This weeks top stories: Two million new homes need to built on greenfield to meet 2020 target...... HIPS extended to 3 bedroom homes ..... New OFT guidance available for HBF members......
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Two million new homes would have to be built on greenfield sites to meet 2020 target
The Social Market Foundation has formed an internal commission to investigate how the UK can meet demand for housing over the medium-term. In a report published this week, the Foundation concludes that two million homes would have to be built on greenfield sites to meet the Government's target of 3 million homes by 2020.
The SMF Commission has found that, even if new homes are built at very high densities, it is unlikely to be possible to build them all on brownfield sites. A significant proportion of housing will need to be built on greenfield sites. Given this, they argue the need for a more open debate about how to accommodate new homes. The SMF says that that there may be a case for reconsidering the function of Green Belt policy, which often protects neither wildlife nor areas of outstanding beauty yet constrains development in some of the country's most sustainable areas.
Radio 5 Live - Breakfast show:
In relation to the Social Market Foundation report Andrew Whitaker, HBF Head of Planning was interviewed on Radio 5.
To listen again to the interview
Conservatives fear Green Belt ‘assault'
Commenting on the Social Market Foundation report calling for around two million homes to be built on greenfield or Green Belt land, Shadow Communities Secretary Eric Pickles said:
"The Green Belt has served England well for the last half century - protecting against urban sprawl and unsustainable development.
"Yet I fear the Green Belt now faces a sustained assault from Labour's army of bulldozers and concrete mixers - with local communities powerless to resist Whitehall's Soviet-style targets.
"We need to build more homes and regenerate rundown communities - yet Green Belt protection must remain. The Green Belt defines and protects urban communities from sprawl."
HIPS to be extended to include three bedroom properties
The Government has today announced that Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) will be rolled out to three bedroom properties from 10 September 2007.
Following the introduction of the packs for homes with four bedrooms and above on 1 August 2007, the Government has today confirmed there will be enough energy assessors, nationally and regionally, to roll out to three bedroom homes next month, having taken into account the operation of HIPs in the market.
A further announcement on rolling out HIPs and EPCs to other properties will be made in due course.
CLG house building figures show increase in starts
The Department for Communities and Local Government has released house building statistics for Q2 - April to June 2007 that shows: -
*Over the long term: since 2000/01, new build starts and completions have increased in England (19 per cent and 26 per cent respectively).
* Starts rose from a low of 141,700 in 2000/01 to 168,800 in the 12 months to June 2007.
* Completions rose from a low of 129,900 in 2001/02 to 168,200 in the 12 months to June 2007.
Consultation on Transfer of Planning Appeals to Inspectors
CLG has published a consultation paper on the Transfer of Planning Appeals to Inspectors. It contains proposals to enable most types of planning and enforcement appeals to be determined by Inspectors except where the circumstances of any individual case justified its recovery for the Secretary of State's own determination following consideration of an Inspector's report.
Consultation ends on 5th November 2007. If you have any comments in relation to this consultation email andrew.whitaker@hbf.co.uk
DEFRA have released the results of their 2007 survey of public attitudes and behaviours toward the environment
Headline results from the 2007 Survey of Public Attitudes and Behaviours toward the environment have been released. They give a representative picture of what people in England think, and how they behave, across a range of issues relevant to the environment, including transport, energy efficiency and waste recycling.
Of the issues people think government should be dealing with, the environment was the fourth most commonly mentioned, behind crime, health and education.
About a quarter of people agreed with statements such as "It takes too much effort to do things that are environmentally friendly", and "I don't believe my behaviour and everyday lifestyle contribute to climate change". However, about half disagreed.
When asked for their attitudes about energy efficiency, 24 per cent strongly agreed or tended to agree that they "don't give much thought to saving energy in their home". Far more strongly disagreed or tended to disagree - 63 per cent. Almost equal proportions agreed and disagreed with the statement, "I would like to install things like insulation but can't afford it, even if it saves money in the long run" - 41 per cent and 35 per cent respectively. Two thirds strongly agreed or tended to agree that they "would only buy appliances with high energy efficiency ratings, even if they cost more".
When asked for their beliefs about water use, 33 per cent strongly agreed or tended to agree that they "don't pay much attention to the amount of water they use at home". More than half disagreed.
English Partnerships have announced developer shortlist for first eco-village
English Partnerships have revealed the developers shortlisted to build the first eco-village, a 150 home site in Bristol seeking to achieve Level 6 of the Code for Sustainable Homes: -
Artisan H Ltd
Barratt Homes Ltd
Edward Ware Homes
Gleeson Homes Ltd
Places for People
Taylor Wimpey Ltd
Urban Splash (South-West) Ltd
CLG publish draft guidance on the validation of planning applications
At the end of last week, CLG published its proposals to allow Local Authorities to adopt their own local list of requirements for information to be submitted with a planning application before it is considered valid.
As of the 6th April 2008, in order to submit a valid application, applicants must provide the nationally prescribed information (equivalent to that currently required) and, in addition, the information required by the LPA. Additional information required can only be picked from the "menu" published in the draft guidance and the LPA must consult relevant stakeholders before adopting such a list. Their requirements must then be published on the LPA website following which it will be a statutory requirement for applicants.
Copies of the full document (including the menu) are available from the CLG website
Strategic Housing Market Assessment Practice Guidance - Take 2
CLG have published Version 2 of their guidance on Strategic Housing Market Assessments clarifying a number of points that have arisen as these assessments have been undertaken since the publication of PPS3 in November 2006.
The new guidance can be downloaded from the CLG website
Additional funding and new technical advice to support improved planning in Wales
Environment, Sustainability and Housing Minister Jane Davidson has confirmed further funding to improve the planning service in Wales, and published draft planning Technical Advice Note 17 "Planning and Managing Development" for public consultation.
The Minister has agreed to further funding for the following areas of work:
providing training in the use of Access Statements and Design Statements
training for town and community councillors, to be provided through Planning Aid Wales
further development of the Planning Portal in Wales, including work to support the introduction of an electronic standard application form for use by everyone who applies for planning permission in any planning authority in Wales, and
the provision of a limited number of student planning bursaries through the Department for City and Regional Planning at Cardiff University.
The Use and Value of Planning Obligations in Wales
The Assembly Government has recently finished its research to establish the use and value of planning obligations in Wales. The final report describes the results of a survey of the 25 Welsh local planning authorities for 2005/06 and is the first study to quantify planning obligations contributions in Wales. The report is available on the Assembly Government's website (at the link below).
The value of planning obligations agreed in Wales in 2005/06 is estimated to be between £26m and £31m, with affordable housing obligations constituting about 55-65% of the total. On average, each authority made 14 planning agreements worth £1.2m. The report identifies the potential for Welsh local authorities significantly to increase the number and value of obligations that they agree by improving the negotiation process and the clarity of local policy.
The research provides information on the delivery of affordable housing through the planning system, and the results are also being used to inform work on the potential impact of Planning-gain Supplement in Wales by enabling comparisons with planning obligations receipts to be assessed.
Dissemination events are proposed for North and South Wales towards the end of September to discuss the results of this research and the ways in which these results can inform policy development, both at a local and national level. For more information on these events please contact richard.price@hbf.co.uk at the HBF Wales office.
Evaluation of Processes to Develop National Land Use Planning in Wales
ECOTEC Research and Consulting Limited has recently completed an evaluation of the processes used to develop national land use planning policy in Wales on behalf of the Welsh Assembly Government.
The presentation of their findings, which also includes recommendations for the future, will take place in the Court Room at the National Museum of Wales, Cathays Park, Cardiff, on Wednesday 12th September at 2pm. Tea and coffee will be available from 1.30pm. Copies of the report will be available on the day.
If you would like to attend the event, please contact richard.price@hbf.co.uk at the HBF Wales office.
CLG: House Price Index - June 2007
The latest House Price Index from CLG for June reports:
The mix-adjusted average house price in the UK in June 2007 stood at £214,222, up from £210,793 in May 2007 (not seasonally adjusted).
UK annual house price inflation in June 2007 was 12.1 per cent, up from 10.8 per cent in May 2007. Annual house price inflation in London was 17.5 per cent in June, up from 14.3 per cent in May.
The UK annual house price inflation rate for the 3 months to June was 11.3 per cent and 15.1 per cent in London.
Number of first time buyers is falling according to the CML
New data from the Council of Mortgage Lenders (CML) has revealed a fall in the number of first-time buyers. The number of loans to first-time buyers in June was 35,600 compared with 39,800 loans in June last year. Although this figure is up slightly on the 34,600 first-time buyer loans in May, it is the lowest June figure since 2004 when there were just 33,600 first-time buyers getting on the property ladder.
The survey also revealed that the five interest rises since August 2006 are continuing to affect the market, with affordability measures edging upwards. The first-time buyer income multiple hit a new record at 3.37 times the average first-time buyer income - up slightly from 3.36 times in May, and 3.22 times in June last year.
And, the proportion of income first-time buyers use to pay mortgage interest has also increased - from 19.1% in May to 19.3% in June. This is up from 16.5% in June last year.
The majority of first-time buyers able to get on to the property ladder are opting for fixed-rate mortgages. In June, 90% of first-time buyers took out a fixed-rate deal - up from 89% in May and 83% in June last year. This is the highest figure on record. And a record 76% of home movers also took out fixed-rate loan in June - up from 75% in May and 63% in the same month last year.
...Whilst the Buy-to-let sector remains buoyant
Borrowers took out 171,800 new buy-to-let mortgages, worth £21.2 billion, in the first half of 2007, according to CML data released this week. By the end of June, the number of buy-to-let loans outstanding had reached a record 938,500. The value of outstanding loans totalled £108 billion - also a record and an increase of 14% on the second half of 2006. Buy-to-let lending now accounts for 10% of mortgage balances, compared to just 3% five years ago.
The number of loans taken out in the first half of this year was 3% lower than in the second half of 2006. But over the same period there was a modest 2% growth in the value of new buy-to-let lending, driven mainly by higher property values.
Although the rate of growth of the buy-to-let sector slowed in the first half of this year, it was stronger than in the wider mortgage market, in which the value of lending declined by 4%. As a result, buy-to-let lending accounted for 12% of all advances in the first half of this year, the highest proportion seen to date.
A strong rental market, in which landlords are reporting rising rents and shorter void periods, helped ensure that buy-to-let arrears remained lower than in the wider mortgage market. The number of buy-to-let mortgages in arrears of more than three months rose modestly to 0.63% from 0.58% in the second half of 2006. But the figure remains significantly lower than in the wider mortgage market (1.06%). Possessions of buy-to-let properties also nudged upwards to 0.08%, from 0.06% in the second half of 2006. Again, however, possessions were lower than in the mainstream mortgage market (0.12%).
HBF have published additional guidance on the HBF website relating to the supply of information for the OFT enquiry into the house building market (members only)
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
Recent economic developments from the CBI
- CPI inflation has fallen below the Bank of England's 2.0% target for the first time in more than a year. Coupled with benign earnings growth and slowing producer price inflation, official data suggests that inflationary pressures are starting to ease across the economy.
- The annual CPI inflation rate fell to 1.9% in July from 2.4% in June. This is the lowest CPI rate since March 2006, when inflation was last below the Bank of England's 2.0% target. This larger than expected fall was partly driven by declining food prices as price competition between supermarkets increased. Inflation on the RPI measure also slowed by more than expected, from 4.4% to 3.8% in July.
The future has to be ‘green' says construction industry
"The Green Perspective" report by the Chartered Institute of Building (CIOB) has revealed that over 94% of construction professionals believe that ‘green' building is the future for the construction industry.
The study shows that awareness within the industry has been heightened in regards to environmental issues and their implications for the future of the industry: 98% of respondents accept that construction has a role to play in climate change, 91.4% believe that this role is either important or vital to climate change, 94.6% believe that ‘green' building is the future for construction, and 86.2 % believe that there are financial benefits to producing energy efficient buildings.
Further results show that the industry itself sees the importance of sustainable building. However 67% of respondents felt that the current UK building regulations do not go far enough to create energy efficient buildings. In addition, building regulations were seen as the most valuable way for the built environment to reduce C02, with the majority believing that building regulations were enforceable. This would suggest that the industry would like to see a more forceful and demanding set of regulations in place to drive sustainable development and market demand.
Appeal won on "fragile" 5 year housing land supply
An appeal (Ref: APP/N1730/A/04/1170984 and others) by Luckmore Limited and Barratt Homes (Southern Counties) Ltd for outline permission for 170 dwellings on Land at Dilly Lane, Hartley Wintney, Hampshire has been allowed by the Secretary of State, overturning her Inspector's recommendation that it be dismissed in line with the refusal by Hart District Council.
The appeal was predominantly concerned with whether or not Hart could demonstrate a 5 year housing supply as required by PPS3. Despite the SoS calculating that the Council had demonstrated 6.52 years of housing supply she was concerned that this relied heavily on one site that was expected to deliver 420 dwellings within the 5 year timeframe.
The appeal addresses a number of issues relating to how to calculate the housing requirement, the supply and the inclusion of an allowance for small sites. It is also interesting to note that, in this case, the appellants had agreed with Natural England a package of mitigation measures to satisfy the SoS that there would not be a significant effect on the integrity of the Thames Basin Heaths Special Protection Area.
Jo Weston