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HIPs go live for 4 bedrooms or more...... read
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HIPS go live for four bedrooms or more
Home Information Packs (HIPs) have gone live for homes marketed with 4 or more bedrooms in England and Wales as of Wednesday (1st August).
The CLG estimate that most estate agents will offer a HIP for around £300 to £350 plus VAT - £200 to £250 of which is already paid for in the current system. Some estate agents will be offering them for free or as part of their ordinary fees.
Any questions can be sent to homeinfopacks@communities.gsi.gov.uk or for further information visit the HIPs website
Conservative Party: HIPs will harm the housing market
In a press release this week the Conservative party voiced its concerns over the introduction of the HIPs legislation:
"Home owners across England and Wales today face the prospect of £200 fines from town hall bureaucrats for daring to put up a ‘for sale' sign without an expensive Home Information Pack. This new red tape currently affects those with four or more bedrooms. Ministers are refusing to say when the new laws will be brought in for smaller homes, adding to the likely public confusion.
Many home owners may simply move their bed out of their bedroom in order to advertise their home as "three bedrooms and a study" and avoid the £400 - £600 cost of a Pack. If the market realises that this is just a proxy for ‘four bedrooms', the sellers will suffer no loss to the value of their family home."
Grant Shapps MP, Conservative Shadow Minister for Housing, joined Kirstie Allsopp, presenter of Location, Location, Location in a protest against the new laws near Parliament.
Grant Shapps said:
"Moving home is already one of the most stressful experiences in life, yet Gordon Brown has persisted in introducing these flawed Home Information Packs against the better judgement of both consumers and housing experts."
AHIPP dismisses ‘HIPs scaremongering myths'
The Association of Home Information Pack Providers (AHIPP) sought to counter speculation about the suggested ‘loopholes' relating to four bedroom homes. In a statement AHIPP said:
"Contrary to Tory propaganda the likelihood of a consumer opting to re-brand their four bedroom home as a three bed is unrealistic and impractical and it would take an irresponsible agent to suggest this. A four bedroom home commands a much higher price than a three bedroom property and sellers are not going to be willing to knock thousands of pounds off the price of their home, simply to save themselves the estimated £300 to £400 that it will cost them to acquire a HIP - a pack that will actually aid the sale of their home. In addition, a large number of house hunters commence their search for a new home online. With the majority of property searches asking for a prospective buyer to refine their search by number of bedrooms - those re-branding their homes as three bedroom will be severely limiting their exposure to potential buyers."
On suggestions that sellers will risk paying the £200 fine rather than paying for a HIP, AHIPP said:
"This is a fact that has continually been mis-reported. The £200 fine for not acquiring a HIP is a repeatable fine and not a one off penalty. It is the person responsible for marketing the property that will be fined if they do not obtain a HIP - in most cases this is the estate agent. Estate agents are unlikely to put themselves at risk of repeated fines to save the vendor an estimated £400. "
HIPs - OFT advises estate agents on their obligations
The OFT has advised all estate agents in England and Wales that a failure to comply with the new Home Information Packs (HIPs) regulations could result in a ban from estate agency work. Under the Estate Agents Act and HIPs regulations, the OFT has the power to assess whether an estate agent is fit to practise.
The OFT can impose a ban on an estate agent found to be in breach of the Act and can also issue a Warning Order. Once a Warning Order has been issued, if the agent continues to breach the Act, the OFT can make a Prohibition Order banning the agent from practising as an estate agent in the future.
New support for homeowners to get green grants
A new system to help homebuyers get green grants to lower their fuel bills and make their homes greener was announced on Wednesday alongside the introduction of Home Information Packs and Energy Performance Certificates.
At present grants of between £100 and £300 are available for cut-price loft and cavity wall insulation. The programme is expanding next year to allow more home buyers to benefit from discount insulation.
Six major energy companies have agreed that when buyers move into their home and sign up to an energy contract they will get immediate access and information about 'green' grants or offers to consumers.
The offers are funded by energy suppliers and other partners, with their investment in ‘green grants' increasing to £2.5 billion over the next three years from April 2008, compared to £1 billion over the last three years.
Consultation on Sustainable Construction Strategy launched
The Department for Business, Enterprise and Regulatory Reform launched this week for consultation a proposed joint strategy that aims to help the construction industry, including homebuilders, deliver more sustainable construction methods and products.
Reducing on-site waste, using sustainable materials, and increasing skills in the workforce are some of the targets set out for the construction industry in the draft strategy.
The draft strategy's key longer term objectives include:
Reducing the carbon footprint of activities within the construction sector
Production of zero net waste at construction site level
Developing voluntary agreements and initiatives between the construction industry and its clients with the aim of reducing the carbon footprint and use of resources within the built environment
Creating a safer industry by improving skills, boosting the numbers of workers taking part in training programmes, and retaining more skilled workers.
The deadline for comment is November 30, 2007. HBF will be issuing a response in due course.
‘Beyond Stern: From the Climate Change Programme Review to the Draft Climate Change Bill' Report published
The Environmental Audit Committee has published a report entitled 'Beyond Stern: From the Climate Change Programme Review to the Draft Climate Change Bill'. The Environmental Audit Select Committee concludes in the report that the draft Climate Change Bill shows the Government is learning some lessons from the failure to meet its 2010 carbon dioxide reduction targets.
However, in its report, the Committee warns that very significant issues remain and calls for the UK's targets for 2020 and 2050 to be significantly toughened.
Land Use Change in England: Residential Development to 2006
CLG have released updated estimates for land use in England showing:
-In 2006, on a provisional estimate, 74 per cent of new dwellings were built on
previously-developed land, including conversions. This compares with 77 per cent in 2005. This is the first time the figure has shown a decrease since 1997, when it was 56 per cent.
-In 2006, on a provisional estimate, new dwellings were built at an average density of 41 dwellings per hectare. This compares with 40 dwellings per hectare in 2005 and 25 dwellings per hectare before 2002.
Bank of England Maintains Bank Rate at 5.75%
The Bank of England's Monetary Policy Committee this week voted to maintain the official Bank Rate paid on commercial bank reserves at 5.75%.
NAEA relieved over rate decision
Peter Bolton King, Chief Executive at the NAEA, comments: "Having endured three interest rate rises already in 2007 homeowners are particularly vulnerable to increases at the moment. Many will be extremely relieved at the latest news.
"Following last month's decision by the Monetary Policy Committee to increase rates we are pleased that it has not jumped in too early with another rise in August. It takes time for the market to react following an increase. We are only just seeing the effects of the July rise as the market appears to be cooling in many areas. Another increase at this point could have been particularly bad news for those markets that have already showed signs of slowing down.
"Going forward, we urge the MPC to err on the side of caution and maintain rates until the end of the year to allow consumers and the market time to adjust."
House price inflation slowing according to Halifax
Halifax house price index for July shows:
House prices increased by 0.7% in July. This is the fourth consecutive month that house prices have grown by less than 1.0%, confirming that house price inflation is slowing.
House prices increased by 1.3% between April and July. This was the smallest three monthly rise - a good indicator of the underlying trend - since August 2006.
Mortgage approvals to fund house purchase in 2007 Q2 were 8% lower than in 2006 Q4. The level of new buyer interest in purchasing a house fell for the seventh successive month in June. (Sources: Bank of England & RICS)
Homeowners who took out fixed rate deals two years ago will face higher mortgage payments when they re-mortgage. A borrower with a £114,000 mortgage, taking out a two year fix in 2005 at 5.08%, faces an increase in monthly payments of around £65, or 10%, when the deal expires this year. The overwhelming majority of these borrowers are expected to be able to absorb the increase in payments as earnings and housing equity have risen in the past two years.
A healthy economy and strong labour market continue to underpin housing demand. The UK economy recorded an unprecedented 60th consecutive quarter of rising activity in 2007 Q2. Over the 15 years from 1992 Q3 to 2007 Q2, the level of real GDP in the UK increased by 53% compared with a 32% increase in the previous 15 years.
Halifax have recently revised their house price growth forecast for 2007 from 4% to 6%. This upward revision largely reflects the greater upward movement in prices than expected during the first four months of the year. Pressure on householders' finances is likely to increasingly curb housing demand over the remainder of 2007, causing house price inflation to ease.
View the full house price index
Latest Lending figures from the Bank of England
Lending to individuals: June 2007
The increase in total net lending to individuals in June (£10.4 billion) was higher than the increase in May and the previous six-month average. The twelve-month growth rate was unchanged from May at 10.2%. The three month annualised growth rate fell by 0.1 percentage points to 9.2%.
Within the total, the increase in net lending secured on dwellings (£9.6 billion) was above the increase in May and the previous six-month average. The twelve-month growth rate was unchanged from May at 11.2%. The three month annualised growth rate fell, by 0.1 percentage points to 10.2%. The number of loans approved for house purchase (114,000) was unchanged from May; those for re-mortgaging (102,000) and other purposes (72,000) were lower than in May.
The increase in net consumer credit in June (£0.9 billion) was in line with that in May. Net credit card lending rose by £0.2 billion compared with a fall of £0.2 billion in May. Net other loans and advances rose by £0.7 billion (lower than the increase of £1.1 billion in May). The annual growth rate of consumer credit was unchanged from May at 5.2% and the three-month annualised growth rate increased by 0.4 percentage points to 4.2%.
High Street enjoys steady growth but retailers' summer sales expectations disappointed according to CBI
Retailers enjoyed steady year-on-year sales growth in the first half of July but their hopes for strong summer sales failed to materialise, according to the latest CBI Distributive Trade Survey. However retailers said volumes for the time of year were below average, despite annual summer discounts, and stores expect growth to slow further next month and remain weak for the time of year. Sales of big ticket items, often bought on credit, have been depressed in stark contrast to three months ago, suggesting that rising interest rates might be starting to bite.
Planning White Paper Responses
The HBF draft responses to the Planning White Paper and associated consultation papers are now available to HBF members on the website.
Any comments on the drafts should be sent to HBF Head of Planning, Andrew Whitaker at andrew.whitaker@hbf.co.uk by 17 August.
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.
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
Over half of Britons would not consider a long-term fix, says Abbey
Less than one in four would consider taking out a 25-year mortgage according to Abbey.
Borrowers are split on the Government's new initiative for long-term fixed mortgages, according to research undertaken by Abbey Mortgages. Abbey Mortgages surveyed over 1000 Britons, following the Government's announced initiatives to encourage 25-year fixed rate mortgages.
54 per cent of people would definitely not take out a 25-year fixed rate mortgage, with 23 per cent unsure. Only 23 per cent would consider a 25-year mortgage.
Sue Hayes, Director of Abbey Mortgages, said: "It is clear that the public don't have much of an appetite for 25-year mortgages. This is borne out by Abbey's own experience - we have launched 25-year mortgage products in the past - all of which had limited demand.
"We continue to see increasingly strong demand for our five and 10 year fixed deals, indicating that 25 years is just a step too far. Given the great cultural and economic changes we've seen in the past 25 years, this is not surprising. Few people are prepared to commit themselves to a deal for a quarter of a century."
Jo Weston