Weekly News Summary 02 February 2007

2 February, 2007

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

HBF News

New and improved Weekly News Summary

Today marks the launch of the new HBF Weekly News Summary. The new format includes additional features such as ‘HBF in the news' - detailing national, regional and radio and television coverage, links to key speeches and interviews and key events and meeting dates. If you experience any technical difficulties with the Summary please contact us by emailing news@hbf.co.uk

HBF Government Task Force on zero carbon meets for the first time

Following the HBF summit on zero carbon homes on 9 January, HBF has reached agreement with Government on the formation of a small Task Force to establish how the main parties involved can work together towards a zero carbon homes standard in ten years time. One of the Task Force main priorities will be to identify barriers to achieving this ambitious target and identify solutions.

The Task Force, to be jointly chaired by HBF Executive Chairman Stewart Baseley and Minister for Housing and Planning Yvette Cooper MP, met for the first time on 31 January and agreed lead responsibilities for work on the key issues identified at the HBF summit - research, energy supply, the supply chain, skills and consumer-related matters. The Task Force will shortly be announced publicly and we will also be providing a note to summit participants and members on the outcome and follow up to the summit.

Home Builders Federation and Prince's Foundation join forces to build better new homes

11 new house building developments were recognised yesterday by the Home Builders Federation (HBF) and The Prince's Foundation for the Built Environment for adopting Foundation design principles that help improve the quality of life for the people who will live there.

The two organisations have made a joint commitment to see these principles adopted much more widely by the UK's mainstream house builders. This would see the integration of private and social housing, local shops and amenities located within walking distance of homes and a distinctive local character. The 11 recognised schemes will be the benchmark for creating an industry-wide programme of design education to be delivered via the HBF.

HBF Executive Chairman Stewart baseley commented:

"The Home Builders Federation is delighted to be partnering The Prince's Foundation in this important initiative to put quality of life at the centre of the design process. It demonstrates the clear commitment of the home building industry to attain the highest design standards and deliver the best quality homes for their customers. Most significantly, these design principles provide an important basis for the wider industry to meet the challenge of building all new homes to carbon-zero performance standards by 2016."

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HBF Key Policy Achievements 2006

HBF has produced a Key Policy Achievements document outlining where HBF made a difference last year. These have been written in such a way that they can be used with external parties either as one document or as individual information sheets. The document can be viewed and downloaded from the HBF website via the link below: -

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Housing Market

Repossessions 65% higher than in 2005 says CML

The number of mortgage repossessions rose from 8,140 in the first half of 2006 to 8,860 in the second half, according to figures released this week by the Council of Mortgage Lenders. This brings the total for 2006 to 17,000 - 65% higher than in 2005, but broadly similar to 2001 levels and roughly 1 in 690 mortgages.

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First sign of house price cooling emerges, say Nationwide

Nationwide's House Price survey for January shows a slowing of growth to 0.3%, the lowest monthly figure for eight months. The annual figure stood at 9.3%, down from 10.5% in December 2006.

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2006 ends on house price growth of 7.8%, say Land Registry

The latest monthly figures from the Land Registry show that house prices rose to an annual rate of 7.8% in December, up 0.7% from November 2006.

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Economic News

The latest CBI Distributive Trades Survey

The latest CBI Distributive Trades Survey showed that high street

retailers exceeded expectations to record their strongest New Year sales

growth for three years.

Bank of England reports increase in mortgage lending and fall in approvals

-Net mortgage lending increased to £10.6bn in December, up from £10.0bn in November

-Meanwhile, the number of mortgage approvals recorded a large fall from November's three year high of 129k to 113k in December (the lowest since April 2006)

Government News

First time buyers to benefit from new affordable homes

The first homes in a scheme that enables first time buyers to get a foot onto the property ladder by paying for only 50 per cent of the price of a new home, were unveiled this week by Housing Minister Yvette Cooper.

More than 700 homes in 18 developments have been chosen as the first in the country to be offered under the First Time Buyers' Initiative. The scheme is expected to help 15,000 house-hunters nationally into low cost home-ownership by 2010.

It allows eligible first time buyers to purchase a minimum 50 per cent share in a new house, with the Government making up the remainder.

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Kelly calls for consensus approach on reform of planning system

In a speech to an RTPI event, Communities & Local Government Secretary Ruth Kelly has called for a consensus on planning reform, following the agreement for zero carbon homes to be implemented within a ten-year timeframe. Ms Kelly stated her desire for developers to "...think imaginatively about your role in making planning work better for everyone."

She also said that changes would be made to the green belt, although not along the lines of those advocated in the recent Policy Exchange report.

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2006 green belt statistics published

The size of the green belt contracted slightly in 2006 to 1,631,800 hectares, roughly 13% of the land area of England. However, the creation of the New Forest National Park was responsible for most of this fall, with the net effect being a 900 hectare addition to the total green belt compared with 2004.

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Brownfield construction rises in 2005

In an update to previous estimates, the Government has announced that the percentage of new dwellings being built on previously-developed land grew to 77% in 2005, up from 74% in 2004.

Average densities on all land stayed at 40 dwellings per hectare, with the figure for previously-developed land rising from 46 dph to 47 dph.

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Greenhouse gas statistics show UK on track to double Kyoto target

The UK remains on a course to reduce its greenhouse gas emissions by an amount that is almost double its Kyoto target reduction, figures published by Defra show.

Environment Secretary David Miliband said the final figures for 2005 showed that the UK remained on track to go well beyond its Kyoto commitment, and showed an encouraging fall in household emissions.

"These figures confirm that we are on track to meet and exceed our Kyoto target. Based on these figures, our greenhouse gas emissions are 15.3 per cent below 1990 levels - 18.8 per cent when the effect of the EU Emissions Trading Scheme is taken into account. That's already better than our Kyoto commitment of 12.5 per cent," he said.

However, Mr Miliband also indicated that the domestic objective of reducing carbon dioxide emissions by 20% from 1990 levels by 2010 "looked increasingly difficult to achieve". As a consequence he saw the need to press ahead with the Government's Climate Change Bill as part of an urgent carbon reduction strategy.

Local energy - a strong future but not a short-term fix

Government and local authorities are urged to do more to encourage the various ways in which individuals and communities can produce their own low-carbon energy. The call comes in a report published this week by the Trade and Industry Committee 'Local energy-turning consumers into producers'.

The Committee concludes that local energy is capable of making a major contribution in the long-term to the nation's energy requirements both through electricity and heat. But it is not a panacea for plugging the energy gap faced by the UK in the short to medium-term. Conventional generating capacity, whether recently closed, or due to close in the next few years, will need to be replaced urgently and the grid upgraded if we are to "keep the lights on".

If the UK is to derive full benefit from the potential of local energy, then central Government and local authorities need to do more to reduce obstacles to its adoption by community groups, businesses and individuals. For example, if home-owners' invest in solar panels or wind turbines, or energy efficiency measures, this is likely to increase the value of their properties and result in higher council tax bills. The Committee concludes that given the potential climate change and security of supply benefits of such investments, homeowners should not be penalised in this way.

Industry News

Work paves the way for exciting new plans in West End - Central Milton Keynes

The first stage of work has begun to pave the way for new plans to develop the Milton Keynes' West End. Milton Keynes Partnership (MKP) is working closely with its partners to develop the area that will comprise some 1900 homes plus offices and shops along with school and community facilities. All built to the very highest environment quality and sustainability standards.

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Construction sector 'hit by skills shortage' says CIOB

The UK's construction sector is facing a shortage of skilled labour, research suggests. According to a study of 623 firms in 2006 by the Chartered Institute of Building (CIOB), 77% of firms experienced difficulties recruiting new staff, with a further 68% stating that existing employees lacked sufficient skills.

The study also found that over 70% of firms anticipated the demand for skills to continue throughout 2007.

'A combination of small numbers leaving university and a buoyant global construction industry have both been factors in the skills shortages we now see,' said Michael Brown, deputy chief executive for the CIOB.

The survey also found that the number of migrant workers within the construction sector is expected to increase over 2007.

Expert warns of water shortage for new homes in East Anglia

More than £100m is needed to improve water resources in the East of England if plans for 500,000 new homes are to be realised, an expert has warned.

The area is expected to see half a million new homes built between now and 2021, according to the government's draft regional strategy.

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Jo Turner