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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.
14 September 2007
Northern Rock bailed out by Bank of England.
The country’s fifth largest bank was given an unconditional loan facility by the Bank of England to offset liquidity problems it is experiencing due to the recent turmoil on the international money markets. However this has led to a lack of confidence amongst the bank’s savers, who formed long queues to withdraw their savings. At midday on 15 September customers had withdrawn over £1 billion. The share price dropped 32% yesterday and is now considered a takeover target.
10 September 2007
HIPS extended to include three Bedroom houses.
From 10 September, all homes with three bedrooms or more will now require the controversial Home Information Pack or HIP. Hamptons the estate agents, are offering to organise and prepare a home information pack, for free however, you are tied to a sole agency agreement for up to twelve months.
30 June 2007
Channel 4 Dispatches Programme on new homes.
It was claimed on a recent Dispatches programme that house builders manipulated the planning process and influenced British politics. The new PPS3 which came in force in April this year, requires all Councils to follow the guidelines when making planning decisions. However, it was claimed that the House Builders Federation lobbied against the affordable homes provision and the social housing requirement and these were subsequently dropped and reduced.
It was also claimed that a builder in London falsified letters to the local Council “in favour of the development” for a site at Imperial Wharf in London. Peoples identities were used after a door to door survey by the builders lobbyist.
The programme also stated that there were records of at least nine instances where planning permission was given to a developer who had paid money to the political party that controlled the planning decisions, just prior to the planning application were considered.
It was claimed that the house builders are sitting on a landbank of 225,000 new homes and restrict development to maintain property price levels.
27 June 2007
Is a house price crash coming soon?
With many of the two year fixed-rate mortgage deals coming to a end and new deals likely to be 2% higher with larger arrangement fees of up to £2000 or higher, it is likely that up to two million homeowners will face increases in their repayments, by up to 30% by the end of this year.
With the Bank of England also likely to increase the base rate by a further 0.25% to 0.5% in the near future, many market commentators are forecasting a property price reversal of up to 30% if the base rate rises a further 1%.
Many borrowers have taken out 100% or higher mortgages and there is the distinct prospect of increasing negative equity - where a borrower’s home is valued less than their mortgage.
22 June 2007
The Office of Fair Trading announces “groundbreaking study into UK house building market”
The OFT is launching a market study into the £20bn a year UK housebuilding industry. The study will allow the OFT to consider the potential competition and consumer concerns within the market and will focus on two principal areas:
The delivery of housing - whether land which is suitable for development is being effectively brought through to the planning approval stage and whether land with planning permission is being converted effectively into homes, and
Customer satisfaction - the homebuyer’s satisfaction with the properties available.
The OFT has been monitoring the sector and is concerned that it may not be working well for consumers. Recent press coverage reported that it was believed that the larger housebuilders were sitting on large land banks in effect, waiting for property prices to rise further and, as a consequence, reducing the supply of available new homes, with the resultant shortage underpinning higher price levels.
This is the first in depth study of competition and consumer issues in the new homes industry and the study is due to be completed in summer 2008.
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