Updating you on the news for the week
HBF News
New Standards to speed up connections
Energy regulator Ofgem today (Friday) has announced plans for new requirements to speed up the connection of new housing, business premises and generators to local electricity networks.
Ofgem has taken action following complaints that electricity network operators took too long to complete connections work. The complaints not only emerged from a review by the regulator of competition in gas and electricity connections but also as a result of extensive HBF work on this issue over the past year.
During the process HBF wrote to Yvette Cooper, MP who responded expressing her committment to 'take the issue very seriously' and outlined how she could assist in this area. This was followed by a series of meetings between HBF and Ofgem to review the issues and was supported by the survey HBF conducted with members to back the industry case.
The new proposals highlight the following:
New standards will mean electricity network companies must meet deadlines for connections work
Companies could face enforcement action if they don't meet the standards
Customer service must also improve
Competition is developing well in gas where independent firms offer more choice for customers
Zero carbon: HBF acts on Welsh and regional pressures
HBF Executive Chairman Stewart Baseley is writing to Housing and Planning Minister Yvette Cooper MP to express concern at new evidence of pressure from the Welsh Assembly Government and the English regions to break ranks on the proposed ten year timetable for achieving zero carbon homes.
On 14 February, the Assembly Government announced that it would seek devolved powers to set its own building regulations with a view to requiring all new development to be zero carbon by 2011. Separately, the South West Regional Assembly is seeking amendments to the draft South West RSS that would require carbon reduction standards equivalent to those for Level 4 of the Code for Sustainable Homes from 2008 and Level 5 of the Code from 2011 for developments of more than ten units.
HBF is underlining to the Minister that such requirements are impractical and would threaten housing supply. We are seeking the Minister's help in heading off such pressures and will continue to attach the highest importance to resisting fragmentary initiatives on carbon reduction.
AGM and Annual Lunch - Book before end of February to benefit from 10% discount
The HBF AGM and Annual Lunch is due to be held on Wednesday 25 April at the prestigious Hyatt Regency - The Churchill, W1 London.
Tables booked before 28 February will benefit from 10% discount.
To book telephone the Events Team on 0207 960 1646 or email events@hbmedia.co.uk
House Building
Housing completions in England rose by 0.5% in 2006 to 160,230 according to new figures from Communities and Local Government (CLG). Private housing completions fell by 1.7%, whereas RSL completions rose 17.6%. Three regions recorded sizeable reductions in private completions - the North West (-1123), West Midlands (-942) and South East (-1010) - whereas only one region saw a sizeable increase - East of England (+686). The remaining regions recorded modest increases or decreases. Total housing starts in England rose by 3.4% in 2006 to 183,140, with private starts up 2.2% and RSL starts up 15.1%. Starts and completions in 2006 were both around 24% higher than in 2001.
HBF Comment: There are two possible explanations for the decline in private housing completions last year. The biggest contributing factor was a modest fall in fourth quarter completions compared with an exceptionally strong fourth quarter total in 2005. If fourth quarter completions are excluded, private completions in the first three quarters were up 3.5% on the same period of 2005.
Taking a longer-term view, house builders are still being hampered by an inadequate flow of residential planning permissions. Official figures show the area of land developed annually for housing fell 10% between 1997 and 2003, the latest available figures. The only reason completions have increased since the historic low of 2001 has been a sharp rise in densities. House builders can only achieve a sustained increase in output if they can increase the number of sales outlets. And this will only be possible with a sustained increase in the supply of land with planning permission.
DCLG figures show December house price inflation of 9.9%
The latest figures from the DCLG show that annual house price inflation for December stood at 9.9%, up from 8.8% in November.
The average price of a house stands at £201,000, up from £199,000 in November.
Highest December lending on record despite 14% fall
Gross mortgage lending in December fell 14% from November's all-time high of £33.2 billion to £28.6 billion, but was still the highest December figure on record, according to new data published this week by the Council of Mortgage Lenders.
Portman gives more to first time buyers with 100% mortgage range
Portman Building Society has launched a number of new products to boost its 100% mortgage offering. The new products are designed to help first time buyers take their first step into home ownership as they are available with no arrangement fee and a free valuation. The new products are available from Wednesday 14 February 2007.
Growth in buy-to-let faster than market as whole, says CML
330,000 buy-to-let mortgages, worth a total of £38.4 billion, were taken out in 2006, according to figures released today by the Council of Mortgage Lenders. This represents 11% of all new lending, and is a 48% increase in volume and 57% increase in value over 2005.
RICS claims housing affordability "230 times worse than 1996"
The Royal Institute of Chartered Surveyors' "accessibility index" has found that nationally, constantly rising house prices has meant that accessibility is around 230 times worse than it was ten years ago, and currently as low as 1980.
The average first-time buyer couple will now have to save up to the equivalent of 82 per cent of joint income to build up the amount of savings needed to pay for their home, deposit and stamp duty, compared to 25 per cent in 1996. And with house prices expected to rise another 12 per cent over the next two years, the situation is set to worsen.
Recent Economic data from the CBI
CPI inflation fell to 2.7% in the year to January, from 3.0% in December. This was a sharper decline than had been expected, with the largest contribution to the fall in the index coming from lower transport costs, including cheaper fuel and European air travel. Inflation on the RPI measure also fell from to 4.4% to 4.2%.
Latest housebuilding figures are published by CLG
CLG have published the latest housebuilding figures for Quarter 4 of 2006, and 2006 as a whole this week
In England, new house building starts in 2006 amounted to about 183,140 (up over 3 per cent on 2005) and completions totalled 160,230 (around half a per cent up on 2005). The new figures indicate that starts and completions in 2006 were both around 24 per cent higher than in 2001.
Figures for the latest quarter to December show housing starts in England up 11 per cent on the equivalent quarter in 2005. Completions in the December quarter show an 11 per cent fall from the relatively high level in the last quarter in 2005.
RHG - Mayor's strategy will not address the real needs of older people
Responding to the consultation paper "Towards the Mayor's Housing Strategy", Peter Askew, Chairman of the Retirement Housing Group said:
"The Mayor of London has lost an important opportunity to set an example to the rest of the country by giving proper support to housing for older people in his emerging housing strategy"
"The Mayor expressed concern for many groups, including the disabled, but ignores by far the largest - and fastest growing - group - the elderly".
"When setting out policies for design, raising housing output, getting the right sort of investment and promoting choice, the Mayor has failed to put forward proposals for the growing number of older people - particularly owner occupiers - who need specialist housing which offers social support, companionship and well-being, whilst reducing demands on care and support services, and the NHS"
Government announces £18 million for housing investment in South East
The Government is allocating for 2007-08, £18 million in capital grants to local authorities in the South East to improve private sector housing stock and aid area-wide regeneration.
The funding will improve living standards by increasing the proportion of decent homes available.
Kelly calls for tenants to acquire stakes in homes
In a speech to the Fabian Society, Communities Secretary Ruth Kelly has spoken of her desire to help people meet their wish to get into the property market by letting social housing tenants buy a 10% stake in their homes. Hitherto, tenants have only been able to buy a minimum 25% stake.
Jo Turner