15 MAR 2018

HFi Today, March 2018

- Sir Mark - ING talk

- Natalie Elphicke: Newts Holding Up Housebuilding Is Snow Joke

- Housing Business Breakfast

- Build Out Review


Sir Mark - ING talk


Recently at ING Media, our Chairman, Sir Mark Boleat, gave a talk on his radical solutions to improve housing delivery.

He built on many of the arguments he made in his report for the HFi – The Housing Problem in London. Sir Mark argued that "the housing crisis is caused by government, not by property developers." And calling for reform of the planning system as it is "weighted too heavily towards local residents".

You can read Sir Mark's paper in full here.

Sir Mark will also be speaking in London at City & Financial Global's 'UK Infrastructure Policy & Investment Summit' on 28 March.


Natalie Elphicke: Newts Holding Up Housebuilding Is Snow Joke


Our Chief Executive, Natalie Elphicke, has written for HuffPost about the impact of Newts on housebuilding.

Natalie argues that this winter there are homes waiting in factories and diggers sitting idle, while newts, other amphibians and reptiles gambol in the snow. Not literally gambol, because newts do not gambol. We know this because we know an awful lot about newts.The UK Government and the EU each fund study after study on these creatures. Newts are abundant in the UK. They are protected not because of a lack of them, but because of other EU countries who have failed to take adequate steps to preserve them.

"Up and down the country, I have visited sites where priority is given to building what has been described as bat hotels and even bat playgrounds – leisure spaces for our winged friends to, literally, spread their wings. We are building five star bat accommodation before builders can get on with building affordable homes for people.

"Of course, there is a balance between species and development. But is that balance in the right place? Has the pendulum swung too far in wildlife's favour? What about the plight of vulnerable people this winter?"

Click here to read the article in full.


Housing Business Breakfast


Our last Housing Business Breakfast at Trowers & Hamlins took the form of a roundtable and discussed in detail Housing Delivery Partnerships, a topic which Trowers wrote a paper on last year. Tonia Secker of Trowers gave a short presentation on Housing Delivery Partnerships which led to a fruitful discussion.

You can read Trowers & Hamlins' report of Housing Delivery Partnerships here.

Our next Housing Business Breakfast will be held on 4 April 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. More details coming soon.

To reserve your place email events@thehfi.com


Build Out Review


Sir Oliver Letwin has written to the Chancellor and Secretary of State for Housing with an update on his review into build out rates on large housing sites.

Sir Oliver's letter identifies two distinct stages for large developments: Stage 1 is 'the regulatory stage', and Stage 2, 'the build out stage'.

Acknowledging that labour, materials, utilities installation and others affect stage 2, Sir Oliver is 'not persuaded that these limitations are in fact the primary determinants of the speed of build out'. Instead he identifies absorption rate as the key factor, with the rate 'largely determined by the type of home being constructed and the pricing of the new homes built'.

His research to date has explored the importance of expanding the availability of different types of housing which can increase absorption and higher build out rates. He references the requirement for cross-subsidy from the open market housing on the site as a limiting factor in building out affordable housing. Also, he describes demand for specialist private rented sector housing as largely additional to demand for owner occupied housing.

Click here to read Sir Oliver's letter in full.

Back to all posts


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?

 

 

 

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HFI Pre Budget Briefing October 2024