Infrastructure Bill [HL]
Debate between Lord Ahmad of Wimbledon and Baroness Maddock
Lord Ahmad of Wimbledon
I accept that, and I am fully aware of the impact and application of Section 106 agreements. There are currently two figures. There is a speculative figure in the press. We are developing our thoughts on this. I mentioned the Section 106 consultation—the figure of 10 is nearer to our thinking than 50—merely to give an indication. We will, of course, keep the situation under review. If it becomes clear that the time is right to review the exemption, we will do so, but we do not want to be tied down to a specific timeframe.
Amendment 93AB seeks to limit the off-site measures that a homebuilder can support to those within a five-mile radius of the development. While we are very keen that local projects are supported through allowable solutions, this proposal is not workable. We asked in our consultation whether there should be a spatial limit on off-site carbon measures. Views were evenly matched, but slightly more of those responding did not think the measures should be limited to just those in the vicinity of the development. While we do not want to prescribe that measures should be local only, we want local authorities to participate and local projects to be supported.
There are clear benefits for developers in supporting off-site carbon abatement measures in the locality of their developments. They give visibility that developers are delivering on their obligations. It can enhance the attractiveness of a development if local people feel that it is leading to carbon reduction in their area. In many cases, these projects may be the most cost-effective option. This will be good for the reputation of homebuilders and beneficial to local areas. What we are proposing will allow for local participation, but prescribing that by reference to a specific spatial limit will not work. Even if sufficient appropriate carbon abatement projects existed within five miles of every new housing development, should we force them to be supported at the expense of more cost-effective strategic projects elsewhere? It is likely to be to the detriment of local communities if it means that larger scale measures, such as larger scale community energy schemes, are missed. It would rule out local authorities working together to offer measures which might span more than one authority. Setting a five-mile radius in primary legislation would also end up in a confusing pattern of concentric circles of potential projects over the country which would be impossible to administer.
My noble friend Lady Maddock asked the obvious question. In building generally, we all ask ourselves whether it will happen. I am sure we could share stories about builders and deliverables. Her question was about allowable solutions and how they will be checked. We will build on existing processes in the first instance, but it will be necessary to consider a self-standing approach, which could happen in a number of ways. For example, retrofit is classified as building work. It will be subject to checks under building regulations as now or will be covered by the existing competent person scheme arrangements. This could be supported by a requirement to provide an updated energy performance certificate to show that the improvements are achieving the desired outcome. A mechanism for validating carbon savings already exists under the energy companies obligation, and there is scope to use this example to investigate a similar proposition to cover allowable solutions. Small-scale energy measures would have to demonstrate that they meet energy performance levels which could be converted to carbon savings. There are other quality assurance schemes for other types of measures which could also be called upon, such as the combined heat and power good quality scheme. There will be further consultation with the industry.
My noble friend also asked about energy efficiency and the fear that the consumer would lose out if the developer chose to use allowable solutions. All consumers will benefit from a minimum national standard of energy efficiency and carbon reductions in homes. They will also have good information on other technology used in homes further to reduce carbon emissions and energy costs. The allowable solutions policy benefits society as a whole by reducing carbon emissions across the country without imposing a disproportionate burden on anybody. I am sure that my noble friend agrees that if we look at how housebuilding, home sales and home rentals have developed over the past decade or so, energy efficiency has been at the forefront of much that is part of the offers which are considered.
Baroness Maddock
Before we move on, I may not have put it very clearly, but one of the questions that I was concerned about was the timescales. If builders are required to agree various abatements, will there be a timescale in which they have to carry them out? It slightly worries me that they could do their small site and agree to do the abatements, but maybe not do them until 10 years later unless there is a timescale on them.
Housing: Rent Levels
Debate between Lord Ahmad of Wimbledon and Baroness Maddock
Lord Ahmad of Wimbledon
The Government are fully aware of the housing challenges. In London the mayor’s housing covenant contains detailed proposals for improving London’s private rental sector. The housing guarantee schemes are intended to help expand the provision of large-scale, professionally managed rented housing and to support economic growth. Of course, as was recently announced, the Government have allocated an additional £3 billion to a housebuilding programme. We are embarked on the biggest housebuilding programme of the past 20 years, and that should be appreciated and commended.
Baroness Maddock
My Lords, my noble friend indicated that one of the problems with high rents in the private sector is lack of supply. Did he see something interesting in the newspaper this week: that in many towns with a high student population the students occupy houses that could be lived in by families if we were to build more proper student accommodation there? Will the Government see if there is any mileage in that?
Lord Ahmad of Wimbledon
My noble friend raises an important point. The Government are forever looking at ways that we can help address the housing challenges in particular cities, and if there are good practices I will take them back and share them across the country.