Housebuilding in 2011: The year that was – and what’s in store for new homes development in 2012

This year has been a significant one for the house building industry, with headline-grabbing challenges and changes happening throughout the year. It was a busy one for the NHBC Foundation too, as we published a range of reports to help and inform the house building industry both today, in some of the most testing circumstances, and into the future. We’ll recap some of those later, but first, a look back at some of the year’s key house building news.

Housing Supply

Despite hopeful signs of improvement early in 2011, there has been no real growth in the housing market this year, and according to some commentators the UK is on the brink – if not already experiencing – a housing crisis.

In part to tackle this lack of supply into the housing market, as well as increase affordability and access to finance, the Government launched its Housing Strategy for England in November. The Strategy offers, “support to deliver new homes and support aspiration”, through a variety of measures, including a new build mortgage indemnity scheme and a £400 million investment fund to support small and medium builders. The strategy was cautiously welcomed by much of the house building industry, with a sense that the devil will be in the detail and in implementation.

The Housing Strategy was published some months after the draft National Planning Policy Framework, which came out in the summer. The Framework sets out, “the Government’s vision of sustainable development, which should be interpreted and applied locally to meet local aspirations”. It met a mixed response, with very vocal support from some camps, and criticism from others. And, the NPPF has this week come under the spotlight again as a CLG committee report called for parts of the policy to be re-written.

Sustainability and Zero Carbon Homes

The topic of Zero Carbon Homes has been high on the agenda for much of this year. In March, the Government launched its draft Carbon Plan, reaffirming its commitment to, “ensuring that new-build homes are zero carbon by 2016.” However, once the Budget was unveiled later that month, it was announced that, “from 2016, new homes will no longer have to make a net addition of zero to the carbon footprint of the UK’s overall housing stock.”

Following the budget announcement, the Government pushed forth with its Energy Act, culminating in the publication of the Green Deal consultation in November. The Government’s plan is to incentivise the installation of energy saving measures in buildings at no upfront cost to consumers, via a financing system. This plan has been much-debated throughout the year, with critics saying that take-up will be limited. This scepticism was further fuelled in November, when the Government announced a 50% cut in subsidies for solar power through Feed in Tariffs; a move that was this week found to be legally flawed by the high court.

Our work

 Among a number of policies, reports and strategies coming from Government and the housing industry, we at the NHBC Foundation have been busy producing a range of reports and guides to address key issues and challenges in house building. We’ve looked at a range of topics, from how occupants behave and interact with their homes, to energy saving in homes across the globe and from roof-mounted microgeneration technologies to the detail around changes to Part L and Part F.

Looking forward to 2012

2012 is shaping up to be equally busy and we already have the following reports planned for the New Year:

• Housing Supply: future of the Housebuilding industry

• User interface design and occupant behaviour in low carbon homes

• Energy efficient appliances and controls

• Building homes at speed: risks and rewards

• Review of overheating in highly insulated homes

• Microgeneration technologies in new housing: technological trajectories and user experiences

• Changing attitudes to zero carbon homes among occupiers, Housebuilders and Housing Associations

So, looking to the year ahead, all that is left to do is wish you all a merry Christmas and best wishes for 2012.

When will energy efficiency affect property valuations?

Last week Halifax published a report looking at the price performance of different types of housing stock in the UK property market. The Property Age Review details property price fluctuations for four predefined housing age brackets covering the last 25 years and according to the research, homes that predate World War One have seen the largest surge in worth.

While commentary on the report suggests that style that stands the test of time and good location are reasons for the popularity of Victorian and Edwardian era stock, there’s scarce mention of the sustainable performance and expensive restoration bills that often come with such older buildings.

After pre-1919 homes, properties built since 1960 have seen the next largest rise in house prices, but there’s also much to be said about purchasing new energy efficient homes too.

Lower running costs compared with older properties is a principal reason for choosing to go with new-build homes over older stock. Energy efficiency measures have come a long way in recent years, and new homes must now conform to strict standards in terms of insulation and heating. Not only can new-build, energy efficient homes reduce energy output but they can also keep carbon emissions to a minimum, meaning savings on heating bills too.

Choosing new-build homes over existing stock also allows homeowners to take advantage of government led incentive schemes. Following the publication of last month’s Housing Strategy, incentive schemes such as FirstBuy are being rolled-out across the country as part of a combined effort from central government, local councils and housebuilders to encourage people to purchase new build homes. House-hunters choosing this route can expect to make savings with part-exchanges on old houses, payment of stamp duty as well as part-funded deposits. New-build homes also come with the added benefit of warranty protection.

Reports such as this are helpful in gauging valuations for different types of housing stock. However, as energy efficiency in new homes becomes ever more advanced, it will be interesting to see in a few years to come whether new-build homes creep higher up the list. Conclusions from our current research among new-build homeowners and energy efficient homeowners are due in early 2012 – following our 2008 publication Zero carbon: what does it mean to homeowners and housebuilders. From this, we might be in a better position to understand how energy efficient homes are being used and whether more can be done to ensure that new and prospective homeowners really see their worth.