A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
HBF News
HBF Submission to the Callcutt Review of Housebuilding Delivery
HBF's submission this week to the Calcutt Review's Call for Evidence outlines the priority conditions for achieving the 200,000 quality, zero-carbon homes target:
an adequate supply of land with implementable planning permission,
adequate infrastructure,
the ability to build homes people want to buy,
competitive returns for shareholders,
residual land values that bring forward land for housing development,
and a reduction in the complexity and cost of regulation.
Issues such as skills, construction methods, materials or finance will not present insurmountable barriers because they are largely within the control of the house building industry and its suppliers.
The submission states there is already a range of business models delivering housing and the Government should not attempt to ‘pick winners'. Ensuring the best models emerge and prosper in a market economy requires allowing investors and development companies to take risks, innovate and adapt to changing market and regulatory conditions.
Central Government's role should be to ensure that policy and regulation do not create barriers to achieving the housing target or to new entrants, and to leave a level playing field on which companies can compete.
An important theme of HBF's submission is our growing concern about the complexity and cost of policy and regulation. The escalating cost impact on land values is already constraining housing output, even before we take into account the zero-carbon target and PGS. A recent report for English Partnerships put the cost of achieving Code Level 5 at £26,000 to £36,000 per ‘traditional' dwelling, a land cost of £1.0-1.4 million per hectare at current densities. Zero-carbon homes, at Code Level 6, will cost even more.
We will continue to work with John Callcutt and his Review team as they progress towards their Autumn deadline.
In a press statement issued today, HBF Executive Chairman Stewart Baseley said "The industry stands united with the Government in its aspiration to build 200,000 sustainable new homes per annum by 2016. There is certainly no significant impediment on the industry side to achieving this target. The success or failure of building the sustainable homes that Britain needs hinges on having a sufficient and steady supply of developable land with implementable planning permissions. At a time when the amount of land developed annually has actually declined by 10 per cent in recent years, it is difficult to overstate this point."
Link to press statement on HBF website
"Decent homes for Wales" challenge to Wales' politicians
Following an earlier mailing to candidates, HBF publicly launched a Manifesto for Wales challenging candidates in the 3rd May Assembly elections to back five key housing priorities which will tackle the growing affordability crisis and support the tradition of home ownership in Wales.
Based on past research, we estimate that Wales currently has a backlog of unmet demand of some 40,000 homes, which amounts to some five times the total annual build rate. Politicians need to ensure that the current build-rate increases to avoid Wales falling even further behind.
Stewart Baseley, HBF Executive Chairman, said:
"Wales has long enjoyed a tradition of home-ownership. People have benefited from the value of their home rising. Now many young people are struggling to buy for the first time - and hard-working families are struggling to afford larger properties matching their needs.
"The shortage of homes is because too few homes are being built - fewer than when Nye Bevan set the standards for homes across Britain. An affordability crisis exists because there are too few new homes.
That is why the HBF is launching a Manifesto for Wales to coincide with the elections on May 3rd challenging all the candidates to sign up to five key priorities to ensure the aspirations of Welsh people are met."
HBF Wales Manifesto
Last week's Western Mail feature story
HBF has been invited to contribute to discussions on the overall approach to development in the South West this week in Exeter
The overall approach to development in the South West will be discussed at the examination into the region's long term plan this week in Exeter.
The third week of the examination, which started on Tuesday, will concentrate on: key urban areas in the region where growth will be focussed; the approach the plan will take for future development in rural areas; and the balance between re-using previously developed land and green field sites.
Those invited to take part during this week include:
Home Builders Federation, Natural England, Campaign to Protect Rural England, Friends of the Earth, SW Chamber of Rural Enterprise and SW Rural Affairs Forum, Country Land and Business Association, National Farmers Union, National Trust, Environment Agency, English Heritage, English Heritage and Local Authorities from the South West.
Speech given by Yvette Cooper MP at HBF AGM and Lunch on 25 April 2007
For those of you who missed Yvette Cooper's speech at the HBF AGM and Annual Lunch last week, a copy of her speech is now available on the HBF website.
HIPs regulations called into question by House of Lords Committee
The latest report of session by the House of Lords Merits of Statutory Instruments Committee on home information packs (HIPs) has called into question whether the HIP Regulations will effectively achieve their policy objective. This is outlined in the report summary:
"The comments on these proposals which we have received from interested parties show at best scepticism and at worst hostility. The Government have not been able to convince the principal stakeholders in the housing market that their proposals as they now stand are sensible or worthwhile, or are likely to be effective for their declared purposes; and they need to do more if the market is to respond positively to this intervention. The Home Information Pack Regulations 2007 are drawn to the special attention of the House on the ground that they may imperfectly achieve their policy objective. The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 are drawn to the special attention of the House on the ground that they may inappropriately implement European Union legislation".
Responding to the report CLG have issued a statement:
"It is unfortunate that the committee only had the chance to hear evidence from a narrow range of groups, such as RICS and the National Association of Estate Agents, many of whom have vested interests in the current system - had they heard a wider range of views, for example from green groups or from industry groups who support HIPs, as we did for our consultation, then they may well have come to a different set of conclusions".
Mike Ockenden Director General, Association of Home Information Pack Providers (AHIPP) has said:
"Today's report on HIPs has not presented a balanced and fair review - the Merits Committee failed to obtain evidence from a number of industry players including AHIPP, CoPSO and key environmental groups.
Whilst Michael Gove, Conservative Housing spokesman voices opposition:
"The House of Lords investigation has confirmed what we, and everyone else committed to the housing market, have said all along: The Government have got this wrong".
The full report of session by the House of Lords Merits of Statutory Instruments Committee on home information packs can be found here
The Opposition parties may still seek to force a vote against the regulations. We will keep you in touch with any developments in this respect.
A new survey by the NAEA shows that homeowners will be deterred from putting their homes on the market after 1 June 2007
Nearly 20% of homeowners have said they would be tempted to put their house up for sale to test the market if they found that their neighbour's property was getting a good price - even if they hadn't previously thought about selling - according to a survey by the National Association of Estate Agents (NAEA).
The Association warns, however, that the introduction of home information packs (HIPs) in June 2007 could seriously affect this selling group, who are unlikely to want to ‘see what happens' if they have to pay up to £500 to do so. This will inevitably have a knock on effect on the market as a whole, at a time when housing stock is already in short supply in many areas of the country.
DEA Accreditation schemes approved
Ruth Kelly, Secretary of State for Communities and Local Government, has approved a number of bodies to operate as accreditation schemes for Domestic Energy Assessors (DEAs) who need to belong to an approved accreditation scheme to operate. Each of these schemes will be setting up a member's register holding the names of qualified and accredited energy assessors:
Please note: Home Inspectors (HI) can produce both Energy Performance Certificates (EPCs) and Home Condition Reports (HCRs) as they hold dual certifications as both an HI and DEA.
more information on Energy Assessors and accreditation
Going green to cost extra 12.5%
A new study launched at the Think 07 event this week finds that building green will cost an extra £20 per square foot, or a 12.5% premium. The report was released by CBRE Hamptons International, working with architect Lewellyn Davies Yeang. According to the model used, the extra cost would go on CHP, a sky garden, natural ventilation and lighting and energy efficient appliances.
The report says: "Using standard building costs of £162.65 psf, the cost of building a 650 sq ft flat is therefore £105,700. This represents an increased cost of £13,400 on the same 650 sq ft flat."
The report says the stamp duty exemption for zero-carbon homes is a start, "but it is insufficient and does nothing to address green developments which fall short of this standard".
Sir Digby Jones launches vision for the young
UK skills envoy, Sir Digby Jones has launched his vision for raising the skills and aspirations of young people at an event at the Castlebrook High School in Bury.
Sir Digby spoke of the role employable young people have to play in driving forward the skills revolution when he officially launched an innovative construction training centre at the Bury school. Working alongside ConstructionSkills, the Sector Skills Council for the construction industry, the centre will pioneer a new approach to vocational studies by offering a GCSE in Construction and the Built Environment.
"Demand for skills in this country is too low and it is vital that we develop more employable skills - skills in terms of behaviour and a desire to learn as well as in a craft or trade" said Sir Digby Jones.
"The 34 boys and two girls who are studying for this pioneering GCSE in Construction and the Built Environment this year, and the 48 students including 12 girls next, are all training for potential careers in one of the more important sectors of today's economy. I can't think of a better place to launch this vision for the future."
Retail Sales Volume Growth at three year high
High street shops enjoyed strong annual growth in sales volumes, with the balance of retailers reporting a year-on-year increase the highest in almost three years, according to the latest CBI Distributive Trades Survey. By sector, sales grew strongly among retailers selling home-related products like household durables and DIY hardware. Brisk sales volume increases were also reported in the food and footwear sectors. Retailers expect to see further firm growth in sales volumes over the year to May.
For further information, please contact Thomas Mackenzie
Bill Bryson to collect notes from a small island
The CPRE announced that American author Bill Bryson is to stand for election as its new President to succeed Sir Max Hastings. Mr Bryson said he wished to make tackling litter one of his priorities.
Jo Turner