Housing and Planning Bill

Lord Krebs Excerpts

Wednesday 4th May 2016 Lords Chamber

[Baroness Parminter]

My Lords, the new homes we wish to be built must, at the same time, meet our greenhouse gas targets and contribute to lowering fuel bills. It is right that we help to ensure that those homes are financially viable for the people who are going to build them. As the Government have accepted, the on-cost for building homes to this standard is £3,000 for a three-bedroom semi. That figure, as the Government again have accepted, comes from a report in 2014, since when costs have come down dramatically. But we also need to ensure that we help the poorest in our communities to save on their energy bills. It is accepted that introducing these standards would result in a saving of £330 per annum for households, compared to houses built to existing building regulations. Equally, it would save those households any retrofit costs in the future, given that the Government have not ruled out raising building standards.

The Government have said that this is a regulatory burden on the small developer, although I remind noble Lords that these standards were agreed by the industry before they were withdrawn by the Chancellor. This was not the evidence given to the House of Lords Select Committee on National Policy for the Built Environment, where it was made clear that small housebuilders were saying that access to finance and the price of land were the major constraints on housebuilding. Let us be clear: regulations are not always to be seen as a burden. Regulations deliver a level playing field across the housing industry and drive innovation. It is regulations that will cut the fuel bills for the poorest in our community and help us to meet the greenhouse gas targets that this Government committed to so strongly and so welcomely in Paris. It is the job of this House to ensure that the Bills that leave here contain good regulation. That is what this amendment would do. I beg to move.

[Lord Krebs (CB)]

My Lords, I support the amendment of the noble Baroness, Lady Parminter. As she has said, it is meant to be helpful in the context of our legally binding commitment to reduce our greenhouse gas emissions. The important thing to remember is that the new houses which are to be built now will be around for a long time—probably 100 years or more. It is inevitable that over time, we will need to tighten our greenhouse gas emission standards and move towards a zero-carbon homes standard. If, in building them, we do not meeting that standard today, they will have to be retrofitted in future. It is all very well to say, as the noble Viscount did, that we will undertake a review, but in the time it takes to carry out that review, many homes will be built. We will be storing up trouble with the homes we build while carrying out yet another review.

In the other place, it was noted that this requirement would “slow down or prevent” the building of new homes. Let us look at the counterfactual: let us say that we do not implement this amendment and go ahead rapidly with building new homes, but that those new homes are not fit for purpose in the future. Surely, that cannot be a good principle. If we are to build new homes now, we should think about their long-term implications for both greenhouse gas emissions and, as the noble Baroness, Lady Parminter, said, the energy bills of those who will live in them. Finally, we have the chance now to legislate to make greenhouse gas savings through this measure, and if we do not, the country will have to make them elsewhere. In the debates in Committee or Report, nobody has said, “Okay, we’re not going to make the savings here—but here’s where we are going to offer up savings elsewhere in the country”.

[Lord Kennedy of Southwark]

My Lords, Motion K1, in the name of the noble Baroness, Lady Parminter, is very welcome and if she wishes to test the opinion of the House, noble Lords on these Benches will support her. The issues raised in this amendment were of course debated in Committee and on Report. As we have heard many times, we are in the midst of a housing crisis. Not to build homes to a high standard that meets the challenges of which we are all aware, when that could be done at a minimal cost, just seems wrong. I do not understand the Government’s position at all. Theirs is a short-sighted policy through which they are cutting corners where they can.

The zero-carbon homes standard is important in delivering on our climate change commitments. As we heard in the previous debate, the cost of the building standards to achieve this and drive down energy bills could be £1,900 or even less. I do not understand why the Government do not want to move on this. All that will do is to leave people with higher fuel bills and the costs of retrofitting properties. That should not be necessary, and not taking action today would be wrong.

The Government’s “step too far” defence is just not compelling. They have not made a convincing case as to why this is not the desirable thing to do. It is puzzling that the Government do not want to build homes that are as energy-efficient as possible. As I have said before, on matters of public policy the Government should be striving to get the best possible outcome. If we do not agree to this amendment, in practice, people will pay a greater proportion of their income when moving to a new home than they need to. That would affect those on the lowest incomes—the poorest people—and nor would it be possible for the Government to reduce our carbon emissions.

--- Later in debate ---

[Baroness Parminter (LD)]

My Lords, the purpose of the amendment is to ensure that the new homes that we want are built with sustainable drainage, protecting home owners against flooding and delivering wider environmental benefits to the community—and, indeed, for biodiversity.

At Report, the Government’s response was that we should wait to see how the presumption in planning works, given that it has been in place for only a year, but the evidence that we had in Committee, at Report and since is that it is not working. Since Report, Hampshire County Council, Essex County Council and South Tyneside Council have joined every water company and the National Flood Forum, which has links with local councils all around the country, to say that the problem needs sorting, and sorting now.

The amendment, which we proposed at Report, is a simplified version of an amendment that we moved in Committee. I humbly disagree with the Minister: the amendment does not increase bureaucracy but gives local authorities more powers in discussions about planning permissions to deliver the increase in SUDS we need. It gives them the power to talk to developers at the earliest opportunity about sustainable urban drainage solutions. That is what the amendment, which removes the automatic right of connection, would do: make sure that housebuilders consider urban drainage at the beginning of the process, not at the end.

There has been overwhelming support from a variety of organisations, which we cited at Report and which I will not, for brevity’s sake, repeat this evening. The House of Lords Select Committee on National Policy for the Built Environment supported such an amendment. Again, we must think of home owners. Yes of course we must think of home builders but, as I said, this is not extra bureaucracy; it is a reasonable amendment. The Government’s very welcome Flood Re initiative, which came into effect last year and will give low-cost insurance for home owners, excludes homes built after 2009. By introducing the amendment, we will be increasing the amount of sustainable urban drainage and providing what the Government accept is a low-cost route to the protection that householders need and which we need for our environment.

Given that Ministers have been quoting other industry sources, I end by quoting the Construction Industry Council, which states that, “Maintaining the automatic right provides a get-out for developers by not requiring them to think about how they manage surface water”. It is time to end that automatic right. I beg to move.

[Lord Krebs]

My Lords, I shall be very brief in speaking in support of this amendment, because we have heard the arguments in Committee and on Report. As chairman of the adaptation sub-committee of the Committee on Climate Change, I simply make the point, which I made before, that this is about looking not just now but into the future, when we understand from the climate models that flash surface-water flooding will become more of a problem. It is already a major problem and one of the major sources of flooding in this country and it is going to get worse. So it is rather like the zero-carbon homes amendment that we discussed a few minutes ago. Why on earth would we want to build new developments now that are going to present the residents of those developments with problems with flash flooding in future, when we know that there are straightforward solutions? There is the solution of sustainable urban drainage, not removing the right to connect to the drains altogether but making a presumption—because that right is not automatic—that developers will use sustainable urban drainage where possible.

If, as the Minister said in the introduction, this amendment is both unnecessary and unworkable—and he gave various reasons—I ask myself why so many professional bodies and why the water industry itself, as the noble Baroness, Lady Parminter, said, support it. Those are the people who really understand, and who are real experts, and it is clear that they think that that is workable and desirable and will achieve greater sustainability for the new developments that will be built in the coming years as a result of the initiatives in this Bill. So I hope that noble Lords will listen to the argument that the noble Baroness made and will recall the arguments heard in Committee and on Report and will support the amendment.