A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
Government News
Towards a zero-carbon future
Communities Secretary Ruth Kelly launched a challenging package of measures designed to help to reduce carbon emissions and bring innovation to the building industry, at an event hosted by WWF on 13 December in London. HBF Executive Chairman Stewart Baseley was invited to join the panel to give the industry's response to the proposals.
The Government's aim is to put tackling climate change at the heart of the planning system and the way new homes are built following the Chancellor's announcement last week that all new homes will be zero carbon by 2016. The overall strategy, is setout in the consultation document Building a Greener Future: Towards Zero Carbon Development. The package of measures includes:
a framework for progressively tightening building regulations to reach "zero carbon" standards by 2016 by increasing energy efficiency and bringing forward alternative forms of energy supply;
the publication of the Code for Sustainable Homes, which aims to increase the environmental sustainability of new homes more generally and give homeowners better information about the sustainability of their home.
The Code sets out a star rating from one to six (with six being the most
sustainable) which can be applied to all new homes. From April 2008, after learning from the voluntary phase, the Government intends to propose that all new homes should be required to have a mandatory Code rating, indicating whether they have been assessed and the performance of the home against the Code; and * a draft Planning Policy Statement on climate change, which expects planning strategies to be tested on their carbon ambition and, in providing for new homes, jobs and infrastructure needed by communities, shape places with lower carbon emissions and resilient to climate change. The PPS expects new development to be located to optimise its carbon performance and make the most of existing and planned opportunities for decentralised, renewable and low-carbon, energy supplies.
Simplification of the building regulations more generally.
A consultation on introducing new water efficiency standards to the building regulations.
In addition, Ruth Kelly said that she has asked John Callcutt, Chief Executive of English Partnerships to take on a new role, working with industry, to improve housebuilding delivery in a low carbon environment.
The HBF has welcomed the Government's environmental vision on housing.
Speaking alongside the Secretary of State for Communities and Local Government, the Rt Hon Ruth Kelly MP, Stewart Baseley said:
"We welcome the challenge made by the Chancellor last week to build all new homes to carbon-zero standards within ten years, and we look forward to examining closely the detail of this package of measures. Higher standards will be achieved most effectively through a framework in which Government sets clear objectives, industry is given the space to deliver and consumers are on board."
Acknowledging "the role that the industry can and must play in delivering a more sustainable environmental future for this country", he outlined the key parts of the framework that would provide "the shortest and most effective route" to delivering higher standards:
1) All stakeholders need to be involved - from regulators to suppliers, NGOs to utility companies. Home builders alone cannot deliver carbon-zero homes.
2) Targets need to be expressed as clearly and simply as possible - everyone needs to agree what we are measuring so that we can understand what success is. This includes avoiding a multitude of different local authority targets.
3) Government needs to stand back - allowing industry the space to do what it does best - change, adapt and innovate. The Government must avoid the temptation to tinker, to interfere, to intervene unnecessarily. This also means resisting too many interim targets which can deviate from the achievement of longer-term goals.
4) Customers need to be on side - changes and innovations need to be practical and desirable.
On 9 January, the HBF will be holding an environmental roundtable summit with key stakeholders to begin determining the detail so that the right results can be delivered for all stakeholders. Yvette Cooper MP, the Minister for Housing and Planning, will join Stewart Baseley in co-chairing the event.
The closing date for both the consultations is 8 March 2007 and the documents can be found on the DCLG website:
Building a Greener Future
Planning and Climate Change
The Code for Sustainable Homes
HBF will be reviewing the consultation documents and reporting back to members and also aims to set up a working party to look at these issues and form an industry response to the consultations. If you would like to volunteer to take part in this group please email sian.lewis@hbf.co.uk.
HBF Briefing
New standards for water efficiency in new buildings
Proposals for minimum standards of water efficiency in new homes and new commercial buildings in England and Wales are published for consultation this week.
This meets the commitment made by Government Ministers earlier this year to bring forward proposals to underpin the voluntary standards for water efficiency in the Code for Sustainable Homes.
Angela Smith, Minister for Sustainable Buildings said:
"This is an important step in transforming the way we use water in the home and the workplace. By installing products such as low flush toilets and water efficient taps in new homes we could reduce household consumption by 15-20 per cent. There will be equivalent savings in new offices and shops from reductions in the everyday uses of water there.
"These are relatively cheap and effective ways to reduce water demand. These regulations will ensure that water efficiency becomes the norm in all new homes and workplaces".
The consultation seeks comments on the Government's proposals in five areas:
Whether a performance standard for the water efficiency of a whole building is
preferable to setting standards for categories of fixtures and fittings to meet the objectives;
What the level of performance standards should be to support transformation of the market for water efficient fixtures and fittings;
Whether additional measures are needed for high water use fixtures and fittings;
Whether the Building Regulations are the right mechanism for delivering these changes; and
Whether and how we should set performance standards for residential institutions,such as hospitals or schools.
The consultation will last for 12 weeks and will close on 9 March 2007.
More Information
DCLG housing statistics 2006
The DCLG have published the annual 2006 compendium of statistics, covering all aspects of housing including the following highlights:
Over 163,000 new dwellings (excluding conversions and change of use) were
completed in England during the financial year ending 31 March 2005, a rise of five per cent on the previous year. This is the fourth consecutive year where there has been a significant increase over the previous year. Overall there has been a 25 per cent increase since 2001-02.
Overall, the total stock in England rose to 21.8 million, with 1.5 million of
those being added over the past 10 years. Seventy per cent (15.4 million) of all dwellings were owner-occupied, and eighteen per cent (4 million) were rented from a local authority or registered social landlord. The remainder - 2.5 million - were rented privately. Over 1.6 million more dwellings are owner-occupied than in 1995.
House prices continued to rise in 2005, though at the slowest rate since 1996.
House prices in England rose by an average of five per cent in 2005. The three northern regions (North East, North West and Yorkshire and The Humber) and the two Midlands regions (East Midlands and West Midlands) were above this average. The greatest percentage change was in the North East (11 per cent). The rest of the country saw increases of between two and four per cent in 2005. The rate of increase was lower than in 2004 in all regions.
House price increases continue to impact on first-time buyers. Of all first-time
buyers who bought with a mortgage during 2005 in the UK, nineteen per cent were under the age of 25 - compared to twenty-four per cent in 1995. However this is an advance on the 16 per cent recorded in 2003. The proportion of all mortgage advances of £100,000 or more in the UK was at 55 per cent in 2005, compared to six per cent in 1995.
The number of new cases of homeless households had its lowest quarter since the 1980s, with under 19,500 cases between April and June 2006. An overall downward trend has followed the recent peak in 2003. The number of households in temporary accommodation fell below 100,000 in the last quarter of 2005, and in the 2nd quarter of 2006 was at 94,000, its lowest point since early 2003.
Results from the Expenditure and Food Survey (EFS) showed that, on average,general housing expenditure (including rents and mortgage payments but excludingcapital payments other than those under repayment mortgage) accounted for 19 per cent of household disposable income. On average for those who have a mortgage, this accounted for just over a quarter of their income.
HBF News
HIPs update meeting with DCLG
A follow up meeting was held this week with DCLG to discuss the HIPs legislation due to come into force on 1st June 2007. With members' assistance HBF compiled a series of questions for debate at the meeting, with a major focus on the detail of the Energy Performance Certificates (EPCs). DCLG have taken on board many of areas discussed and HBF will be issuing the questions and answers to members very shortly as a guidance note.
The postcodes for houses eligible for the Government incentives to trial the packs are:
Newcastle. (NE1 - 13, NE27 - 36 and NE98)
Northampton. (NN1 - 5, NN8 and NN9)
Huddersfield. (HD1 - 9)
Southampton. (SO14 - 19)
Cambridge. (CB1 - 5)
Bath. (BA1 - 3, BS31, BS39 and BS40)
HBF members can get involved in the trials by contacting: Chris O'Dea, Dry-run Manager, Home Information Pack Programme 0207 944 4400 ext 19511
Chris.ODea@communities.gsi.gov.uk
Get ready for CIS - Book your place at HBF CIS seminars
The CIS scheme will change on 6 April 2007. Plastic CIS cards will cease to be
valid, there will be no CIS 23s, 24s, 25s and there will be two rates of tax to
deduct, 20% and 30%.To advise on this HBF will be running two morning seminars on Monday 13 February in York and Tuesday 14 February in Central London. Liz Bridge, Head of Tax at the Construction Confederation and tax advisor to HBF will talk through the changes and will explain where the pitfalls may lie and how to avoid the most obvious ones! There will be opportunity for those attending to ask questions and to discuss the preparations for 6 April 2007.
If you would like to book a place on one of the seminars click the link below for further information and a booking form. Alternatively you can email
events@hbmedia.co.uk
Download more information and booking form
Housing Market
RICS UK Housing Market Forecast 2007
RICS expects UK house prices to grow by 7% and affordability and accessibility for first time buyers to continue to worsen in 2007.
Predicting a small slowdown from this year's 8% growth rate, RICS expects activity to remain high with demand outstripping supply.
The Bank of England's two recent interest rate hikes, coupled with another possible interest rate rise to 5.25% in the coming months, RICS believes will help cool the market in the new year, although conditions will remain healthy.
More information
NAEA report seasonal Christmas slowdown
Members of the National Association of Estate Agents (NAEA) noted a seasonal downturn in activity in the property market during November, as buyers and sellers concentrate on the festive period, rather than home moves. The number of buyers on estate agents books decreased, as did the number of properties available for sale.
The average asking price dropped from £226,768 in October to £211,041 in November 2006. Sales were also down on figures reported in October, but at a level with those reported in November 2005 as the start of a traditionally slow period in estate agency begins.
Encouragingly, the percentage of first time buyers - although down slightly from last month - was up significantly from the same time last year.
More information
Halifax report house price rise for November
House prices rose by 1.7% in November according to Halifax, whilst at the same time they have reported some signs of a likely cooling in housing market activity over the next few months.
More information
Economic News
CBI forecasts stronger growth in 2007
In the latest CBI quarterly economic forecast, UK economic growth is expected to be 2.7% in 2007, up from 2.6% in 2006. However, in 2008, growth is set to slow to a slightly below trend rate of 2.5%. Inflation is expected to peak at 2.8% in the first quarter of next year, before falling back and dipping below the Bank of England's 2% target by early 2008. This and the more subdued outlook for growth in 2008 may leave room for a quarter point cut in interest rates in the autumn of 2007 in the CBI's view.
Other News
Capability Review published
The Capability Review of the DCLG has been published this week as part of a wider drive to ensure that the civil service has the skills and capacity it needs to meet the rising expectations of public service delivery. The report highlights four key strands of action:
To lead and enthuse partners in creating successful communities and services
To base policy making and delivery consistently on evidence
To sharpen delivery focus and ensure that there are strong performance management systems and skills
To manage its staff effectively and ensure DCLG has the critical skills it needs.
More information
We will send you a short review of news in the middle of next week if there is
sufficient to report. Otherwise the normal Weekly News Summary will resume in the New Year.
We will not be sending traditional Christmas cards this year but will be supporting Habitat for Humanity with a Christmas donation.
HBF offices will be closed for Christmas from close of business on Friday 22nd
December and will re-open on 2nd January 2007 With our best wishes for Christmas and the year ahead.
Announcement 13 December 2006
Implementation Spring 2007
Home Information Packs (HIPs) Regulations:
Revised regulations published 14 June 2006, further revisions required
HIPs Trials November 2006 onwards
HIPs Introduction 1 June 2007
Planning-gain Supplement:
Consultation begins 6 December 06 and ends 28 February 2007
Planning and Pollution Control:
Consultation Closes 6 December 2006
DTI/Ofgem Call for Evidence for the Review of Barriers and Incentives to Distributed Electricity Generation:
Closes 2 January 2007
Part B of Building Regulations:
Document expected December 2006
Implementation April 2007
Water Regulations Consultation Document:
Expected December
View HBF Events and Meetings
Review latest press statements
HBF offices will be closed for Christmas from close of business on Friday 22nd December until 2nd January 2007
Jo Turner
Marketing Manager