HBF Weekly News Summary Friday 25 May 2007

25 May, 2007

A weekly news summary covering all aspects of the housebuilding industry. Available to members only.

Government News

Planning White Paper proposes independent commission to speed up planning decisions on major infrastructure projects

Communities Secretary Ruth Kelly has unveiled further reforms to the planning system, including a new independent planning commission for large infrastructure projects, and moves to simplify the local planning system for householders to make alterations or extensions to their homes. The proposals also include a number of changes to planning process, which will affect HBF members.

View CLG's press release

View White Paper

Alongside the publication of the Planning White Paper, CLG have published four other consultation documents

Changes to Permitted Development: Consultation Paper 2 - Permitted Development Rights for Householders

Improving the Appeal Process in the Planning System: Making it proportionate, customer focused, efficient and well resourced - Consultation

Planning Fees in England: Proposals for Change - Consultation

Planning Performance Agreements: a new way to manage large scale major planning applications - Consultation

HBF states that the Planning White Paper must deliver more land for homes

Reacting to the publication of the Government's Planning White Paper, Executive Chairman of the Home Builders Federation, Stewart Baseley, has called on the Government to ensure that its final, detailed proposals for reform maintain a clear focus on increasing the efficiency and speed of the planning system:

"There is universal recognition that the planning system must change to meet the needs of a modern Britain. The framework which was put in place by the 1947 Town and Country Planning Act has lasted well, but without reform it is in danger of constraining efforts to build the homes which are so desperately needed."

More info

Conservatives criticise 'centralising' White Paper

Shadow Communities Secretary Caroline Spelman has expressed fears that the proposals in the Planning White Paper will "strip local communities of their say" over new developments.

More info

CPRE condemns 'business-friendly' White Paper

The CPRE have claimed that the Planning White Paper will "make it quicker and easier to develop Major Infrastructure Projects, large supermarkets and housing estates on green field land."

More info

Energy White Paper published by Trade and Industry Secretary Alistair Darling

In a statement to the House of Commons, Trade and Industry Secretary Alistair Darling said:

"We face two big challenges - climate change and maintaining stable and affordable energy supply in an increasingly unstable world. The Energy White Paper sets out a long-term framework for action to address these challenges at home and abroad...

"With a third of our current electricity generation capacity due to close in the next 20 years there is also a pressing need for investment in new low carbon sources. We will work to ensure there is a market price for carbon into the long term by strengthening the EU Emissions Trading Scheme. We will triple the amount of electricity we get from renewables by 2015. We want to lead in the development of carbon capture and storage. And we will consult on the significant role that new nuclear power stations could play in cutting emissions and diversifying our supply.

"With the measures we are proposing across Government on energy and the wider environment we can cut emissions by between 23-33 million tonnes of carbon by 2020 - the equivalent of removing all the emissions that we get from every car, van and lorry on Britain's roads today."

Environment Secretary David Miliband said:

"There's a real will among consumers and businesses to become more energy efficient, tackle climate change and move the UK towards a low-carbon economy. Government's role is to make it as easy as possible for them to do this. The Energy White Paper is part of that picture."

Download the Energy White Paper

The HBF states that the Energy White Paper must ensure effective energy supply for zero carbon housing

Commenting on the publication of the Government's Energy White Paper, Executive Chairman of the Home Builders Federation (HBF) Stewart Baseley said:

"HBF is committed to working with the Government on its objective that all new homes should reach a zero carbon performance standard from 2016.

"Realising this objective will depend critically on the availability and cost-effectiveness of suitable renewable and low-carbon energy supplies."

View Press Release

HBF Briefing Note on the Energy White Paper

Ruth Kelly announces that the implementation of HIPs will be delayed until 1 August

In a significant change of position, Communities Secretary Ruth Kelly announced a delay to the implementation of HIPs. Key points in her statement were:

The current proposed regulations are being withdrawn, in view of the Judicial Review sought by RICS and the judge's initial ruling on this application, which said that there was a ‘persuasive case' for the Energy Performance Certificate to be implemented outside of the Home Information Pack.

A new start date of 1 August for Home Information Packs, including Energy Performance Certificates, is being set - however, this will only apply to properties with 4 bedrooms or more.

Smaller properties will be included in the scheme ‘as quickly as possible thereafter', but no timetable has been given.

The total number of fully accredited energy inspectors is only 520, too few for HIPs to be introduced for all sales on 1 June or 1 August.

Home sellers will be able to market their properties until the end of the year as soon as their HIP is commissioned, and not have to wait until it has been completed and received.

The situation will be fully reviewed later in the year.

Subsequent press comment suggests that property professionals think the revised proposals will not work as the Government intends and will confuse customers. We will keep you informed of any further developments.

More info

View HBF Briefing Note

Economic News

Interest Rates

The Monetary Policy Committee (MPC) voted unanimously for a quarter point rise in Bank Rate on 10 May. It was significant that the Committee discussed the possibility of a half percent rise, but the members who had favoured such a rise "preferred to wait for more data to assess the impact of past increases in Bank Rate". However a further rate rise is possible: "The Committee agreed that, should the economy continue to develop broadly in line with the central expectation, Bank Rate could be raised further as necessary."

Residential Land Use

The area of land developed annually for housing in England fell by 7.3% between 1997 and 2003, according to new CLG statistics. Annual brownfield land usage rose by 14%, whereas annual greenfield usage fell by 27%.

Against this background of falling land supply, higher housing numbers have been achieved entirely through higher densities. The average density rose from 25 dwellings per hectare in 2001 to 40 per hectare in 2004. Provisional estimates suggest densities remained static at 40 per hectare in 2005 and 2006.

The number of dwellings built annually on brownfield land rose by 43% between 1997 and 2006, according to provisional estimates. By contrast, the number of homes developed annually on greenfield land fell by 36% over this same period.

Between the historic house building trough in 2001 and 2006, total housing completions in England rose by 25%, with a 43% rise in brownfield completions against a 10% fall in greenfield completions.

40% of young home-buyers get financial help from their parents, says new research by the Council of Mortgage Lenders

Nearly a third of potential first-time buyers (31%) anticipate financial help from their parents, according to new research commissioned by the Council of Mortgage Lenders. But even more (35%) say that they would need financial help to be able to enter the housing market.

Among all of those who are already home-owners, 23% say that their parents helped them. But for younger, more recent buyers, the figure is much larger. 39% of those aged under 30 had received help, and more than 40% of those who have entered the market since 2004.

More info

Gross mortgage lending falls in April, say CML

Gross mortgage lending in March saw a seasonal fall to £28.8 billion in April, according to the Council of Mortgage Lenders. This was 9% down on the March figure of £31.7 billion, but still 18% up on the April 2006 figure of £24.4 billion, and the highest April figure on record.

More info

Industry News

New report from the RTPI says planning system requires leadership to deliver tomorrow's places

The Royal Town Planning Institute's (RTPI) published its report ‘shaping and delivering tomorrow's places: effective spatial planning in practice'. A key message is that businesses, local authorities, and professionals must be prepared to take a leadership role in the planning system in order to deliver successful places that support strong and thriving communities.

Janice Morphet, Visiting Professor at University College London and lead author of the report said: "This study shows that planning is changing. Local authority Chief Executives, elected leaders, public sector managers and planners all need to recognise and respond to these changes in order to overcome barriers to effective place shaping outlined in the report. The importance of the ‘Place Shaping' agenda has been clearly set out by Sir Michael Lyons in his recent report, the Local Government White Paper and the 2007 Budget. Planning will continue to change for the better if the expectations of the people using it also change."

More info

View Full Report

The TCPA have published a 'Design Guide' for sustainable communities

"Climate Change Adaptation ‘by Design Guide' for sustainable communities", published by the Town and Country Planning Association, makes a case for adapting towns and cities to climate change offering enormous potential for creating "high value, quality places where people and businesses will want to spend time."

More info

The Sustainable Development Commission has published the report 'Building houses or creating communities?'

This report concludes that in the Government's enthusiasm to get houses built quickly, residents risk missing out on sustainable communities

According to the Sustainable Development Commission (SDC), current delivery of the housing programme still involves unnecessarily high levels of demolition of people's homes, builds on severely water-stressed areas, fails to get local facilities and public transport for residents on time, and does not yet take full account of climate change.

The SDC says it is "hugely encouraged by the way in which CLG Ministers are now addressing sustainability issues". But overall the SDC finds that few communities built so far are living up to the promise of being environmentally sensitive, well-connected, thriving and inclusive.

More info

View Full Report

CABE have published 'Living with risk: promoting better public space design'

The report states that streets and public spaces are in danger of becoming bland and standardized because of over-sensitivity to risk, arising from misplaced fears of a rampant compensation culture and unquestioning interpretations of health and safety regulations.

'Living with risk: promoting better public space design' studied 10 public space projects across England in depth and surveyed 16 key organisations from local councils and insurers to the Health and Safety Executive. CABE's new report found that intelligent and creative designs with multiple benefits can face a frustrating battle to be accepted. Over-cautious designs with limited uses or opportunities, however, are less likely to be challenged. The report aims to give designers and councils the confidence to challenge risk-averse decisions.

More info

View Full Report

HBF News

HBF discuss energy issues with Conservatives

HBF Director of External Affairs John Slaughter met joint chair of the Conservative Party Quality of Life Policy Group, John Gummer MP, to discuss the energy efficiency and energy supply issues relating to the objective of reducing carbon emissions from new homes. This provided a useful opportunity to feed in industry views on the challenges involved in meeting the zero carbon homes objective, including on the role of local authorities.

HBF South West Ball

Book Now!! Just 2 weeks until the HBF South West Ball there are still some tables available.... 

We now have the opportunity to create shared tables - if you would be interested in booking individual tickets on shared tables please contact the Events Team Now!!

Tortworth Court Hotel, situated on the edge of the Cotswolds in South Gloucestershire, is a magnificent listed Victorian mansion is set in 30 acres of tranquil parkland and enjoys stunning views across the Severn Valley.

The evening commences at 7.30pm with a champagne reception followed by a three-course dinner and entertainment with a disco and casino.

To confirm your places, please complete and return the booking form with full payment to the Events Team NOW!

Cost: £100 + VAT per person

Tables of 10 can be booked - if you require a larger table please contact us on 020 7960 1646 or events@hbmedia.co.uk

Rachael Pymm