A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
HBF AGM and Annual Lunch
Over 200 HBF members attended the HBF AGM and Annual Lunch on Wednesday at the Hyatt Regency - The Churchill hotel in Central London to hear speeches from HBF Executive Chairman Stewart Baseley and the Housing Minister Yvette Cooper.
Stewart Baseley reinforces his concern over Local Authorities
Speaking first, Stewart Baseley set out HBF achievements, the new post Barker era, the challenges of the journey towards zero-carbon in 2016 and his key concern over Local Authorities' ability to threaten the industry's delivery of the housing standards and volumes needed, by setting their own individual building standards and timetables for carbon reduction.
Speaking before the arrival of Yvette Cooper he said:
"As you know, we are already seeing different nations, regions and local authorities proposing their own different standards and timetables for delivering zero-carbon homes. While no-one can criticise their enthusiasm for the job, with nine Government Office Regions and over 350 different local authorities, we have a recipe for unprecedented complexity and chaos.
Having to conform to a multiplicity of targets in different locations, I believe, will pose a very real risk to our ability to increase housing output - and indeed to provide the number of environmentally-friendly new homes that environmentalists must also wish to see. In fact, it would likely lead to output declining in the short term.It will also hinder manufacturers and the supply chain identifying and proving the right products and solutions and complicate the provision of the new skills that many will require.
The fundamental point is that we do not currently know how to achieve zero-carbon standards in any kind of meaningful volume. A proliferation of targets will harm our ability to innovate, test, prove and deliver in the numbers that we need to. It risks product and housing design failure, raising serious issues around warranties and insurance. In turn, it risks harming consumer confidence in both the process and the homes we deliver.
Let us not forget that customers are always able to choose to buy in the second-hand market. It serves no-one's interests for customers to be focusing on homes that may be difficult to retro-fit rather than the zero-carbon homes of the future. We need the Government, and of course local authorities, to keep to the Code Level timetable that we have agreed. This is something we are urgently taking up with the Secretary of State, the Minister and senior officials".
Download the full speech
Yvette Cooper Addresses HBF AGM
Yvette Cooper welcomed the industry's willingness to engage with Government on working towards the 2016 zero carbon target and the progress made increasing supply from 140,000 to 180,000 homes per year. She emphasised, however, that in the context of the further planning reform due through the forthcoming White Paper, the Government wished to see industry do its bit. She was concerned about the potential impact of current mergers on output: the backdrop to the Callcutt Review was that the industry needed to show it would deliver consistently higher volumes and be competitive.
Separately she reinforced the responsibility which Local Authorities had under PPS3 to bring forward land to allow for more market housing, shared ownership and social housing. She also stressed the Government's commitment to funding infrastructure needs, particularly in relation to the role of planning obligation and the PGS.
She went on to highlight the way the new homes debate has shifted, with the majority now recognising that Britain needs more homes and that housing growth was required across the country - latest figures showed it was particularly important also in the Northern regions and Yorkshire. Her speech was set in the context of a challenging climate change agenda - the need to build more good quality, well-designed homes whilst working towards the 2016 zero carbon target.
David Pretty appointed as Chairman of The New Homes Marketing Board
At the HBF AGM Stewart Baseley welcomed David Pretty as the new Chairman of The New Homes Marketing Board and thanked Mick Noble for many years of service on behalf of the industry.
HBF Launches Wales Manifesto
HBF has launched a Manifesto for Wales to coincide with the elections on May 3rd. The Manifesto lists five key priorities that aim to stem the affordability crisis experienced in Wales and to ensure the aspirations of Welsh people are met.
The 5 key priorities are:
Ensuring projected new homes and infrastructure improvements reflect future household and employment growth -
HBF is concerned about the current housing apportionment process within Wales. The Manifesto encourages a more statutory approach and recommends the National Assembly set specific targets for infrastructure and new homes provision in Wales through the Wales Spatial Plan.
Welsh Government needs to play a realistic part in championing low-carbon homes -
The latest announcement by Carwyn Jones for zero carbon building in Wales by 2011 is unrealistic. The Manifesto aims to encourage the Assembly to work more closely with industry and the UK Government to produce a consistent and realistic approach to tackling climate change.
Cardiff needs a homes plan fit for a growing Capital that reflects its projected levels of new jobs -
The proposed cut in house building in Cardiff has the potential to constrain growth in the City, especially when it is expected to take 58% of the economic growth in South East Wales over the next 20 years. The HBF is keen to ensure that the correct amount of homes are built in the correct places, to ensure economic prosperity and to foster the growth of Cardiff as a major UK and European capital city.
Politicians must tackle the growing shortage of larger homes in Wales -
HBF is concerned about the lack of housing for middle-income households and the Manifesto encourages urgent action to remedy the problem. It is essential that new homes provision matches the significant growth in the number of new households across Wales, especially in the South East coastal areas and communities in the North.
The communities of rural Wales need more homes for local people -
HBF is concerned with the lack of housing choice in rural communities. The Manifesto encourages a fair and consistent approach to regeneration in rural areas, in order to provide affordability and choice for people wishing to buy homes in the rural communities of their preference.
The full Manifesto can be downloaded from the HBF website
'As the election looms Stewart Baseley says our politicians must ensure there are decent homes for the people of Wales'
view feature article in the Western Mail, 25 April
Opposition parties maintain pressure on HIPs
The House of Lords Committee scrutinising the Statutory Instruments to implement the latest HIP Regulations is reported to have been very critical in its hearings this week. Committee Chairman Lord Filkin is quoted as saying:
"We have previously scrutinised hundreds of statutory instruments. I can't think of one when I have seen so many stakeholders so passionately disgruntled and critical."
A critical Committee Report may lead to the Conservatives and Liberal Democrats submitting a motion against the Regulations. The normal parliamentary convention is that such secondary legislation is not opposed in the Lords, but there is a possibility in this case that the Opposition parties may be able to assemble enough support between them and from Crossbench peers to force a vote against the Regulations.
AHIPP states that the Tory 'last ditch attempt to scrap HIPS is feeble'
Mike Ockenden Director General for the Association of Home Information Pack Providers (AHIPP) has criticised the latest Tory opposition to HIPs as feeble and desperate, questioning their motivation:
"This self-confessed ‘last-ditch' attempt to block the introduction of Home Information Packs (HIPs), spearheaded by Shadow Housing Minister Michael Gove is political propaganda representing anti-democratic behaviour: the public voted for our current Government and when doing so, they voted for HIPs.
"It is very disappointing to see the Tory party follow a stance which is clearly not in the interest of the environment, the consumer nor the entrepreneur in the UK and I would seriously question their motives."
more info
Government backs new campaign to slash CO2 emissions
A major new campaign that aims to help individuals cut their personal CO2 emissions has been backed by Prime Minister Tony Blair and Environment Secretary David Miliband.
The Climate Group's We're In This Together Campaign brings businesses, Government and communities together, and provides practical ideas for how individuals can reduce their CO2 footprint.
The Prime Minister and Mr Miliband attended the launch of the campaign in London, where eight major businesses set out steps they are taking to help people reduce emissions.
more info
Renewables firms left idle as DTI halts green grants
Renewables firms are laying off staff because the Government has currently shut its grant scheme that helps households adopt green energy technologies such as solar panels. The grant suspension means no funding has been committed to any household since Mar 1.
view article in the Guardian 20th April
Housing: Carbon Emissions
In a written Parliamentary answer published this week HBF's Zero Carbon Task Force was cited by CLG Minister Angela Smith as a major plank of the Government's work to achieve the 2016 target.
Please see below for full text.
Mr. Love: To ask the Secretary of State for Communities and Local Government what steps her Department has taken to ensure that the 2016 target for making all new homes carbon neutral will be reached. [132286]
Angela E. Smith: The proposals the Secretary of State for Communities and Local Government published on 13 December 2006 set out our draft strategy for moving to zero carbon new homes by 2016. The consultation period on these proposals closed on 8 March 2007 and the final policy statement will be published later this year. The hon. Member for Pontefract and Castleford (Yvette Cooper) has also established a small task force chaired jointly with Stewart Baseley from the Home Builders Federation to examine and address any barriers to implementation of the zero carbon homes standard.
Alliance & Leicester say low mortality/low fertility society is creating new generations of homeowner
Alliance & Leicester's 'Changing UK Household Market' report undertaken in conjunction with think tank The Centre of Future Studies shows that the fabric of society is changing in response to the developing political, social and economic landscape. As the population is living longer, people are spending more time at certain life stages and living in more houses than ever before.
The report predicts the creation of the 'adkid' - adult children prolonging their time in the parental nest. By 2026, almost 80 per cent (78%) of the adult population will have earned the title of 'adkid'.
Looking forward to 2026, the report predicts the overall number of households will increase as a result of changes in the make-up of the housing market:
more people living on their own
an increase in lone-parent households as divorce rates continue to rise in the future
multi-person households increase as a result of a growing number of step-families and multi-generational households
marital homes decrease as co-habiting households increase
more info
First time buyers face 'worst ever' struggle
It is almost 100 per cent harder to buy a first time home than it was ten years ago, Shelter's ROOF magazine shows.
The annual ROOF Affordability Index, which assesses affordability by comparing mortgage costs against household incomes, reveals that in 2006 it was 93 per cent harder for first time buyers to get on to the property ladder than in 1996. The main findings from the 2006 index for England are:
Mortgage costs swallowed-up more than 21 per cent of the average household's income in 2006, compared to just 11 per cent in 1996.
The ratio of house prices to incomes in 2006 is 3.40 compared to 1.69 in 1996.
The ROOF Affordability Index at 163.1 is at its highest level since the index began in 1994.
more info
Buoyant Economic Growth
Gross domestic product (GDP) grew by a slightly higher-than-expected 0.7% in the first quarter, according to the preliminary estimate. Annual growth slowed to 2.8% from 3.0% in the final quarter of 2006.
Most economic commentators expect the MPC to raise Bank Rate by 0.25% to 5.50% at its meeting on 10th May. Financial futures continue to anticipate a further rise this year to 5.75%.
The Bank of England appears anxious to dampen the interest rate fears aroused by last month's inflation spike to 3.1%.
Paul Tucker, Executive Director of the Bank of England, repeated the Bank's assumption that CPI inflation will "fall back quite sharply towards the 2% target". Bank Governor Mervyn King gave the same message to the House of Commons Treasury Committee. Mr Tucker said that provided inflation did fall as expected, "the upside risk to medium-term inflation expectations seemed likely to subside", and described monetary conditions as "edging towards restrictive".
Housebuilding Dips
NHBC March private housing registrations were down 8% on a year ago, following a 6% decline in February and 2% rise in January. Cumulative first-quarter registrations were down 4%.
Detached homes lead the market according to Smart New Homes
The average price of a detached home was the only property type to experience an increase in price over the last month, while apartments and townhouses, which make up a combined 66% of the new homes mix have experienced a combined fall of 3% over the same period, pulling down the average price across the mix according to the Smart New Homes April Index.
The average price of a new home in the UK in March 2007 was £255,695
Down 0.4% in the last month (compared with £256,602 in February 2007)
Down 2.0% in the last three months (compared with £260,924 in December 2006)
Down 3.4% in the last year (compared with £264,709 in March 2006)
more info
Most UK employees say green benefits would increase loyalty to employers
UK workers would welcome their employers being more environmentally responsible and providing them with more ‘green' benefits, a survey has found. Of 1,000 employees surveyed by HR consultancy Ceridian, 69% said it was important their employer was environmentally responsible, with more than half wishing their organisation would do more. More than a third of all workers surveyed felt that receiving greener benefits would make them more loyal to their employer. Fourteen per cent would change jobs for a greener benefits package. The top three most attractive ‘green' benefits would be incentives to move to sustainable electricity/energy (67%), access to discounts on ‘green' recycled products (65%) and discounts on public transport (59%).
more info
Innovative virtual reality training centre ACT-UK will help reduce environmental risks
A ground breaking virtual reality simulation centre for the construction industry, due to be built in Coventry, will help train site managers in how to reduce the impact of the construction industry on the environment, says an environmental training expert who attended the recent taster course.
Steve Davis EBS lead adviser from not for profit training organisation Groundwork West Midlands Environmental Business Services, was one of the first people to take part in one of a series of taster courses held to highlight the benefits of the revolutionary style of training at the centre's sister site in the Netherlands - the inspiration for the UK operation, ACT-UK.
The next course will be held over two half days on May 29 and 30, with further courses in June and July. Aimed at construction and education professionals the courses give an idea of the benefits of virtual reality simulation training to industry leaders who may want to adopt the approach as part of their own in company training or educationalists who may wish to include modules within academic courses.
The courses are also aimed at showing potential investors the benefits of becoming sponsors of the ACT-UK centre - which will be the first of its kind in the country and the only the second in the world.
The training uses virtual reality technology and actors to recreate real life situations, and ACT-UK is developing a series of courses over the coming months to be delivered in Europe until the UK's own Building Management Simulation Centre (BMSC)- opens on a site at Coventry University in autumn 2008.
Jo Turner