This weeks top news for the building industry. 2016 Commitment launched...... House prices to break £300k barrier by 2012....
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2016 Commitment launched...... read
House prices to break £300k barrier by 2012.....read
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Key members of the home building industry, councils, green groups and homeless organisations have given their support to the Government's housing agenda by signing up to Communities and Local Government's 2016 Commitment, joining with it in an ambition to build 240,000 new zero carbon homes a year by 2016.
that by 2016, all new homes will be build to zero carbon standards;
that over the interim period, new homes will be built to increasingly higher environmental standards
to work closely together to resolve obstacles to reaching these targets.
Yvette Cooper said:
"We desperately need to tackle the threat of climate change - and we desperately need new homes for young families and first time buyers. Our homes currently produce 27% of all carbon emissions. We were the first country in the world to announce a zero-carbon target for new homes.
"We have to build more sustainable homes and more affordable homes at the same time. This can not be achieved without the commitment and support of local councils, homebuilders, the construction supply industry, other housing groups and local communities across the country.
"I strongly welcome the number of groups who have signed up to this shared ambition. No-one underestimates the scale of the challenge but this shows the extend of the support for more affordable and sustainable housing. I urge others to join with us in this shared commitment to the future of the nation's homes."
Stewart Baseley Executive Chairman of the Home Builders' Federation said:
"Increasing supply to 240,000 homes a year and achieving a zero carbon standard from 2016 is an important but demanding double challenge. Homebuilders are willing to play their part, but need government and many others to help if we are to be successful. We very much welcome therefore the public pledge to partnership working by all those involved in the 2016 Commitment."
CLG is inviting other organisations to sign up by e-mailing 2016Commitment@communities.gsi.gov.uk with the name of the organisation, together with the name and title of the person signing up that organisation.
The "2016 Commitment" is a statement of intent by the signatory parties and is not in any sense legally binding upon them.
View The 2016 Commitment and current list of signatories
Existing Housing and Climate Change
CLG have launched an enquiry into how the existing housing stock in England and Wales affects climate change. The enquiry will examine the contribution which the existing housing stock makes to UK carbon emissions and the means which might be used to increase the resource efficiency of existing homes. It will also consider the extent to which current measures to adapt existing housing have been successful.
HBF has been asked to submit information for this enquiry. If you would like to provide information for this enquiry please contact Dave Mitchell, HBF Technical Director.
The deadline for submitting evidence is Wednesday 26th September 2007.
More information on the enquiry can be found at the CLG website
Water Resources Strategy consultation
The Environmental Agency has released a consultation document ‘Water for People and the Environment'. This is part of the development of their new water resources strategy for England and Wales. This consultation runs until 31st October 2007.
HBF's response to the consultation will be discussed at the National Technical Committee meeting on Tuesday 14th August 2007.
If you would like to provide information of require information on this consultation contact Dave Mitchell, HBF Technical Director
View the consultation document
National Audit Office publish report on HIPs confirming CLG conflict of interest
The National Audit Office has published a report following a complaint from the Royal Institution of Chartered Surveyors (RICS) in November 2006. The report highlights conflicts of interest within the CLG Home Information Pack policy team.
The report outlines eight key recommendations for the CLG. As part of its financial audit work, the National Audit Office, will be undertaking further work to examine whether the weaknesses in procedures identified as a result of the report are more widespread within the Department.
In 2008-09 the National Audit Office intends to report to Parliament on the overall effectiveness of the arrangements put in place by the Department to introduce Home Information Packs and to ensure sufficient qualified inspectors were available to implement the scheme. The report will also provide an early assessment of the impact of the packs and whether they are meeting the objectives of making home buying and selling a quicker, more certain and less daunting experience.
Average house prices to rise by 40 per cent - to break £300,000 barrier by 2012
The average house price will rise by 40 per cent over the next five years to reach £302,400 - according to new research published this week by the National Housing Federation.
The report - researched by independent economists - also reveals that the average house price in London will increase to almost half a million pounds by 2012.
In addition, the paper reveals that a housing market crash is ‘unlikely' despite the fact that home ownership will move even further out of the reach of many first time buyers.
According to the report:
the average house price is now nearly 11 times average earnings
housing supply has dropped even further behind housing demand, and
over 1.6m households (which equates to almost 4m people) are on waiting lists for a social home.
Today programme:
John Slaughter, HBF Director of External Affairs appeared alongside David Orr, Chief Executive of the National Housing Federation on the BBC Radio 4 Today Programme to discuss the report.
Mortgage repossessions at a high according to CML
The number of mortgages in arrears of three months or more at the end of June rose to an estimated 125,100, up 4% compared with the end of December but 3% lower than at the end of June 2006 according to the latest Council of Mortgage Lenders (CML) arrears and possessions statistics. Of these, the majority (71,800) were in arrears of 3-6 months, while 38,300 were in arrears of 6-12 months, and 15,000 more than 12 months. Around 1% of all mortgages were in arrears - this proportion has been stable at low levels for several years.
At 14,000, the number of properties taken into possession in the first six months of the year rose by nearly 18% compared with the previous half-year, and nearly 30% compared with the first half of 2006. Although significantly higher than in the recent past, when possessions reached extremely low levels, the number remains low by historical standards. It equates to around 1 in 840 mortgages ending in possession in the first half of this year.
View the full press statement and report
There are currently at least seven people searching for every new home under the lower stamp duty threshold, according to SmartNewHomes.com
In a recent survey of visitors to its site, SmartNewHomes.com has found that demand for affordable properties has reached a peak. Just over 5,000 of the new homes currently promoted on the site fall under the £125k stamp duty bracket, yet over 40,000 people have been searching for a home that falls below this threshold, indicating an urgent need for more affordable homes and adding further fuel to its recent campaign to get stamp duty abolished for first time buyers.
David Bexon, Managing Director, SmartNewHomes.com, said: "These recent findings highlight the severe lack of affordable new homes currently on the market, with first time buyers increasingly getting priced out. The average price for a new home is currently £260,073, with average prices in London and the south east exceeding £300,000.
Consumer confidence prompts increase in variable mortgages despite July rate rise
Despite the base rate rising for the fifth time in a year to 5.75% in July, the percentage of borrowers opting for variable mortgages increased by 50%, demonstrating a growing belief that interest rates have peaked and house price growth will level off in the second half of the year according to The Spicehaart Financial Services monthly mortgage survey.
The survey reveals that although fixed rate products remained the most popular, with 86% of customers taking these out in July, the percentage of variable mortgages increased significantly from 9% to 14% of all deals.
Within the 14% of variable deals, the highest proportion since October 2006, 11% of borrowers chose mortgages that tracked the base rate, with 1.7% choosing a discount deal and 1.3% opting for other variable rates.
House building rates are still far too sluggish to keep pace with demand
House building rates are still far too sluggish to keep pace with demand, according to a study by AMA Research.
House builders' market - UK 2007 says that land availability and the planning approvals process will remain barriers to growth. Faster completions are needed to meet Prime Minister Gordon Brown's commitments to address the shortage of affordable housing, it says. Levels grew by just 2 per cent in 2006, the report says. It adds that flats accounted for almost half of new build homes in 2006, a trend fuelled by ramped-up land costs, planning pressures to increase densities and the rise in single-person households.
'Although build levels have risen the problem with "low-cost market homes" and "key worker" accommodation being let or resold at market prices will need to be addressed,' it states.
View the full AMA Research study
Construction fatalities 2006/07 - Peter Hain's Forum, 17 September 2007
HBF has been contacted by Peter Hain, the Secretary of State for Work and Pensions (who is responsible for the Health and Safety Commission), about his plans to hold a Forum on 17 September to discuss the rise in construction fatalities revealed by HSC statistics for 2006/07 and agree action to address areas of concern.
Apart from seeking to confirm HBF's willingness to take part in the Forum, the main points Mr Hain made were that:
he wants the event to agree a common view on the way forward - with an agreed statement emerging from it.
work on the statement should start from now - as he asked us to reflect on the words we would like to see come out in this document
other construction stakeholders, including the unions, will be involved in the event
there were concerns about migrant workers and related employment rights issues
more detailed information will be sent to us by his officials shortly
so far as housing was concerned, he thought most of the incidents were on smaller sites, but it was important to take appropriate action against the background of the Government's house building plans.
HBF is arranging a meeting with HSE to look into and compare our respective figures on fatalities in more detail enabling HBF to work with members to develop a substantive position for the Forum.
HBF Annual Planning Conference: Upfront & Planning Tuesday 11 September, Jurys Inn Milton Keynes
Getting an application through the planning process can be slow and costly. This conference offers practical advice that will facilitate the application process. Keynote Speaker in the morning will be Peter Ellis responsible for Planning - Resources and Environment Policy at CLG. The afternoon will involve an interactive workshop with CABE on the Building for Life (BfL) scheme, allowing delegates to place themselves in the role of the assessor and discuss the BfL approach to quantifying good design.
Book online or email events@hbm.co.uk
Housebuilding 2007 9-10 October, Islington Business Design Centre
Now in its fourth year, this Exhibition and Conference is a must for those working in the home building Industry. Housing Market Intelligence, the extensive free briefings and conference programme plus the exhibition, bring together key industry figures to highlight all that is new in the home building industry.
Housing Market Intelligence 9 October, Housebuilding 2007, Islington Business Design Centre
The key information initiative for senior figures in the house building industry, HMI comprises an annual report launched at the conference, which this year aims to help delegates and readers 'Develop strategies in the face of rapid change'.
More information and to register
Jo Weston