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HBF News
A packed house for HBF's second zero-carbon summit
There were no spare places at HBF's second zero carbon summit chaired by HBF Executive Chairman Stewart Baseley at the DTI conference Centre on 6 June.
Some 80 home builders, suppliers, energy companies, trade bodies, non-government organisations, regulators and government officials gathered to hear about the work undertaken by the 2016 Task Force set up following HBF's first summit in January. The Minister for Housing and Planning, Yvette Cooper MP, John Callcutt and other Task Force members were also present in force to explain and discuss the role they have taken and the ways in which they are linking in to other relevant areas of work.
Key issues raised during the summit included:
the difficulties that local target-setting causes industry;
the need for a robust means of measuring the performance of products in relation to a zero carbon standard;
the distinction between the energy efficiency of buildings and low carbon energy supply;
the importance of dialogue between home builders and energy companies and local authorities to resolve some of the current concerns, and;
the need for confidence in the attainment of improved performance standards.
Following a presentation by CLG on the responses to the Building a Greener Future consultation, attendees had the opportunity to discuss an initial draft of a proposed Concordat to set out the joint commitment of signatories to achieving the twin 2016 objectives of a build rate of 200,000 homes and a zero carbon standard. The comments received will be considered by the 2016 Task Force.
HBF and NHBC discuss zero carbon with the All Party Parliamentary Group on Climate Change
Following the summit, Stewart Baseley and NHBC Chief Executive, Imtiaz Farookhi, presented their views on the issues involved in achieving a successful zero carbon standard with this All Party Group on 7 June. This prompted a lively discussion with the Group covering the regulatory approach required, the consumer and energy supply issues to be tackled and the need to avoid policies targeted on particular technologies.
HBF presses for progress on the Thames Basin Heaths
Following HBF's requests for action to implement the SE RSS EiP Technical Assessor's recommendations on the Thames Basin Heaths Special Protection Area, Stewart Baseley and John Slaughter met officials from CLG, the Government Office for the South East, the SE England Regional Assembly and Natural England this week. The meeting recognised HBF's wish to be involved closely in discussions about future strategic partnership arrangements and a revised delivery plan. HBF also pressed for clarification of Natural England's current position and the common ground between the parties involved in order to assist day to day arrengements pending agreement on future strategic approaches.
Treasury Ministers recognise HBF's call for more development land
In introducing the Second Reading of the Ratings (Empty Properties) Bill yesterday, Economic Secretary John Healey MP made the following reference to HBF regarding supply of land:
"The second purpose of the Bill is to encourage more efficient use of the property stock already developed in this country. It will be a common observation across the House that land is scarce. In a growing economy, with a growing population and an increasing demand for housing, particularly with the rising number of households, we need to ensure that land is used as fully as possible. That is essential if we are to be competitive and to provide the housing that we need, while protecting our green spaces. The shortage of land is also a key concern for the house building industry, which is why the Home Builders Federation's view is that that supply of land is the major factor that will determine whether the Government are successful in meeting their target of increasing the number of new homes by 200,000 a year by 2016. The same message about the central importance of land supply was conveyed very clearly today by the newly established national planning and housing advice unit. I am pleased to see that the hon. Member for Surrey Heath (Michael Gove) is nodding."
Bank of England Maintains Bank Rate at 5.5%
The Bank of England's Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 5.5%.
House Price Trends
House prices rose by only 0.3% in May, according to the Halifax seasonally adjusted index, the smallest monthly gain this year. Annual price growth slowed slightly to 10.6%.
Nationwide's seasonally adjusted index rose 0.5%, with annual growth rising slightly to 10.3%. Although Nationwide describes the annual rate as "stubbornly high", it says the three-month on three-month growth rate in May fell to 1.8%, the lowest since August last year.
Hometrack recorded a 0.6% rise in prices in May. It says demand has begun to fall back, while there continues to be an increase in the supply of properties coming onto the market, trends which will "start to undermine upward pressure on prices".
Land for Housing Falling
The amount of land used annually for housing in England fell 7% between 1997 and 2003, with a 14% rise in brownfield land against a 27% decline in greenfield land, according to a special analysis in the May Housing Market Report. The 24% rise in housing completions between 2001 and 2006 was driven entirely by higher densities. With densities static between 2004 and 2006, and probably now falling as the number of new apartments declines, the only way to increase housing output will be to increase the amount of land coming through the planning system.
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Treasury Ministers recognise HBF's call for more development land
In introducing the Second Reading of the Ratings (Empty Properties) Bill yesterday, Economic Secretary John Healey MP made the following reference to HBF regarding supply of land:
"The second purpose of the Bill is to encourage more efficient use of the property stock already developed in this country. It will be a common observation across the House that land is scarce. In a growing economy, with a growing population and an increasing demand for housing, particularly with the rising number of households, we need to ensure that land is used as fully as possible. That is essential if we are to be competitive and to provide the housing that we need, while protecting our green spaces. The shortage of land is also a key concern for the house building industry, which is why the Home Builders Federation's view is that that supply of land is the major factor that will determine whether the Government are successful in meeting their target of increasing the number of new homes by 200,000 a year by 2016. The same message about the central importance of land supply was conveyed very clearly today by the newly established national planning and housing advice unit. I am pleased to see that the hon. Member for Surrey Heath (Michael Gove) is nodding."
New Advice Unit forecasts that by 2026 average lower quartile house prices will be 10 times the level of average earnings
The next generation of first-time buyers will face house prices equivalent to ten times their average incomes, putting home ownership out of reach for the majority of young people, the National Housing and Planning Advice Unit, a new Government-backed body announced this week.
A study for the new Unit found that four million people in England believe they will never own their own home because of soaring property prices - and this number is likely to rise. The unit said that on current plans average lower quartile house prices would climb to 10 times annual earnings by 2026, compared with seven times last year. In 2000, houses were worth four times earnings.
Professor Nickell, the Unit's Chairman said: "Demand for housing is growing and unless action is taken, pressure on the market will only get worse. There is a clear need for more ambitious and urgent delivery if we are to make homes more affordable for our children.''
The NHPAU, which officially launched this week, arose from Kate Barker's recommendation that a unit be established to assist local authorities and regional assemblies devise plans to ease the affordability crisis.
Press run strongly with the Unit's affordability story
Fleet Street gave significant coverage to the new Unit's headline findings on 7 June and Ministers gave strong backing to the need to improve supply.
Housing and Planning Minister Yvette Cooper commented:
"This powerful analysis shows how vital it is to build more homes. Sticking to Regional Assemblies' current proposals for 190,000 homes a year simply won't do enough to help the next generation of first-time buyers.
"We have already increased the supply of housing over the last five years but all of us need to do more to increase housing further. Regional Assemblies and councils need urgently to implement our new planning guidance which supports more housing.
"We also need to bring forward rapidly the plans for new eco-towns in addition to existing housing proposals.
"Those who are still opposing increased housing need to recognise the deeply unfair consequences for the first-time buyers of the future."
HBF also supported the call for improved housing supply in television news coverage on BBC News 24, including an evening debate with CPRE.
Social housing more energy efficient than private sector homes
Council houses are among the most energy efficient homes in the country, according to a major Government report into house conditions. The new report reveals that social sector housing, currently undergoing a £40 billion overhaul, is much more energy efficient and is being improved at a faster rate than the total stock of privately-owned housing.
The English House Condition Survey (EHCS) 2005 Annual report finds that social sector housing, for so long associated with draughty post-war tower blocks and cold council flats, is more likely to have effective insulation than privately-owned housing.
Over three quarters (77 per cent) of social sector housing has cavity walls, compared to just over two thirds (67 per cent) of private homes. Just a quarter (27 per cent) of private homes have adequate loft insulation, while almost a half (44 per cent) of social sector houses boast 150mm of insulation or more.
Housing Minister Yvette Cooper said:
"This report shows the multi-billion pound investment in council houses in helping the environment as well as families' fuel bills. Council houses are now much greener than private homes.
"It shows that major refurbishment's to deliver decent homes are far more than Changing Rooms-style makeovers. Modern central heating and insulation is being installed alongside new kitchens and bathrooms.
View other findings from the report
Consultation response to Building a Greener Future published
On Wednesday the DCLG released a report analysing and summarising the responses to the consultation paper Building a Greener Future: Towards Zero Carbon Development.
The findings of the report were outlined in a presentation by the CLG at the second HBF zero carbon summit on Wednesday. In general the comments are supportive of the proposed ten year timetable for achieving zero carbon, while indicating the differences of view that exist about local action.
Brown backs a plea for new housing
In a Q & A session at the GMB Union this week Gordon Brown stated:
"As you know, housing is a huge issue for people. Since 1997 two million children have been taken out of overcrowded accommodation by the work that we have done as a Government. So our policy of renovating existing homes has been one which has yielded benefits to millions of people in this country, but particularly children. I know that we have to build more houses. We are not building enough houses to meet the increased number of families which are being created in this country as a result of many people becoming single, looking for single accommodation and as a result of the population changes in this country. So we will build more houses."
"How will we do it? First of all, we will do it by building more owner-occupied housing and by creating more shared equity because I want to end the situation where so many young couples know that they cannot afford, with the house prices that exist at the moment, to buy the houses that they need. Then we will build more social housing. We have already increased the number of social houses that we are building and we will increase that more in the Spending Review. At the same time, as I have said in previous meetings, we will give help to councils by new means through which they can build houses as well. So I want to have a big housing building programme in this country. I want affordable houses because it is wrong that we build so many houses that people with modest incomes and decent incomes cannot afford to buy. I want to build more houses not just for purchase but houses for rent. So I can assure you that over the next few months housing will be as it should be - a priority issue for this Government because people should have the opportunity and the right of decent housing in this country."
The DCLG and English Partnerships have invited construction firms to bid for the right to build five new villages of environmentally friendly homes
The developments will provide a test ground for Gordon Brown's proposal for five eco-towns of up to 100,000 homes. The first eco-villages announced by the English Partnerships Regeneration agency will be at Hanham Hall in Bristol and Glebe Road in Peterborough. Some 21 local authorities have expressed interest in hosting the other three sites, comprising about 150 homes each.
The Prime Minister has outlined the Government's ideas on how the UK should secure its energy and protect the environment
In a foreword for the policy review paper Building on progress: Energy and environment, published this week, Mr Blair called tackling climate change "the biggest challenge of our times".
A number of factors will prove critical in meeting that challenge, including developing new technologies and establishing an international framework for reducing carbon emissions, he said.
"Climate change is the greatest economic, environmental and humanitarian risk facing all of us. It will require the greatest of efforts from all parts of society if we are to avoid it. But we can be optimistic. It can be done, and this paper shows us how."
The Prime Minister also drew attention to the issue of securing energy supplies, with the UK set to import almost all its gas and more than half its oil by 2020. Details of the Government's plans on how to tackle the energy issue were published in the Energy White Paper on 23 May.
Nationwide report high consumer confidence and expectations in house price growth
The Nationwide Consumer Confidence Index has shown that Consumer Confidence rose by 9 points in May taking the index to its highest level in eighteen months. House Price expectations rose to a new high, since the Index was first published in 2004, with consumers expecting house prices to rise 4.5% over the coming six months.
Flats and terraces top UK housing type
As Gordon Brown calls for a ‘home-owning democracy', NHBC's latest statistics reveal the demand for affordable homes is fuelling an increase in flats, maisonettes and family-friendly terraced houses in the UK.
According to NHBC's latest statistics, flats and maisonettes made up of 44 per cent of new homes started in the UK in the first quarter of this year, double the percentage seen in 2000. Also, the number of terraced properties started in the quarter exceeded the number of semi-detached and detached homes.
51,465 new homes were started in the three months from February to April - a four per cent increase on the same three month period a year ago (49,300). Of that total, 41,736 related to private sector activity (i.e. excluding housing associations), showing a two per cent decrease on the same period in 2006 (42,658).
View full press release from NHBC
Jo Weston