Affordable Housing (London)

Debate between Chris Philp and Ruth Cadbury

Wednesday 9th September 2015 Westminster Hall

[Chris Philp]

Is it partly in Hammersmith? [Interruption.] The fact that it goes over three London boroughs shows that we need MDCs to step in and make things happen when large numbers of public bodies are involved. In my own borough, the Croydon growth zone is important; it will, I hope, bring forward 4,000 houses. The Brent Cross regeneration project is another important scheme. Those specific projects, in which the Government, the Mayor of London and the boroughs focus together on bringing forward large numbers of houses in a particular area, are very effective. I strongly encourage the Mayor and the Minister to do even more in that way.

I also commend the Greater London Authority for its programme of disposing of its public land for housing. Over the last couple of years, the GLA has disposed of 98% of the land that it owns—that excludes Transport for London, by the way—for public housing. That includes the site of the old Cane Hill hospital in my constituency—which is directly overlooked by my house—where Barratt Homes is currently building 650 houses. That is an example that other public bodies should follow.

In that vein, I welcome the London Land Commission, which met for the first time on 15 July. Its duty is to catalogue surplus public sector land that can be brought forward for housing. TfL has 6,000 acres that could be used across 600 sites; the NHS has 1,000 acres, 15% of which is potentially surplus to requirements. There is a huge amount that can be done by bringing forward public sector land for house building.

I also strongly support the idea of using local development orders to effectively grant outline planning consent on suitable brownfield land, even if the landowner has not applied for consent. The target is to get LDOs for 90% of brownfield sites by 2020. That is a really important initiative. One housing association estimates that there are 8,000 acres of developable brownfield land in our city. It is a matter of absolute urgency that we develop that land as quickly as possible, partly to create new housing and partly to take pressure off the green belt, which it is essential to protect.

I am conscious that other Members wish to speak. In closing, I will briefly put eight specific proposals to the Minister. The first is to consider extending the office-to-residential conversion scheme that has been in operation for the last two or three years, in areas where there is no pressure on office supply. Certainly some clarification is needed about the definition of change of use. At the moment, the change of use has to have occurred by May 2016, but there is a little ambiguity about what the change of use actually is, so some clarification would help developers and investors.

Secondly—this is more a matter for the Treasury than DCLG—the regime for buy-to-let mortgages is currently a bit softer than the mortgage regime for owner-occupiers. For example, most owner-occupier mortgages are repayment, whereas most buy-to-let landlords get interest-only mortgages. In my view, that means that buy-to-let landlords are unfairly advantaged relative to potential owner-occupiers. The Bank of England and the Treasury should look at that, to create a level playing field so that owner-occupiers can purchase on an equal footing to buy-to-let landlords. That would encourage home ownership.

Thirdly, local authority planning departments are often a serious bottleneck, leading to the missing of statutory deadlines for granting planning consent. I suggest that we should consider allowing higher planning fees to be charged in exchange for a guaranteed service level. Planning fees are quite low, and I am sure that many developers—particularly larger ones with big schemes—would happily pay a great deal more money to get a quick, clear decision. That would bring planning consents forward more quickly and get us building.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

That is fine, but would the hon. Gentleman’s party support speedier decisions if that meant less time for proper consultation with local residents?

[Chris Philp]

No. Proper consultation is clearly very important. Quite often, however, it the process with officers that is slow. It is not the planning committee; the officers who prepare the reports and do all the work prior to the application can take a very long time, often because they are under-resourced, because of the understandable pressures on local government finances. I am sure that larger developers in particular would be happy to pay significantly higher fees to speed up the process. Some planning departments and councils are very good, but some are not, and when they are not performing and are letting local residents down by being slow in dealing with applications, we should consider outsourcing planning functions to a third party that can do the job more effectively. That could be paid for by planning fees.

Fourthly, we must make sure that the brownfield register being compiled for the LDOs is given real focus. I suspect that the GLA will play a role in supporting that process, and it may need some financial assistance. It is essential to get the list of brownfield land and develop those 8,000 acres as quickly as possible. I hope that the Department, the Mayor of London and the boroughs will put a huge focus on identifying that land and giving it outline planning consent over the next five years.

My fifth point is a more general one, about talking to developers. I should draw Members’ attention to my entry in the Register of Members’ Financial Interests, as I have a previous and a current professional involvement in the area. Parts of the planning process put up barriers—things like bat studies and crested newt studies. They are less of an issue, I imagine, in Camden and Hackney, but in other parts of the country they can delay developments by months or years. Bats and crested newts are important, but building houses is important as well, and sometimes the balance struck between those considerations is not quite right.

My sixth point relates to the London Land Commission. Its current mandate is simply to identify surplus public sector land. I would go further and give the commission, supported by the Mayor of London and the Department, the power to take on surplus public sector land—whoever it happens to be owned by—and to bring that land directly forward for development. Some 50%, say, of the proceeds would go, with no restrictions, to the previous landowner—the NHS, Network Rail or TfL—and the other 50% would be ploughed back into housing. There would therefore be an incentive for such organisations to co-operate with the process, whereas if the money just disappears somewhere else, they may not be very co-operative. I urge the Minister to give serious consideration to granting the commission the powers I have described.

The seventh point is to make the adoption of a local plan by local authorities—both inside and outside London—mandatory. At the moment, a number of authorities do not have local plans, which makes it difficult to bring forward housing. If authorities do not bring forward a local plan by a particular point—for example, by 2017—the planning inspector or DCLG should simply develop one on their behalf. Authorities have had plenty of notice, but a number have not developed a plan.

My final point is that community infrastructure payments should be used for infrastructure that is relevant to the local community. When local authorities take community infrastructure levy money, it can disappear into a black hole, and there is a temptation to replace capital spending elsewhere, which causes resentment among local residents. In the case of the project close to my house, there is a £7 million CIL payment, but the money could disappear to the other end of Croydon, which would mean that any pressures on schools, hospitals and local roads were not necessarily alleviated. I think the local public will be more accepting of large-scale development if they can see that it is directly linked to infrastructure improvements in their locality, and that will ease the passage of development.

I have tried to make eight constructive suggestions to help to alleviate the house building issues that London faces. I hope Members on both sides will agree with my diagnosis of the problem and with some of the solutions I have mentioned. I hope colleagues will come forward with other ideas in the next hour and 10 minutes and that the Minister will be able to respond to them.

Our city faces problems on housing. Progress has been made, but there is more to do. I therefore hope that we can work together, as London MPs, with the Mayor of London, the boroughs and the Department to alleviate the pressures our city faces.