Gove To Overhaul ‘Out Of Date’ Housing Need Formula

 Michael Gove has told MPs he is looking again at the way housing needs targets are calculated. The housing secretary said: “In making a calculation of housing need overall one of the things I wanted to do is to look at how the numbers are generated in the first place.” The way that housing need is calculated, which forms the basis of housing targets in local plans, has become a thorny issue for the government. The standard method delivers a figure for housing need upon which most local authorities base their local housing targets. It uses projected household growth figures, adjusted for areas with high house prices, with the increases in new homes for any local planning authority capped. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/gove-to-overhaul-out-of-date-housing-need-formula/5114613.article

Government Launches £624m Housebuilding Loan Fund

Housebuilders can now bid for loan funding from a £624 million fund to deliver infrastructure and assemble land, the government has said. The funding is part of £2.2bn announced in the spending review last year to support infrastructure. The funding, to be committed from 2021/22 to 2024/25 with terms of up to 20 years, is part of the £7.1bn National Home Building fund and is also available to small builders. The government says funding will help deliver 116,000 new homes. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/government-opens-624m-loan-fund-to-house-builders/5114568.article

House Prices Rise 1.8%

The price of homes jumped by 1.8% in the last month, the biggest monthly increase for six years, according to the latest data from Rightmove which said that every region and nation of the UK recorded price growth, the first time this has happened since before the global financial crash, with the number of sales up 15% compared to the pre-covid market in 2019. The growth in prices comes amidst continued low levels of stock coming on the market, with the number of new homes for sale down 3.2% on 2019 numbers. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/house-prices-rise-18/5114228.article 

Pincher Re-Appointed In Rebranded ‘Levelling Up’ Department

Chris Pincher has been re-appointed housing minister in the renamed Ministry for Levelling Up, Housing & Communities (MLUHC). Lord Stephen Greenhalgh also retains his position as minister for building safety. He will serve under new secretary of state Michael Gove and alongside other new appointees Kemi Badenoch, who will serve as minister for equalities and planning reform critic and former adviser Neil O’Brien who will join in a junior role. The department has been renamed, from Ministry for Communities & Local Government, as part of efforts to underline the government’s pledge to spread wealth and opportunity to all parts of the United Kingdom. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/pincher-re-appointed-housing-minister-in-rebranded-levelling-up-department/5113766.article 

Housebuilding Growth Rate ‘Slowest For 15 Months’

The rate of growth in housebuilding work fell to its lowest level last month since the height of the coronavirus pandemic in May 2020, as materials and labour shortages continue to bite. According to the latest construction purchasing managers’ index from IHS Markit and CIPS, the housebuilding industry recorded a score of 55 – still above the “50” mark that denotes growth – but the lowest level seen since the industry was effectively temporarily shut down in spring last year. This is also the first time that the housebuilding industry has recorded an index score of less than 60 since February this year. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/housebuilding-growth-rate-slowest-for-15-months/5113568.article 

Councils Look To Prevent High Street Resi Conversions

 Local authorities across the country have begun fighting back against the government’s attempt to allow the majority of commercial premises in their town centres to be turned into housing without the need for planning consent. The City of London Corporation and Wandsworth, Kensington & Chelsea and Richmond councils in west London are among the first to make what are known as article 4 directions, but others nationwide are following suit. Councils were only permitted to make the directions at the start of this month when the new rules came into effect. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/councils-look-to-prevent-high-street-resi-conversions/5113251.article

Tory MP Brands Building Safety Bill A ‘Sticking Plaster’ That Won’t Help Leaseholders

 A backbench Conservative MP who has led attempts to prevent leaseholders from being hit by fire safety costs has slammed the government’s Building Safety Bill. Stephen McPartland, MP for Stevenage, strongly criticised the government’s proposals which include giving homeowners a retrospective right to sue for defective building work up to 15 years after the completion date. McPartland, said: “We know leaseholders don’t have the money to fund legal action and this is another sticking plaster instead of a solution.” McPartland said that instead the government must “provide a real safety net and fund making our buildings safe.” He said those responsible should be forced to pay through levies. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/tory-mp-brands-building-safety-bill-a-sticking-plaster-that-wont-help-leaseholders/5112618.article

Help To Buy Gives 10% Return To Taxpayers

The Help to Buy equity loan scheme has produced a return of around 10% to the exchequer, according to an analysis of government data by housebuilders. The support scheme for buyers of new build homes, which has helped more than 313,000 households to purchase a property since being set up in 2013, has already generated more than £230m for the taxpayer, according to a report by the Home Builders’ Federation (HBF). The HBF report into the scheme also finds no evidence that it has contributed to price inflation. Read more on Housing Today.

Help to Buy gives 10% return to taxpayers | News | Housing Today

MPs Slam Government’s Planning Reforms

An influential group of MPs has attacked the government’s proposed reforms of the planning system, calling on ministers to think again about the proposed new “zonal” approach and make sure that the public has a right to influence all individual applications. The report by the Housing, Communities and Local Government Committee also called on the government to speed build-out of permissions by allowing councils to levy council tax on unbuilt developments – something ministers have already said they are considering. The MPs added that the government’s ambition to have new-style local plans put in place within 30 months was “impractical”. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/mps-slam-governments-planning-reforms/5112215.article

Government Will Act On Build Out Rates

Robert Jenrick has confirmed that the government intends to bring in measures designed to force housebuilders to build out sites more quickly, despite admitting that there was no evidence of “land-banking”. Speaking to the Home Builders’ Federation’s annual policy conference, the housing secretary said he was planning to act because there remained a “public perception” of landbanking, despite two government-commissioned investigations having found no evidence of it happening. The announcement comes in the wake of the confirmation that the government will press ahead with controversial planning reforms in the face of significant backbench disquiet over the measures. Read more on Housing Today.

https://www.housingtoday.co.uk/news/government-will-act-on-build-out-rates-jenrick-confirms/5112044.article 

Construction Vacancies Jump 55% In Six Weeks

The number of permanent jobs in construction and property registered by employers has jumped by more than 55% in the last six weeks compared to the six weeks prior, according to recruitment specialists Hays. The firm said that the number of temporary roles has also increased by more than half over the same period in signs of a growing labour shortage hitting the industry as the sector’s pandemic recovery gathers pace. The number of job applications for construction roles has also crashed by more than 10% this year, according to the latest recruitment data from HR consultancy Randstad. Read more on the Housing Today website.

Construction vancancies jump 55% in six weeks | News | Housing Today 

Banks May Start To Hit Mortgage Lending Limits

Senior Bank of England official issues warning as government reports highest April lending since financial crisis. Banks might have to reduce mortgage lending to stay within regulatory limits, a senior Bank of England official has warned as official figures released this morning showed loans at their highest level since the global financial crisis. Sir Jon Cunliffe the Bank of England’s deputy governor, said steep rises in prices meant mortgage lenders were pushing against regulations introduced in the wake of the 2008-09 crash to ensure that 85% of mortgages advanced are less than 4.5 times the borrower’s annual income. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/banks-may-start-to-hit-mortgage-lending-limits/5111939.article 

Jenrick Pledges To Consider New Developer Levy

Housebuilders have reacted with scepticism to comments by Robert Jenrick suggesting the government is considering taxing developers if they don’t build out planning permissions quickly enough. Writing in the Daily Telegraph yesterday, the communities secretary said the government was going to “look at ways of ensuring sites build out as expected”, after the Local Government Association last week raised concerns over unused planning permissions for more than one million homes. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/jenrick-pledges-to-consider-new-developer-levy/5111886.article 

Green Homes Grant Set For Autumn Reboot

Green construction board chair says business secretary indicated an ‘equivalent’ to be launched later this year. A replacement for the scrapped Green Homes Grant is expected to be announced as part of the autumn spending review, a senior figure in the Construction Leadership Council’s net zero team has revealed. David Pinder, chair of the Green Construction Board, said business secretary Kwasi Kwarteng had told the CLC that he expected a replacement for the botched scheme to be announced later this year. Read more on the Housing Today website.

Green Homes Grant set for autumn reboot | News | Housing Today 

Government Launches £150m ‘Help To Build’ Fund

The government has unveiled a new £150m fund aimed at making it easier and more affordable for people to build their own homes. Housing secretary Robert Jenrick announced the new ‘Help to Build’ scheme to make self and custom homebuilding a realistic option to enable people to get on the housing ladder. The fund will provide an equity loan to those looking to take the self-build option. This will work similarly to the Help to Buy scheme. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/government-announces-150m-self-build-boost/5111549.article 

House Prices Were Flat In February

House prices remained flat in the UK in February, according to the latest official figures from the Land Registry. The lack of change left annual house price inflation up at 8.6%, following the surge in prices seen in the wake of the spring 2020 lockdown. The figures reflect activity prior to the chancellor’s announcement on 3 March of an extension to the current stamp duty holiday for homes under £500k in value, and of the introduction of a mortgage guarantee system to support 95% loan to value mortgages. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/house-prices-were-flat-in-february/5111485.article

Homes England Considering Tough New Green Building Standards

 Homes England is considering bringing in tough new sustainability standards for the homes produced by its partners or on its land. The possibility of new stretching standards is being considered as part of a major review of the housing quango being conducted by its new chairman, former Argent boss Peter Freeman. The agency’s chief land and development officer, told Housing Today there was a “live conversation” about whether the agency needed to ask development partners to produce homes to higher environmental standards than those called for by building regulations. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/homes-england-considering-tough-new-green-building-standards/5111358.article

Jenrick Confirms Huge Expansion Of High Street PD Rights

The government will lay down new planning rules allowing the conversion of a vast array of high street premises into housing without planning permission. Communities secretary Robert Jenrick said the measures will help high streets to adapt and thrive, despite a coalition of planners and developers voicing concerns that they risk doing the opposite. From 21 April, unused commercial buildings will be granted a new permitted development to be converted into homes via a fast-track prior approval. Under the new system, councils will only be able to turn down applications on very limited grounds including flooding risk, noise pollution and inadequate natural light. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/jenrick-confirms-huge-expansion-of-high-street-pd-rights/5111211.article

Manufacturer Changed Grenfell Cladding Without Alerting Certifier

 The supplier of the ACM cladding used on Grenfell Tower changed the composition of one of its products without informing a UK certifying body, the inquiry has heard. Arconic added chemicals to the combustible plastic core of its Reynobond PE panels to change the colour from translucent to black but did not formally update certifier the British Board of Agreement (BBA) about the change. Former BBA deputy chief executive Brian Moore said that he first learned of the alteration when he was told by BBC journalist Tom Symonds in January 2018, seven months after the Grenfell fire. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/manufacturer-changed-grenfell-cladding-without-alerting-certifier-inquiry-hears/5111000.article

Grenfell Cladding Firm A ‘Significant Source Of Revenue’ For BRE

The BRE received a “significant source of revenue” by producing desktop studies for combustible Kingspan insulation used on Grenfell Tower, the inquiry has heard. Tom Lennon, a consultant at BRE, a testing body, claimed the studies could be a “huge source of income” for the BRE in a 2015 email. Desktop studies, allowed under the pre-Grenfell building regulations system, used the results of actual full-scale fire tests on cladding systems to model variations to those specific materials tested, in order to calculate fire performance. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/grenfell-cladding-firm-a-significant-source-of-revenue-for-bre-inquiry-told/5110709.article