A weekly news summary covering all aspects of the housebuilding industry from Pierre Williams, HBF's head of media, available to members only.
Prices resume upward trend
House prices in England and Wales have picked up again after slight falls in December, according to the Rightmove index. It said the market had recovered strongly in the first week of January, with average prices rising 1.2% or 2,000 - bringing the average to 170,935. Surprisingly, the firm is predicting a rise of more than 10% over the year. A spokesman said: The usual seasonal downturn seems to have been very short-lived this year. (BBC, Times)
Bellways record year
Bellway is confident of announcing record profits for the eighth successive year. Since October, when it reported a 250m forward order book, reservations have beaten last years levels in both value and number. CEO John Watson said the market would remain solid, although he warned house price inflation would slow to 4% or 5% this year. Shares dropped 6.5p to 678p. (FT, Times)
Boom threatens rate rise
Interest rates will have to rise to 5% by next spring if Britains expected two-year boom materialises. However, a rate rise next month is looking less certain due to lower than expected inflation figures. This is the view of Ernst & Youngs economics advisor who said: The feelgood factor is back. I cant remember a time when it has been trickier to predict the timing of interest rate changes, but we are looking for 5% by the spring of next year. (Sunday Times, Independent, FT)
South-East - new housing to be set in "better environment"
The Government has announced a 63m network of parks and green spaces in the housing growth areas of the South- East. The intention is to improve landscapes, footpaths and wildlife sites to create enhanced values in the areas earmarked for new housing. Minister for Regeneration Lord Rooker said: We need major growth in the wider South-East to tackle the long term housing shortage. But we also intend to ensure that development is matched by a better environment. Thats why I am announcing 63m to ensure that new housing is set in an attractive environment. (Times)
HBF Note: Areas allocated for the money include Northamptonshire, Milton Keynes and Bedford, Cambridge and Harlow. However, the Thames Gateway is conspicuous by its absence in this spending plan.
Prescotts big transport plan dead
The Government should admit its much-hyped, 10-year integrated transport plan is dead, says a former government transport advisor. Tony Grayling, who heads Tony Blairs favourite think-tank, the Institute for Public Policy Research, said transport strategy had been dogged by re-organisations and reshuffles, with eight ministers having held the brief since 1997. He said: lack of continuity has not helped political consistency. (Independent)
HBF Note: It is worth noting that the number of Housing Minister reshuffles of this government is running a close second to the number of Transport Minister changes. This week, former Housing and now Transport Minister, Tony McNulty, said good transport infrastructure was essential for the growth of sustainable communities.
McCarthy & Stone shares up on renewed bid speculation
Shares in McCarthy & Stone jumped 16p to 548p after it emerged that the firms founder, John McCarthy, was free to make a fresh bid for the group, as six months had passed since his first approach. (Telegraph)
Brown plots revenge on inheritance tax avoiders
The Chancellor is planning to block all inheritance tax avoidance schemes and intends to punish those already having made use of one. He wants to impose, retrospectively, an income tax charge on anyone who gives away an asset (usually a home) and continues to use it. The move could have serious implications at the upper end of the housing market. (Sunday Telegraph)
Successful Olympic bid would lead to massive regeneration
Londons Olympic bid organisers say success would lead to massive benefits for the construction industry, with the borough of Newham being the biggest winner. Chair of the London bid, Barbara Cassani, said: 2012 will be a powerful catalyst for regeneration. It will lead to massive development with new sports facilities, new jobs and new housing. (Guardian)
HBOS in buy-to-let clampdown
HBOS, Britains biggest mortgage lender, is limiting the number of mortgages it offers to individual buy-to-let investors. The clampdown has been sparked by a stagnation of rental returns because of oversupply. The firm is now throwing out applications from those already holding 10 or more buy-to-let mortgages. It said the rules had been put in place to ensure people did not overstretch themselves. A spokesman said: It makes sense as the buy-to-let market grows. Prudence is our watchword. (Sunday Telegraph)