Weekly News Summary 9 February 2007

9 February, 2007

<a title="link_title" name="link_title"></a>HBF bringing you the latest news for the building industry

HBF News

HBF exchange views on current issues with Michael Gove

Executive Chairman Stewart Baseley met Conservative Shadow Minister for Housing, Michael Gove MP, to discuss current housing and planning issues. Mr Gove confirmed the importance his party attached to climate change issues and noted the approach the HBF has taken on zero carbon homes. He felt this was broadly in line with the evolution of the Conservative Party's thinking, including on the future strategy for building regulations. Following this week's meeting, we hope to hold further discussions with the Conservative front bench and policy teams to discuss their emerging thinking on land use planning.

CITB-ConstructionSkills to survey employers on their management and supervisory training requirements

CITB-ConstructionSkills has recently commissioned a programme of research which seeks to identify the skills needs of managers and supervisors within the construction industry.

The analysis will look at actual needs associated with running a construction business such as cash-flow, the implications of legislation and recruitment. It will also seek to understand the range of preferred methods of delivery for subsequent training solutions.

We hope the research will be helpful in identifying effective ways to promote and build management and supervisory skills. CITB-ConstructionSkills will also use the findings to inform the allocation of financial support through trade bodies such as HBF to companies for relevant training under its Management and Supervisory Development Programme. The research will be conducted on behalf of CITB-ConstructionSkills by IFF Research, who plan to conduct quantitative interviews across the construction sector, as well as a number of in-depth interviews. We hope that, should you be contacted by IFF in the next few months, you will be willing to assist them in their research as it is important that the views of home builders are properly represented.

Manual for Streets

Manual for Streets will be launched on 29 March 2007 at a conference in London being organised by The Institution of Highways and Transportation (http://www.iht.org.uk/). DfT and CLG are expected to promote it as a replacement for DB32.

Industry News

CABE publishes results of housing audits for the Midlands and South West

CABE launched the results of its housing audits for the East and West Midlands and the South West of England on 8 February. Its report also summarised the findings of all the audits carried out over the last three years - covering some 300 developments across all regions of England.

In its headline messages CABE claimed that consumers in England are getting a raw deal, with 82 per cent of the new housing developments assessed being classified by CABE as "average or poor". It also claimed that 29 per cent of the schemes assessed were so poor they should not have been granted planning permission. In the Midlands, it stated that half of the new schemes audited were poor.

Underlying these headline messages, the report explores the complexity of delivering the standards of overall development design sought by CABE - pointing to the importance of the role and policy of landowners, planning and highways authorities among others in providing a framework within which good design can be realised consistently. Unsurprisingly, the media interest in the report picked up on the headline figures rather than probing the wider analysis.

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HBF calls for a concerted and co-ordinated approach to delivering design quality

Responding to the final regional findings of CABE's analysis of the design of new private housing in England, Executive Chairman of the Home Builders Federation (HBF), Stewart Baseley said:

"The home building industry is committed to increasing design standards, and sees it as a central part of its drive to reach zero-carbon performance standards within a decade. CABE's Housing Audit, begun over four years ago, does not necessarily reflect the progress that has been made in recent years.

"Above all, these findings underline the critical importance of developing a concerted and co-ordinated approach to design between all stakeholders in the process, not least local authorities and the Highways Agency. Too often design has been dictated by compromises within the planning process rather than the singular pursuit of excellence. Planning Policy Statement 3, which the HBF has played an important role in influencing, puts design at the centre of future housing growth plans. We now need to use it as the basis for developing a positive and supportive climate for design among all the key parties.

"CABE's Housing Audit is based on the Building for Life (BfL) criteria, an initiative developed by CABE and the Home Builders Federation to promote design excellence and celebrate best practice in the home building industry. The HBF is also working in partnership with the Prince's Foundation for the Built Environment to improve design quality across the industry. On 1 February 2007, developments built by 11 of the country's largest home builders received personal recognition from the Prince of Wales for incorporating principles of good design."

HBF conducted a number of high profile interviews on the audit results, including Radio Five Live "Wake up to Money", the Today programme, Channel Four News and BBC regional radio.

A listen again service is available on our website:

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CPA announce convening of zero carbon group

The Construction Products Association have launched a "Low and Zero Carbon Buildings Group" formed to support the move to zero carbon buildings and a mass market for zero carbon housing.

The main focus for the group is to investigate;

• Low and zero carbon heating, hot water technologies and generation of electricity

• Buildings that have low energy demands through high performing fabric and components

• Projects and products that have aimed for low or zero carbon operation

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Lobby groups unite to demand urgent action over rural housing

The National Housing Federation and the Campaign to Protect Rural England (CPRE), two bodies often seen as being on opposite sides of the housing debate, are jointly warning that future generations will be priced out of the countryside unless the Government addresses the chronic shortage of affordable rural homes.

At the Federation's Rural Housing Conference this week, the two organisations highlighted their concerns over lack of action by the Government since the publication of Elinor Goodman's Affordable Rural Housing Commission (ARHC) report last year. CPRE and the Federation are calling on the Government immediately to set a timetable for implementing the Commission's recommendations.

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NAEA HIPs petition tops 5,000 signatures

The National Association of Estate Agents' (NAEA) e-petition against home information packs (HIPs) has now topped 5,000 signatures. The NAEA comment that although the HIPs consultation document released by the CLG last week took steps to begin addressing some of the issues surrounding HIPs, it has not gone far enough to allay protestors' serious concerns.

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Barratt to acquire Wilson Bowden

The boards of Barratt Developments PLC and Wilson Bowden plc have agreed the terms of a recommended cash and share offer to be made by Barratt to acquire the entire issued and to be issued ordinary share capital of Wilson Bowden.

UK House-Building Hits Highest Levels Since 1980s says NHBC

Fashion isn't the only trend seeing an eighties revival, house-building is enjoying a popular resurgence too. According to NHBC 185,000 new homes were built during 2006, a figure reminiscent of the housing boom of the late 1980s.

The last time house building reached such high levels was in 1989 when over 191,800 new homes were built.

Imtiaz Farookhi, NHBC Chief Executive, said; "House builders are clearly rising to the challenge laid down by Government to deliver 200,000 new homes a year in England by 2016

Government News

Ruth Kelly opens competition for home builders to develop affordable green communities

Communities and Local Government Secretary Ruth Kelly has unveiled details of a new international challenge for home builders to design and build flagship zero-carbon and low carbon communities.

The Carbon Challenge (the second phase of the Design for Manufacture Initiative), which will be run by English Partnerships, calls on developers to raise standards of design, construction, energy and water use and waste disposal so that these techniques can be used in the future as a benchmark for mainstream development.

The Government see the Challenge as spearheading the move towards zero-carbon development announced in December.

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Government state value of house building industry as "£21 billion"

Figures from the Department for Trade and Industry, published in answer to a written Parliamentary answer, show that the value of the housing industry in Great Britain (public & private) is worth £21 billion in current prices (£13 billion with inflation taken out)

New construction orders: December 2006 figures from DTI

Orders in 2006 rose by six per cent compared with 2005, but orders in the fourth quarter of 2006 remained unchanged compared to the same quarter a year earlier. Orders in the fourth quarter of 2006 fell by three per cent compared to the previous quarter, with decreases in public housing and private commercial orders more than offsetting increases in private housing, infrastructure and private industrial orders. All orders figures quoted are seasonally adjusted and in constant (2000) prices.

London Deputy Mayor welcomes debate over future of planning profession

A unique consortium of building and planning stakeholders has called for a radical re-evaluation of the planning profession. The report Future Planners: Propositions for the next age of planning argues that old-fashioned notions of private and public value have led to planners having to manage competing demands of economic progress and environmental sustainability. The report is based on research done by the think tank Demos and the Campaign to Protect Rural England and has had input and support from the Royal Institute of Chartered Surveyors; English Partnerships and the Royal Town Planning Institute.

more info

Housing Market News

CML reports more, but smaller, lifetime mortgages

The number of new lifetime mortgages (equity release loans to older home-owners) increased but the value of new lending fell in 2006, according to new survey information from the Council of Mortgage Lenders. This reflects a drop in the size of the average new loan from around £45,000 in 2005 to £41,000 in 2006.

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Report shows two-thirds of London new homes "bought by investors"

An independent report commissioned by Mayor of London Ken Livingstone has claimed that two-thirds of new homes in the London area are bought by investors, for sale or rent. The other third is comprised of owner-occupiers.

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Halifax report shows house price rise cooling

The latest figures on house prices from the Halifax show consistency with the pattern of recent months showing a cooling of inflation.

The monthly change in January was a rise of 1.3%, with annual change being 9.9%.

more info

Other News

Abbey research highlights sacrifices of first time buyers

Abbey has revealed the sacrifices people are prepared to make to buy their first home in new research published this week.

The research shows that Scottish buyers are least likely to move back with their parents, while those in the North East are least likely to give up alcohol.

First-time buyers would give up holidays, booze or move back with their parents, if it meant getting on the property ladder sooner, according to research from mortgage giant, Abbey(1)

The survey of potential first-time buyers showed that 53 per cent would give up their holiday, almost half (49 per cent) would abstain from alcohol and one in five (21per cent) would give up renting and move back in with their parents to save money.

Remarkably, one-in-ten (9 per cent), say they would even sacrifice their relationship/dating if they thought this would help. More worryingly, more than 2.9 million people would turn off their heating to help raise a deposit for their first home.

Homeowners placing 'entire savings in homes,' says research

Nearly two thirds (65%) of homeowners in a study of English mortgage holders store almost all their savings in one single asset - their own home - new academic research from Durham University suggests.

The researchers, funded by the Economic and Social Research Council and the Arts and Humanities Research Council, reported their findings to an international audience. They believe their work will fuel concerns that millions of homeowners risk losing billions of pounds if the value of the housing market were to drop or collapse like it did in the late eighties.

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Jo Turner