Planning and Infrastructure Bill

Lord Best Excerpts

Report stage
Wednesday 22nd October 2025 Lords Chamber

Moved by

[Lord Best]

72: After Clause 51, insert the following new Clause—
“Delivery of affordable housing(1) The Secretary of State must by regulations make provision for ensuring that when planning permission is granted subject to requirements for the delivery of affordable housing schemes on the relevant site, such requirements are fully implemented.(2) The requirements for the delivery of affordable housing schemes referred to in subsection (1) shall be satisfied only if the percentage of the total housing constructed let as social rent housing exceeds the percentage set out in the authority’s affordable housing threshold or twenty per cent, whichever is higher.(3) In subsection (2) “social rent housing” has the meaning given in paragraph 7 of the Direction on the Rent Standard 2019 together with paragraph 4 of the Direction on the Rent Standard 2023, as modified by paragraph 8 of the Direction on the Rent Standard 2023.”Member’s explanatory statement
The amendment is intended to ensure affordable housing is actually delivered where this is the subject of planning consent, and the proportion of social rent housing is at least 20 per cent.

[Lord Best (CB)]

My Lords, I rise to speak to Amendment 72, which addresses the issue of affordable housing delivery. I am grateful for the support of the noble Baroness, Lady Thornhill, the noble Lord, Lord Carlile of Berriew, and the noble Baroness, Lady Bennett of Manor Castle, and I know the noble Lord, Lord Young of Cookham, wanted to add his name to this amendment. I declare interests as vice-president of the LGA and the Town and Country Planning Association, honorary member of the Royal Town Planning Institute and honorary fellow of the Royal Institute of British Architects. I pay tribute to Shelter for championing this amendment.

The amendment introduces a new clause providing for regulations to ensure that affordable housing actually gets delivered where it is a condition of planning consent, usually through a so-called Section 106 agreement. In Committee, I noted the problem—only too familiar for many of us—that housebuilders agree to provide a quota of affordable homes for local people, but these homes fail to materialise in the developments that actually get built. The housebuilders back out of delivering some or all of the affordable homes they promised, with the excuse of “changed viability”. They say they have encountered unexpected problems, choosing from a long list of possibilities, from increased interest rates to unexpected site conditions. They claim it is no longer possible for them to make a clear profit of 20% or more, and it is the affordable housing element that they insist must take the hit, despite that having been a condition of planning permission.

The Minister may say that this is a matter for local authorities to handle but, as a report from the National Audit Office set out in June this year, negotiations between local planning departments and well-resourced developers are hopelessly unbalanced, with the latter employing expensive consultants and legal experts to find ways of negotiating their contributions down. Cash-strapped councils are unwilling to fight expensive legal battles and feel obliged to give in.

This amendment would bolster the position of the planners by ending the arguments and making the agreed affordable housing element non-negotiable. It aims to ensure that developers actually deliver the affordable homes that were a fundamental reason for planning consent being granted in the first place. The amendment adds a safety net by obliging the house- builder to provide a minimum of 20% of new homes in relevant developments to be for social rent, or the percentage set out in the local authority’s policy framework—the local plan, where it has one—if that is higher. Importantly, the definition of social rent housing is that used by the Regulator of Social Housing in its rent standard. Although planners may also require some other forms of affordable housing, such as shared ownership and near-market renting, the baseline of no less than 20% for the all-important social rented housing is secured by this amendment.

The 20% minimum for social rent is also a figure recommended by the New Towns Taskforce, which reported last month. Its report recommends a total of 40% for all the various kinds of affordable housing put together, with at least half of that—20%—for social rent. This important requirement could be applied not just to new towns but to all major developments; this amendment provides for that outcome. Nearly half the nation’s current programme of affordable homes comes from these planning obligations on the house- builders but, as the noble Lord, Lord Young, noted in Committee, the CPRE has found that, despite agreements by the housebuilders to produce an average of 34% of relevant developments as affordable housing, the actual figure has turned out to be just 18%.

Shelter’s research has also shown that, in relation to the core social rent product, rather than the more upmarket versions of affordable housing, over the last 20 years less than 3% of developers’ housebuilding has been for social rent. This is despite the fact that, in most parts of the country, only the social rent accommodation is within the means of households in the lower half of income distribution.

The constant reneging by housebuilders on the contributions they agreed to make at the outset makes this amendment an urgent one. Indeed, I wonder whether it is worth all the time, money and effort to achieve so many new homes if so few of them can meet the acute needs of those suffering most from the nation’s housing shortages. Instead, enforcement of an obligation that delivers at least 20% social rented housing would substantially enhance the value to the nation of building 1.5 million homes by 2030. I hope the Minister will feel able to accept this amendment, at least in principle, and I beg to move.

[Lord Carlile of Berriew (CB)]

My Lords, my noble friend Lord Best has given an empirical and quantitative justification for this amendment, which I support, and I will not repeat what he said. What I will say, however, is what social rent housing does and why it is a necessity.

It is a living instrument that improves our society in many ways. It creates the opportunity for stability for young families, and for continuing education for young people in those families. It also creates loyalty to the town where they live, and a history that is developed into the future by those who live in social housing. These days we often hear people commenting on the fact that they are the first person who went to university in their family. Many of those people went to university because they lived in social rent housing with the stability that enabled them, with the support of their parents, of course, to be educated to go to university. I believe that in this Parliament there are many people who fall into that category. This is a living instrument that we are trying to create—a system of social rent housing that produces the growth that creates the flowers of our society, or at least many of them, and gives our society a future we can be proud of.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

The noble Lord’s Government left 130,000 children in temporary accommodation.

As noble Lords will know, the Government are committed to delivering the biggest increase in social and affordable housing in a generation and to prioritising the building of new homes for social rent, but we take a different view from the noble Lord on how to achieve this. The revised NPPF provides local authorities greater flexibility to deliver the right tenure mix to suit local housing needs, and planning practice guidance that supports the NPPF sets out that plan-makers should collaborate with the local community, developers and other stakeholders to create realistic, deliverable policies.

I understand the frustrations around the issue of viability, so the Government are also reviewing the planning practice guidance on viability to ensure that the system works to optimise developer contributions, and that negotiation or renegotiation of Section 106 agreements takes place only when genuinely necessary. Once planning obligations are entered into under Section 106, they run with the land and are legally binding on all parties to the agreement, so they can be enforced by the local planning authority. As we take forward work on a set of national policies for decision-making, we will also consider further steps to support social and affordable housing.

Turning to Amendment 85, tabled by the noble Baroness, Lady Pinnock, while we agree that we need to tackle homelessness, especially where children and families are involved, I will explain why we cannot support this approach. The planning system is already complex, and adding duties to have regard to particular matters, no matter how laudable, are not required in statute, given that national planning policy is a strong material consideration in planning decisions. As we take forward work on a set of national policies for decision-making, we will also consider further steps to support social and affordable housing. Councils must, by law, make sure that any temporary accommodation placements are suitable to the needs of the people placed there. On World Homelessness Day this month, we announced £10.9 million to increase access to support and services for families in temporary accommodation. I therefore ask noble Lords not to press their amendments.

[Lord Best (CB)]

My Lords, I am deeply grateful to noble Lords for their support for Amendment 72. I thank my noble friend Lord Carlile for his eloquent words, and I offer the noble Baronesses, Lady Grender, Lady Pinnock and Lady Bennett, sincere thanks for their support. The noble Lord, Lord Jamieson, is unfortunately unable to support this amendment, which, without his help and that of his colleagues, I fear would not achieve the majority it needs.

I do not accept the noble Lord’s point that having a 20% baseline below which we would not go in terms of affordable housing, and social rented housing in particular, is necessarily a blockage to flexibility. The baseline of 20% at social rents—the typical housing association and council rents—would not put a great burden on the housebuilders negotiating with the planning authority that also wanted to produce housing for older people. I do not think it would entail an additional burden.

Sometimes the older people’s housing of the kind that the noble Lord has produced in his own borough—and I strongly congratulate him, as council leader, on achieving a disproportionate amount of housing for older people; he has done a great job—will be social housing and would count towards the affordable housing quota that I am talking about; sometimes it will be housing for outright sale, which would not be part of this equation so we would not worry about it. Having a baseline of 20% social housing as an absolute minimum is not going to impede—

[Lord Jamieson (Con)]

If I may just be clear, I apologise but I meant affordable housing that was for older people; I did not mean housing for private sale, when I talked about flexibility. I apologise if that was not clear.

[Lord Best (CB)]

Yes, well, I am sorry that we differ on this because it means that it would be pointless me taking this to a vote.

What I will say is that I am deeply grateful to the Minister for explaining that the issue of viability advice is now under consideration and that we will be getting new advice, which I hope will be much stronger and more positive than in the past. So I am grateful to her, and I beg leave to withdraw the amendment.

Amendment 72 withdrawn.