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HEALEY LAUNCHES DRIVE TO HELP ‘REPOSSESSION HOTSPOTS’
12 October 2009
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John Healey
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Housing Minister, John Healey has launched a fresh drive to help struggling homeowners in ‘repossession hotspots’ get a grip on their finances and save their homes.
Twenty-two hotspot areas are being targeted as having a higher risk of repossessions, due to high levels of unemployment and the number of court orders.
Advertisements highlighting the range of Government support available to homeowners will appear in local newspapers, online and on billboards. It is the second stage of the national Mortgage Help campaign John Healey launched last month.
Concerned homeowners can go to www.direct.gov.uk/mortgagehelp or call the National Debtline free on 0808 808 4000, where they can get impartial advice, find out the steps they can take to keep their home and prepare an action plan to tackle their own finances.
Healey said: “The worst thing anyone facing money worries can do is bury their head in the sand. We’ve seen recent drops in the numbers of repossessions – but I know the threat will remain high throughout next year and I want people to have the help they need.
“Over 300,000 people have benefited from the range of Government support available at every step of the way, from free debt advice to help with mortgage interest payments and, for the most vulnerable, the Mortgage Rescue Scheme. I want other struggling homeowners to follow in their footsteps, go to our website or make that call to the debtline for details of the comprehensive range of support that’s available.”
The 22 areas thought to have a higher proportion of homeowners at risk from repossession are: Barking and Dagenham, Corby, Knowsley, Salford, Newham, Walsall, Redditch, Halton, Sandwell, Wolverhampton, Nottingham, Birmingham, Manchester, Bolton, Liverpool, Sunderland, Reading, Wigan, Swindon, Northampton, Hull and Cannock Chase.
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FINANCIAL SERVICES INDUSTRY AGREE PACKAGE TO HELP MPPI CUSTOMERS
12 October 2009
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The Association of British Insurers, British Bankers Association, Building Societies Association and Council of Mortgage Lenders have reached an agreement with the FSA that sets out a framework for dealing with recent and possible future changes to policy terms and conditions affecting some Mortgage Payment Protection Insurance (MPPI) customers.
The agreement is a response to FSA Chairman Lord Turner’s comments on MPPI at the ABI’s Biennial Conference in June 2009, where he expressed concern about increases in premiums, or reductions in cover, on MPPI policies during the recession.
The financial services industry has reached this agreement with the FSA to reassure customers, minimise market confusion, maintain confidence in MPPI and ensure that people who have MPPI can maintain their cover, especially in these times of continuing economic uncertainty.
Under the agreed framework, mortgage lenders and insurers will work together to review the terms and conditions of all their MPPI policies and associated sales and marketing materials to ensure that any potential future changes will fall in line with the agreement. Firms will contact all affected customers individually to let them know what the changes are and how their policy will work in the future.
Firms will also review any premium increases and other changes that resulted in cover being cancelled or reduced since 1 January 2009. Any of these changes that are found not to be in line with the agreement will be reversed.
The agreement specifies that all reviews and any actions relating to past, current and future policies, including any premium refunds that might be due, should all be completed by the end of June 2010. Customers do not need to take any action at all at this stage. If their policy is affected in any way, their mortgage lender or insurer will contact them individually.
ABI’s Director General, Stephen Haddrill, said: “MPPI is an important product and is playing a key part in helping to keep people in their homes during the recession. It can offer a lifeline to people who may otherwise have faced losing their home. These policies provide extremely valuable cover for customers and this agreement is all about ensuring that they continue to do so. As with all insurance, premiums need to reflect the risk but any changes not only need to be fair which we believe they are, but also to be seen to be fair.
“Lenders and insurers will work together on a thorough review of their policy terms and conditions, marketing material and any changes made, such as a premium increase, since the start of 2009 and make any refunds in line with the agreement. MPPI customers do not need to take any action, although it is important that they continue to pay their premiums to ensure that their cover continues. Their mortgage lender or insurer will contact them if their policy is affected in any way.”
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ANCHOR TRUST CALLS FOR ANSWERS ON HOUSING FOR THE ELDERLY
12 October 2009
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The big questions on older people’s housing and care have been ducked for too long, according to Anchor Trust’s manifesto launched to coincide with the party conference season.
A New Future for Older People calls for politicians of all parties to recognise that needs are changing; develop realistic new funding models for care; and enable developers to provide the specialist housing that is being demanded.
Anchor Trust Chief Executive, John Belcher said: “For too long, the big questions on older people’s housing and care have been ducked.
“This manifesto outlines the challenges and, importantly, proposes some solutions.
“This pivotal time provides an opportunity for politicians to be bold; to champion the growing army of grey voters and to create a new future for older people.”
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HOMELESS LINK JOINS CALL FOR MORE MENTAL HEALTH SUPPORT SERVICES
12 October 2009
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Homeless Link was one of seven homelessness organisations to sign up to a letter calling for more mental health support services for homeless people in the run up to World Mental Health Day.
The letter, sent to MPs and other supporters, read: "We want to highlight the continuing lack of adequate and appropriate mental health support services for rough sleepers and homeless people in the UK, and those at risk of homelessness.
“Research paints a bleak picture. Around a third of rough sleepers in London are recognised as having mental health problems. The Seeds of Exclusion research from The Salvation Army revealed that more than a third of homeless clients they surveyed nationally had attempted suicide at least once, with around six out of ten having paranoid personality disorder.
“Homeless Link's national Survey of Needs of Provision shows that a third of clients in homelessness services experience poor mental health, with this rising to 43% of day centre clients. Crisis figures show similar findings of homeless people suffering disproportionately from mental health problems, while St Mungo's research points to this being the tip of the iceberg if significant psychological disorders are also taken into account.
“In addition, Centrepoint experience has highlighted major inconsistencies between child and adult mental health care, resulting in many, particularly 16 to 18 year olds, with mental health problems being left unsupported or undiagnosed.
“How can we continue to allow people with a mental illness to sleep on our pavements? Why do those recovering from traumatic childhoods of physical, emotional or sexual abuse make up such a high proportion of rough sleepers and homeless hostel residents? Why aren't we able to offer the best mental health treatment and support to those who need it most before they end up homeless?
“We urge Phil Hope MP, Care Services Minister, to include a commitment in the Government's New Horizons framework strategy for better mental health services that specifically recognises the needs of homeless people - and a commitment that no-one with a diagnosed mental illness should be left rough sleeping by 2012.”
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PRICES CONTINUE TO RISE AS SUPPLY REMAINS TIGHT
12 October 2009
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A lack of available housing is continuing to push up prices, according to the Halifax.
The lender has recorded a 1.6% increase in the price of UK homes for September, its third consecutive monthly rise. The Halifax’s index is the strongest so far this month, with Nationwide and Hometrack recording rises of 0.9% and 0.2% respectively.
However, Halifax’s index puts the annual change in prices at -7.4%, whereas Nationwide has reported that prices are now at the same level as they were a year ago.
Martin Ellis, housing economist at the Halifax, suggested the rate at which prices are rising is unlikely to be maintained.
He said: “Continuing increases in unemployment and low earnings growth are likely to constrain the rise in demand.
“There are also some signs that the improvement in market conditions is encouraging more people to put their properties up for sale. This development could loosen market conditions by alleviating the current shortage of supply and curb the pace of house price growth evident in recent months.”
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MAJORITY BETTER OFF BUYING THAN RENTING
12 October 2009
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The majority of people would be better off buying a home than renting one following steep house price falls and record low interest rates, according to research from Abbey.
First-time buyers in all areas of the country outside London could save an average of £52 a month by becoming owner-occupiers rather than renters, according to high street bank Abbey.
The group said house price falls had knocked 9% off the cost of a typical first-time buyer property - such as a flat or terraced house - outside London during the past 12 months to leave them averaging £92,861. It estimates that someone buying one of these properties with a 25% deposit would have average monthly mortgage payments of £382, based on a rate of 4.39%.
But renting a comparable property costs an average of £434 a month, meaning those who opt to buy would be around £624 a year better off. However, first-time buyers in the capital would have to find a property costing less than £158,000 in order for their monthly mortgage repayments to be cheaper than average rents for comparable properties of £650 a month.
Potential buyers in Wales could make the biggest savings by buying rather than renting, at an average of just over £90 a month, followed by those in the North West at £87. But the difference is smallest in East Anglia, where a first-time buyer would be only £2.59 a month better off compared to if they were renting.
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REPORT DUE ON REGENERATING HOUSING ESTATES
13 October 2009
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A new report on regenerating large housing estates is to be published on October 20, which highlights the importance of tackling the multiple sources of deprivation over the long term, as well as improving homes and the physical environment.
Transforming estates, a research report from ECOTEC and the CIH draws on experiences in four major estate transformation projects in Meden Valley in the Nottinghamshire and Derbyshire coal field, North Solihull, Huyton in Knowsley and Poplar HARCA in Tower Hamlets.
The report suggests it can take decades to regenerate communities and bring lasting change. The findings indicate that it can be easier to make physical improvements to homes and the layout of an estate, than to tackle the underlying reasons why communities have gone into decline.
It highlights that environmental improvements alone may not be enough to regenerate areas unless there is a co-ordinated approach to improving access to jobs, boosting residents' skills levels and tackling health inequalities. The report also highlights the challenge of securing consistent and sustained funding spanning decades, and not just for the short and medium-term.
Sarah Webb, CIH Chief Executive said: "Improving housing is at the heart of successful estate regeneration programmes, but new homes must go hand in hand with co-ordinated efforts over the long term to improve educational attainment, local skills and access to training and employment.
“It is clear that the involvement of local residents is a key factor in successful regeneration, as well the creation of projects to confront the issues head on. The development of new schools as a way to improve education and generate confidence is a fine example of what we need to do."
Paul Jeffrey, Director, ECOTEC Research and Consulting Ltd said: "The report highlights the potential to transform estates and the progress that has been made. But is a long term commitment that needs to involve local communities, local, regional and national government in all of its guises and the private sector.
“The recession took hold of the UK economy at the time this research was undertaken which has impacted on the availability of jobs and income levels, increasing worklessness and poverty. Private investment, critical to the regeneration process has dried up in some areas at a time when it is most needed. Now is not the time to abandon housing estates. Instead long term planning, vision and resourcing are all called for if positive change is to be achieved."
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LAUNCH OF HCA / ENGLISH HERITAGE GUIDANCE ON MASTERPLANNING
13 October 2009
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The Homes and Communities Agency and English Heritage have launched their first joint ‘How to’ Guide outlining a new development-led approach to masterplanning, which advocates assessing the historic character of a site right at the earliest stages of redevelopment.
This is set to transform the way sites are redeveloped. The Guide, Capitalising on the inherited landscape – an introduction to historic characterisation for masterplanning, is the product of an innovative joint pilot project between the two agencies.
This took the established conservation-led Historic Characterisation approach – encouraging the use of specific techniques to identify the distinctive characteristics of a site in order to explain an inherited sense of place and identity – as a starting point - and tested its value at different stages of the development process.
The pilot focused on three very different sites earmarked for future redevelopment under the HCA’s Hospital Sites portfolio: the former Graylingwell Hospital in Chichester, Hanham Hall near Bristol, and Prudhoe in the Tyne Valley. The sites were all of contrasting scale and context, and the Historic Characterisation methodology used was adapted in each case.
The main key finding indicates that Historic Characterisation is of greatest benefit when carried out in advance of detailed masterplanning so it can fully influence this process. In doing so, the historic environment informs future development plans, which can benefit from capitalising on the inherited historic landscape. It also offers a way to contribute to UK implementation of the Council of Europe's 'European Landscape Convention', which aims to shape and enhance future landscape and place in town as well as in country.
Robert Napier, Chairman of HCA, said: “This important collaboration between the HCA and English Heritage makes a major contribution to how we masterplan and regenerate strategic sites; assisting us in our objective of helping deliver sustainable communities across England.
“We anticipate that this development-led approach of undertaking historic characterisation prior to masterplanning will pave the way for widespread use across not only the HCA portfolio, but with our Single Conversation partners, including local authorities, across the wider planning sector. This, we hope, will transform the way that historic sites are redeveloped.”
Baroness Andrews, Chair of English Heritage, said: “It is extremely encouraging that organisations such as the HCA are making the link between heritage and regeneration when considering sites for redevelopment. We are delighted to have been working with the HCA, sharing our mutual skills and experiences in shaping better places for people to live and work.”
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MORTGAGE MARKET ON TWO SPEED SETTINGS
13 October 2009
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The mortgage market is on two speed settings, as house purchase lending continues to recover but remortgaging continues to decline, according to the latest data released by the Council of Mortgage Lenders.
The number of house purchase loans in August (53,000) is down 5% from July but 29% higher than August a year ago. And whilst this is still significantly lower than the August average in the seven years before the credit crisis of 100,000 loans, it is more than twice the level of activity at the start of the year.
There were 19,200 loans to first-time buyers and 33,400 loans to home movers. House purchase activity, worth £7.2bn in August, accounted for its largest share of total mortgage activity since 2002.
At £12.3bn, gross mortgage lending - which encapsulates all mortgage lending activity including house purchase, remortgage, and buy-to-let lending - declined 36% from August 2008. First time buyers typically had a 25% deposit and borrowed 3.03 times their income. Home movers typically borrowed 66% of the property’s value and 2.74 times their income.
The profile of new lending remains cautious with over three quarters of loans taken out at fixed rates and on a full repayment basis.
CML economist, Paul Samter said: “House purchase activity has revived from its moribund state at the beginning of the year. It will be a drawn out recovery process with seasonal ups and downs, but house purchase activity is now on a firmer footing. But remortgaging demand has fallen away in the low interest rate environment and this is dragging down gross lending levels overall.”
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TOOLKIT HELPS SOCIAL HOUSING SECTOR AIM FOR EXCELLENCE
13 October 2009
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A new initiative has been launched which aims to help housing associations to improve their performance and meet the challenge of the iN business for neighbourhoods commitments.
The Excellence Toolkit for Housing Associations, recognised by the National Housing Federation, provides a framework for organisations to benchmark their current performance, set priorities and goals and put a plan of action into place. Staff play a central role throughout, in driving forward improvements and monitoring progress through a process of self-assessment.
The toolkit reflects all of the organisation’s activities from tenant satisfaction to corporate social responsibility and financial results. It is based on the Business Excellence Model, a long-established management tool, and has been adapted to reflect the current issues facing the social housing sector. It also supports housing associations in their work to achieve the iN business for neighbourhoods commitment.
It has been developed by the quality organisation, North of England Excellence. Leading housing associations attended the event at MWB Victoria to hear speakers including the federation’s chief executive David Orr.
Dave Rusk of North of England Excellence said: “Organisations within the social housing sector are very much aware of their responsibility to communities and aspire to very high standards of performance. The Excellence Toolkit provides a framework to help them achieve continuous improvement and address the current challenges facing the sector. The focus on self-assessment is also in line with the approach taken by the new Tenant Services Authority.”
National Housing Federation chief executive, David Orr said: "The Federation fully supports its members' mission to provide exceptional service to tenants and the wider communities they serve. The Excellence Toolkit, specifically tailored to meet the needs of the sector, assists housing associations in continuously striving for excellence in all that they do and in meeting the important iN Business for Neighbourhoods agenda."
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CUTTING CO2 FROM HOMES NEEDS NATIONAL PROGRAMME
13 October 2009
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Cutting carbon emissions from homes and buildings will need a national programme of energy efficiency measures delivered on a 'street-by-street' basis, according to a new report.
Thousands of wind turbines, 1.7 million electric cars and more nuclear power stations are also needed to speed-up the rate at which CO2 emissions are being reduced. The first annual report by the Government's Climate Change Committee identified a series of radical measures required to cut emissions from homes, transport and electricity generation in the UK.
Large-scale strategies to deliver insulation and new energy efficient boilers to millions of homes, as well as several new nuclear power stations, "clean coal" plants and thousands of wind turbines, are needed to create a "step change" in the rate of reducing emissions and ensure the country meets its climate commitments.
The committee, publishing its first progress report on efforts to reduce greenhouse gases in the UK, also said the Government needed to get 1.7 million electric cars on the road by 2020, and to consider road pricing as part of efforts to tackle rising emissions from transport.
It even suggested "eco-driving" tips, such as not braking suddenly and sticking to the 70mph speed limit on motorways, should be taught as part of driving lessons. In the past five years, greenhouse gas emissions have been falling at a rate of less than 1% a year, with the most significant pollutant, carbon dioxide, only dropping by 0.5% annually.
In order to meet reductions of up to 3% a year, there needs to be "massive improvement" on current rates, the committee's chief executive, David Kennedy warned. The recession has led to a drop in output of emissions which could create a "false impression" that the UK is rapidly cutting its greenhouse gases, but action must be taken now to ensure targets are met later in the next decade once the economic downturn has eased, the report said.
Mr Kennedy said: "Quality of life gets better if we meet the carbon budgets, in terms of green jobs, air quality and fuel security. If we can get to those opportunities we are all going to benefit."
The report said that efforts to cut emissions from homes and buildings would require a national programme - similar to the strategy which saw the country switch to natural gas in the 1970s - of energy efficiency measures delivered on a street-by-street basis. Some 10 million lofts and 7.5 million cavity walls need to be insulated by 2015, and all 12 million inefficient boilers in people's homes must be replaced by 2022.
The report called for much greater use of the most energy efficient appliances such as fridges, washing machines and dishwashers as part of the strategy to green the UK's homes - a policy which must be Government-led and far exceed current efforts.
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NEW PRESIDENT OF BPF ANNOUNCED
13 October 2009
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Toby Courtauld
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Great Portland Estates plc chief executive, Toby Courtauld, is set to become the British Property Federation’s new President in 2011.
He will follow the current president, Rupert Clarke, and vice president, John Richards, who will hold the top position in 2010/11.
Speaking on his new position as junior vice president, Toby Courtauld said: “It is a real privilege to have the opportunity to contribute to the BPF in this way and I am greatly looking forward to working with Liz and her team.”
BPF chief executive, Liz Peace said: “We are delighted that Toby, one of the industry’s brightest young stars, has agreed to become our new junior vice president. He has been a very active member of our Policy Committee for a number of years and I’m sure he will bring a new dynamism to the future direction of the BPF.”
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GOVERNMENT HOUSEBUILDING HELP HITS £1BN
14 October 2009
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John Healey
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Government help for housebuilding has hit £1bn as Housing Minister, John Healey released £443m for over 8,000 new homes, helping tackle the shortage of affordable homes, support the construction industry through the recession and create jobs and apprenticeships.
Mr Healey said that in September he allocated almost £400m to deliver over 6,000 more affordable homes across the country with every region receiving a share. He also announced nearly £50m to build over 2,000 homes on 27 sites stalled by the recession as part of the Government's Kickstart scheme, aimed at getting mothballed projects back on track.
Work on some of the first Kickstart sites is due to restart later this month. Many of these projects will help first time buyers get on the housing ladder through government schemes like Homebuy Direct and other projects will provide adapted homes for older people.
Mr Healey continued to make apprenticeships and local recruitment a condition of Government support. All firms now applying for funding must provide details of how they are or how they intend to support apprentices and local people into work, and at least 18 of the 27 kickstart schemes today already include apprenticeship schemes.
Healey said: "We promised more investment to build more homes and have put our money where our mouth is. The cash I'm announcing today means government help for housebuilding since June has now hit £1bn.
"This power of government is helping to build the homes we need and support the construction industry during the recession. And crucially it's also creating jobs and apprenticeships - meaning we will get the most for every taxpayer's pound. I'm determined that this pace of investment will continue in the coming months when I will announce further cash for councils, housing associations and developers to ensure homes continue to be built."
Homes and Communities Agency chief executive, Sir Bob Kerslake said: "This latest Kickstart money combined with funding through our standard affordable housing programme puts us in an ever stronger position for delivery of much-needed new homes. As a result thousands more people will have a new quality home at a rent they can afford, or will be helped to take the first steps into home ownership."
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FEDERATION WELCOMES SUPPORTING PEOPLE REPORT
14 October 2009
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The National Housing Federation has welcomed the Audit Commission's in-depth report into Supporting People.
Helen Williams, assistant director at the Federation said: "The Audit Commission's report provides welcome additional evidence on the achievements of the programme and highlights some tough challenges ahead in maintaining this progress without a named budget or national framework in a time of colossal pressure on public spending.
"Urgent action is required to ensure that more freedom and flexibility over funding delivers better services and does not squander the achievements of the last six years.
"Supporting People has delivered vital services for some of the most vulnerable people in society. We welcome the Audit Commission's strong commitment to assess the planning and provision for housing related support through the Comprehensive Area Assessment.
"The Audit Commission has drawn together significant evidence and concluded that local and national government should consider doing more to mitigate risks. The Federation has been calling on government to do more to safeguard services and monitor the future of housing related support and now we know local government's own spending watchdog thinks so too.
"We call on government to go further and retain the named status of the Supporting People for the next 3 years and do more focused work to encourage joined-up commissioning and local governance arrangements to safeguard and monitor services for vulnerable people."
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‘COUNCILS NEED TO WORK WITH LANDLORDS', SAYS SHAPPS
14 October 2009
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David Salusbury and Grant Shapps
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Grant Shapps, Shadow Housing Minister, has re-affirmed the Conservative Party’s commitment to ensuring local authorities work better with landlords.
He was speaking at a joint reception at the Conservative Party Conference between Crisis and the National Landlords Association.
He said: “Regulation of the private-rented sector was a blunt instrument for getting results” and, answering questions from the floor, said that he “welcomed working with the National Landlords Association.”
David Salusbury, Chairman, NLA, said: “There are now sufficient rules and regulations in place to ensure that the minority of rogue operators in the sector can be dealt with swiftly and effectively.
“The final piece in the jigsaw is encouraging local authorities to use existing and significant powers appropriately instead of introducing more regulation which only penalises good landlords.
“Of course, we are also encouraged that the Shadow Housing Minister is looking forward to working with the NLA.”
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HOME OPENS DOOR TO LEGAL SERVICES FOR THOUSANDS
14 October 2009
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Home is to open the door to independent legal services for its customers in the region, thanks to a link-up with Community Legal Advice, the free and confidential advice service funded by legal aid.
The service has specialist advisors who can assist with a variety of matters including family, debt, housing and homelessness, benefits and tax credits, education, and employment problems.
The service can be accessed by calling a helpline, which is 4p per minute from a landline, via their website or through a link on Home’s website. They also offer a ‘call back’ service for anyone who is worried about the cost of a telephone call, callers just text ‘legalaid’ and their name to 80010 and they will be called back within 24 hours.
People who are eligible for legal aid – normally those who live on low income or benefits – can receive immediate specialist legal advice over the telephone. For those who do not qualify for legal aid, callers will be given information to assist them with their problem, or referred to another source of help.
Johanne Pederson, Solicitor with Home Group, said: “Home has over 50,000 homes in England and wanted to be able to provide an enhanced legal service to our customers and clients so we linked up with Community Legal Advice to provide an independent source of help and advice.”
John Sirodcar, National Relationship Director for Legal Services Commission, the organisation that runs Community Legal Advice, said: “Legal Aid is marking its 60th year during a nationwide recession. It is as important as ever that we ensure we get legal services to those that need it most. By working with Home Group, we hope to continue to make sure those who need legal help are able to access it.”
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KNIGHT FRANK: SOME PRICE FALLS IN 2010 BUT NOT ‘CATACLYSMIC’
14 October 2009
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Knight Frank , in its UK housing market forecast October 2009 edition, has predicted that house prices could fall slightly in 2010 but that the this reversal will follow a more "benign scenario", rather than a more "cataclysmic alternative".
Prices will end 2009 two per cent higher than at the start of the year, with the recovery being led from London and southern England. The current out-performance of the prime London and country house markets will continue, with price growth continuing next year.
The mainstream UK market is likely to see modest price falls in 2010, before a limited rise in 2011 and a more concerted recovery in 2012
Liam Bailey, head of residential research said: “The excitement caused by rising prices in recent months has hidden the fundamentals that have contributed to this performance – particularly the degree to which the affluent and equity rich have led the market.
“There are good reasons why we ought to expect a slow down in price growth, with prices even falling in 2010. However we believe that this reversal will follow a more benign scenario, rather than a more cataclysmic alternative.
“A weak economy will feed through to lower household wealth and both the ability and willingness to bid up house prices. Continuing growth in unemployment, allied to wage freezes and tax rises, and a rise in average mortgage rates will force a number of sales which, in the absence of greater depth of demand, will see prices slipping back.
“However we believe that price falls will be capped at around 3% in 2010. It would be wrong to expect a continuation of the current rapid recovery in the housing market, the economy is not in a position to permit this in the short-term. Similarly, it would be wrong to expect carnage.
“Real demand is strong, supply in the wider market and the new-build sector is very low and we are unlikely to see a rapid shift away from a low interest rate environment.
“While the prime markets have led the recent price recovery, this, in our view, does not make them more at risk of price falls next year. Resilient household wealth at the top of the market has had a direct and positive impact on liquidity in this segment.
“We believe that the future improvement in market conditions will continue to be led from London and southern England, particularly from the higher price brackets. Strong demand from UK and international buyers will ensure that the central London property market, in particular, will continue to outperform in 2010.”
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OFGEM WARNS OF £2,000 A YEAR HOUSEHOLD BILLS
14 October 2009
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Household gas and electricity bills could reach £2,000 without drastic action to shore up the UK's energy supply, regulator Ofgem has warned.
The watchdog said the country could have to spend as much as £200bn to secure supply and meet environmental targets as it faces a capacity shortfall from soon-to-expire power stations.
Ofgem's review of Britain's energy market says household bills will rise between 14% and 25% from 2009 levels by 2020 in four scenarios which weigh up different levels of investment on infrastructure and the pace of global recovery from recession.
In its worst-case scenario - that of a strong resurgence in global economies along with missed renewable and carbon targets - the watchdog warned that consumer bills could peak at more than 60% higher by 2016 before falling back.
Consumer group Which? criticised the level of investment in energy infrastructure to date.
Fiona Cochrane, the group's energy campaigner, said: "The way consecutive governments have passed the buck on this issue is tantamount to negligence. By ignoring security of supply for so long, they've saddled consumers with what could be a colossal bill.
"We can't allow a situation where we have to choose between paying a king's ransom for our energy or face the lights going out."
The average household is currently paying £804 a year on gas and £443 a year on electricity, a total of £1,247 and this would rise to peak at £1995 a year if the gloomiest prediction proved accurate. The cheapest of Ofgem's scenarios - involving a slow economic recovery coupled with global green stimulus packages - would see annual bills hitting £1421 by 2020.
Households have already seen average annual energy bills almost double since 2003 as wholesale prices have soared, although there has been a marginal decrease since last year's peak.
The Institution of Civil Engineers said there needed to be new thinking on the way infrastructure projects are funded.
Director general, Tom Foulkes said: "Today's energy network is ageing and doesn't have capacity to meet current or future demands. However, those involved in industry and government have known this for some time. The real question is, where is the money going to come from to fix the problem?"
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DEVELOPMENT SHOWCASE: CENTENARY CLOSE, KENT
15 October 2009
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Centenary Close, Dunton Green
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Centenary Close, Dunton Green, Kent
Local Authority: Sevenoaks District Council
Housing Association: Moat
Developer: Croudace Homes in Partnership (CHiP)
Architect: Design Planning Services
Number of Homes: 22 in total but only four one bedroom apartments available
Total Cost: £3.6 million
The Site: Centenary Close is a brand new development located in the small village of Dunton Green near Sevenoaks in Kent. When project proposals were put forward in 2006 for a new development in Dunton Green, local residents were reluctant to see a new development being built in their neighbourhood. Moat and CHiP listened to the views of local people and changed plans accordingly. The proposed site for Centenary Close was in the heart of an entirely residential area with a narrow road network. As a direct result of local concerns, the scale of Centenary Close was radically reduced. The number of homes was reduced from 26 to 22 and the blocks of apartments were redesigned to reduce their height and mass.
CHiP and Moat also took local ecological issues into account and extended the build contract in order to ensure that protected species remained in their natural habitats. Residents worried that the new homes would result in local parking and traffic issues. Moat and CHiP found that in reducing the number of apartments, the parking need was also reduced and each apartment will have one allocated space within the development thus reducing the effect on local narrow roads.
The Scheme: Today, Centenary Close is an intimate and attractive development offering high quality, affordable homes. Of these homes, 3 x three bedroom houses are available for affordable rent and 3 x two bedroom houses, 10 x two bedroom apartments and 6 x one bedroom apartments are available for shared ownership. Houses offer private gardens while apartments have access to communal gardens.
Features: Centenary Close has achieved an EcoHomes rating of ‘very good’. It offers well designed internal and external spaces and a high quality standard of finishes, fittings and fixtures throughout. Added to this, the development keeps with the character of homes in Dunton Green and existing trees have been retained. There has also been a significant amount of new planting to ensure that Centenary Close complements the existing aesthetic appearance of Dunton Green. Centenary Close recently won an Archant Property Award for ‘best residential development’.
Completion Date: March 2009
Websites
www.moat.co.uk
www.sevenoaks.gov.uk
www.croudacechip.co.uk
If you would like to submit your new or upcoming developments for our Showcase, please email: news@housingnews.co.uk.
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MINISTERS WARNED NOT TO STALL HOUSING RECOVERY
15 October 2009
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Stewart Baseley
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Home Builders Federation Chairman, Stewart Baseley has told Housing Minister, John Healey that it was vital support was maintained for housing development in the Pre-Budget Report.
He also warned Shadow Minister, Grant Shapps that Tory localism plans had to be controlled – if the recent signs of recovery in the market were to be maintained.
Shapps and Healey both told the audience of assembled housebuilders that their respective party’s would increase house building if elected, but by very different routes, as major policy differences emerged and housing issues shaped up to become a major battleground in the run up to the next election.
Healey reiterated the Government’s commitment to supporting the industry, while Shapps detailed how his party would fix the ‘broken’ planning system to facilitate more house building, and incentivise local communities to support development such that developers would be ‘paraded through the streets’ for delivering new homes.
Baseley welcomed the announcements by Healey on Kickstart but urged Government not to withdraw the financial assistance given to support house building in recent months and to use the forthcoming PBR to ‘underpin’ the signs of recovery that have emerged in recent months.
He said: “If I have one big message for Government today, it is a plea not to withdraw incentives, as I fear to do so would potentially slow the market just as it is beginning to show signs of recovery. We need to see an extension of the stamp duty holiday and Homebuy Direct and Kickstart schemes as well as assistance for first time buyers.”
He then warned that the Conservatives switch towards localism was a ‘high risk strategy’ at the end of the worst recession in living memory, and that central Government could not simply ‘abdicate responsibility for the country’s housing need any more than it can for schools and hospitals’.
He set out a series of ground rules and controls that must be put in place to make localism work and ensure much needed housing supply was maintained and the country’s innate NIMBYism overcome.
He said: “It is impossible to conceive that any Government would risk an undersupply of beds or classrooms. It has to know that for a population of some 60 million there is a need for so many schools or hospitals. Housing to me is no different and is a basic human requirement.”
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REPORT: HOUSING SYSTEM IS ‘DYSFUNCTIONAL’ AND NEEDS REFORM
15 October 2009
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A new report by a housing research charity says the UK housing system is ‘failing’ and calls for significant reform to improve the situation.
The report, produced by the Building and Social Housing Foundation (BSHF), was launched at a House of Lords event.
The Future of Housing is the outcome of a consultation event held in June. The consultation, chaired by housing expert Lord Richard Best OBE, involved representatives from national public bodies, local government, academia, charities and organisations from the housing and finance industries.
According to the report, there are various failings in the UK housing system including its negative impact on the wider UK economy, the increasing unaffordability of housing, the failure of housing supply to respond to demand, and the unsuitability of housing stock for current and future needs.
The report states that the housing system "has become increasingly flawed and now has significant dysfunctional components". It identifies eight key areas that require urgent attention and provides a wide range of ideas about how the failings can be addressed.
Lord Best said: "25 years ago, I was invited by the Duke of Edinburgh to co-ordinate an inquiry into British housing. Over the last two years there has been a dramatic upheaval in our housing and financial systems, demonstrating the urgent need to review the state of our housing system and how we can change it. I hope this report encourages people, organisations and the government to take bold steps to overhaul our dysfunctional housing system."
One of the eight key areas discussed is the retrofitting of housing stock to reduce carbon emissions.
"Ensuring that both our new and existing homes have minimal energy requirements is an urgent priority. This will be vital if we are to achieve the government target of an 80 per cent reduction in carbon emissions by 2050," states the report.
A mass programme of retrofitting would also help tackle fuel poverty, improve health and would create new jobs. The report proposes various ways of encouraging people to retrofit their homes. One idea put forward is to set up a loan programme where loan repayments are offset against decreased energy costs.
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LACK OF SUPPLY UNDERPINNING HOUSING RECOVERY
15 October 2009
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A lack of supply is still underpinning the house price recovery, says RICS’ UK housing market survey.
Significantly, the headline RICS house price balance recorded the highest figure since the onset of the credit crunch.
The net balance of chartered surveyors reporting rises rather than falls reached a positive reading of 22 in September, up from 10% in August –the highest result since May 2007 when the net balance was 25%. The South is leading the upturn with the net balance of surveyors reporting rises rather than falls for London and the South East climbing to 79% and 52% respectively. Elsewhere, the picture is less rosy with Wales and Yorkshire and Humberside registering negative net balances of 15% and 18%.
Last month’s optimism that vendors were starting to return to the market has proved a little premature. A net balance of only four percent of surveyors reported that new instructions had increased in September, compared to a reading of 12% in August. Correspondingly, the average number of unsold properties on surveyors’ books remained unchanged at 64.
Meanwhile, transaction levels continued to improve in September with sales per surveyor rising to 18 over the past three months. As a result, the closely watched sales to stock ratio – a measure of market slack and a lead indicator of future prices–edged upwards a little further. It has now risen for nine consecutive months and stands at 29, its highest level since December 2007.
The pace of improvement in buyer interest slowed for the third consecutive month. The net balance of surveyors reporting an increase rather than a decrease in new buyer enquiries slipped from 47% in August to 36% in September. The number of surveyors reporting a rise in new buyer enquires in London dropped back from 71% to 45%.
RICS spokesperson, Ian Perry said: “A lack of supply is still underpinning the rise in house prices with new instructions to estate agents only edging up very gradually. Meanwhile despite the problems first-time buyers are continuing to encounter in securing finance, the level of enquiries from potential purchasers is increasing. This imbalance between demand and supply suggests that house prices will move higher in the near term.”
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RECORD NUMBER OF HOMES MEET BUILDING FOR LIFE STANDARD
15 October 2009
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Wayne Hemingway
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A record number of housing schemes have met the Building for Life standard this year.
Thirty-six projects qualified for the award, 44% of 81 entries. This compares to 19% of 125 entries last year.
Schemes are assessed against 20 criteria and need to score more than 14 for a silver standard and 16 for a gold. Twelve gold and 24 silver standards were achieved.
Building for Life chair, Wayne Hemingway said: "We’re seeing a year on year rise in good quality housing schemes entered for the Building For Life awards. But there’s still a long way to go."
Home Builders Federation executive chairman, Stewart Baseley added: "It is important that we recognise and reward high quality design and the efforts being made by housebuilders.
“Developers are continually striving to improve design and, especially in these challenging economic times, we should celebrate this achievement."
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SOCIAL AND PRIVATE HOUSING DRIVE RESIDENTIAL PROJECT
15 October 2009
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The social and private housing sector have driven residential project starts up 12% on 2008 levels, according to new figures from Glenigan.
The flow of projects starting on site in September 2009 stabilised to four per cent below levels seen a year ago. This is the third month running that the year on year decline has been stable at four per cent. This is a significant improvement compared to the 21% average year on year decline seen between September 2008 and July 2009.
However, the Index for September 2009 was 81 compared to the 2006 base of 100, showing that while there has been improvement in several sectors and regions, conditions in the construction industry remain challenging.
The strengthening in public sector building and civil engineering projects has provided a particular boost to the construction industry in Scotland and Northern Ireland. The South West and the North West of England and Wales have also enjoyed a rise in project starts during the three months to September. In contrast, London has seen the sharpest falls in project starts.
Civil engineering project starts were four per cent higher in September 2009 compared to a year ago as the flow of utilities projects remains strong. The Glenigan Index excludes projects with a value of over £100m. Therefore the civil engineering picture is even more positive when considering large schemes such as the £6.3bn M25 widening scheme.
Residential construction projects starting on site were 12% higher in September compared to a year ago. This increase has been driven by stronger performance in both private and social housing. Non-residential construction remains weak, despite an increase in health and community & amenity projects. Continued weakness in commercial and industrial projects plus slight slippage in the flow education projects compared to strong growth since April 2009 all add up to a 14% year on year decline.
Allan Wilen, economics director, Glenigan, said: “The pace of decline in the private sector is forecast to moderate over the coming months. However, Government funding cuts will cause the recent strength in public sector project starts to lose momentum.
“A gradual recovery is forecast in residential projects thanks to the recent stabilisation in project starts. High vacancy rates and falling rental levels will continue to depress the office, industrial and retail sectors. In addition, after the encouraging pick-up in project starts, the flow of education and health projects schemes is forecast to falter over the coming months. In contrast a renewed strengthening in civil engineering project starts is expected during the remainder of 2009.”
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HOUSING NEWS: INNOVATION ROUND-UP
16 October 2009
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Click the picture to see what is going on here
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CML: MORTGAGE MARKET STILL NOT FUNCTIONING NORMALLY
16 October 2009
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The Council of Mortgage Lenders has said that the mortgage market is still not functioning normally.
In publishing its submission to the Financial Services Authority (FSA) on the future of mortgage regulation, CML said that lenders recognise the need for change emerging from the FSA's ongoing review, but also warns that, with the mortgage market still not functioning normally, there is a heightened risk that intervention could deliver the wrong outcome for consumers.
With the FSA expected to publish its discussion paper later this month, CML said that proposals for regulatory reform must focus on areas where evidence of consumer detriment have been clearly identified.
CML's submission points out that some former concerns about the mortgage market have already been addressed by the way in which firms have responded to changed market conditions. It therefore argues that there is no need for urgent intervention by the FSA to complete its review, change the mortgage rules or implement broader regulatory reform.
It points out that the European Commission's ongoing review of responsible lending and borrowing is another reason for caution. It is crucial - for consumers, as well as firms - that proposals in the UK and Europe are complementary, not conflicting.
CML does believe, however, that one outcome of the review should be a widening of the FSA's remit to include secured second charges alongside first charge mortgages, which would benefit both consumers and firms. But it argues that the FSA's primary goal at this stage should be the introduction of more effective supervision of the rules and firms it already has in place.
On the regulation of buy-to-let, CML acknowledges that views among lenders are mixed. But it points out that the unregulated buy-to-let market has already delivered significant benefits for most landlords and tenants. As in the mainstream market, proposals for change in the regulation of buy-to-let lending must seek to address clearly identified consumer detriment.
CML's director general, Michael Coogan said: "The FSA faces a number of challenges and potential pitfalls in progressing its review too quickly. Perhaps the biggest of all is to resist external pressure to implement measures at a time when the mortgage market has self-corrected many of the past problems, but is still not functioning effectively.
"We must not forget that the existing mortgage rules have broadly been working well since they were introduced in 2004, enhancing protection while promoting competition and choice for consumers.”
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DENHAM PROVIDES £12M TO CONNECT COMMUNITIES
16 October 2009
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Communities Secretary, John Denham has outlined a £12m plan to reinvigorate and connect with those communities that are feeling the pressure from recession most acutely and ensure they are well placed to share fully in future prosperity and emerge stronger and more cohesive.
Denham said: "We will make it clear that Government is committed to making sure, in every community, in every corner of this country, people know we are on their side. No favours. No privileges. No special interest groups. Just fairness."
In recent years, substantial investment has transformed large parts of the country. Almost without exception communities have benefited considerably from SureStart centres, rising school standards, modernisation of public housing, the introduction of neighbourhood policing and many families have gained significantly from tax credits.
But this investment has taken place against a background of wider changes which has left some communities feeling under pressure. As part of an ambitious programme of work, around 100 areas of the country have been identified as the focus of a targeted programme of work that will focus on alleviating those pressures and making sure that real help is available.
Practical actions delivered on estates and streets will focus on developing a real insight into what is happening in those communities and introduce changes that will address concerns, reconnect them with jobs and tackle the real and perceived sense of unfairness some people are feeling. The communities involved vary considerably and the challenges are different from place to place.
For some, the pace of change has led to a sense of resentment and a rise in insecurity and threatens to corrode the cohesion of these communities and create tensions. In some places support for the far right has risen. There could be a rise in migration and resentment at the perception that others are getting a better deal. Some people are left feeling that 'no one is speaking up for us'.
Denham said: "At the heart of this new drive is a willingness to encourage local people to speak out about their concerns, even if this raises difficult and uncomfortable issues. In turn, government - national and local - needs to be able to set out how it is responding, and to discuss frankly where things are working and where they could be improved.”
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CONNAUGHT RECORDS RISE IN PROFITS
16 October 2009
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Connaught, which has a strong presence in the social housing market, has bucked the credit crunch trend, and recorded a 23% jump in profit before tax.
The group saw its pre-tax profit for the year ending 31 August rise from £21.7m in 2008 to £26.7m in 2009.
It also saw its revenue rise from 553m in 2008, to 660m this year, as the UK recorded 1.8m on its waiting lists for social housing – the highest level recorded for two decades. Meanwhile, its order book stood at £2.8bn compared with £2.6bn in 2008.
Chairman, Mark Tincknell said: “The majority of our services are either non discretionary or essential in nature and we are therefore much less susceptible to changes in government spending and the economic cycle.”
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NEW COALITION CALLS FOR NEW RURAL VISION
16 October 2009
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A new coalition of organisations covering the social, economic and environmental needs of rural areas has called for a "new vision" for rural communities.
Six organisations representing councils, rural businesses, landowners, environmental campaigners, planners and rural communities have launched the Rural Coalition "to campaign for reforms to create a strong, confident and sustainable countryside."
The coalition includes Action with Communities in Rural England, CPRE, the Country Land and Business Association, the Local Government Association, RTPI and TPCA.
It is chaired by Matthew Taylor MP, author of last year’s report to government on rural housing and employment, and has been advised by the Commission for Rural Communities and the Commission for Architecture and the Built Environment.
The coalition prospectus says: "For 50 years or more, policy has undervalued the countryside and failed to meet the needs of rural communities – and therefore of the nation. In hindsight, the result is starkly apparent. Rural communities have slowly but relentlessly become less and less sustainable and less and less self-sufficient.
"On its current course, with no change of policy and no commitment to action, much of the countryside is becoming part dormitory, part theme park and part retirement home. Only if people in rural communities have ready access to local schools, local jobs, local shops and pubs and homes will they and their children thrive, and will the nation meet its environmental and economic needs."
Matthew Taylor said: "The coalition has come together in the belief that a more sustainable future for all rural communities is both essential and achievable. It demands a fundamental change of approach at both national and local level.
"I have been enormously encouraged by the government’s positive response to my report, but much more also needs to happen to shape and deliver these more positive messages about planning for sustainable rural communities.
"The Coalition is seeking a debate setting this new agenda for the countryside to meet the challenges of the 21st century, in order to present a clear, workable policy framework to whoever is in Government after the election. Next year, as the country emerges from the economic downturn, and a newly elected Government comes to office, we will set out in more detail our proposals for policy and practical changes."
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JOHNSON CRACKS DOWN ON ASBO BREACHES
16 October 2009
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Alan Johnson
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Home secretary, Alan Johnson has announced measures to ensure that breaches of antisocial behaviour orders (Asbos) are punished.
He said that new guidance would be published to ensure that councils, police and social landlords deal effectively with breaches. He added that a new assessment would be undertaken into how breaches of Asbos are being dealt with.
Mr Johnson said that the Government’s "clear expectation" was that Crime and Disorder Reduction Partnerships – made up of local authorities, police and social landlords – ensure that court action is taken against those who break the law by breaching Asbos.
The latest published figures show that 64% of Asbos issued to young people between 1999 and 2007 were breached.
He said: "The public rightly expects to live in neighbourhoods free from the corrosive effects of intimidation and harassment. I want to see both police and local authorities use the powers they have been given in a way that is effective and responds to people’s needs at the right time."
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NEWS 
