A weekly news summary covering all aspects of the housebuilding industry. Available to members only.
HBF News
Arrangements for HBF roundtable environmental summit proceed
Detailed arrangements for the HBF's roundtable environmental summit on 9 January gathered pace with the start of the New Year. The summit, to be jointly chaired by HBF Executive Chairman Stewart Baseley and Housing and Planning Minister Yvette Cooper MP, will bring together senior figures from the HBF membership with other key stakeholders, including the supply chain and regulators, to discuss the challenges and opportunities entailed in building new homes to zero carbon standards within ten years.
....and is attracting positive press coverage
Ahead of the summit, The Daily Express Property section led a full page story on low carbon housing on 5 January with reference to the summit and the HBF's perspective on the issues involved in achieving zero carbon homes within ten years. We are also pursuing other media coverage for the summit.
The Guardian prints HBF letter on protection of the green belt
On 3 January The Guardian printed the following letter from Stewart Baseley
commenting on a recent article that stated there had been progressive erosion of the green belt over 50 years.
"John Vidal's assertion that the green belt in England "has been eroded bit by bit for 50 years" is simply untrue (Now you see it, December 20). Green belt land, first established in 1955, now accounts for 1.7m hectares (4.2m acres), covering 13% of England's land area. By contrast, only 8.3% of England is classified as urban. Nor is there any short-term threat. Since 1997, the area of green belt land has expanded by nearly 2%, a total of some 12,200 hectares. It is not rural Britain that is at a point of crisis. It is Britain's housing
shortage. Seven out of 10 of today's 10-year-olds will not be able to afford their own home if rates of home building do not increase. For people who have just celebrated Christmas with their children, this is a sobering thought. Unless thingschange, they could be hosting their Christmases for a long time to come."
Government News
Yvette Cooper renews her call for radical action on carbon
In a New Year statement on the need for radical action to help tackle climate
change, Housing and Planning Minister Yvette Cooper said, "Whether it be turf on the roof, wind turbines in the garden, heat pumps below the basement or micro boilers, the homes of the future will need to be powered in a completely different way.
"We need to develop the technology to support our Victorian terraces and sixties tower blocks as well as our new homes."
More
Defra launches online guide to greener living
The Department for the Environment, Food and Rural Affairs (Defra) has launched a new online guide to greener living on Directgov. The Government said it is also developing a carbon calculator to help people find out how much carbon they emit annually. The greener living guide includes advice on action that can be taken in the home, shopping, travel, food and drink, waste and recycling, energy and water saving. Environment Secretary David Miliband said, "Providing a reliable, easy to understand online resource is one way to help people find out about what they can do to tackle climate change...This online guide provides information to help people who want to take action to make informed choices - not lecture them about what they should do."
More
Political News
Conservative Party sets up taskforce on Community Land Trusts
The Conservative Party announced that it is establishing a new taskforce to
investigate how to extend the use of Community Land Trusts as a means of helping first time buyers and cited Marin Luther King as one of the visionaries who had pioneered such forms of housing provision. Shadow Minister for Housing Michael Gove MP is to lead the taskforce with the aim of reducing housing costs for first-time buyers under such arrangements by up to half by taking the cost of land out of the sales price for purchasers. Commenting, Mr Gove said, "The sad fact is that the dream of home ownership is literally that - a dream - for too many who cannot ever imagine finding the money for their first deposit on a flat or house. But we believe that by following the example set by visionary pioneers such as Dr King, that dream can become a reality for many more."
More
....and HBF comment
HBF were asked to comment on Mr Gove's announcement on BBC Radio Four's World at One programme on 2 January and also issued a press statement. In this statement HBF Executive Chairman Stewart Baseley said:
"Given the scale of the housing supply crisis, it is sensible to look at all options for improving the position - particularly for those who are finding it difficult to enter the market for the first time.
"The paramount national need is for more land to come forward for housing
development so that the home building industry can provide the additional homes that are needed. The possible role of Community Land Trusts must be judged in relation to this overriding requirement.
"Mechanisms such as Community Land Trusts will need to complement rather than compete with the mainstream land market and getting this relationship right will be critical. Careful assessment of the role of Trusts and how they might work will therefore be needed to ensure that they genuinely provide an additional means of improving housing supply, supplementing what the industry is already doing."
Housing Market
Land Registry report November house price movements
The Land Registry has issued its latest monthly revision of its house price index. This shows that the average price of homes sold increased by 0.6% in November, bringing the national average price reported to £172,000. The annual rate of increase stands at 6.8% following November's figures. The Registry commented that "The growth rate remains firmly positive. The November monthly growth rate is approximately twice the size of the average monthly growth in 2005."
More
Number of first time buyers hits 26 year low
The Halifax's First Time Buyer Annual Review 2007 shows that the average house price paid by a first time buyer (FTB) pushed through the £150,000 barrier for the first time in 2006. The average price increased by 11% in 2006 to £151,565 from £137,122 in 2005. Over the past five years the average house price paid by a FTB has almost doubled, rising by 95% from £77,914 in 2001. As a result the number of first time buyers is estimated to have fallen by 7% in 2006 to 315,000 from 340,000 in 2005, the lowest annual total since 1980. The least affordable town for a FTB in the UK is Gerrards Cross in Buckinghamshire where the average property price is 16.7 times the
average income of a FTB household.
More
The majority of economists believe house prices are sustainable
The Financial Times reported on 2 January that the majority of economists (30 out of 41) it had approached now believe house prices are sustainable at current levels.
This contrasts with two years ago when three-quarters of those surveyed thought a housing market downturn was a serious risk for the economy.
....On the other hand...
The Financial Times reported on 4 January that leading estate agent Henry Pryor, founder of property website prime-move.com, had called the top of the property market, claiming an influx of sellers "motivated by greed" is increasing the supply of homes for sale and creating a vicious circle that will send prices lower in 2007.
Henry Pryor, was reported as saying people are looking at the prices their
neighbours are getting for their houses and deciding to follow suit. "They are
saying, 'we should cash in our chips'. We may look back and say the fourth quarter of 2006 was the peak". Mr Pryor gave similar views to BBC Radio Four's breakfast business news on 5 January.
Consultation/Key Publication Dates
Code for Sustainable Homes:
Final document launched 13 December 2006
Implementation Spring 2007
Building a Greener Future (zero carbon homes consultation)
Closes 8 March 2007
Draft PPS on Climate Change Consultation
Closes 8 March 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
DTI/Ofgem Call for Evidence for the Review of Barriers and Incentives to Distributed Electricity Generation:
Closed 2 January 2007
Part B of Building Regulations:
Approved Document published 19 December 2006
Implementation April 2007
Proposals for Water Regulations published 13 December
Consultation closes 9 March 2007
Full HBF Events Calendar
Review Latest Press statements
John Slaughter