A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
Government News
Chancellor sets out 10-year timetable for zero-carbon homes
In the Pre-Budget Report on Wednesday, the Chancellor stated that a ten-year timetable for all new homes to be zero-carbon will be announced next week by Ruth Kelly. This will be combined with a stamp-duty exemption for almost all zero-carbon homes for a limited period.
In addition to further consultation on the Planning-gain Supplement (PGS), the Chancellor also announced plans for “designating new brownfield sites that will raise the number of new homes on surplus land to 130,000,” alongside plans to consult on the creation of an independent planning body as outlined in the Barker Review on Land Use Planning published earlier in the week.
In a press statement responding to the Chancellor’s announcement on zero carbon homes, HBF Executive Chairman Stewart Baseley said:
“Home builders want to help people cut their carbon emissions. In principle we welcome the setting of a timetable for all new homes to be zero carbon. We hope that ten years is the right timeframe. The challenge is to ensure that consumer behaviour adapts to zero carbon living, that all homebuilding companies have the right capacity, and that the Government sticks to its existing housing supply targets."
“The stamp duty exemption could provide the impetus to help home builders respond to changing consumer demands. We hope that this incentive will not be too short-lived.”
This statement and other HBF comment was widely reported by the national press on 7 December
The HBF will continue to lead work to achieve agreement on a clear definition of what a zero-carbon home is and to understand better the challenges to consumers, industry and the Government. At the Housebuilding 06 conference Stewart Baseley set out his vision of the framework needed. Stewart Baseley and Housing and Planning Minister, Yvette Cooper, will also co-chair a stakeholder summit in the New Year to advance understanding on these issues.
Summary of the pre-budget report: More>
HBF has issued a briefing to members on the pre-budget report
To download a copy (members only): Click Here
NHBC welcome the Chancellor’s ambition for all new homes to be carbon neutral
NHBC also welcomed the Chancellor’s ambition for all new homes to be carbon neutral within ten years, but cautioned that the industry will face many challenges if it is to get there.
In a statement, NHBC Chief Executive, Imtiaz Farookhi, said: “The Chancellor’s decision to promote carbon neutral homes through the potential exemption from Stamp Duty is a bold move and the challenge will be to ensure that any changes in construction technology and materials arising are carefully managed to ensure high standards and consumer protection. Ultimately any changes in these areas, whilst meeting policy objectives, must be for the benefit of the individual house purchaser”
Planning-gain Supplement consultations published
With the Pre-Budget Report on the 6 December, the Government has published three consultation documents on the proposed PGS. The three documents are Valuing Planning Gain; Paying PGS; and Changes to Planning Obligations.
In a press statement responding to the Chancellor’s announcement on the proposed Planning-gain Supplement (PGS) Stewart Baseley, HBF Executive Chairman said:
“Britain needs more new homes. The jury is still out if the Planning-gain Supplement (PGS) will help or hinder the Government meet its target of 200,000 homes per year by 2016. We agree that the provision of adequate infrastructure is imperative for new housing developments. We are also pleased that the Chancellor has listened to the concerns of the industry in allowing further time for consultation over the proposed Planning-gain Supplement.
“We welcome the assurance that schemes with extant planning permission will be exempt from the PGS, although we would like to see this extended to schemes in the planning pipeline.
“We are grateful that the Government is consulting further on the more complex aspects of the proposals. It is vital for the housing industry that a stable and predictable fiscal regime is implemented, in order to provide the best possible environment for developers to build the new homes which the country so desperately needs.”
The deadline for all three consultations is 28 February 2007. HBF will be consulting with members as it prepares its submissions.
Paying PGS: a PGS Technical Consultation
Valuing Planning Gain: a PGS Consultation
Changes to Planning Obligations: a PGS Consultation
Barker sets out proposals for planning system fit for 21st century
Kate Barker has published her final report on the Land-use Planning System in England which includes setting up an independent Planning Commission for major infrastructure projects and cutting the amount of time taken to develop local plans.
The report highlights the vital role planning needs to play to deliver sustainable economic development and makes recommendations to improve the responsiveness, efficiency and transparency of the planning system so that it can fulfil its potential. Speaking on Tuesday she said:
"The planning system has a profound impact on our quality of life, but the current system will come under increasing pressures in the coming decade. Building on recent reforms, the recommendations in my report provide a comprehensive set of measures to ensure we have a planning system that is timely, transparent, flexible and responsive enough to meet the challenges that lie ahead.
"Businesses, residents and others want a system that can continue to secure economic prosperity alongside vital social and environmental goals. I believe this reform package, if enacted, can help create this world-class planning system."
Ruth Kelly, the Secretary of State for Communities and Local Government will set out in a White Paper in spring 2007 the Government's response to Kate Barker’s recommendations as well as Rod Eddington's proposals for reform of major transport infrastructure planning.
HBF has welcomed Kate Barker's package of proposals as a balanced and positive approach to achieving sustainable development.
Commenting in a statement on the report's recommendations, HBF Executive Chairman Stewart Baseley said:
"We strongly welcome many of Kate Barker's final proposals.”
“The HBF has consistently highlighted the difficulties faced by home builders in delivering the increase in the number of new homes that is necessary to meet our national requirements and build economically and socially successful communities.”
“The amount of land coming through the planning system annually for residential development has fallen by some 10% in recent years and the supply of new housing is as a result falling short of needs by some 50,000 each year.”
“We have also drawn attention in our own recent research to the need to improve the efficiency of certain aspects of the planning process so that developers can invest with greater certainty and deliver agreed housing schemes more quickly.”
“Kate Barker addresses all these issues and sets out a strategic vision of how we can create a simpler, more efficient and positive planning framework to bring forward desirable new development. We agree that planning has an important role to play and that it should be focused on facilitating outcomes that will enhance national welfare - including the realisation of major projects."
HBF will be preparing a paper outlining key issues and recommendations from the Barker Report which will be issued to members in due course.
Treasury Press notice
Full Barker II report
CPRE voice concern over increased development from Barker
Countryside campaigners CPRE urged the Government not to undermine the planning system's critical role in protecting the countryside and the environment following publication of the Kate Barker Review.
CPRE Chief Executive Shaun Spiers said: 'We fear that some of her recommendations, if implemented, would speed up the rate at which new development sprawls over the countryside - to the detriment of us all.
'Green Belts have never been entirely sacrosanct, nor should they be - but they are one of England's most effective, best known and most popular planning tools. Kate Barker has recommended widespread reviews of Green Belt boundaries, and has proposed that the countryside within them can be improved in return for allowing some development on them.
'We do need to improve the quality of some Green Belt land, but the primary role of the Green Belt is to prevent sprawl by keeping land open and undeveloped. We'll be demanding that any changes to Green Belt boundaries and policy are strictly limited, fully justified and offer a very clear, overall environmental gain.'
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Ensuring appropriate development in flood risk areas
A new Planning Policy Statement was published yesterday by the Government to help provide clarity for regional and local planners and other stakeholders on preventing and managing flood risk in new developments.
Planning Policy Statement 25: Development and Flood Risk (PPS25) strengthens and clarifies policy that flood risk should be taken into account at all stages of the planning process. It directs councils to avoid inappropriate development in areas at risk of flooding. It is published alongside a flooding Direction, which provides scope for greater scrutiny for major developments in flood risk areas.
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Economic News
Bank of England votes to keep interest rates on hold
The Bank of England's Monetary Policy Committee voted on 7 December to maintain the official Bank Rate at 5.0%. The last change was a 0.25 percentage point increase on 9 November.
Pre-budget report outlines economic growth
The Treasury expects economic growth to accelerate to 2.75-3.25% in 2007 from 2.75% in 2006. CPI inflation is expected to return to target (2.0%) during the second half of 2007.
Data released this week indicates slowing growth says CBI
Data released this week indicates slowing growth in the manufacturing
sector and in take home pay, according to the CBI:
The November Voca take home pay index fell to 2.6 per cent from 3.3 per cent in October. The annual growth rate of take home pay has halved in just four months from 5.2 per cent in July. This is the lowest rate for two years and presents a downside risk to disposable income growth and consumer spending.
Manufacturing output in October fell on a monthly basis for the first time since April. The smoothed rate of growth (3m/3m) fell to 0.3% (from 0.6% in September), the lowest since January.
Falls in output in the mining and quarrying and utilities sector meant the index of production fell, with the smoothed rate of growth negative for the first time this year.
New DTI figures show eight per cent Construction Order rise
Orders in the twelve months to October 2006 rose by eight per cent compared with the previous twelve months, and orders in the three months to October 2006 rose by eight per cent compared to the same period a year earlier. Orders in the three months to October 2006 fell by six per cent compared to the previous three months, with increases in public housing, infrastructure and public non-housing orders being offset by decreases in private housing, private industrial and private commercial sectors. All orders figures quoted are seasonally adjusted and in constant (2000) prices.
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Halifax report 1.7% house price rise in November
Halifax have reported a 1.7% rise in house prices in November, although they have warned that signs are indicating that a cooling may take place in the coming months
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Housing Market
JRF research shows house price to income ratio at highest level
The Joseph Rowntree Foundations's latest annual analysis of the housing market covering every local authority area across Great Britain shows house-price to household-income ratios for working households have reached record levels.
Building on earlier studies produced annually since 2002, the report has analysed the long-term trends in housing market affordability.
House price to household income ratios for younger working households exceeded five to one in 78 areas - over twice as many as in 2004. In 51 areas, over two in five younger working households can afford a social sector rent without housing benefit but cannot afford to buy in the cheapest tenth of the housing market.
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Other News
House builders urged to enter the next round of Building for Life awards
CABE and the Home Builders Federation are calling for entries for the next round of Building for Life awards. Building for Life is the national benchmark for housing development in England, and the awards seek to recognise and celebrate schemes that demonstrate best practice in housing and neighbourhood design.
In the past four years, over 40 schemes have gained a Building for Life Standard award. John Slaughter, Director of External Affairs of the Home Builders Federation (HBF), said:
‘Any sized house builder, based in any area of England, can apply for a Building for Life Standard. The key to recognition is demonstrating a robust commitment to designing homes and neighbourhoods whose qualities make them sustainable. The new PPS3 emphasises design quality as an important aspect of planning policy for housing and the Building for Life Standard sets a useful and practical benchmark for all house builders to achieve this.’
For further information or to submit a scheme visit www.buildingforlife.org. The winning schemes will be celebrated at a ministerial-led seminar in September 2007.
CML reveals massive support for helping first-time buyers
More than six out of ten people believe that the Government should be doing more to make it easier for young people to buy their own home, according to the results of a YouGov survey released by the Council of Mortgage Lenders. More than half believe that it is now "more difficult than ever before" for young people to buy their first home.
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Carbon in all we consume - Carbon Trust launches new UK carbon footprint
The Carbon Trust today launched a new way of presenting the UK’s total carbon footprint based upon an analysis of the products and services that consumers use in their daily lives. The footprint was launched through a national newspaper advertising campaign and breaks down the UK’s 648 million tonnes of carbon dioxide emissions into eleven high level consumer needs, ranging from clothing and footwear to commuting and food.
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Consultation/Key Publication Dates
Code for Sustainable Homes:
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
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