Select Committee on Communities and Local Government Committee Written Evidence


Memorandum submitted by the National House Building Federation

  NHBC (National House Building Council) is the world's most established standard setting body and home warranty provider with over 20,000 builders on its Register and 1.7 million homes protected with its Buildmark home warranty.

  As a non-profit distributing company with over 70 years' experience working with the industry and the consumer, NHBC is uniquely placed as an independent authority on the housing industry.

  NHBC also supports the industry and consumer by providing essential services including building control, training, health and safety and environmental services and by investing in research, innovation and delivering industry solutions through the NHBC Foundation and National Centre for Excellence in Housing.

  NHBC welcomes this Inquiry into Existing Housing Stock and Climate Change. NHBC's role is to raise the standards of new build homes and provide consumer protection to homebuyers. Our response is therefore focused on the aspects of this enquiry related to the new build sector but because of the breadth of our role and functions we have also commented on the industry as a whole.

  NHBC established the National Centre for Excellence in Housing in partnership with the Building Research Establishment to look at policy issues facing new-build and existing housing stock. The National Centre has been appointed by Yvette Cooper MP, Minister for Housing, to act as the policy secretariat for the CLG Zero Carbon 2016 Task Force and would therefore be well placed to engage with the Select Committee as the Inquiry progresses.

RAISING ENVIRONMENTAL STANDARDS OF NEW BUILD

Background to NHBC Standards

  NHBC makes a considerable investment in the NHBC Standards, the primary on site reference text for the Registered house builder, which more than 20,000 NHBC registered builders agree to comply with. These are updated continually and re-published annually to reflect changing trends in housing construction and our experience of problems, arising during, and in the ten years after, construction.

  As housing technology advances, NHBC increasingly tries to be pre-emptive with the Standards—developing appropriate requirements and guidance before problems occur. Recent examples include:

    —  Light gauge steel frame housing—a new chapter was introduced in 2005 to cover this technology, which is rapidly establishing itself as the third most significant form of construction.

    —  Curtain walling and cladding—Chapter 6.9, also introduced in 2005, is especially relevant for the growing number of high-rise buildings under NHBC cover. The Chapter encourages the specification of systems that have been appropriately tested and introduced guidance on how interfaces between systems should be dealt with to avoid the problems sometimes encountered where these systems have been used in the commercial sector.

    —  The April 2007 edition includes a revised specification for flat roof coverings—it restricts the specification for acceptable materials to those which offer enhanced durability and responds to the sustainability agenda by including specifications for "green roofs".

Existing Stock

  Existing housing is far more significant in terms of energy use than new build and NHBC believes it is essential that the gap between the excellent performance of new build housing and the existing stock is closed.

  Most of the solutions to improve the performance of existing stock are well established and there is a wealth of authoritative information available.

  It is important that we find the solutions which are financially cost-effective. It is even more important that the solutions deliver an actual reduction in CO2 emissions when proper account has been taken of emissions during manufacture, transport and installation.

  District solutions should be investigated, eg the provision of district heat networks and combined heat and power. It is important that systems (boilers, renewable energy, ventilation plant) and controls are easily understood by those using them. If some people are not even able to operate their video recorders, there must be doubt as to whether they will be able to operate other equipment in their homes to achieve optimal performance.

Performance of new build zero carbon homes

  With reference to new build, NHBC has specialist understanding of, and involvement in, the technical aspects of house building as well as unique knowledge of consumer protection issues through our Buildmark warranty.

  NHBC supports the sustainability agenda and we are supportive of the Government's objective to achieve carbon neutral homes. However our concerns about this policy focus on:

  Consumer: Ensuring the protection of the consumer

  Science: Sound solutions based on credible science

  Reputation: Ensuring consumer support and backing of the objectives

  Implementation : Need for nationally applied consistent standards

  Partnership : Ensuring industry, Government and Stakeholders work together

  Consumer protection must be placed at the forefront of technological advances. We strongly believe that consumers must not be exposed to unnecessary risks and used to trial zero-carbon technologies and systems that have not undergone thorough testing and accreditation. There is currently a dearth of tested and certificated microgeneration technologies and systems. Asking consumers to pay for and maintain products and systems that are not reliable or fail to deliver the claimed benefits is inappropriate and could have damaging repercussions. There are also important lessons for us to learn from the past and from around the world.

  In British Columbia a massive failure of new homes due to water penetration, rotting and eventual failure of inadequately designed and constructed timber frame housing systems affected up to 10,000 homes, in a market roughly the size of Scotland. The total cost to the British Columbia economy was between two and five billion Canadian dollars. The British Colombian warranty programme failed, many homebuyers faced considerable hardship and the house-building industry was seriously affected for a number of years.

  Similar failures experienced in New Zealand and the USA illustrate that change must be well thought through, well managed, and the risks identified and eliminated to avoid causing great distress and cost to homebuyers.

  NHBC has significant concerns about the role of planning in raising environmental standards. Evidence suggests that there is growing competition between planning authorities setting increasingly tougher, and sometimes ill thought through, targets in their planning guidance. Given that climate change is a national (and international) issue, we would question the logic of competing local targets being set: it makes more sense to have one, national, target.

  The fact that planning authorities have different targets causes problems for architects and designers (often Small and Medium Enterprises (SMEs)), designing homes in more than one planning authority area. Differing targets are also a challenge for house builders and are likely to reduce their efficiency, reduce economies of scale and increase the potential for defects to occur, as well as having implications for achieving the output of new housing proposed in the Barker Review.

  Based on the evidence we have seen, we would question the ability of the professionals working in planning authorities, especially smaller authorities, to deal with the technical aspects of sustainability. There is no doubt that building control professionals are able to deal with these complex issues. We are strongly of the view that most of these (with the exception of spatial issues) should be dealt with through building regulations.

  Taking a national view, it would appear that each extra pound spent on further improving new housing may be better spent elsewhere, eg improving the existing stock. Instruments that allow offsetting in this way should be explored fully.

ISSUES FACING THE INDUSTRY

Building Regulations

  The implementation of building regulations has important implications for the industry. In recent times the industry has suffered from poor implementation of regulation, for example Part L of Building Regulations in 2006 and the current introduction of Home Information Packs. NHBC believes that a regulatory framework, where the Government sets objectives, but the industry works on methods and processes to implement those objective, is the most successful framework and the most likely to deliver successful outcomes for Government and industry.

  It is within this context and the debate about the quantity, role and implementation of regulation that NHBC can help play a vital role in the future. NHBC, in partnership with the Building Research Establishment (BRE), has set up the National Centre for Excellence in Housing, a new industry led partnership. The National Centre will work to identify practical solutions and address the challenges and opportunities facing the housing sector. It is establishing a group of experts and key opinion leaders to facilitate policy development and strategic thinking to help frame the research and policy agenda for housing in the UK.

  NHBC believes the National Centre could provide the Government with an ideal platform to consult the industry on a range of regulatory and associated issues.

Skills and Training: Availability of, and investment in skills

  NHBC provides strong support to the industry's skills development agenda with its provision of training and qualifications programmes. Our primary focus is on home building, with many of our programmes focussed on site based management staff, but we also offer programmes to the wider construction industry.

  We are the largest provider of construction management NVQs in the UK. We also offer our own site manager accreditation programme which combines assessment of management and technical competence with a check on quality of work on site and an assessment of commitment to continuing professional development. Accreditation is renewable every three years and is dependant on managers continuing to deliver acceptable site quality and continuing to update their skills and knowledge.

  In addition to our qualification/accreditation programmes we deliver approximately 1,150 days training per year. This provides around 12,000 person days training. Subjects include management skills, personal skills, technical knowledge and Health and Safety.

  The availability of skills within the house-building industry was addressed in Professor Michael Ball's investigation and report for the HBF—The Labour Needs of Extra Housing Output: Can the House Building Industry Cope? One of the report's conclusions was that, while training issues are important in the expansion of house building, it can be concluded that skills shortages are unlikely to represent a barrier to expansion of the house building industry. ConstructionSkills, in its 2004 report "Skills Needs Analysis for Construction", estimated that the construction industry as a whole needs to recruit and train 88,000 entrants per year for the next five years (based on the "most likely" growth figure of 2.3% per year).

  From our experience providing training services within the industry, NHBC believes that there has been substantial improvement in the last 10 years in investment and training. We have seen greater recognition in the industry that skills development rather than "hire and fire" does have a contribution to make to business success. The Major Contractors Group's (MCG) and, more latterly, the Major Home Builders Group's (MHBG), commitments to the Qualified Workforce initiative are further indications of this improvement.

  The current structure in home building (and in areas of general construction), with largely sub-contracted labour, puts a lot of responsibility for quality control on the site manager or site management team. For this reason much of NHBC's training provision is aimed at assistant site managers, site managers, project managers and contracts/construction managers. Competence requirements for site management staff can be divided into two broad areas—technical and managerial.

  Historically technical competence was less demanding with construction methods for low rise housing changing only slowly over time. More recently, and for the foreseeable future, there is a real need for managers to keep abreast of technical developments around the move towards greater use of Modern Methods of Construction (MMC), technical issues surrounding the sustainability agenda, and the move to more high rise apartment and mixed-use developments employing more complex and/or "commercial" methods of construction. It is very difficult to quality control methods of construction that are not fully understood. Structured training programmes are required to ensure managers are competent in the methods of construction they are overseeing. Work done by the HBF, concerning the increased use of MMC, in a response to the Barker Review also highlighted this need.

  Equally important to site management staff are managerial competencies. The site or project manager role is complex and is becoming increasingly so with more apartments, more mixed-use developments and higher densities.

Research and Development

  Two of the key challenges which the industry faces at present are developing new methods of construction and working to improve the environmental efficiency of new buildings. As discussed above, NHBC invests in research, innovation and delivering industry solutions through the NHBC Foundation and National Centre for Excellence in Housing.

  The NHBC Foundation was set up in 2006 to address the "information gap" in the industry on a variety of topics. Chaired by former housing minister, Rt. Hon. Nick Raynsford MP, the Foundation has dedicated itself to a programme of pragmatic, delivery-based research of relevant to the industry. Its inaugural project delivered a web-based resource tool on MMC and subsequently it has delivered a research document offering a detailed guide to MMC and most recently a programme of research dedicated to the sustainability and zero carbon agenda. The latest finding focuses on Ground Source Heat Pumps. Throughout 2007 it will also be delivering research on renewable energy systems, site waste and other topics of relevance to the sustainability and zero carbon agenda.

  The National Centre for Excellence in Housing, is also chaired by Rt. Hon. Nick Raynsford MP. The Centre, also independent, arose from considerable interest and support for a body with a wider function and a significantly wider remit. The Centre is focusing on enabling and inspiring excellence and improved standards in new and existing housing.

  The Centre brings together stakeholders and interested parties to develop policy solutions to issues faced by the industry. The Centre is also currently focused on the sustainability agenda and in May 2007 hosted a series of focus group events specifically tasked to the zero carbon home target.

  NHBC Standards play an important role in taking account of changes in materials and construction methods and require that new systems and materials be adequately tested and accredited. Leading on from this NHBC uses its technical expertise to carry out its own research to ensure it is best addressing the issues posed by changes in the industry and is working in conjunction with Government on relevant projects such as the current DTI/BRE project developing certification systems for renewable energy systems.

  In addition NHBC Technical has carried out a review of renewable technology to deliver best practice guidance and information to the new home building industry. Both NHBC Technical and NHBC's Building Control Services department act specialist advisors to Parliament on technical issues, Building Regulations and regulatory reform/changes.

ORAL EVIDENCE

  NHBC is an independent expert authority on the house building industry. We would welcome the opportunity to share our expertise on environmental issues relating to new build, through oral evidence to the Committee at a later stage.





 
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