Property Market

Debate between Lord Harrington of Watford and Graham P Jones

Tuesday 25th January 2011 Westminster Hall

[Richard Harrington]

I agree totally with the Minister with responsibility for planning that we should not return to Stalinist central diktat. My argument will hopefully show that that there are more tools in the box other than just the financial incentives that the Government have bravely introduced as a core of our policy. I am very much against central targets because they have not worked, not to mention the issue of morality or believing in local government, which I do.

[Mr Lee Scott in the Chair]

I agree that the Localism Bill has great potential to free local communities to decide for themselves the housing that they need. However, we must acknowledge the other side of that coin: the Bill will empower those people who are opposed to development in all its forms, so there are two sides to the measure.

[Graham Jones (Hyndburn) (Lab)]

Will the hon. Gentleman explain to the Chamber the difference between a supplementary planning document and a neighbourhood development order?

[Richard Harrington]

Again, if the hon. Gentleman has a little patience that difference will emerge as I make progress.

We have to do as much as we can to ensure that new homes are built, but there will always be people who oppose development. Sometimes, what is needed to meet the needs of the larger community can be stifled by those who, understandably, have their own personal interests at heart. It is not simply a hypothetical question. The issue has arisen in several places around the country, following the letter from the Secretary of State. Although regional spatial strategies were clearly not successful, evidence of nimbyism has also appeared, with the recent departure of those strategies. I will give some examples that right hon. and hon. Members may find of interest. In Bath, for instance, the number of homes to be built around the area has been cut by nearly 50% under the city’s draft core strategy. Previous targets proposed by the South West Regional Assembly envisaged more than 21,000 homes being built during the next 20 years, but that figure will now be cut to 11,000. North Somerset is cutting its target for new homes from 26,000 to 13,000.

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[Richard Harrington]

I agree that a balance is needed. We have all seen such developments in our constituencies —high-density blocks of flats with no greenery, no surrounding area and no provision for infrastructure. Yes, I agree absolutely.

[Graham Jones]

Will the hon. Gentleman give way?

[Richard Harrington]

May I make a little bit of progress first? I am not trying to ignore the hon. Gentleman; I am just trying to get my flow going.

I am against the centralised approach of the past. I am asking only for effect to be given to a measure proposed in the open source planning document as well as the Government’s Green Paper. We have to carefully monitor the incentives that we are introducing, such as the new homes bonus, to ensure that they in fact do what they are intended to do. If development targets continue to be halved by local authorities, surely we have to consider other ways to encourage the increase of supply that we all believe necessary. It would be much better if the powers were put in place now, rather than when the problem manifests itself, when it might be too late.

It is very clear to me that the Bill must contain a presumption in favour of sustainable development, so that if the local community has not drawn up its own plan for development, businesses can get involved. The economy is a very important reason for increasing the supply and taking the initiative, but obviously it would have to be proved that the proposals were sustainable. I am most impressed by the presumption in favour of sustainable development. It was one of the most far-sighted proposals in last year’s “Open Source Planning” Green Paper, and was reaffirmed with even more vigour in the local growth White Paper later in the year. It is really important that it is brought into effect as soon as possible.

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[Richard Harrington]

My hon. Friend has made an important point about the vehicles that can be used, and I am sure that the Minister will comment on that. I very much supported the introduction of the real estate investment trusts scheme into this field, but my argument today is about the supply of land for housing development, some of which—a greater percentage, I hope—will be for shared ownership; some of it will be for private ownership and private tenants, and the different forms of social housing. I do not think that my hon. Friend’s point, valid though it is, is relevant to that argument.

I remind hon. Members that the lack of accessible housing for first-time buyers is not just a housing issue, or something to do with the idea that an Englishman’s home is his castle, and people’s desire for their own home. It has serious ramifications for the future of Watford, as for many other places. To use Watford as my example, as I should and must, it has for a long time been a popular place for young professionals, people working in and opening new businesses, and families seeking a first step on the property ladder. It is quite near London, and a lot cheaper, and it is a nice place to live. I say that in my capacity as honorary president of the Watford tourist board—but it is a nice place, and people enjoy going there. It is close to London without London prices. However, I have a significant fear that without housing supply at reasonable prices, which is a function of supply—we know that the demand will always be there, or I at least believe it will—the area will have difficulty in attracting young professionals, and attracting people to open or engage in businesses. That is the most significant aspect of what is a serious matter, with huge implications.

I support localism and I applaud the Government’s efforts to introduce it throughout the country, but my central argument, which I hope the Minister will accept, is that it must be part of a balanced package. We must avoid any trap; for the last Government it was their obsession with centralism—the Stalinism that I mentioned before—but that must not be replaced by a similar obsession with localism as the only way to obtain housing supply.

[Graham Jones]

I thank the hon. Gentleman for obtaining the debate; it is a great debate, which is primarily about the south, and under-supply of housing, and I am happy to engage in it. To return to the point about the Labour Government being a centralising Government, could the hon. Gentleman tell me the difference between a supplementary planning document and the new neighbourhood development orders? If Labour were centralising, what was an SPD?

[Richard Harrington]

I do not think that it makes much difference to the argument. In practice there is not much of a difference; I understand there is one, realistically. I look forward to the Minister’s comments and the contributions of colleagues. I feel I have made my point.