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CALL FOR ‘RIGHT TO BUILD’ TO GO FURTHER
26 July 2010
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Brian Berry
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Builders have welcomed the proposals by Housing Minister, Grant Shapps to allow communities to grant themselves planning permission but has called on the government to go further in a bid to support community cohesion and the big society.
FMB Director of External Affairs, Brian Berry said: “These proposals are a clear acknowledgement by the Government that the current planning system is not fit for purpose and must be radically reformed if we are to address the housing crisis.
“We are currently building just over a third of the homes that we need on an annual basis; as a result millions are now stuck on the waiting list for social housing and the young are increasingly excluded from home ownership in the communities where they grew up. If the Government wants to build a big society, society will have to get building.
“This need not be at the expense of green belt. We have capacity within existing communities to create all the new homes we need. Small available sites of under two hectares within built up areas are numerous but rarely counted and micro-sites of half an acre or less are literally too numerous to count.
“Even in inner London, where population density is highest and land scarcest, there are enough micro-sites to supply all the new homes we need. In towns and villages throughout the country this is also true as the latest research from the London School of Economics shows. As such the government should go further and grant planning permission on all sites under two hectares within existing developments. This would allow the widest possible community participation in the development of the community’s future.”
Berry Concluded: “Constraint in the supply of land available for development is the key factor restricting housing supply, and the Government will have to think very carefully about how its entire package of planning reforms will work in practice. The Government has a golden opportunity to get planning reform right, if this opportunity is not taken, homes will not be built, local amenities will continue to be lost, and those we most need in order to create a big society, will be increasingly excluded from it because they can neither live nor work in the community where they were raised.”
HBF Executive Chairman, Stewart Baseley said: “Today’s announcement is an interesting initiative to make the planning system more flexible and less bureaucratic in responding to clearly expressed local needs for housing. We welcome that, but a Community Right to Buy for rural areas can inevitably only be a fairly small part of the answer to meeting the nation’s major shortfall of housing – estimated at nearly 1 million homes.
“The Government needs to work with equal speed with industry and others to flesh out the details of its wider planning reform agenda to ensure this provides a climate giving companies the confidence to invest in the housing solutions required to meet peoples’ needs and aspirations."
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RICS MEMBERS BACK STAMP DUTY EXEMPTION FOR FIRST-TIME BUYERS
26 July 2010
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Transaction activity in the housing market has remained subdued, according to HMRC figures, but RICS members remain positive on the stamp duty exemption for first-time buyers.
According to the figures, 76,000 property sales took place in June bringing the total for the second quarter of the year to 225,000. This compares with 216,000 in the first quarter and 260,000 in the final three months of 2009.
Sales are still running well below the levels preceding the onset of the credit crunch, partly because of a shortage of mortgage finance as well as, until recently, the lack of stock on the market.
In the latest RICS Housing Market Survey, RICS asked specific questions on stamp duty to assess the impact the stamp duty exemption might have on property transactions.
Unsurprisingly, 89% of respondents across the UK agreed the stamp duty holiday should be maintained by the new Coalition government.
In total, 85% of respondents believe the new incentive will boost transaction activity by up to 10%. One in ten suggested that the increase in sales would be in the region of 11% to 20% with the remainder anticipating a gain in excess of this.
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ONE IN FIVE LANDLORDS EXPERIENCED RENT ARREARS IN THE LAST THREE MONTHS
26 July 2010
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A fifth of private-residential landlords have had tenants in rent arrears over the last three months, according to new research published by the National Landlords Association (NLA).
During Q2 2010, just over 21% of landlords experienced rental arrears. This represents a small improvement on the previous quarter when 24.5% of landlords reported the same.
However, the average amount of outstanding rent arrears has dropped significantly from £978 in Q1 to £799 in Q2. This could indicate that financial pressures on tenants have started to ease as the fragile economic recovery continues.
David Salusbury, Chairman, NLA, said: “Rent arrears are a serious problem for landlords all over the UK. It is good to see the latest data which represents a small improvement in that more tenants are keeping up with their rent payments and not putting pressure on their landlords who may well have mortgage repayments to consider.
“It is critical that tenants and landlords communicate and work together to tackle financial problems before they result in a loss of rent or even the tenancy.
“Where problems do exist, the NLA’s new service is designed for landlords who need a helping hand in guiding them through what can be particularly stressful and complicated procedures which must be carried out correctly. NLA Rent Arrears provides a structured and cost-effective route for resolving such situations.”
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DEFRA CUTS FUNDING FOR SUSTAINABLE DEVELOPMENT COMMISSION
26 July 2010
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Environment Secretary, Caroline Spelman has announced reforms to over 30 of Defra’s arm’s length bodies, including cutting of funding for the Sustainable Development Commission.
Defra has around 90 arm’s length bodies, many of which were set up in at a time when our understanding of and engagement with environmental issues was less mainstream. Most of the things that these bodies do is now part of what the Government does as a matter of course, others are now no longer necessary.
Spelman said: “This Government is committed to being the greenest Government ever and the Structural Reform Plan published last week sets out how Defra will play its part in achieving this. Reducing the deficit is priority for the Government and all departments are playing their part in making efficiency savings.
“Together with Chris Huhne I am determined to play the lead role in driving the sustainability agenda across the whole of government and I am not willing to delegate this responsibility to an external body.
“The effective delivery of public services is essential and I am committed to increasing the transparency and accountability of Defra’s public bodies and to reducing their numbers and costs. Times have changed since many of these bodies were set up and much of what they do is now everyday Government business.”
The Secretary of State announced that she will be withdrawing Defra funding from the SDC; abolishing the Royal Commission on Environmental Pollution; abolishing the Agricultural Wages Board, the fifteen Agricultural Wages Committees, the sixteen Agricultural Dwelling House Advisory Committees and the Committee on Agricultural Valuation; abolishing the Inland Waterways Advisory Council; and Abolishing the Commons Commissioners.
Spelman continued: “We will continue to liaise closely with the Sustainable Development Commission’s partners and will work with business, civil society, local communities, universities and internationally, to help deliver sustainable development together. The House of Commons Environmental Audit Committee will provide powerful democratic scrutiny of Government’s work in this area.”
Paul King, Chief Executive of the UK Green Building Council said: "While the need to make financial savings is understandable, this decision is concerning. Although the Committee on Climate Change has a critical role as watchdog and advisor on carbon emissions, the SDC had a much broader remit. All government policy needs to be assessed through a sustainable development lens, not just carbon emissions. This will now put more of an onus on the private and third sectors to carry out this role."
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PART-OWNERSHIP HELPS KICK-START UK HOUSING MARKET
26 July 2010
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Under-35s say part-ownership is often the only answer when it comes to getting a foot on the property ladder.
A surplus of newly-built homes in the UK could help kick-start opportunities for the first-time-buyer over the next 12 months. That’s according to one industry expert who says newly built homes are the key to the door for young people desperate to have a place of their own.
According to Vernon Pethard, managing director of newhomesforsale.co.uk, becoming part-owner of a new home is now the most popular solution. 40% of all property searched on newhomesforsale.co.uk is now for shared ownership developments, and with demand at an all time high, the site now features a dedicated section.
Pethard says there are growing opportunities and great deals to be had: “Securing a mortgage is still the major challenge for a young person but part-ownership is proving an increasingly attractive option.
“There are several different shared ownership schemes designed to assist homebuyers. Some are offered by the developer and some via housing associations, which are available to eligible house-hunters.”
It was recently revealed that the average age of a first-time buyer, excluding those who receive financial backing from family, is 38. Given the costs involved, it comes of little surprise to learn that the younger generation struggles to obtain a mortgage.
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ABOLITION OF RSS’s IS ANTITHESIS OF GOOD PLANNING, SAYS PLANNING CONSULTANTS
26 July 2010
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The coalition government’s decision to scrap Regional Spatial Strategies (RSSs) will create a planning vacuum causing further uncertainty for major developers and particularly house builders in an already fragile housing market, warns independent planning consultancy, DPP.
RSSs, for all their faults, were extremely useful tools in providing clear guidance for developers, planners and local authorities on locations for growth and on housing, commercial and infrastructure developments.
Richard Flack, Senior Partner at DPP said: “The market needs certainty now more than ever. The decision to scrap RSSs with no indication of what is going to replace them or without clear guidance for local authorities is ill-advised.
“The difficulties are compounded as initiatives to introduce the new national planning policy framework are still some way off, as are significant changes to how Local Plans will be prepared to reflect the localism agenda. An uncertain transitional period is in prospect. It is the antithesis of good planning.”
The abolition of RSSs does provide local authorities with the opportunity to review and rewrite their Local Development Plans, which may result in an increase or decrease in local housing numbers. Local authorities are to be incentivised to promote housing development, but there is little indication as to the extent of these incentives.
There is also the very real danger that Nimbyism will exert an undue influence over the local planning agenda constraining the ability to meet housing requirements.
Richard added: “Further problems will arise when it comes to infrastructure projects and large developments that involve more than one local authority. The government would like local authorities to collaborate, yet without some national direction by way of incentive or stick this is simply unlikely to happen in any coherent fashion.”
Developers may be tempted to rush into this planning vacuum and seek to push through more controversial schemes or sit back and wait for clearer guidance from the government, neither of which is particularly desirable. Some local authorities, on the other hand, may take it as a cue to delay preparing local policies until a more settled planning landscape is in place.
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JUST A MINUTE: JOHN CARTHEW, MANAGING DIRECTOR OF HOMESWAPPER
27 July 2010
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John Carthew
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John Carthew, Managing Director, HomeSwapper
How did you get started in the industry? In 1991 I worked with Trident Housing Association on an early Common Housing Register. It was here I spotted the potential of creating intelligent software services for the social housing industry.
Biggest professional achievement: For my company to have built a Mutual Exchange service which serves 70% of the social housing market.
Biggest mistake: Failing to understand the pace at which central government works.
Best advice you received: Listen more, talk less!
What do you like most about your job? Making a difference to people’s lives through our services.
And least? The difficulty in getting organisations to understand how technology can significantly improve the services they offer.
What you would most like to change in housing? For housing to help with social mobility rather than being a last gasp safety net.
What future issues do you see arising in housing? Social housing providers having to adapt to far greater levels of tenant social mobility with less resources.
Do you read a daily newspaper? No.
How are you making use of the internet? The internet is my livelihood – a tool which will help my business continue to create services which will inevitably help organisations achieve more for less.
Hobbies and interests: Running a Duke of Edinburgh youth group.
Favourite holiday destination: The French Alps.
Favourite Music / Bands: Radiohead.
www.homeswapper.co.uk
If you would like to take part in Just A Minute, please email: news@housingnews.co.uk or Click here.
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HALF A MILLION ADDED TO WAITING LISTS IF HOUSING BUDGET CUT BY 40 PER CENT
27 July 2010
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David Orr
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More than half a million people could be added to housing waiting lists – and 283,000 construction industry jobs lost or not created – if the Government slashes the affordable housebuilding budget by 40%, the National Housing Federation has warned.
The Federation said ministers, who are looking at making cuts to departmental budgets of up to 40%, risked shutting the door on an entire generation of families on lower incomes by withdrawing billions of pounds worth of funding for affordable housing schemes.
Waiting lists are already at record levels with 4.5 million people currently waiting for a social home in England, while an estimated one million children are living in overcrowded housing. But just as the demand for new homes has reached new highs, the number of homes being built has slumped to its lowest level since the Second World War with just 123,000 built in 2009/10.
The Treasury has ordered government departments to budget for cuts of 40% ahead of October’s comprehensive spending review. A 40% cut to the affordable housebuilding budget would mean the budget between 2011/12-2019/20 would be reduced from £28.6bn to £13.1bn - a fall of £15.5bn.
The Federation says that if the housing budget was cut by 40%, Around 230,000 affordable homes would not be built up to 2020; 570,000 people would be added to waiting lists for an affordable home; Around 283,000 jobs in the construction industry would be axed or not created by 2020; And the wider economy would also suffer, with the cuts reducing economic activity by around £50bn over the next ten years.
It warned that the poorest communities would be hardest hit by the proposed cuts to housing and would have a series of damaging knock-on effects. Research has consistently found a link between bad housing conditions and poor health, low educational attainment and higher crime rates.
Cutting funding for desperately needed social homes would also call into question the Prime Minister’s pledge to ‘always looking after the poorest in our country’. The Federation estimates spending cuts of 40% would reduce the number of affordable homes built between 2011/12 and 2019/20 from 426,000 to 197,000. The number of jobs losses sustained as a result of the huge reductions in grants would total 31,500 a year.
Federation chief executive, David Orr said: “It is clear the amount of public money available to fund various activities in the future is going to be tight. However, given the scale of the nation’s housing crisis, it is critical that the nation keeps building affordable housing.
“If we don’t safeguard the building of affordable homes then hundreds of thousands of vulnerable people will be added to waiting lists already at record levels. Brutal cuts of 40% to the housing budget would effectively shut the door on an entire generation which would be left with little hope of ever being allocated a social home.
“Over 31,000 jobs would also be lost from the construction industry every year and cost the economy £5.6bn a year in lost activity – if cuts on this scale were introduced. We would urge the Government to closely consider the huge human, social and economic cost of failing to invest in affordable housing.”
He added: “We understand the need to reduce the deficit and housing associations are continually thinking about how to build homes while being even more effective and innovative – and maximising the value they deliver for the public money invested.”
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NEW FIGURES GIVE TRUER REFLECTION OF ROUGH SLEEPERS
27 July 2010
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Grant Shapps
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New additional estimates show that the number of people sleeping rough on the streets could be more than treble the official national Rough Sleeping Count, a truer reflection of the problem, according to Housing Minister, Grant Shapps.
The official count published last week showed there were 440 rough sleepers in England, but additional official experimental estimates published today showed the figure could be as high as 1,247. This is because for the first time, all councils have been asked to submit estimates of the number of people sleeping rough on the streets in their area.
Previously, only councils which deemed themselves to have a problem had to do an official rough sleeping count, which was then submitted. This meant that only 70 councils conducted street counts leading to a total figure of 440 rough sleepers counted in England.
However, a further 256 councils have now provided estimates of the scale of the problem in their areas, many of them for the first time. This has added a further 807 rough sleepers - leading to a national total of 1,247 rough sleepers. The new estimates follow calls from Mr Shapps for a review of how rough sleepers are counted and for a more comprehensive method of assessing the scale of the problem.
This is just one part of the Government's drive to ensure homelessness is given the attention it deserves. Mr Shapps is also bringing together Ministers in 8 different Government departments to work closely together to look at ways their respective policies and frontline services can help rough sleepers and those at risk stay off the streets.
Shapps said: "At first glance today's figures might seem like the number of people sleeping on the streets has trebled overnight - but the reality is that the situation on the ground has been much worse than the official rough sleeping count suggested for many years.
"I've consistently called for an honest street count and today's new official figure is a much more comprehensive measure than in previous years. For the first time, all councils have been required to at least estimate the scale of the problem in their area, where previously they would not have contributed at all. So in some of our biggest cities, while local people would have seen people sleeping on the streets, official statistics in the past showed there was no problem at all.
"This Government is serious about helping those sleeping on our streets and won't shy away from the true scale of the problem. Today's figures are a step towards getting a truer picture of the situation on the ground - but I want to go further.
"That's why I've announced plans for an overhaul of the way we assess rough sleeping and why I am asking councils and charities to help us come up with a more credible method of counting. We need a measure we can all rely on if we are to bring people in off the streets and give them a long-term future. The Coalition believes that good Government is transparent and open, even when it is difficult. By instigating a more accurate rough sleeping count Ministers believe they can shine a light on helping those most at need."
Proposed changes to the way rough sleepers are counted include encouraging neighbouring authorities to hold counts on the same night, adjusting the timing of counts to capture rough sleepers who bed down later, and a greater role for voluntary organisations like Homeless Link to attend and verify counts. Charities and councils are being asked for their views on proposed improvements in a consultation also published today.
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HESELTINE TO CHAIR £1BN REGIONAL GROWTH FUND
27 July 2010
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The Government has announced that Lord Heseltine will chair the Independent Approval Panel for the £1bn Regional Growth Fund.
The new Panel will consider proposals for funding and recommend to Ministers which projects should be taken forward. Sir Ian Wrigglesworth will be Deputy Chair.
The Fund has been set up to provide support for projects that offer significant potential for sustainable economic growth and can create new private sector employment. It will particularly help areas and communities currently highly-reliant on public sector employment make the transition to private sector led growth and prosperity.
iIt was announced at Budget and will operate over two years. In a consultation published today, the Government is seeking views on how the fund should be designed to best meet the needs of areas and communities across England.
Launching the consultation, the Deputy Prime Minister said: “The Regional Growth Fund is an innovative new mechanism to unleash the talent and drive that will help get the country back on its feet.
“Now is the moment to rebalance our economy so it is sustainable and fair. Instead of following a broken model of unbalanced growth that put the financial sector first, we must help growing companies and entrepreneurs thrive, bringing jobs and prosperity to their communities. And as we take action to reduce public spending and bring down our towering deficit, supporting places that have become overly reliant on public sector employment must be a priority.
“We’re asking people to help us design this fund so we can be sure the investment will make a real difference. I am delighted that Michael Heseltine and Ian Wrigglesworth will be Chair and Deputy Chair of the Approval Panel. They have experience and authority to drive this forward and both are, like this Government, utterly committed to ensuring the parts of the country with the greatest need share in the prosperity of the future.”
Lord Heseltine said: “I am delighted to have been asked to help with this exciting project. It builds on the experiences I’ve had in helping people in deprived areas to help themselves and their communities achieve aspirations that, without schemes of this sort, might be impossible. “This is about local people, local initiatives and local success in areas where the inevitable cuts will be most heavily felt.”
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ECONOMY REBOUNDED MORE THAN THOUGH, SAYS RICS
27 July 2010
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Figures from the Office for National Statistics and British Bankers' Association data show that the economy has rebounded more than predicted, says Simon Rubinsohn, RICS chief economist.
He said: “The data released by both the ONS and the BBA suggests that while the economy rebounded more smartly than expected during the second quarter of the year (1.1 per cent against the consensus view of 0.6 per cent), lending to most non-financial business sectors - and more specifically the property industry - remains subdued.
“A big surprise to the GDP number was the contribution from the construction industry where output is estimated to have increased by 6.6% compared with the first quarter. On the basis of this number, the construction sector contributed more than one-third of the total increase in GDP.
“We are not convinced the rebound in this area of the economy has been anywhere near as robust as implied by this data. Indeed, the latest RICS UK Commercial Property Survey shows developments starts still falling. As a result, RICS suspects the Q2 growth figure will be revised lower as more information becomes available.
“Meanwhile, mortgage approvals for new home purchases slipped back in June to just 34,813 according to the BBA. With the exception of the February reading this is the lowest number in a year. The jump in new property coming to the market following the abolition of HIPS should help boost transaction activity but with buyer interest steadying, volumes are set to remain at historically low levels.
“The strong GDP data may strengthen the argument for base rate increases at the next Monetary Policy Committee. We are unconvinced of the merits for such a move, despite the robust second quarter data and believe this will mark the high water mark for quarterly growth in the economy with fiscal tightening set to bite as the year draws to a close.”
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LANDLORDS FEAR ‘NO-GO’ ZONES FOR SHARED HOUSING
27 July 2010
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Local authorities could have the power, later this year, to declare their own ‘no-go’ zones for privately rented shared houses.
This would replace the current need to obtain planning permission if a landlord wanted to rent out an existing family home to a group of tenants such as students, nurses or young professionals.
But the government’s policy of reducing the burden of national legislation on the sector could create a local mass of new red tape, says the Residential Landlords Association. That’s why the RLA is lobbying the housing minister, Grant Shapps on his planned revision of the new planning regulations that came into force three months ago.
The association has already attacked the current position - where a landlord with planning permission to rent out a shared house, and then lets it to a family, may not be allowed to switch back to a shared house at a later date. That was part of the former government’s plans to restrict the numbers of small ‘houses in multiple occupation’.
Shapps, however, plans to relax that legislation but instead, from 1st October, he proposes to allow local authorities to apply the rule in areas they consider to have an HMO ‘problem’. That, says the Residential Landlords Association, could create ‘no-go HMO zones’.
RLA lawyer, Richard Jones, said: “The minister has declared his intention to reduce the legislative burden for private sector landlords and he may achieve that at national level. But locally this gives local authorities too much additional power.
“It would still threaten the future of traditional student housing areas, and the local economies that have grown up around them. But it would also throw up a series of anomalies in local housing markets too. What happens, for instance, if a couple are renting a house and decide to take in lodgers? Is that still a domestic let … or does it become an HMO?
“More and more local authorities are approaching private landlords to house the homeless and those in need. Locally landlords need the flexibility to let to a family one year and to a group another year, without the need to have to get planning permission to change backwards and forwards. At the moment there is huge uncertainty as to when planning permission is needed anyway.
“We are looking for two major changes in the minister’s proposal as they will affect areas designated by the local authority for these new controls. Firstly, we want to change the definition of an HMO so that it only applies if there are at least five residents rather than only three which is the case at the moment.
“Secondly, we want to see a ‘preserved right’ introduced so that, even if a local authority does exercise its new powers, a property can be occupied either as a family home or a shared house without any need to obtain separate planning permission.
“This protects the value of existing shared houses. We already have a lot of evidence that in the same street a house which can only be used as a family home could be worth a third less than a house that can be rented out as a shared house. We simply want to preserve the right to switch between groups of tenants sharing a house or the domestic use by a family – according to the housing demand at the time.”
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SHAPPS REVEALS PLANS FOR MORE ZERO-CARBON HOMES
28 July 2010
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Grant Shapps
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Housing Minster, Grant Shapps has set out further steps for all new homes to be zero carbon from 2016.
Rather than a top-down prescriptive approach, the plans outlined by Mr Shapps aim to give councils and developers much more flexibility to decide how to meet the ambitious eco-standards.
As part of this, the Minister signalled his intention to establish a community energy fund, as originally proposed by the UK Green Building Council.
This would allow developers to make payments to the local authority to support local energy schemes, such as a local district heating scheme, or a community wind farm for the area. This will offer much simpler way for developers to meet their obligations than having to undertaken expensive on site measures, or set up their own offsite schemes.
This comes as part of the Coalition Government's ambition for a carbon and eco friendly economy, and to be the greenest government ever. Shapps also confirmed that the minimum standards for energy efficiency through measures such as improved wall and loft insulation and high specification windows, will be implemented in future revisions of building regulations and will be based on those set out in a recent consultation on the Code for Sustainable Homes.
He also confirmed the Government's commitment to a realistic benchmark for carbon emissions in building regulations, but said that as this will need to take into account the costs of a tough standard, the Zero Carbon Hub will test what would be an appropriate level for this benchmark.
Despite the tough economic climate and ongoing efforts to tackle the record budget deficit, Mr Shapps confirmed that the Zero Carbon Hub will receive £600,000 for their work this year.
Shapps said: "This is about meeting tough environmental standards, but not dictating how every home should be built. Councils and developers together are in the best position to decide how best to meet these standards, so we're giving them the flexibility and a range of options to do this.
"We are committed to all new homes being zero-carbon from 2016, and have the right mix of measures in place - including regulations but also new innovations such as a community energy fund.
"First and foremost a zero carbon home must use as little energy as possible, which is why I will shortly announce a minimum standard for key energy efficiency measures like loft and cavity wall insulation.
"And to ensure the benchmark for carbon emission reductions is both ambitious and achievable, I look forward to seeing the results of tests the Zero Carbon Hub will conduct over the next few months."
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SOCIAL HOUSING SQUEEZE WILL COST UK ECONOMY £2.5BN OVER FIVE YEARS
28 July 2010
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The barriers faced by social housing tenants wanting to move home are costing the UK’s economy at least £542m each year.
This will amount to more than £2.5 billion over the course of this Parliament - according to Counting the Costs, a major new report released by Circle Anglia. Circle Anglia, which runs www.houseexchange.org.uk, commissioned think tank Human City Institute to investigate the impact that lack of mobility in social housing has on our society.
Human City estimates that 495,000 of the UK’s 3.9 million social households are victims of the UK’s Social Housing Squeeze: they want to move home, but are unable to do so. The report identifies the key reasons why people want to move, and calculates the economic and social costs of people not being able to move.
The £542m cost is broken down by £305m based on tenants not being able to care for relatives; £81m to the NHS through costs of overcrowded and unsuitable housing leading; £48m based on tenants wanting to move into employment, but unable to do so; £18m based on tenants wanting to move to take up better work but unable to do so; £32m based on educational under-attainment from overcrowding; and £58m to the Criminal Justice System.
A number of factors have contributed to this ‘social housing squeeze’. These include a 66% decline in the availability of new lettings to existing tenants over the past 13 years, combined with a fall in available houses in the same period of 500,000 and an escalation in demand for social housing , with one in 12 households in England now on waiting lists.
As a result of the figures unveiled, Circle Anglia is calling for three clear actions from the Government to help get social housing tenants in Britain moving, as part of its ongoing mission to enhance Life Chances. These are that all social landlords should join a national mutual exchange register; remove barriers that prevent people from moving; and incentivise mobility.
David Williams, Executive Director Strategy and New Business, Circle Anglia, said: “Social housing residents want to move for a number of reasons, including health, to care for sick family members, to escape overcrowding or to seek work in more prosperous areas. Whatever the reason – one thing is clear – it is near impossible to make the move on the transfer list - and the social and economic costs to the UK are devastating.
“We know from House Exchange that while 53% of people who sign up with us had been trying to move for more than two years before signing up to mutual exchange, 80% move within six months of registering with us. With around half a million people on the social housing transfer list, if their landlords simply signed up to one national mutual exchange service we could create a fluid, free-market of house exchanges that would help so many people. The Coalition has highlighted the problem. We hope it also encourages and enables the right solution.”
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CONNAUGHT SHARES SLUMP
28 July 2010
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Shares in social housing firm, Connaught slumped 76% this week after it said it had identified an "urgent" need for extra funds.
Connaught said its debt levels were set to be worse than feared and it would breach its banking covenants.
Last month, the company announced that its business was set to be hit by government spending cutbacks announced in the Budget. In Monday morning trade, shares in Connaught were down by 76.52% at 23.97 pence.
Its shares have now lost more than 90% of their value since late June, when it announced it had identified 31 contracts that had been deferred following the spending cuts announced in the Budget.
At the time Connaught also said it expected revenues to be £80m lower and profits £13m lower this year. The firm carries out maintenance and repairs for many social housing projects.
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SEARCH FOR PROPERTY RENTALS DROP BY HALF A MILLION
28 July 2010
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The latest quarterly analysis of online search data by independent search and social marketing consulting and technology firm, Greenlight, reveals that unlike February, there were more online searches made by UK consumers in May for places to buy as opposed to rent.
The report, Real Estate Sector Report May 2010, also reveals that when it came to sales by location, Scotland proved the most sought after region. Edinburgh was most popular followed by Glasgow then Aberdeen. Cumulatively, they accounted for 19% of all location-specific sales keyword searches.
Using industry data and proprietary technology, Greenlight identified and classified 2,800 of the most popular search terms used by UK consumers when they went online in May to look for accommodation to rent or buy. The research profiled generic lettings keywords, generic sales keywords, lettings by location and sales by location.
Greenlight also used the data to compile its quarterly league table of the top 60 real estate companies and aggregators, in both natural and paid search, based on their website’s visibility in relation to the most popular search terms. Greenlight also ranked the 15 most proactive real estate brands and aggregators in social media.
There were 1.7 million searches performed for real estate-related keywords. This was a 10% increase since April, when over 1.5 million searches were made. Of the total, 681,000 consumer searches were sales-related whilst 630,000 were for lettings. This compares to 619,000 and 1.3 million, respectively, in February.
The term ‘Houses for sale’ accounted for 301,000 searches in May, which was 17% of all real estate-related searches, compared to 13% in February. In fact, 75% of all generic sales searches consisted of just three keywords, ‘Houses for sale’, ‘Property for sale’ and ‘Home for sale’.
Overall, RightMove was the most visible real estate website in natural search, achieving 80% visibility. It was also the most visible site for sales-related searches, achieving a dominant 99% visibility through ranking at position one for 25 keywords.
For sales by location, the terms ‘Edinburgh property’ and ‘Glasgow property’ were searched for 22,200 times each. Cumulatively they accounted for 16% of a total of 283,000 location-specific searches. FindaProperty was the most visible website for sales by location achieving 47% visibility.
Searches for rental by location accounted for 150,000 searches with London featuring in 16% followed by Glasgow with 5% then Edinburgh (4%).
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CABE TO BE REVIEWED
28 July 2010
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Jeremy Hunt, the Culture Secretary has announced that there will be a review of CABE.
A number of public bodies are set to be merged, abolished or streamlined as part of the Government's drive to cut costs and increase transparency, accountability and efficiency.
Hunt said: “The Government is committed to increasing the transparency and accountability of its public bodies, while at the same time reducing their number and cost.
“Many of these bodies were set up a considerable length of time ago, and times and demands have changed. In the light of the current financial situation, and as part of our drive to increase openness and efficiency across Whitehall, it is the right time to look again at the role, size and scope of these organisations.
“The changes I have proposed today would help us deliver fantastic culture, media and sport, while ensuring value for money for the public and transparency about where taxpayers’ money is spent.”
Hunt also announced he is looking at responsibility for heritage and the built environment, and considering the role and remit of English Heritage, the Heritage Lottery Fund and the National Heritage Memorial Fund.
He will also discuss with the Church of England the merits of declassifying the Churches Conservation Trust.
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TPAS WELCOMES HCA COMMITMENT TO TENANTS
29 July 2010
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The Tenant Advisory Participation Service (TPAS) has welcomed the Homes and Communities Agency’s commitment to tenants regardless of the current Tenant Services Authority review.
Delivering his key note speech at the national TPAS conference in Birmingham, Chief Executive, Sir Bob Kerslake made a commitment to tenants that their involvement will remain at the heart of the HCA’s housing and regeneration work and that tenant and resident involvement would be protected.
Sir Bob said: “I know that the new Regulatory Framework has been well received in the sector and provides a lasting basis for regulation. For me what is important is that while the institutions may change the functions must continue. We are clear that should the regulation role come to the HCA we would work with you (tenants) to ensure tenant and resident involvement is protected.
“So today I make a commitment. Although we are in uncertain times, tenant and resident involvement will remain at the heart of our work. We know that much can and should be done locally. That is why the HCA encourages and supports local partners to engage with tenants and residents. The HCA should be a tenant-friendly organisation to improve local places. Our combined experience tells us it is much better when tenants and residents play a central role.”
TPAS Chief Executive, Michelle Reid, said: “TPAS and the other tenant organisations had a very constructive meeting with the HCA and we are encouraged that Sir Bob Kerslake has committed to ensuring tenants will be at the heart of its work regardless of the outcome of the review of the TSA.
“Tenants donated huge time and resources in shaping the new regulations and it would be a great waste to throw this away because of a shift in governmental priorities. It is vital we keep the framework.
“Although we were extremely disappointed to hear the news about the TSA, and more recently the National Tenant Voice (NTV), we have to move forward and make sure that at this pivotal point of great uncertainty tenants are at the heart of all key decisions and positioned so they can play a key role in shaping the future housing policy.
“In order to do this we will continue to work closely with TAROE, the Confederation of Co-operative Housing, the NTV and the National Federation of Tenant Management Organisations and take great confidence from our conference that tenants and housing associations are more committed than ever to ensure the tenant movement is at the forefront of social housing.”
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FURTHER CLARITY ON ZERO CARBON HOMES WELCOMED
29 July 2010
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The Home Builders Federation has said the impetus to resolve remaining important issues on zero-carbon homes was helpful and that the home building industry would participate actively in discussions on these.
HBF was responding to Housing Minister, Grant Shapps’ statement today setting out the Government’s approach to clarifying the details of the zero carbon homes policy.
The Minister’s statement confirms that the proposed minimum level of building fabric energy efficiency under the zero carbon policy that was consulted on earlier this year will be adopted in future revisions of building regulations.
In addition, the Zero Carbon Hub has been asked to test what would be an appropriate level for a ‘carbon compliance’ requirement for on-site measures under the policy while the Government will explore further the scope for developers to make payments into local energy funds for carbon mitigation beyond this level.
Crucially, the Government has recognised the importance of the zero carbon policy being compatible with development viability as well as ambitious in its objectives. HBF believes it is vital to get this balance right. That means looking very carefully at the affordability of any carbon compliance element or whether in fact it is better to have a more flexible approach beyond fabric efficiency requirements.
Similarly any contributions to local energy funds must also be affordable and avoid subjecting companies to a wide variety of different requirements across the country. That would simply add to risk and cost. Striking this balance effectively and ensuring the industry has the right regulatory climate within which to bring forward future homes that meet its customers’ requirements is essential.
The Federation welcomes the Government’s confirmation of its financial contribution to the vital work of the Zero Carbon Hub this year – continuing the partnership approach to the implementation of the policy that has existed since its launch.
HBF Executive Chairman, Stewart Baseley said: “The Minister’s statement brings further helpful and necessary clarity to the direction of work on the zero carbon homes policy. We and our members will wish to contribute actively to these important discussions.
“In this regard, the Minister’s recognition that the policy’s ambition must be balanced against maintaining the viability of future development is critical and sets the yardstick against which we must judge our future success. We must ensure that both future building regulations requirements and any future local energy funds are both affordable for the industry and avoid creating a myriad of differing requirements that would in themselves frustrate effective delivery.”
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NLA WELCOMES SELECT COMMITTEE INQUIRY INTO HOUSING BENEFIT CHANGES
29 July 2010
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The National Landlords Association has welcomed a select committee inquiry into housing benefits changes.
David Salusbury, Chairman of the NLA, said: "Given that the Government changes to Housing Benefit will affect the vast bulk of tenancies in this sector, the NLA is pleased that the House of Commons Work & Pensions Select Committee has launched an inquiry.
"While we all realise the necessity for public spending cuts, the actual impact of potential changes on the lives of tenants and landlords up and down the UK has yet to be fully investigated.
“The consequences of the proposed changes as we have them now will have long-reaching consequences past 2013, when rates will be linked to the Consumer Price Index."
"We welcome the opportunity to provide evidence demonstrating just how damaging this package of changes could be."
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RIVERSIDE LOOKS TO MAKE SAVINGS WITH NEW FRAMEWORK
29 July 2010
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Riverside has teamed up with Valueworks to launch a framework which is expected to generate savings and efficiencies as well as proving an improved service to its tenants.
The framework – which currently comprises Wolseley UK, Edmundson Electricals and SIG Roofing - has enabled housing association Riverside to engage directly with merchants to provide a bespoke catalogue of approved building components.
John Hayes, Riverside’s Director of Asset Management, said: “Riverside purchases a huge amount of construction related products through its contractors.
“By providing this innovative solution, we are able to ensure that all of these products are to an approved level of specification and that we are able to lever some cost efficiencies using the volume we generate. By having this consistency of product, we anticipate that we will be able to offer an improved service to our tenants.”
Iain Walsh, Director of Valueworks, added: “Valueworks has extensive experience in this area. Our innovative and unique web-based catalogue management and eProcurement software will ensure compliance to the products and prices that have been negotiated with Wolseley, Edmundsons and SIG.
“Contractors who are employed by Riverside to carry out works on their properties will be directed to the Riverside eMarketplace where they will procure the materials required for the work. Whether this is responsive, planned or development related, the eMarketplace will provide the answers. Valueworks category management team will stay on top of the commercial arrangements to ensure that the prices are always at the leading edge of competitivity.”
Riverside is also introducing a discount card for its tenants allowing them to purchase a range of products (excluding products that need to be installed by registered tradesman) from the merchants at the same trade price Riverside does. The framework is open to other housing associations who can use it to build their own catalogue. SME contractors are also able to access it.
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CONSTRUCTION WORKLOADS CONTINUE TO FALL, WARNS FMB
29 July 2010
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Brian Berry
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Construction workloads for small building companies have continued to decline for the tenth consecutive quarter, according to the latest State of Trade Survey from the Federation of Master Builders (FMB).
However, there are signs that the continual fall in workloads maybe nearing its end with a leveling off in the rate of decline for both residential and non residential work.
Brian Berry, Director of External Affairs at the FMB said: “Despite the fact that the Quarter Two results from our survey still show two and a half years of declining workloads, underneath the headline results we are seeing grounds for some optimism in that workloads and employment are at least beginning to stabilize around their current albeit much reduced levels.
“Workloads right across the entire housing sector are now showing encouraging signs of stabilization as demonstrated by the fact that 46% of FMB companies undertaking private new housing; 60% of FMB companies undertaking social new housing; and 52% of FMB companies carrying out social repair, maintenance and improvement (RM&I) work reported no change to their workloads.
“When this is considered with the 53% of respondents to the survey reporting no change to staffing levels; the 60% not expecting to make any staffing changes over the next six months; and the 50-60% of companies reporting no change expectations for workloads in each of eight sectors for the coming quarter, we are at last beginning to see some hope of recovery in the construction sector. ”
Berry concluded: “The recovery in the wider construction sector is still very fragile, and the signs of stabilization in the SME sector are not the same as actual growth. Even without further decline we have some very serious problems. For example, private new housing workloads have been declining every quarter since quarter three of 2007 and new social housing has only seen workload growth in two quarters since 1999.
“There needs to be significant growth, and not just in housing but in the construction sector as a whole if we are to have a sustained recovery. Looking ahead we have yet to see the details of the Government’s autumn spending review and the impact of the increase in the rate of VAT to 20% next year might jeopardize the recovery, resulting in thousands of jobs losses and push the building industry back into recession.”
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DAME JO WILLIAMS IN LINE TO BECOME CHAIR OF CARE QUALITY COMMISSION
29 July 2010
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Following an independent recruitment exercise conducted by the Appointments Commission, Dame Jo Williams has emerged as the Government’s candidate for the post of Chair of the Care Quality Commission.
The Secretary of State for Health has today invited the Health Select Committee to hold a public pre-appointment scrutiny hearing and report on the candidate’s suitability for the post, in line with proposals for scrutiny of key positions in which Parliament has an interest.
After a hearing, the Committee will set out its views on the candidate’s suitability for this post. The Secretary of State will then consider the conclusions of the Committee’s report carefully before deciding whether or not to proceed with the appointment.
Dame Jo Williams is currently the interim Chair of the Care Quality Commission, a post she has held since the resignation of Baroness Barbara Young in January.
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HOUSING NEWS: INNOVATION ROUND-UP
30 July 2010
Click the picture to see what is going on here
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HCA PUBLISHES ANNUAL REPORT AND FINANCIAL STATEMENT
30 July 2010
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The Homes and Communities Agency’s Annual Report and Financial Statements 2009/10 show that the Agency has partially recovered from the market turmoil of the previous year, with its strong delivery supported by a steadily improving financial position.
It met or exceeded all of its key targets in 2009/10, including an ‘exceptional’ housing performance, starting or completing over 120,000 new and affordable homes. The total equates to more than half of all homes under construction during the reporting period.
Net operating expenditure was up by 21% but remained within budget at £5.2bn, a reflection of increased Programme funding channelled through the HCA by Government. Expenditure increased across every core Programme with the exception of Housing Market Renewal and the Places of Change Programme, including an additional £720m on affordable housing through the NAHP and £29m on regeneration activities.
The value of the HCA’s net assets grew by £214m to £1.16bn, while development assets also saw an increase in value, of £20m, resulting from a £24m writeback of the impairment charge recorded in the previous financial year. Available for sale assets grew by 130% to £381m, as a result of greater investment in low cost home ownership products, helping first time buyers and the house building industry as well as promising a return to the taxpayer in future years.
Despite a significant increase in activity, reflected in a 42% increase in the value of the Agency’s Programme relative to the previous year, overall administration costs fell in line with the Agency’s efficiency target and resulted in a £2m saving.
Chief executive, Sir Bob Kerslake, said: “I am pleased to be able to report a steadily improving financial position, which underlies the Agency’s strong delivery this year. Like the recovery in the market to which it is linked, our improved position has been achieved gradually and through tight financial control.
“I am particularly pleased that we met or exceeded all of our key targets for delivery, achieving our ambitions and helping local authorities to achieve theirs, and managed to shave £2m off our running costs at the same time as our operation grew by over 40%. We are now in a healthier position for delivery this financial year and we remain well placed to meet Government objectives and enable local authorities to achieve their ambitions for their own areas.”
The current difficult market conditions, however, continued to impact on the HCA’s receipts, with proceeds from land sales falling by 34%; and on exceptional items with a £26m liability on the London Wide Initiative, recorded as a potential liability last year and crystallised in this year’s accounts, and a £5.1m impairment relating to the same scheme.
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HOUSING PROFESSIONALS CONCERNS REFLECTED IN HOME SECRETARY’S CALL FOR CHANGE
30 July 2010
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The Chartered Institute of Housing (CIH) has welcomed Home Secretary, Theresa May's intention to review the tools used to tackle anti-social behaviour (ASB).
Speaking at the Coin Street Community Centre in London, she said that it was time to 'turn the system on its head'.
Joanne Kent-Smith, CIH Senior Policy & Practice Offer, said: "We are pleased with today's announcement. The Home Secretary's views will echo those of many social landlords, whose thoughts we captured in our May 2010 survey of housing providers.
"The CIH recognises that ASB is a key concern for both tenants and communities and for most social landl ords tackling ASB is at the core of its activity.
"The challenges faced by housing professionals are highlighted in the recent survey findings published in Taking Action against anti-social behaviour, the survey results showed two key challenges; the use of existing powers and tools and the complexities of existing solutions.
“This review provides an opportunity to streamline existing tools - to improve effectiveness on the ground and remove some of the complexities and confusion. However we strongly caution against removing tools which are currently being used to good effect and are protecting communities.”
She continued: "ASB is a very complex issue; and as some communities are wary about working directly with the police. The importance of close working relationships between the police, housing providers and other local community agencies should not be underestimated if public confidence and social responsibility is to be enhanced.
“Essentially there should be adequate resources in place locally to both support victims and witnesses of ASB, and to identify and prioritise those at greatest risk."
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BIG LOTTERY FUND LAUNCHES £200M COMMUNITY FUND
30 July 2010
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The Big Lottery Fund (BIG) has opened its search for an organisation to set up and run a £200m independent charitable trust that will help turn urban and rural neighbourhoods across England into better places to live.
The first 50 areas each to benefit from at least £1m good cause Lottery funding through the BIG Local Trust have been announced. BIG is calling for expressions of interest from organisations who wish to run the Trust by Thursday 12 August 2010.
The money will be given out through local funding schemes in each of the Big Local Trust target neighbourhoods. Each neighbourhood will roll out the funding over ten years. The targeted neighbourhoods were selected following extensive analysis and discussion with local partners. They are all places that have a history of difficulty in obtaining resources, including funding from BIG.
Peter Wanless, BLF Chief Executive said: “The Big Local Trust funding stream will help local people identify their pressing issues and develop the skills and confidence necessary to start changing things in their community for the better.
“The Trust will involve people in each of the selected 50 areas to decide on the best way to use the funding. This builds on BIG’s record of giving people a greater say in where Lottery money goes.
“We aimed to select communities from across the country, both in urban and rural areas that had been overlooked by funders in the past. The selected areas have been discussed with key local partners to ensure that we took into account local issues and views on priorities.
“I hope that by securing funding for the long-term and by offering a commitment to providing dedicated local support, the Big Local Trust will bring lasting positive changes to communities across England that may not have had the best chances so far”.
Meanwhile BIG will be working with a wide range of local organisations in each of the first 50 neighbourhoods announced today. At least 50 more areas across England to benefit from the programme will be selected by BIG in the next 12 to 18 months.
The programme builds on BIG’s commitment to pioneering flexible, long-term and locally determined approaches such as the Fair Share Trust programme, which since 2002, has been investing £50 million in 77 neighbourhoods across the UK.
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HOUSE PRICES RISE 8.4 PER CENT
30 July 2010
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The June data from Land Registry's House Price Index shows an annual price increase of 8.4%.
This is the eighth month in a row in which the annual figure has been positive and takes the average property value in England and Wales to £166,072. The monthly change from May to June is an increase of 0.1 per cent.
House prices are now around the same levels as they were in the summer of 2006. All regions in England and Wales experienced increases in their average property values over the last 12 months.
The region with the highest annual price change is London with an increase of 12.2%. The region with the smallest annual price rise is the North East with a movement of 0.7%.
Wales experienced the greatest monthly rise with a movement of 2.9%. The North East region experienced the most significant monthly price fall with a movement of -1.3%. The most up-to-date figures available show that during April 2010, the number of completed house sales in England and Wales rose by 26% to 49,323 from 39,280 in April 2009.
Simon Rubinsohn, RICS chief economist said: “The data suggests house prices on completed sales in England and Wales edged up a further 0.1% in June. As a result, house prices on this measure are just 9.5% away from their previous high, recorded in November 2007.
“The strongest monthly gain in June was in Wales but London continues to post the highest year-on-year increase (12.2%). The Welsh data is not only out of line with recent Land Registry figures but also with the results of the RICS Housing Survey making us question the sustainability of this rise in prices. More generally, most RICS indicators suggest that prices across England and Wales could slip back a little during the second half of the year. London may be the exception to this.
“The more worrying element of the Land Registry data is the continuing weakness in transaction activity. While the latest numbers only refer to April, they show completed sales in England and Wales at less than 50,000. Moreover, subsequent figures on mortgage approvals suggest that this number is unlikely to pick-up anytime soon.
“With the average number of monthly transactions prior to onset of the credit crunch roughly double this figure, it is clear mobility has been impacted and many people who wish to take their first step on the property ladder or move home have been unable to do so.”
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HALF OF ASBOs BREACHED
30 July 2010
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More than half of the anti-social behaviour orders (Asbos) issued by the courts have been breached at least once, new figures have shown.
The Ministry of Justice said 55% of the almost 17,000 Asbos issued between June 2000 and December 2008 were breached, leading to an immediate custodial sentence in more than half of the cases.
A further 26% were given a community sentence, while the remaining 21% were handed sentences including fines, a day in police cells or a driving ban, the figures showed. A total of 40% of Asbos were breached more than once and, if an Asbo is breached, it is breached an average of four times.
Teenagers and children were the worst offenders, with 65% of those aged 10-17 breaching their Asbo at least once, compared with 49% of those aged 18 or over. Custodial sentences were given to 4,944 people who breached Asbos, with an average length of 5.2 months.
A Home Office spokesman said: "We are clear that antisocial behaviour (ASB) must be dealt with and have made it a priority at every level. That is why we have announced a review of the ASB 'toolkit', including Asbos, so we can ensure the police and other agencies have tools that are proportionate, effective, quick and easy to use.
"We know ASB is a serious problem for many people and we are determined to help local areas tackle it."
The highest number of Asbos issued in any calendar year was 4,122 in 2005, with the number declining in each subsequent year, the figures showed. In 2008, the latest year for which figures are available, a total of 2,027 Asbos were issued, 64% of which following a conviction for a criminal offence.
A total of 1,266 ASBOs were breached for the first time in 2008, compared with 2,204 in 2005.
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NEWS 
