Friday, 14th January 2011 Top stories this week HBF to give evidence on the Localism Bill.....read more Pickles acts to protect the rights of homeowners.....read more Halifax house price index.....read more Pride in the Job winners announced.....read more Hometrack: Mortgage market to remain subdued.....read moreFollow us on Twitter! www.twitter.com/homebuildersfed Quick Links HBF news Government and political news Housing market news Industry news Economic news Events HBF news HBF to give evidence on the Localism Bill HBF has been invited along with other bodies to give oral evidence to the Public Bill Committee for the Localism Bill. The hearing will take place on 25th January. The Bill will receive its Second Reading Debate in the House of Commons on 17th January and HBF is also sending a briefing note to all MPs setting out the need to ensure that its reforms are implemented in a way that supports growth and development and does not add new uncertainties to the planning system. to top Government and political news Pickles acts to protect the rights of homeowners Communities Secretary Eric Pickles is ending rules that can mean people who leave their house empty for more than six months risk having it seized by their Local Authority. He expressed concern that councils have used their powers to instigate action against homeowners that is inappropriate, including against people in vulnerable situations. In 2006, the previous Government introduced 'Empty Dwelling Management Orders'. They allow councils to take over properties that have been empty for as little as six months. The home does not have to be blighted or boarded up to be taken over, just empty for six months - including homes of the deceased; Councils have the right to seize furniture, fixtures and fittings, when the home is taken over, including where the home has been left empty for a period after the owner has died; Homes already on the property market can be seized if councils believe the asking price is "unrealistic". Mr Pickles has now introduced safeguards to restrict the use of Empty Dwelling Management Orders. They will be limited to empty properties that have become magnets for vandalism, squatters and other forms of anti-social behaviour - blighting the local neighbourhood; A property will have to stand empty for at least two years before an Empty Dwelling Management Order can be obtained, and property owners will have to be given at least three months' notice before the order can be issued. Eric Pickles, said: "There is a case for action to put boarded-up and blighted properties back into use. But these draconian and heavy-handed state powers have allowed councils to seize private homes in perfect condition, including their fixtures and fittings, just because the homes have been empty for a short while.” Read more to top Embedding sustainable development across government The Environmental Audit Committee Select Committee is calling for the Cabinet Office to take responsibility for driving improvements in sustainability across Government - with greater support from the Treasury and Prime Minister. The Committee says Defra is not best placed to ensure that other Government departments embed sustainability in their operations and policy making. The inquiry was launched in response to the Government withdrawing funding next year from the Sustainable Development Commission - which currently performs a watchdog and advisory role for Government on green issues. The MPs raise concerns that the loss of its experience and resources presents a risk to the Government's green agenda and the sustainability of its policies. The report recommends creating a new minister for sustainable development based in the Cabinet Office, to 'sustainability proof' decision-making across Government by holding departments to account when they fail to deliver on soon to be updated green targets, and with the assistance of the Treasury consider financial sanctions for poor sustainability performance. Joan Walley MP, Chair of the Committee, said: "The sustainability agenda needs to be driven from the centre of Government. Defra has the expertise, but it does not have the influence to get the rest of Government to act more sustainably." "The Prime Minister's influence is clear in setting targets for departments to deliver his 10% reductions in carbon emissions. But being the 'greenest government ever' isn't just about reducing carbon emissions from Whitehall." "The Government now needs to broaden this ambition and get departments acting more sustainably across the board. And that means getting the Cabinet Office to take the lead, supported much more by the Treasury, and ensuring that government specifies what resources are needed to make this happen" Please click here to read the report: to top Housing market news Halifax house price index The latest Halifax house price index, published this week, reported that: Prices in the three months to December were 0.9% lower than in the preceding three months. This rate of decline remains significantly lower than the quarterly falls of 5-6% during the second half of 2008.; On an annual basis, prices in December were 1.6% lower as measured by the average for the latest three months against the same period a year earlier. Prices in December alone were 3.4% lower than in December 2009; Nationally, Halifax expect limited movement in house prices during 2011, but with the risks on the downside. Some modest variations in house price performance across the country, however, are likely. The regional picture is likely to be affected by the impact of public spending reductions; The low interest rate environment has reduced the burden of servicing mortgage debt. Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in mid 2007 to 29% in the last quarter of 2010. This key measure of affordability is at a better level than the long-term average over the past 25 years (37%) and is an important factor supporting housing demand. The number of mortgages approved to finance house purchase – a leading indicator of completed house sales – increased in November following six successive monthly falls, according to Bank of England industry-wide figures. The number of approvals, at 48,000, was the highest since July on a seasonally adjusted basis. Approvals were 19% lower than a year earlier – 59,000 in November 2009 – due to the ending of the stamp duty holiday on properties between £125,000 and £175,000 at the end of 2009, which boosted the number of approvals during the last part of that year. Commenting, Martin Ellis, Housing Economist, said: "Prices in the final three months of 2010 were 0.9% lower than in the previous quarter. This rate of decline is significantly less than the quarterly falls of 5-6% during the second half of 2008. House prices fell by 1.3% between November and December. "Looking forward, we expect limited movement in house prices during 2011 but with the risks on the downside. Interest rates are likely to remain very low for some time. This will continue to support a favourable affordability position for those entering the market and limit financial pressure on existing homeowners to sell. Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers. Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward pressure on demand." Read more to top Joseph Rowntree Foundation: House price changes in the UK from the perspective of local and regional areas. A report by the Joseph Rowntree Foundation states that the UK’s housing market is one of the most volatile in the world. The report says this raises concerns, including the issue of low-income households being priced out of the housing market. The report shows that during the most recent housing market cycle, the differences between areas in house price growth became bigger than ever. It argues that deep structural variations in the demand for housing require a different sort of policy response. Using a new analysis of price data, the report looks at: The changing nature of housing volatility in the UK; The widening house price gaps between different types of locality; Underlying causes of local and regional differences; How household mobility might lock these differences in; and The implications for a policy response focusing more on demand. Read more Please click here to read report to top Industry news ‘Pride in the Job’ winners announced Four site managers have been named the UK’s best at the NHBC’s Pride in the Job Awards. At a ceremony at the Park Plaza Westminster Bridge Hotel in London on 7th January, which also celebrated the Awards’ 30th year, the four Supreme winners were announced by BBC broadcast journalist Kate Silverton. The overall winners are: Large builder category: David Bullock, Persimmon Homes East Wales for the third successive year, for Wyncliffe Gardens, Cardiff Medium builder : Tony Armson, William Davis, also for the third year running, for Cawston Fields, Rugby Small builder: Tony Boulter, Boulter Smith for School Hill, Truro Multi-storey builder: Ash Patel, Laing O’Rourke for One Hyde Park, London Read more to top New RICS Land and Society Commission calls for evidence RICS has established an independent Land and Society Commission to examine how under localism communities can shape their neighbourhoods and would like to hear evidence from those with expertise in the field. The Land and Society Commission, to be chaired by Trevor Beattie (formerly of the HCA), will comprise people drawn from the urban and rural property sectors, communities, academia and local government. It will lead a four-month investigation on how communities can embrace their new land and property roles, and would like to hear from those with experience in the fields of community action, the built environment and local government. The Commission’s final report, due to be published in April, will make recommendations to government, policy makers and land and property sector bodies as to how to help empower communities to shape and manage their neighbourhoods. Oral evidence sessions will take place in February and March. to top CIH: Flexible asset management can deliver on new affordable homes A new report by the Chartered Institute of Housing (CIH) and Savills, “Appreciating Assets”, explores the potential impact of housing associations using greater freedom to manage their assets on their own terms based on an understanding of local markets and agreements with local authorities. The authors conclude that there is a real possibility for significant change in the way that associations manage their assets that could lead to a more dynamic system of developing and managing homes. The key issue identified is not to have centrally driven targets but to enable and facilitate housing associations to manage their assets in the most effective way to meet their aims. Giving associations the freedom and clear responsibility for doing this could the authors say drive efficiency, produce more homes and allow better analysis of local markets. If the social housing regulatory system was amended to allow providers to be more flexible in the use of stock, providers would then be free to find their own locally-based balance between: Meeting local needs; Selling outmoded or inefficient stock; Selling properties to release equity; Investing in new homes; Investing in sustainable communities. The project was commissioned by four associations: L&Q, Bromford, Waterloo and Circle Anglia in the lead up to the Comprehensive Spending Review to look at allocations of existing stock and new supply. It looks at freedoms beyond those offered to support development through the Government’s affordable rent model and therefore paints a picture of the choices that associations might make if they were not constrained by the framework being developed by government. Abigail Davies, CIH Head of Policy, said: “This research demonstrates what can really be achieved if housing associations are given greater freedom in managing their assets.” Mervyn Jones, Director of Portfolio Management at Savills, said: “The numbers show that financial capacity can be created by actively managing assets. However, turning this capacity into finance for housing will require careful risk management and sophisticated business planning. Pushing rents too hard may not deliver the expected additional capacity.” Read more to top CITB-ConstructionSkills calls for industry's skills, training and accreditation needs to be addressed in new Energy Bill Mark Farrar, Chief Executive of CITB-ConstructionSkills, has called for a greater focus on skills requirements in taking the Government’s Green Deal programme to improve the energy efficiency of existing homes forward. Commenting, he said: "We welcome the Government's efforts to create a new market around energy-efficiency through the 'Green Deal'. However, despite a good number of SMEs who are already well skilled to take advantage of the low carbon work out there, there are thousands more who currently don't have the skills or knowledge to effectively take on this type of activity. "We are running the 'Cut the Carbon' campaign with the Federation of Master Builders and the National Specialist Contractors Council to raise awareness amongst SMEs of these issues, but it is just as important that skills and training are fully addressed by initiatives such as the Green Deal. If it fails to do so, we simply will not have the people with the right skills to deliver the 'greener' construction and built environment sector now required by upcoming legislation and regulation." Recent research commissioned by CITB-ConstructionSkills highlights that three in ten of the builders - who will be expected to install products through the Green Deal from 2012 - still have a 'poor understanding' of the Low Carbon agenda and there are continuing concerns over the proper accreditation of builders under the scheme to ensure the public are protected against the 'cowboy builders' and 'rogue traders' who have previously undermined the reputation of the industry. Read more to top Economic news CML: House purchase lending unchanged in November November was a stable month with very few changes to the volume and value of mortgage activity, according to new data from the Council of Mortgage Lenders. 44,000 loans for house purchase, worth £6.3bn, were advanced in the month. This was unchanged from October and down 15% by volume and 13% by value from November 2009. This month sees the launch of a new database for the CML monthly Regulated Mortgage Survey lending figures, and all historic RMS data back to 2005 are now based on this. There have been revisions to all historic data, reflecting improvements in data coverage and quality. Loans for remortgage were down compared to the same period last year (12% by volume and 14% by value) but they showed a small increase from 25,000 (worth £3bn) in October to 26,000 (worth £3.1bn) in November. Bank of England Lending to Individuals figures showed a much larger increase in remortgage activity (from 29,200 loans in October to 36,300 in November). The Bank's figures are based on mortgage approvals, and therefore are a lead indicator of the CML figures which are for mortgage advances. This indicates there may be a further, more substantial increase in CML remortgage data in the coming months. First-time buyers took out 16,400 loans (worth £1.9bn) in November, a 3% increase from October (with the value staying the same) and a 19% decrease (down 17% by value) from the same month last year. Loans to home movers, on the other hand, were down 2% from October with 27,800 loans (worth £4.4bn), and down 12% compared to November 2009. Like first-time buyers, the value of lending to home movers was unchanged between October and November. Credit criteria remain tight although loan-to-value ratios appear to have eased a little, particularly for first-time buyers. This group borrowed 80% of their home’s value in November and is the second month in a row the loan to value has been at 80%. This is the highest the market has seen since November 2008. Home movers on average borrowed 68% of their home’s value for the second month running, up from the low of 67% seen over the summer. For all house purchasers, the proportion of income needed to cover the mortgage interest was at an all-time low of 10.7% in November. CML Director General Michael Coogan said: "It is encouraging to see credit criteria becoming a little more liberal for first-time buyers. But the funding and capital constraints on lenders will continue to exert a dampening effect on lending, and criteria are unlikely to loosen substantially." Read more to top Bank of England: Maintains Bank Rate at 0.5% and the size of the Asset Purchase Programme at £200bn The Bank of England’s Monetary Policy Committee this week voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The minutes of the meeting will be published at 9.30am on Wednesday 26th January. Read more to top GDP growth for Q3 2010 revised down GDP growth has been revised down to 0.7% in the latest quarter from 0.8% previously published. GDP in the third quarter of 2010 is now 2.7% higher than the third quarter of 2009. Output of the production industries was revised down to 0.5% in the latest quarter. Within production, manufacturing output increased by 1.1%, but mining and quarrying output fell by 1.7%, and utilities output fell by 0.5%. Construction output was revised down to 3.9% from 4.0%, previously published. Read more to top Hometrack: Mortgage market to remain subdued Home buyers will face a “continued struggle” to secure mortgages in 2011, Hometrack has said. Hometrack said that approvals were likely to remain flat over the next 12 months. It also expected lenders to approve 1.2 million mortgages this year, 575,000 of which would consist of new home loans. “This represents no change on the 1.2 million Hometrack expects to see approved in 2010, a decrease on the 1.3 million approved in 2009,” said Hometrack’s chief operating officer David Catt. He added that the next 12 to 18 months would be dominated by regulatory policy, with the outcome of the FSA’s mortgage market review and Basel 3 – the next phase of the international banking accord which requires lenders to hold higher levels of capital than previously. “Post 2012, we expect a new benchmark for lending to be set at 1.8 million,” Catt said. Read more to top Events HBF Policy Conference, Birdcage Walk, London Thursday March 31st 2011 The HBF’s Annual Spring Policy Conference will address the key issues impacting on the industry in 2011 – including Localism, Mortgages and Finance and Affordable Housing. A series of keynote speakers will join senior HBF staff in discussing with delegates the challenges facing the industry. Full details and booking forms will be available early in the New Year. to top Save the Date! - HMI conference and annual report launch, Savoy Place, London Wednesday, October 12th, 2011 The ninth annual Housing Market Intelligence conference will be held on October 12th 2011 and will include the launch of the annual Housing Market Intelligence Report. Over the best part of the past decade, the Housing Market Intelligence conference has established itself as the leading event for business planning and strategic thinking in the private sector house building industry. Full details available in 2011 to top The Zero Carbon Hub Conference 2011 – Tomorrow's New Homes- Definition and delivery of low and zero carbon 1st February 2011 - Kings Place, London Housing Minister confirmed to speak! The Zero Carbon Hub Conference is designed to bring delegates right up to date with the issues surrounding zero carbon, looking specifically at the definition and delivery of the zero carbon homes policy. An exhibition alongside the conference will showcase key products and services to aid delivery. For more information or a booking form please visit www.house-builder.co.uk/zch or call 020 7960 1646. to top Habitat for Humanity – Hope Challenge 2011! HBF’s nominated charity Habitat for Humanity has announced that its annual fundraiser ‘The Hope Challenge’ will take place next year from 11-13th July. The event involves a weekend in the stunning Peak District national park where participants take part in a series of challenges and have to build their own shelter in which to spend the Saturday night. Want to know more? Then email hopechallenge@habitatforhumanity.org.uk or call 01295 264240. Read more to top HBM Business Manager to travel to Nepal – can you help? Housebuilder Media Business Manager Helen Board will next year travel to Nepal with HBF’s nominated charity Habitat for Humanity, to work with homeless people in what is one of the poorest countries in the world. During her time there she will work with the HFH people on the ground to build a home for a family. To make the trip possible she has to raise £2600 and is looking for sponsorship. Please click here to sponsor Helen or to find out more http://www.habitatforhumanity.org.uk/HeleninNepal For other HBF events visit the website For HBM events visit to top Rosie Hinchliffe View Previous Weekly News Summary
