27 JUL 2018

Recent Round-up 1

South Norfolk: Housing Business Ready

It is a pleasure to announce that South Norfolk Council have been awarded Housing Business Ready status by the Housing & Finance Institute. This is the second council in Norfolk to achieve this status, after Broadland District Council achieved the status last year.

Both South Norfolk and Broadland are shining examples of local authorities working proactively to ensure more homes are built in their areas. These Norfolk councils have presided over large increases in housing delivery in recent years by working with local communities, developers and others to ensure that developments meet their objectives and serve local people.

It is clear to us that Norfolk is going from strength to strength. Norwich is a major regional centre for employment, tourism and culture and is the region's highest ranking retail centre. The area's economic strengths include specialisms in biotechnology, food processing, financial services and creative industries. The excellent education facilities, including the University of East Anglia, Norwich University College of the Arts, City College and Easton College, coupled with the high quality of life, provide a solid foundation to enhance the city's status as a major regional economic driver and a visitor destination of international importance.

We are in no doubt that over the coming years Norfolk's strategic importance to the UK's economy will grow and grow. And the excellent leadership throughout the county will ensure that Norfolk makes the most out of the opportunities available.


The HFi on Grenfell - BBC Radio 4

The HFi's Chief Executive, Natalie Elphicke OBE, recently appeared on BBC Radio 4's Westminster Hour to discuss the Grenfell Fire.

Natalie expressed concern about the Government's response to the Grenfell Fire and said: "the first responsibility of any government is the safety & security of its people. We are a year on from the Grenfell tragedy and none the wiser." You can listen to the segment in full here.

The HFi wrote a report in the aftermath of the Grenfell Fire about the steps that needed to be taken, namely: Repair, Protect, Build. You can read the report in full here.


The HFi at CIH

Last month, the housing world descended on Manchester for the Chartered Institute of Housing (CIH) Conference. The conference was packed, with a footfall of 11,000 over three days, with a wide range of exhibitors and talks from every perspective. Modular housebuilder ilke Homes was also in attendance, assembling three of its modular homes outside the conference hall in five hours - take a look at the extraordinary feat.

The HFi's Rob Beiley spoke at a session entitled 'Making the case for equity investment in affordable housing' which discussed the extraordinary growth in the amount of new equity funding coming into the affordable housing sector, ranging from the rise of the For Profit Registered Providers and private equity funds through to the new social housing Real Estate Investment Trusts. They spoke about the drivers behind the flow of new capital into the sector; what investors are looking to achieve; and what it means for traditional Registered Providers and local authorities.

Natalie Elphicke also spoke at the conference, this was for a session entitled 'Street homelessness - Is it a national disgrace?' at the Fringe Theatre, with representatives from Westminster City Council and the charity St Basils.

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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