chancellor for billions more in public funds to support his housebuilding programme. Prescott said: We need to get that extra lift and change that Kate barker is talking about. It will need changes with regard to the provision of land and planning. She suggested I need another 1.5bn, which needs to be taken into account in the new public expenditure round. We are discussing that now with the Treasury. It is our responsibility to place housing at the top of the political agenda. (Guardian)
Boom Rolling On
The housing market is surging so strongly the Hometrack index has doubled its forecast for growth this year from four to eight per cent. London is back to being a sellers market whilst prices in Bath have climbed six per cent in the last quarter. Not to be outdone, the Nationwide has now doubled Hometracks forecast and says growth of 15% this year can be expected. Putting the accuracy of such forecasts aside, the renewed confidence in the market suggests the Bank of Englands moderate interest rate rises over recent months has had little or no effect. With consumer debt also soaring and expected to reach 1 trillion by the summer, the next quarter-point rise in rates could be introduced as early as next month, with further rises throughout the year in a bid to calm spending without provoking a crash. (All media)
Tories Declare Nimby War on Labours Housing Plans
The Conservatives are planning to distance themselves from Labour policy by backing the anti-development lobby. Shadow housing minister John Hayes said there was little justification for the governments housebuilding proposals and promised to overturn them if elected. He said: These proposals will destroy communities by, in some cases, doubling or tripling their size. The government wants to use our unelected regional authorities to dictate housing targets to local authorities. New research also shows 76% of councillors and 55% of officers in councils within the designated growth areas expect their constituents to oppose the plans.
HBF Note: A depressing short-term, wholly political decision by the Tories to both create a gap in policy with government and pander to the nimby vote. In itself, this shows the difficulty any political party will have in formulating effective long-term policy whilst the short-term political cost can be so high. At the same time, it provides further proof that the housebuilding industry will have to demonstrate its case in order to achieve the necessary balance in public opinion so that effective policy can follow.
Mortgage Borrowing Fastest on Record
Backing up claims of a renewed boom are the latest mortgage figures from the Bank of England. These show mortgage borrowing grew at its fastest ever pace in February - a record 9 billion, some 500 million more than in January and 14.5 % up on a year ago. In contrast to earlier speculation, Stephen Nickell, a member of the Banks Monetary Policy Committee, denied the housing market was in a bubble, insisting rapid house prices were down to the shortage of supply. Kate Barker also indicated she might not vote for an increase in rates, saying: We are targeting inflation, not consumer borrowing or house prices. (Independent, Telegraph, Times)
Migrants Will Snap Up New Homes
Almost inevitably, the governments plan for increased housebuilding has been seized on by the anti-immigration group, Migrationwatch. Using figures provided by Migrationwatch, the Mail says one third of the new houses planned will needed for migrants while the Express works out that more than half will go to foreigners. Sir Andrew Green, the groups chairman, said: The government hopes people will see their policy of concreting over the south east as a necessary response to housing need without realising that much of its arises from its own immigration policies. (Mail, Express)
Designers Seek Homes Vision
In anticipation of a major increase in housebuilding, Cabe is to try and foster a debate among architects in an attempt to avoid an urban nightmare of divided communities and crime-ridden streets. Cabe commissioner and director of Peabody, Dickon Robinson, who is organising the initiative, said: We want to implore the public and policy makers to think hard about our future housing needs and they way we may live 20 years from now. These first thoughts present a vision of future urban renaissance or urban nightmare. Both seem possible and many of the key choices are in our grasp. (Guardian)
UK Housing Now Worth 3 Trillion
The value of the UKs housing stock has almost doubled in five years to 3 trillion, according to the Halifax. The bank says that over the past decade, every region has seen the value of its housing rise by ay least 85%, whilst some have increased much more so, with London seeing a tripling in value. The Halifax said: The value of our residential housing stock has increased considerably and this can only be a good thing for home owners, communities and the economy. (Express, BBC, Telegraph)