A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
Government News
CLG has today published its revised 2004-based household projections for England
The new 2004-based household projections for England lift average annual growth from 209.000 households per year (2003-26) to 223,000 per year (2004-26). The principal reasons are that the ONS raised their international migration assumptions to be more in line with actual recent experience compared with the assumption behind the 2003-based projections, and the average life expectancy of males has increased.
The ONS has also improved its method for allocating international migration to the regions, which has boosted the figures for the three northern regions and London.
These figures show the gap between housing completions - only 160,000 in 2006 and projected household growth is worsening, and that the Government's target of 200,000 new homes per year for England by 2016 is now a serious underestimate.
District projections should be available in due course. Responding to official Government figures, Executive Chairman of the Home Builders Federation (HBF), Stewart Baseley, says:
"These figures provide an urgent reminder of the chronic shortage of housing this country faces. Young people are finding it increasingly hard to buy their own homes as the shortage of supply continues to fuel house price inflation.
"Government targets aim to raise annual house building in England to 200,000 by 2016, so today's figures show that the current rate of 160,000 new home completions leaves a shortfall of over 60,000 homes per year.
"These projections show the critical need for local authorities to bring land forward for development and increase the flow of planning permissions so that house builders can build the homes we so desperately need. We need to provide choice and enable all parts of the market, particularly first-time buyers, to meet their housing aspirations."
Draft Climate Change Bill published
The Government have published a Draft Climate Change Bill this week which aims to introduce a "clear, credible, long-term framework for the UK to achieve its goals of reducing carbon emissions and ensure steps are taken towards adapting to the impact of climate change".
Key elements of the Bill are:
Statutory carbon targets and budgets:
Targets for emissions reduction, currently non-statutory, will be made statutory.
Five-year ‘carbon budgets' will limit CO2 emissions able to be produced
Establishing a Committee on Climate Change:
New ‘Committee on Climate Change' to be set up to advise Government on how to reduce emissions over time and across the economy.
Advice will include the level of the carbon budgets, and the contribution of individual sectors of the economy
Creating enabling powers:
Government will have the power to introduce new domestic emissions trading schemes through secondary legislation
Reporting requirements:
The ‘Committee on Climate Change' will have a specific annual role in reporting publicly to Parliament on progress towards budgets and targets, with the Government required to lay before Parliament a response to this independent report.
The Draft Bill is open for consultation, with replies to be submitted by 12 June 2007. A full Climate Change Bill is expected to be published in the autumn.
The CBI voice their support for the Climate Change Bill
Welcoming Government proposals for a Climate Change Bill, Richard Lambert, CBI Director-General, said:
"British businesses are already cutting emissions but they can do more, and this Bill is a big step forward in combining the two things we really need: long-term clarity on policy direction and flexibility in its delivery"
Local Government Association announces launch of Climate Change Commission
The LGA has announced the launch of an independent Climate Change Commission to investigate the crucial role that councils across the country play in tackling and adapting to climate change.
The Commission will look at the ways in which councils can tackle carbon emissions in their own buildings and facilities, in the services they provide and decisions they take in housing, transport and social services. It will investigate how authorities go about purchasing green goods and services as well as the most effective way to share best practice. It will explore the leadership role of councils in encouraging individuals, communities and businesses to reduce their emissions. Members will also consult with authorities in Scotland and Wales.
"Groundbreaking" deal on emission targets
European leaders have agreed to binding targets on the use of renewable energy, such as wind and solar power.
The deal, reached at the European Council in Brussels, is aimed at tackling climate change. At least 20 per cent of all Europe's energy needs must be from renewable sources by the year 2020.
Nations have also agreed to cut harmful carbon dioxide emissions by 20 per cent, from 1990 levels, by the same year.
CLG House Price Index shows annual house price growth has risen from 9.9% in December to 10.9% in January
The mix-adjusted average house price in the UK in January 2007 stood at £205,286, up from £201,090 in December 2006 (not seasonally adjusted).
UK annual house price inflation in January 2007 was 10.9 per cent, up from 9.9 per cent in December 2006. Annual house price inflation in London was 13.2 per cent in January 2007, up from 11.8 per cent in December 2006.
The UK annual house price inflation rate for the 3 months to January 2007 was 9.9 per cent and 11.6 per cent in London.
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Halifax House Price Index reports February house price increase
The latest House Price Index from the Halifax reports an increase in house prices by 1.8% in February with the annual rate of house price inflation remaining unchanged at 9.9% for the third successive month. The average house price is reported at £192,233.
House inflation still too high for comfort according to the FT
Three interest rate rises since August have cooled the housing market sufficiently to rein in runaway house price inflation but the rate of increases in house prices still remains too high for comfort says the FT in conjunction with the release of the latest FT price index.
House prices slow as affordability worsens says RICS
A contrasting message comes from RICS which reports that house price rises have slowed to the slowest pace since last May as interest rate hikes have worsened buyer affordability, in its UK housing market survey published this week.
New band to double tax bills on £1m homes
A report on local Government finance is expected to recommend one or two new "top-rung" council tax bands.
Anyone owning a house worth over £1 million in England faces a doubling of council tax, according to The Times.
A report on local government finance, to be published with the Budget next Wednesday, is expected to recommend one or two new "top-rung" council tax bands.
At least 100,000 people who currently own houses valued at more than £1 million could see their annual council tax bill almost double - from an average £2,640 to £4,400 - under one plan being considered. A second option would be to increase bills by about £1,000 a year
(The Times, 14 March 07)
IKEA to sell 'off-the-shelf' flat-pack houses
Well known for its trademark modern-style furniture, Scandinavian retailer IKEA is branching out by selling houses in the North East.
In a UK first the home furnishings giant will be selling flat-pack housing from its store in Gateshead.
The Scandinavian-style timber-framed houses and flats, which have been designed by Swedish construction firm Skanska, will be built near the Gateshead International Stadium.
Gateshead Council has approved outline planning permission for the development of 117 properties.
Assembly objects to increased housing allocation for the East of England
The East of England Regional Assembly (EERA) is objecting to Government proposals for at least 30,000 additional new homes in the East of England in the period 2001-2021, in its detailed response to the public consultation on the Government's proposed changes to the draft East of England Plan.
Overall, the submission recommends that the Government's proposals for at least 508,000 new homes in the period 2001-2021 be reduced by 23,630. The Assembly's draft Plan published in 2004 proposed 478,000 new homes.
New environment school launched at CAT
On the same day that the Government announced its draft climate change bill, The Centre for Alternative Technology (CAT) launched it's new Graduate School for the Environment. The School aims to train some of the experts needed for the UK's transition to a low-carbon economy. The new school, based at Machynlleth in Wales will run postgraduate courses, such as its already popular MSc Architecture: Advanced Environmental and Energy Studies.
CML research shows improving attitudes to home ownership
The CML have published new research presenting key insights into changing household attitudes to home-ownership, including its growing popularity, based on market research undertaken in January 2007.
Annual Barometer of public attitudes to development released
The second annual survey of public attitude to property development in the UK carried out by The Saint Consulting Group has been released.
In the only survey of its kind, the Saint UK Index© questioned 1,000 people throughout the UK in January/February 2007. An overall summary of their responses is that:
NIMBYism is alive and well - 83% want no more development in their local area
The development industry fails to motivate its supporters - only 7% have ever actively supported a planning application whereas 16% have actively opposed one
A new era for home building - HBF Graduates Conference
A new era for homebuilding is a one-day conference for graduates and trainees within the home building industry
This year's conference will be held on Thursday 5 July at Holywell Park Conference Centre, Loughborough University
The day is designed to create understanding of current industry issues facing the industry, facilitate constructive group discussion and networking amongst graduates from different companies, backgrounds and disciplines.
Cost per person (HBF member rate): £95.00 plus VAT
For further information please click here and to download a booking form please click here
Alternatively contact Rachael Pymm on 0207 960 1607 rachael.pymm@hbf.co.uk
Jo Turner