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5th May 2008
Bellway to merge with Redrow.
Bellway has approached rival Redrow with plans for a £1.3 billion merger deal. It is thought the deal has been prompted by the credit crunch on business.

On Friday 2nd May 2008, Bellway had a stock market value of £824 million building 3252 homes last year, Redrow valued at £421 million built 2111 homes last year. Redrow has a larger landbank at 25,750 plots compared to Bellway’s 23,000 plots. The merger, if it goes ahead, would propel the new combination to number two; behind Persimmon Homes and ahead of Taylor Wimpey which merged just last year and Barratt who acquired David Wilson Homes also last year.

5th May 2008
Repossessions set to increase.
Mortgage lenders are braced for a 67 surge in repossessions this year.

New figures from the Ministry of Justice out on Friday are likely to show marked increase in court orders for repossessions.

In 1991 142,905 orders were made, falling gradually to a recent low of 41,038 in 2003. Last year the figure stood at 95,374 and the trend is definitely upwards.

2 May 2008
House Builder’s shares on freefall.
The main national house builder's shares have fallen further over the last two weeks.

Persimmon announced that it was suspending all new developments and restricting works on existing sites. Unsold plots are now being held at key stages, roof, drylining etc until they are sold.

From their 52 week high, the main builders shares have fallen as follows:

Taylor Wimpey.. 52 week high was 540 now 127.5 a fall of 76%.
Barratt............... 52 week high was 1136 now 269.5 a fall of 76%.
Persimmon....... 52 week high was 1443 now 582 a fall of 60%.
Berkeley............ 52 week high was 1650 now 951 a fall of 42%

29 February 2008
HIPS required for all new homes.
Energy Performance certificate will be required on every plot completed after 6th April 2008. A HIP will be required on every new home first marketed after 6th April 2008.

On 1st May 2008 mandatory ratings against Code for Sustainable Homes for new homes in England comes into effect. The Code was introduced in December 2006 as a voluntary national sustainability standard. It’s aim was to reduce carbon dioxide emissions and tackle climate change, by providing clear information on the sustainability of a new property for comparison and give a framework for builders to go further and quicker than the current Building regulations require.

The NHBC’s website confirms that:
“The mandatory rating does not require a formal Code assessment to be undertaken nor any particular Code level to be achieved.
It does require Developers to 'declare' the rating of a new home, which can be done without an assessment, by using a nil-rated certificate instead.

However, there are other requirements to achieve a certain rating, such as:
- Housing Corp grant-funded Social Housing
- Developments on English Partnerships land
- Potential Planning requirements
These generally require a minimum of Code level 3 to be achieved”

In summary, if the planners or development partners don’t insist on it, developers can use a NIL rating to comply. So much for reducing red tape Mr Brown!

The legislation requires that either a Code sustainability certificate (where the home has been designed and assessed against the Code), or a Nil-rated certificate (where a home has not been assessed against the Code) must be included in the home information pack. Buyers have a right to ask for it. The only enforcing authority will be the Local Trading Standards.

29 February 2008
Nationwide House Price Index shows fall for fourth month in a row.
Figures just released from Nationwide confirm that house prices continue to fall. The latest figures show a fall of 0.5% in February. This is the fourth consecutive monthly fall and house price inflation is now at its lowest rate since November 2005. Nationwide confirm the trend in prices is definitely weakening with the average house price now £179,358.
For more information Click :
http://www.nationwide.co.uk

19 December 2007
“Moderate housing growth” says NHBC
A total of 44,316 new homes were completed in three months August to October a 5% increase on the corresponding period in 2006 according to NHBC statistics.

This comprised of 37,093 private sector homes, a 3% increase on 2006 and 7,223 Housing Association completions for the same period an increase of 20% on 2006.

The year-to-October completions total 149,127, up just 1% on 2006 (147,082).

22 November 2007
The Callcutt Review of Housebuilding Delivery was published today.
The purpose of the Review was:
1) To examine how the supply of new homes is influenced by the nature and structure of the housebuilding industry, the business and the supply of land, materials and skilled labour.

2) To consider how these factors influence the delivery of new homes to achieve the Government's target of 200,000 new homes per year, meeting housebuyers' needs and expectations, achieving high standards of energy efficiency and sustainability as set out in the Code for Sustainable Homes, and progressing to a zero carbon standard; and

3) To make recommendations.

To download a PDF of the review publication go to:
www.callcuttreview.co.uk

22 November 2007
Home information packs extended to all homes from 14th December 2007.
All homes marketed for sale from 14 December 2007 in England and Wales will now need a Home Information Pack (HIP). This includes 11 and 2 bedroom homes which had been previously exempt.

The NHBC sought clarification from the Department for Communities & Local Government that new homes properties being built to 2006 Part L Building Regs will NOT require a HIP from housebuilders until 6 April 2008.

8 November 2007
House Prices continue to tumble.
The Halifax House Price Index showed house prices down for the second month running. Last month prices dropped 0.5% compared to a 0.6% monthly fall in September. The report says “this continues the steady downward trend experienced since the end of 2006”

Activity is also declining with mortgage approvals falling by 6% in September. The new buyer interest in purchasing a new home fell for the tenth month in a row, further evidence that buyers are more cautious in the slowing market.

To see the full report click here


26 October 2007
Energy performance Requirement for new homes put back!
Is this Hips all over again? Just after the announcement was made for the requirement of individual energy assessment on completion; for all newly-built homes in England and Wales which was due to come into effect on 1 January 2008, an announcement has just been made by CLG that the implementation of the EPBD for 'On Construction' will be postponed until 6 April 2008, along with other changes!

Could this be because 1 January is too close to the majority of house builder’s end of year?

20 October 2007
Energy Performance Requirement for new homes
Currently, the Building Regulations require energy ratings for new dwellings to be assessed on a worst case basis. From 1 January 2008, there will be a requirement for every new home to be individually assessed when physically completed, and an Energy Performance Certificate must be given to the homeowner, with evidence provided to the building control body. This change comes as a result of the Government's implementation of the European Performance of Buildings Directive (EPBD), which applies to all dwellings completed from 1 January 2008, irrespective of Building Regulations used.

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