Weekly News Summary December 21 2006

21 December, 2006

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

HBF News

HBF submits legal opinion on habitats regulations to SE RSS

HBF has submitted the legal opinion obtained from Robin Purchas QC on the

interpretation and application of the habitats regulations to the Thames Basin

Heaths Special Protection Area to the Examination in Public of the SE Regional Spatial Strategy. The opinion concludes that Natural England's draft delivery plan "appears to be unsound". In a press statement, HBF Executive Chairman Stewart Baseley said:

"The current deadlock threatens the viability of many home building and associated businesses based in the Thames Basin - with clear consequences for many hundreds of jobs. It also puts at risk 40,000 new homes over the next ten years - including 12,000 units of affordable housing - in a region facing the country's worst affordability problems outside London.

"After demonstrating that the ecological basis of the Draft Delivery Plan is

unsound, it now seems that its legal position is flawed. There is now an extremely powerful case for the Government and other parties immediately to ease the current restrictions on new housing in the Thames Basin Heaths area."

HBF has also written to Ministers seeking an early review of the position in the

light of the legal opinion.

HBF sets out its position on climate change on national radio

HBF was invited to take part in two major national radio programmes focusing on climate change and environmental issues this week. On Tuesday afternoon Executive Chairman Stewart Baseley took part in a live discussion on the Radio Five Live Simon Mayo show and on Wednesday Director of External Affairs, John Slaughter, joined a discussion on Radio Four's "You and Yours" programme. Both invitations provided a good opportunity to set out the industry's approach and highlight some of the issues that need to be tackled in moving towards the objective of zero carbon homes. 

Government News

Part B changes announced

The Government has announced details of revisions to Part B of the Building

Regulations dealing with fire safety. The new Approved Document B will come into force on 6 April 2007.  Commenting on the announcement, the DCLG Minister responsible, Angela Smith MP, said:

'This package represents better, more focussed regulation that will deliver real benefits for both occupants and fire fighters alike. Indeed the review that led to the changes looked at fire safety in all types of premises including dwellings, residential care homes, public buildings and warehouses. It also considered the important role sprinklers and other types of fire protection measures may have, particularly in buildings where the occupants are most at risk from fire.'

More Information

Government responds to Panel Report on East of England RSS

In its response to the Panel Report on the draft East of England RSS, the Government has proposed a 30,000 increase in the total housing allocation for the region to 508,000 for the period to 2021 - more than the panel had recommended. It has also said that this allocation should be seen as a minimum rather than a cap. Although there will now be further consultation it is unlikely the position will change again. In a press release, the East of England Regional Assembly expressed concerns about the higher housing numbers and infrastructure funding. Chair of the Assembly's Planning Panel, councillor John Reynolds, said:

'The immediate message that the Regional Assembly will be sending back to Ministers is the need for clear guarantees about how new infrastructure and public investment will be provided. On transport, the Government has listed large parts of the region facing significant transport pressures, without setting out how these will be tackled.'

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DCLG responds to Select Committee report on the Planning-gain Supplement

The Department for Communities and Local Government has responded to the recent report by the Communities and Local Government Select Committee on PGS. The Government's response does not advance beyond its position in the consultation papers published in the Pre-Budget Report, but does confirm the importance attached to discussion of issues such as transition, pre-clearance and the impact on land supply.

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Housing Market

RICS see housing market resilience

In its November UK Housing Market Survey, RICS said house price inflation had reached a plateau, although market conditions remained strong. 47.4% more Chartered Surveyors reported a rise than a fall in house prices, down from 47.7% in October, but still more than double the long run average of 21%. Completed property sales rose by 20% year on year, the biggest gain since March 2002 while stocks of unsold property remain at the lowest level since August 2004. RICS spokesman, Jeremy Leaf, said:

"The Bank of England's rate rises have failed to dent the housing market's armour. Strong employment conditions and a robust economy continue to shield the market from any dip. "While concerns remain about high consumer debt levels, households still view their finances as strong. A further interest rate rise in the new year may have a mid-term effect. We expect house prices to rise by 7% following a 9% jump in 2006.

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While CML are also optimistic and hit borrowing high

The CML expects prices to rise by 7% in 2007 and 5% in 2008.  However, their expectation is that rising prices will stretch affordability even further, so the CML expects property transactions to fall from 1.19 million in 2007 to 1.13 million in 2008.

http://www.cml.org.uk/cml/media/press/1045

The CML also announced that gross lending hit an all time record of £33.1 billion in November according to their latest data. Lending was 9% higher than the October figure of £30.5 billion, and 19% higher than the £27.7 billion of lending in November last year. It was 0.2% higher than the previous record set in August of £33 billion.

CML Director General Michael Coogan said:

"The housing market is undoubtedly in robust shape as we move towards the New Year. Not only is today's lending figure the highest ever, our recently published forecasts suggests lending will beat our previous predictions for the coming two years.

"Looking ahead, mortgage lending looks set to remain seasonally strong over the winter months, reflecting a continuing high level of transactions and house price growth. As for 2007 as a whole, we expect to see gross lending total around £360 billion - another record breaking year."

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