23 JAN 2018

HFi Today, January 2018

- Not since the moon landings have we built 300,000 houses a year

- Better Connections

- Modular Housing

- Next Housing Business Breakfast


Natalie Elphicke: Not since the moon landings have we built 300,000 houses a year

Yesterday, the HFi's Chief Executive, Natalie Elphicke wrote an article setting out the recent housebuilding success, the challenge the Government faces in achieving its 300,000 new homes target and some solutions. The solutions identified were to improve housing infrastructure, support housebuilders, encourage modular building, improving finance while also ensuring quality standards.

Natalie pointed out that there have been only six years since the Second World War that more than 300,000 homes a year have been completed in England. The last time it was achieved was the year of the Moon landing – 1969.

Dominic Raab, the new Housing Minister, faces a tough challenge in current market conditions as well as a tough target in 300,000 homes. This is set against a backdrop where the Prime Minister has raised the political stakes by making housing delivery her personal priority. So to succeed, the Government must activate the rocket boosters, adopt a radical new approach and then – and only then – will we see housebuilding at a rate last seen in England when Neil Armstrong made that giant leap for mankind 49 years ago.

Click here to read the article in full.

The article received significant media coverage with The Guardian reporting that the HFi was telling the Government to do more to meet its targets, calling for housing to be made a national infrastructure priority and that 300,000 homes had not been completed since 1969. As well as CityAM, which reported that the HFi are urging the Government to focus on modular construction as a way of meeting its targets.


Better Connections

Earlier this month the HFi held an event entitled 'Better Connections: Solving the housing crisis through infrastructure delivery' in Parliament.

The event was chaired by Stephen Hammond MP (Chair of the APPG on Infrastructure), with contributions from people on all sides of the debate – with MPs, water companies, developers, councils and financiers all in attendance.

The event was focused around the HFi's latest paper 'Better Connections', with discussion revolving around the issues with housing infrastructure, possible solutions to the issues with housing infrastructure and the recommendations of the report.

To read our paper on infrastructure delivery - 'Better Connections: Housing Infrastructure Recommendations' - click here.


Modular Housing

The HFi held its second Parliamentary event of the year last week. This was a round-table event on modular housing.

This event consisted of the key players in modular housing and investment with the event chaired by HFi Board Member, Lord Kerslake. Modular housebuilding was discussed in detail – with extensive discussion on the opportunities and impediments to modular housebuilding, and what can be done to ensure that modular housebuilding succeeds.

The discussion will form the basis of a new HFi report on modular housebuilding - coming soon.


Housing Business Breakfast

 

Our next Housing Business Breakfast will be held on 7 February at a central London location. This is a great opportunity to not only network, but also, discuss the most important issues facing the housing industry.

To reserve your place email events@thehfi.com

 

 

 

 


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Housing Delivery Snapshot - August 2024 

• The Bank of England cut interest rates to 5% in a move expected to begin to boost confidence. The close 5-4 vote of the MPC came with a cautionary message that the Bank was not going to cut “too quickly or by too much”.

• Mortgage lender Nationwide released its latest UK house price index report, with an annual growth in house prices of 2.1% in July, its fastest pace since December 2022.

• The latest NHBC housing pipeline figures for Quarter 2 2024 show the scale of the current housebuilding slump with a 23% fall in new registrations compared to the same quarter in the previous year.

• Latest MHCLG data reported a significant fall in residential Planning Permissions over 30%, another key housing pipeline indicator.

• Following the General Election, the new Government confirmed its 1.5 million new homes target for this Parliament.

• The Housing Secretary took immediate action to impose compulsory housebuilding targets on councils, with a warning of direct intervention if housing targets are not met.

• The Housing Minister confirmed on BBC Radio 4’s Today programme on 31 July that the Government’s New Towns programme is not expected to deliver any completed homes this Parliament.


HFI Housing Delivery Newsletter - August 2024

The Bank of England’s rate cut was a ray of light, but the housing pipeline remains a cause for concern. At the Housing & Finance Institute, we look at the latest news and developments in housing since the election, including in the Housing Spotlight and Delivery Snapshot.

Rate Cut Boost

Amid a challenging year for housebuilding and mortgages, there was a ray of light on 1 August, with the Bank of England announcing a long-awaited interest rate cut to 5%. The close 5-4 vote of the Monetary Policy Committee came with a cautionary message that the Bank was not going to cut “too quickly or by too much”.

Ahead of the rate rise, the mortgage lender Nationwide released its latest UK house price index report, with an annual growth in house prices of 2.1% in July, its fastest pace since December 2022.

The latest Bank of England announcements will provide a little relief for some current mortgage holders and those needing to refinance. However, many first-time buyers are facing a continuing double challenge of finding money for a deposit while meeting stringent affordability criteria. So while generally mortgage market confidence may begin to rise off the back of the Bank of England interest rate cut, access to home ownership remains difficult for many, given the affordability and home deposit challenges.

Housing Pipeline Concern

However, housing pipeline figures remain a cause for concern with the latest NHBC housing pipeline figures showing the scale of the current housebuilding slump. Latest MHCLG data reported a significant fall in residential Planning Permissions, another key housing pipeline indicator.

Housing Policy Interventions

Following the General Election, the new Government has confirmed its 1.5 million new homes target for this Parliament. Immediate action has been taken by the Housing Secretary to impose compulsory housebuilding targets on councils, with a warning of direct intervention if housing targets are not met. However, the Government’s New Towns programmes is now not expected to deliver any completed homes this Parliament, the Housing Minister told Radio 4’s Today programme. This raises questions as to how the 1.5 million new homes target will be delivered, without these major new developments coming forward at pace.

Further Government intervention on the demand side to support new buyers and home deposit savers is likely to be necessary over the next period to reverse the current housebuilding slump, together with far-reaching interventions for skills and building materials to meet a housing target that hasn’t been met since mankind first landed on the moon over 50 years ago. The HFI’s purpose is to support increased housing supply, back councils and businesses working together to build more homes and promote new ways to finance housebuilding.

Do get in touch if you would like to share ideas and suggestions on building the homes our country needs.

Best regards

Natalie Elphicke Ross
Head of Housing Delivery

natalie@hfi.org.uk


What are the key areas to Budget Watch in relation to Housing Delivery?

Autumn Budget 2024: What are the key areas to Budget Watch in relation to Housing Delivery?

 

 

 

DOWNLOAD THE HFI'S PRE-BUDGET BRIEFING BY CLICKING HERE: 

HFI Pre Budget Briefing October 2024