Bank of England figures show new mortgage approvals have jumped to a nine-month high, drawing a cautious welcome from homeowners, lenders and estate agents.

With decreasing house prices and low mortgage rates tempting more newcomers on to the housing ladder, the data appears to be a good sign for the housing market.

Louise Cuming, head of mortgages at moneysupermarket.com, says that although there is still a long way to go before rates and asking prices reflect those seen two years ago, the site is seeing more activity among borrowers.

The fact that borrowers can "buy the peace of mind that comes with knowing they can afford a mortgage" is "fueling these early signs of recovery", according to Ms Cuming.

Recently the Council of Mortgage Lenders (CML) also welcomed the recent upturn in mortgage approvals, but stressed that more time was needed before it could be called a recovery as transactions "remain historically very weak".

Source: Direct News 1/4/09

The Homes and Communities Agency (HCA) has published a list of all the organisations which will act as local HomeBuy agents until 2011.

HomeBuy Direct, developed in partnership with the Home Builders Federation, helps those struggling for a mortgage by providing an equity loan of up to 30 per cent for first-time buyers. From April 1st, local HomeBuy agents will act as the first point of contact for buyers seeking a home through the HCA's affordable home ownership products. They will additionally be required to dispense advice to families, in order to help them make the appropriate choice for their housing needs.

Richard Hill, director of investment and renewal at the HCA, says the network represents the very highest service levels and the best value for public money. Meanwhile, Metropolitan Home Ownership has been appointed the national Homebuy agent, charged with managing the aftersales process for the First Time Buyers' Initiative and HomeBuy Direct across the UK.

The government is to open a construction bank to help manage its new public building projects.

It is expected the bank will take shares in private finance initiatives that will manage the construction of new hospitals and roads. Chancellor Alistair Darling is also expected to announce a new social housing fund, understood to worth £1 billion, it has been reported. The government has been advised to increase its investment in housing construction to help the UK out of recession.

Minister of state for housing Margaret Beckett has extended the deadline for responses to the government's eco-town plans. The minister said the consultation period would now last for a further five months."I know this is an issue that raises a lot of strong opinion on all sides," said Ms Beckett."Eco-towns present a superb opportunity to provide more affordable housing which is built to the UK's toughest ever Green standards and we cannot afford to miss it."At the end of the consultation period, the government will announce its shortlist of locations that could be suitable for development.

Earlier announcements have led to public protest from residents living near to sites that have been earmarked for eco-towns. The majority of the schemes will be built in the south of England, to help tackle the challenge of climate change and to produce more affordable housing.

Source: Direct News

Housing associations can help meet the increasing demand for affordable housing and are well-placed to solve long-term housing problems, the Tennant Services Authority (TSA) has said. The authority's quarterly survey of housing associations has revealed they still have strong access to finance and already has most of their debt covered for the coming 12 months.

Hackney and Tower Hamlets councils have started a six-week consultation, which should lead to the construction of more affordable housing in the capital.

The officials will discuss the development of the Bishopsgate Goods Yard in East London, which, when completed, will provide more than 2,000 new houses. Residents will be also given their chance to contribute and have their say, Hackney council has insisted. Cllr Guy Nicholson, cabinet member for regeneration, said: "Any new development must contribute to the surrounding area and we want to hear from local residents and businesses on what they want to see here."To allow people to add their views, the council has organised drop-in sessions at Shoreditch Town Hall, St Hildas Community Centre and Spitalfields Market.

Once work has finished it is hoped the 4.7-hectare site will include affordable housing as well as business space, offices, shops, restaurants and community facilities.

Source: Direct News 24/2/09

The government needs to release £6 billion for affordable housing developments, a new collection of construction industry professionals has said.

According to the 2020 Group, it is possible for the government to build its way out of recession, if it is prepared to invest in new construction initiatives. The group has warned that 45,000 construction industry workers will be forced out of work by 2010, although this could be averted says group chair and economist Kate Barker."Support for housing today offers excellent value in terms of sustaining economic activity and reduces the risk of a very severe loss of capacity in the housing and related industries," Ms Barker notes. A member of the Bank of England's monetary policy committee, Ms Barker says waiting lists for social housing are lengthening and the group's proposal for more affordable housing "meets a real and urgent need".

Mayor of London Boris Johnson has launched a new initiative to build more homes and create opportunities for business in the Olympic Park.

As part of the proposals 10,000 new homes are to be built, along with a business hub and an Olympic University in Hackney Wick."Both translate into a clear boost for local prosperity and a signal of the area's new importance in a 21st century London," the London Development Agency has said. Mr Johnson noted that the Olympic budget would be used to attract businesses from around the UK and the rest of the world. The mayor said he had been worried there was no clear vision of the legacy left for east London by development in the area."Now I believe that the future for this most deprived area is spectacularly bright," he commented. London boroughs have already shown their support for shared ownership housing. Lambeth, for example, announced it was to take part in a Social Homebuy scheme in March 2007.

Source: Direct News 11/02/09