The Minister for Housing (Christopher Pincher)
I am grateful for the contributions of all 39 right hon. and hon. Members who have spoken today, and I do not for a minute underestimate the insight and the wisdom that I have heard, not least that of my hon. Friend the Member for Hazel Grove (Mr Wragg) in his very kind but entirely unsolicited testimonial during his remarks.
I hope that we will not lose sight of where we have come from, because this Government have delivered more than one and a half million new homes since 2010. We have built more than 241,000 in England in the past year alone. This year, we will announce a £12.3 billion package of affordable homes, which will see more than 50% of them delivered at discounted rent. We will take no lectures from representatives of the Opposition: we built more council homes in one year than they built in the entire 13 years. In Wales, they managed to build just 12 council homes last year—not even enough homes for a Welsh rugby team.
We can be rightly proud of our success, particularly as it has been achieved despite a slow and outdated planning process. We are determined to deliver on our manifesto commitment and deliver 300,000 new homes each year by the mid-2020s in the areas that really need them to meet that most fundamental Conservative value to own our own home and to have a stake in the country and the future of it. We want more people, especially younger people, to realise that aspiration. We also want to enhance our environment, protecting our green belt, increasing biodiversity and safeguarding our precious green spaces.
Greg Smith (Buckingham) (Con)
In that spirit, will my right hon. Friend, as he looks at the consultation responses, make a commitment to giving a measure of consideration to those of us in constituencies such as mine and that of my hon. Friend the Member for Aylesbury (Rob Butler), where we have had national infrastructure like HS2 forced through us, and take that into account when it comes to further development land that is required?
Christopher Pincher
I am obliged to my hon. Friend. I shall certainly look very closely at the representations on the consultation that he makes.
The Prime Minister has made it absolutely clear that we have to be bold in our vision for the future of planning in our country. That is why we have put forward two sets of proposals for consultation to address our needs both in the short term and the longer term. The first, on changes to our current planning system and local housing need calculations, closed last week. The second, on our White Paper “Planning for the Future”, which sets out our long-term ambitions, closes on 29 October.
Our long-term proposals will create a reformed system that not only delivers the homes that we need but puts communities at the heart of a process that encourages more local community involvement, fairer contributions from developers, more beautiful homes and communities, and stronger environmental outcomes.
Sir John Hayes (South Holland and The Deepings) (Con)
My right hon. Friend has spoken of Conservative principles. He will agree, I am sure, that any Government who blighted the countryside with more ubiquitous, huge housing estates would not deserve to be called Conservative. I know that he is a notable aesthete. Will he give the House an assurance that he wants to build better and more beautiful, in line with the views of the Building Better, Building Beautiful Commission, and indeed, in doing so, quash some of the fears and quell some of the doubts?
Christopher Pincher
I can give my right hon. Friend that absolute assurance.
On the question of the near-term local housing need calculation, it might be helpful if I explain the background to our proposals to revisit it. In 2018, we introduced a standard method for calculating local housing need that was designed to give communities the transparency they deserve by showing the minimum number of homes that areas need, but it is clear that the current formula for local housing need is inconsistent with our manifesto aim to deliver 300,000 homes a year by the mid-2020s. Existing adopted local plans provide for only 187,000 homes per year across England. This is not just significantly below our ambition but lower than the number of the homes we delivered last year. It is also lower than the estimate of groups as diverse as KPMG and Shelter who say that we need to deliver homes for sale or for rent north of 250,000 per year to meet our need.
To address that in the short term, we committed to reviewing the standard method at this year’s Budget. The consultation is now closed, but I can assure the House that over the past two months my Department has actively engaged with the sector and is listening to feedback. Many right hon. and hon. Members will know that I too have been listening and discussing carefully. I am especially mindful that Members are concerned about geographic imbalance—having too many homes in the south and not enough in the midlands and the north. Equally, I recognise anxieties about what these changes might mean for our countryside in contrast to our urban areas. I therefore want to reassure the House that through this consultation process we are committed to addressing any supposed imbalances. I recognise that our future is not just about what we build but where we build it. The standard method has focused on affordability. That is natural, because our concern is that there are areas that are least affordable, and it cannot be right that where historically supply has not kept up with demand, people are prevented from living where they most want or need to live. But we must also consider other factors. The House has considered, and we will consider, such factors as stock renewal, so we level up those areas of our country—not just the midlands and the north; there are areas of East Anglia, too—that suffer from poor-quality housing and infrastructure; and brownfield regeneration, so we improve home-building opportunities in our towns and cities on urban land for too long derelict or unloved.
Our changes to the standard method in the short term will be just a starting point. We know that the housing numbers generated by the standard method will not necessarily be the numbers that areas plan for, because of the physical and geographic constraints placed on them, as my right hon. Friends the Members for Epsom and Ewell (Chris Grayling) and for East Hampshire (Damian Hinds), my hon. Friends the Members for Colne Valley (Jason McCartney) and for Leigh (James Grundy) and many others mentioned. Land availability or local constraints might mean that there is a need for neighbouring areas to meet demand more appropriately. We look forward to giving our detailed response to the consultation following a careful analysis of all responses. Until such time, all the figures that are bandied about in the media, some of which were quoted in the House today, are entirely speculative.
Our White Paper “Planning for the Future” represents our long-term aspirations to reform our planning system to make it fit for the future. Anyone who knows our planning system knows it to be opaque, slow and almost uniquely discouraging for all but its most expert navigators. Currently, it takes on average seven years to complete a plan and a further five years for associated permissions to be granted. Our planning White Paper proposes a modern, digitalised and map-based system, with up-front strategic controls, leaving local planning authorities and, crucially, local communities much more empowered to design the neighbourhoods that they want, that look the way they want, and that have the infrastructure they need.
The House will be concerned to hear that only around 3% of local people respond to planning applications. In local plan consultations, engagement can fall to less than 1% of the local community. That is simply not acceptable in a modern democracy, and we will change the system to increase local involvement. Our planning White Paper proposes a simpler, clearer process for planning design.
Felicity Buchan
Does my right hon. Friend agree that when it comes to designating zones, it is important that that is done by local authorities rather than metro Mayors, since they are closest to local communities?
Christopher Pincher
Local planning authorities have a crucial role to play. They are the building blocks of local democracy, and certainly they should be responsible for designating what goes on in their local authorities.
Importantly, one of the factors we have to contend with is land constraints such as national parks, green belts and flood risk, so that we identify the most appropriate land. We continue to welcome views on how we can best implement this and will reflect very carefully on those before proceeding, particularly on the incentives we can provide to small and medium-sized enterprises and other developers to get building—that was mentioned by a number of Members across the House—and how we can encourage greater neighbourhood involvement. I am keen to ensure that the present neighbourhood planning system and neighbourhood plans find their place in our new regime, and I encourage contributions and thoughts on how that might be achieved.
Importantly, a number of Members raised the issue of infrastructure, including my hon. Friends the Members for Leigh, for Totnes (Anthony Mangnall), for Arundel and South Downs (Andrew Griffith), for Dartford (Gareth Johnson) and for North East Bedfordshire (Richard Fuller). We welcome further thoughts on how best to deal with this.
For many proposed new developments, a key concern and source of local objections is the lack of critical infrastructure. Today’s system of developer payments for affordable housing and infrastructure is slow and uncertain. Negotiations between councils and developers, where big developers have greater firepower, cannot be relied upon to provide what communities truly need. Indeed, 80% of local authorities tell us that the section 106 system of contributions is too slow. Our White Paper proposes a nationally set infrastructure levy, which will not only simplify the system but ensure fairer contributions from developers, increasing the overall revenue we raise for infrastructure such as schools, roads, clinics and playgrounds. As a result, we intend it to deliver at least as much affordable housing as presently and provide much-needed infrastructure much earlier in the process.
We are keen to receive feedback, including on whether the proposals for a national levy might benefit from greater localisation. The consultation is open until 29 October, and I encourage all to contribute and set out their views on how our proposals can be improved. We will then set out our final decisions and proposed next steps through a Government response.
In closing, I wish to thank again all those who have spoken today. I very much welcome the contributions, which, though short in duration, were long on local wisdom and value to this important debate and to our consultations. We will reflect carefully on what we have heard and the feedback we receive. As we advance, we will endeavour to keep the House well-informed of these important changes, because make no mistake: they are important. They are what we need to do to deliver 300,000 good-quality new homes a year in the places that need them, and in the long run, they are what we need to do to build back better after covid-19. They are what we need to do to meet the aspirations of the people we serve now and in the generations to come.