home builder’s federation

Luxury new home searches soar by 25%

Data released today in the WhatHouse? New Homes Index reveals that buyer interest in luxury new build homes across Britain has increased by 25% during July, a sign that changing space requirements and lifestyle priorities continue to alter the new home market.   Looking ahead, we expect this growth to continue, as post-pandemic life returns to normal and home buyers can make firm decisions based on new lifestyle requirements.        The national average price

Read More »

CITB and HBF to Support Housebuilding Sector with Training

Presently it could be argued that a lot of pressure is placed on property developers and local councils to deliver on residential housing schemes, bring about further affordable housing for residents, and do so quickly. Yet, often overlooked when considering the housebuilding arena is the widely reported skill shortages for

Read More »

Latest Issue

BDC 321 : Oct 2024

home builder’s federation

Luxury new home searches soar by 25%

Data released today in the WhatHouse? New Homes Index reveals that buyer interest in luxury new build homes across Britain has increased by 25% during July, a sign that changing space requirements and lifestyle priorities continue to alter the new home market.   Looking ahead, we expect this growth to continue, as post-pandemic life returns to normal and home buyers can make firm decisions based on new lifestyle requirements.        The national average price of new home property coming to market has stayed static at £338,339 in July (£338,042 in June).          Top three new home search areas during July:       South East of England has demonstrated the most buyer demand during July 2021, achieving 25,719 new home buyer searches.        West Midlands continued its climb for the second month in a row, jumping from third to second position, achieving 23,683 new home buyer searches during July 2021.        North East of England has secured its first top three search position with 13,581 new home buyer searches during July 2021, representing a 170% increase on June’s figures.         July has achieved a +32% increase in new home demand, recording a total of 166,137 new home buyer searches, compared to 126,199 during June 2021.  Daniel Hill, Managing Director, WhatHouse? comments:  “Changing lifestyle requirements continue to re shape the new home market, and nowhere is this demonstrated more clearly than in July’s WhatHouse? New Homes Index.  London has been ousted from the top three new home search table, supplanted by West Midlands and North East, both experiencing spikes in search.  It’s also interesting to note that total luxury new home searches increased by 25% during July.  The East Midlands, West Midlands, North West and Scotland all top performers – reporting a +45% luxury new home search increase since June.          This all points to a large scale post-Covid re-evaluation amongst home buyers.  As employers firm up plans for flexible work-from-home expectations, home buyers are now able to confidently consider space requirements and lifestyle aspirations.  What the WhatHouse? New Homes Index is demonstrating is a growing desire amongst buyers to consider luxury new homes in regions that may previously have been beyond their search comfort zone.” David O’Leary, Policy Director, Home Builders Federation said:  “As the wider market settles into equilibrium, demand for new homes continues to be robust with many builders reporting strong forward order books. More than ever homebuyers, both first-time buyers and home movers, appear to be putting an emphasis on the low running costs and improved energy efficiency that new homes provide.” 

Read More »

SME housebuilders face tough battle ahead as growth and delivery projections fall

A new survey by the Home Builders Federation (HBF) and Close Brothers Property Finance One of the most comprehensive surveys of Small and Medium Enterprise (SME) housebuilders, conducted by the Home Builders Federation (HBF) and Close Brothers Property Finance, has found that:  Two thirds of SME housebuilders (65%) have said their growth projections are down due to COVID-19 – close to 40% report growth to be down by up to 50% 76% of SMEs use Help to Buy and the new regional thresholds are expected to prove to be a major barrier, with a number of respondents highlighting challenges in their specific regions (case studies included) Planning delays and securing permission remain a major barrier to housing delivery over the next 12 months, according to 83% of respondents.  Full survey findings are listed below and the full report can be viewed here.  Frank Pennal, CEO of Close Brothers Property Finance, comments: “The threat to SME housebuilders following the COVID-19 pandemic is clear, and we now have to act to reverse the decline of this vitally important part of the housing market. Not only do SME housebuilders provide a training ground for young apprentices and trainees, they are the lifeblood of regional property markets and safeguard diversity of design, skills and craftmanship within the industry. This research underlines the need to support and protect SME housebuilders, which have consistently demonstrated their value when it comes to economic growth and directly supporting the local communities and micro-markets in which they operate.”  Stewart Baseley, Executive Chairman, HBF, comments: “As we look to boost housing supply post the coronavirus lockdown it is vital we support SME builders such that they can play their part. Increased bureaucracy and regulation and a harsh operating environment has seen the number of SME builders plummet in recent decades. Government needs to work with industry to develop policies that allow SMEs to grow. Doing so will increase housing supply, create jobs and stimulate economies across the country.” Reduced growth and delivery When asked about business growth post COVID-19, nearly two thirds of respondents (65%) have said their growth projections are down. Of this figure, 39% of respondents said their growth projections are down between 10-50%, with over a quarter (26%) seeing their growth projections fall between 0-10%. Help to Buy Help to buy has been a lifeline to this part of the market with 76% of the survey respondents using the initiative on 39% of their new homes sales (mean average).  The hiatus of construction during the coronavirus lockdown and the inhibition of production capacity due to social distancing measures on sites have inevitably resulted in delays to build programmes. As such, there are thousands of property purchases at risk of falling through as they are ineligible for the new scheme; either because of the purchaser’s eligibility or because of the regional price caps that will come into effect under the new, 2021-23 Help to Buy programme.  Case study: Kevin Marren, Managing Director at Eccleston Homes, located in the North West of the UK, comments: “Currently approximately 60-70% of our buyers use Help to Buy, however, under the regional caps the vast majority of our properties (probably over 90%) would fall outside of the new price banding, which is extremely low at £224,400.  “At this price point, first time buyer homes in the North West will inevitably be smaller and there will be much less choice in the market. As first time buyers get older they are increasingly looking for family homes, so it’s unlikely these new regionally capped homes will appeal to buyers.  “While the housing market is currently looking positive, we face having our legs cut out from under us next year, when the stamp duty holiday ends and the regional caps are introduced. We would urge the Government to increase the regional cap to £275,000, as this is in line with the market – not only providing more choice for first time buyers but also enabling the housing market to function properly.”  Planning Planning continues to be a particular concern when it comes to industry growth and the delivery of homes. Indeed, 83% of respondents cited delays in securing planning permission or discharging of planning conditions by local authorities as a major barrier to increasing housing delivery over the next twelve months.  With 73% of SME housebuilders seeing a lack of resource in local authority planning departments as a major barrier. (Ref. Table 1).  SMEs are disproportionately affected by planning setbacks, as they may have their capital tied up in just one or two projects at a time. As a result, lengthy delays can bring their business to a halt.  CBILS SME developers have had varying degrees of success in accessing the Government’s financial support measures for businesses introduced in the wake of the coronavirus pandemic, with some facing numerous challenges including delays, inconsistent approaches from lenders and a refusal by some to lend to the real estate sector, in their attempts to access financial support.  Just over half of the respondents (53%) have tried to access supports through CBILS and of these, only 44% of respondents had been successful.  Development Finance In the challenging post-Covid environment, the availability and terms on which development finance is offered to SME developers will continue to be of considerable importance. It is encouraging that development finance was rated as the lowest barrier to growth by SME housebuilders, with 41% not considering this to be a barrier to growth. (Ref. Table 1)  Labour and growth A third of respondents (33%) do employ apprentices and train new employees, and they make up 19% of their workforce, on average (just under 1 in 5 employees).  Nearly half (48%) of all respondents do not employ apprentices or train new employees, with 19% previously employing apprentices, but not currently.

Read More »

Consumer engagement key with fewer than half of homebuyers aware of their home’s energy efficiency

New polling, published today, shows the scale of the challenge faced by the homebuilding sector as it holds a summit to plot a route map to net zero carbon housing and other environmental objectives. The summit, with delegates including Government officials, house builders, energy suppliers, material and appliance manufacturers and environmental groups will discuss the scale of the challenge and start to plot a road map for delivery. Today’s results, based on polling by Public First, show that 20% of people put environmental concerns in their top three biggest issues facing the country (higher than terrorism, access to quality education, taxation or public transport). However, over half (54%) of the people polled were not aware of the energy efficiency rating of their current home when they moved in demonstrating the need for further consumer education. Consumers put saving money over environmental concerns when assessing why they went for an environmentally friendly home; with the most popular adaptations being triple glazing and water saving devices. However, 20% of people said they had not lived in a home with any environmental adaptations and only 8% said they had lived in a home, or knew someone who had lived in a home, with a heat pump. 80% of people polled are living in a home with a gas boiler, underlining the scale of the task posed by the requirement to heat new homes without gas boilers from 2025. Whilst the industry faces a whole host of challenges to meet the Government’s commitment to net zero, taking consumers – future home buyers – on the journey will be absolutely key. The research also found almost a third of people (29%) think mortgage providers should factor in energy bills when assessing a mortgage application – more than those thinking the number of children should be considered! More generally, whilst over two thirds of people are positive about the Government’s net zero emissions target for the country, only 12% think they should focus on cutting emissions form homes, compared to 42% for factories, 23% public transport and 25% on cars. Consumer engagement is just one of the issues being considered today in London by a broad range of stakeholders looking at how the sector could deliver the Government’s challenging net zero emissions target from 2050 as well as other environmental objectives. Whilst the industry has made significant progress over recent years, the milestones for delivery are looming large including;  2020 changes to Part L of the Building Regulations, (the current options include a 31% reduction in emissions from new homes) 2025 introduction of Future Homes Standard (including the effective ‘ban’ on gas boilers in new homes) 2050 target for net zero emissions from homes. As well as implementing a step change in how new homes and hot water are heated, delegates will also consider the vast range of other challenges that come under the environmental banner, including; Delivering further thermal efficiency improvements to new houses Providing a robust electricity network that can cope with increased demand from heating systems, plus other new sources such as car charging points Developing a range of new environmentally friendly technologies, supply chains and the skills to manufacture, install and maintain them whilst keeping a mindful eye on the end user and the need to provide customers with usable and practical solutions. Creating developments that deliver increased biodiversity once complete Speaking today, Stewart Baseley, executive chairman of the Home Builders Federation said; “The scale and scope of the environmental challenge we face is daunting, but it is one we are committed to tackling. Today was the start of a long journey that only underlined the broad range of stakeholders and issues involved. We have all committed to work together to develop a route map for how we deliver net zero homes and the range of other linked requirements. “Consumers will be key. Ultimately builders need to sell their wares and we need to ensure the homes and technologies are acceptable and deliver for the homeowner and the environment.” The polling also showed that; 37% of people said they would be willing to pay more for a ‘zero carbon’ new home; versus 36% who wouldn’t. Of those who say they would consider energy efficiency when moving home, 56% said it would be more for low ongoing bills compared to 39% who want to help the environment. Interestingly, when asked which outgoings should be considered by a lender when assessing a homebuyer’s mortgage application, almost 30% listed energy bills. Only current debts (51%) and council tax (34%) were higher. HBF is currently talking to lenders about a ‘green mortgage’. Of those polled 67% think new builds are more energy efficient. When those who were considering buying a new build were asked what factors might influence their views on deciding between two different home builders, ‘the respective companies’ environmental credentials was the third most popular answer only behind ‘reputation for quality work’ and ‘how attractive their home are’

Read More »

CITB and HBF to Support Housebuilding Sector with Training

Presently it could be argued that a lot of pressure is placed on property developers and local councils to deliver on residential housing schemes, bring about further affordable housing for residents, and do so quickly. Yet, often overlooked when considering the housebuilding arena is the widely reported skill shortages for the construction industry; a concept which, by inherent nature holds back the construction industry from delivering housing schemes as frequently; something which we may see the CITB making great ground on resolving. In support of filling the skills gap, and facilitating the sector’s ability to deliver more housing, the CITB and Home Builder’s Federation have teamed up to offer a £2.7m initiative to deliver essential training for 45,000 new housebuilding workers by 2019. The first scheme of this sort, the partnership, the newly dubbed Home Building Skills Partnership will look to reign in organisations of all shapes and sizes to ensure that the industry is well equipped with skilled workers. To achieve on its ambitions, the focus will then include individual initiatives to promote collaboration for key skill areas from the top to the bottom of the supply chain, thus placing the industry in a much stronger position to plan for the future. And with considerable targets set out for the housing sector thus far, this support is expected to be quite well received. Aiming to support greater than 3,500 businesses in the building industry, the partnership not only aims to ensure that the aforementioned 45,000 entrants are equipped with the housebuilding skills needed to support the industry, but will also see additional training provided to circa 1,000 experienced workers in the industry, offering them brand new housebuilding training schemes and associated qualification. Providing his thoughts on the scheme and its role, Brandon Lewis, Housing and Planning Minister commented: “The Home Building Skills Partnership is an important initiative and will help deliver the training of skilled workers we need to get the job done and to improve quality across the industry.”

Read More »