(4 days, 2 hours ago)
Lords ChamberMy Lords, the Government’s aim in the delivery of the 1.5 million homes is to deliver good quality, well-designed, sustainable homes and places that everyone can be proud of. I have already met both the TCPA and the National Housing Federation, which have been campaigning on this. I am very aware of some of the poor practice that has occurred, and we will continue to advocate for the principles of good design, as set out in the National Design Guide and the National Model Design Code. As I say, we keep permitted development under review.
My Lords, it must make sense to use redundant buildings to provide good-quality accommodation for those in need, but is there not a loophole in the current fire safety regulations? These apply when a commercial building is converted into flats but not when industrial buildings or storage units are. Should we not use the Renters’ Rights Bill to close this loophole?
My Lords, the Planning Gateway One fire safety requirements apply to applications for planning permission for relevant buildings. To apply some of the principles to permitted development, there was a prior approval on fire safety impacts in 2021 that applies to class MA: commercial, business and services to residential. It is not, however, as detailed as the requirements for a planning application. For example, it does not require the completion of a fire safety form. We need to continue to look at these issues and to make sure that permitted development is completely safe from fire.
(5 days, 2 hours ago)
Lords ChamberI thank the noble Lord for his question. We have an Oral Question on exactly the same topic tomorrow, when I am sure I will be able to give a fuller answer.
The noble Lord is quite right. As I come from a new town, I recognise the benefit of not just designing the homes but planning the areas where they are to be situated. They should, of course, be sustainable, healthy and have all the infrastructure that everybody needs. The Government are committed to taking steps to ensure that we not only build more homes but that they are high quality, well designed and sustainable. That is why we have made changes to the NPPF to make clear the importance of achieving well-designed places, and how this can be achieved holistically through local design policies, design codes and guidance. We will be pushing this forward further in the new year.
My Lords, I agree with the noble Baroness, Lady Pinnock, that there is much in the Statement to be welcomed. It is right that the Government should have a target of 1.5 million, although it is an ambitious one. If any Government are to hit a national target, they must have the levers through setting mandatory targets for local authorities. This was my Government’s policy until 2022. Of course, I take the point made by the noble Lord, Lord Jamieson, that these targets must be right. I welcome the recognition that, without some erosion of the green belt, we are not going to get anywhere near the target.
Where I have some difficulty with the Statement is reading it in conjunction with the plans for devolution. Under the Statement which the noble Baroness has repeated, the basic unit is the local plan, and all the districts have to get ahead with theirs. Under the devolution White Paper, they must find partners—other districts—in order to reach the 500,000 target; then, presumably, there will have to be a new district plan for that. At the same time, the Government want to impose mayors everywhere. We read on page 48 that the mayors will be responsible for strategic planning and housing growth. Later on, it says that mayors will have
“an increasingly central role in housing delivery.”
Then, of course, the mayor can set up a development corporation and override the objections of any district. On top of this, the Government can set up a new town corporation. It is not absolutely clear to me how all the moving parts of the planning system fit together.
There are clear links between the new National Planning Policy Framework and the English devolution programme. The English Devolution White Paper, which was published yesterday, is a consultation document, and we will be taking views on it as time goes on. The noble Lord, Lord Young, is right to say that there is a proposal in that White Paper for mayors to have strategic spatial planning powers. Across those sub-regional areas—we are talking about areas with a population of around 1.5 million—they will be looking at transport, infra- structure, probably housing numbers across the whole area, and other issues that are strategic in nature.
I do not believe that this undermines in any way the status of local plans. Where there is local government reorganisation, there will be some consolidation of plans to make this work at the level of the new councils. The strength of the local plan will be retained in determining where the allocations in the strategic spatial plan will be located. I do not think the intention of spatial planning is to undermine local plans. I remember the days of regional planning; we are not going back to that, because people felt it was too big a scale. It makes a lot of sense to do this at sub-regional level. When planning an economy, infrastructure and housing growth, you start at sub-regional level and then the local plans fit in with that.
(6 days, 2 hours ago)
Lords ChamberMy Lords, I recognise how important the right housing arrangements are in supporting people to live independently and well. The Government will set out details of new investment to succeed the 2021 to 2026 affordable homes programme at the spending review. The National Planning Policy Framework outlines that local authorities should assess the housing needs of different groups, including older people, and reflect this in their local plans. We have strengthened the National Planning Policy Framework to encourage the delivery of mixed-tenure development. For most of those looking to downsize, the stamp duty due on the new property will be small. Stamp duty is an important source of revenue to provide essential services, and the Government have no further plans for relief for those looking to downsize.
My Lords, further to the Question from the noble Lord, Lord Best, and the Minister’s reply, the task force published its report two weeks ago, before the Government published their National Planning Policy Framework, and, despite what he says, that policy framework does not reflect the major recommendations of the task force. Will the Government publish a detailed response to all the recommendations of the task force, and will they implement some of the recommendations in the forthcoming planning Bill?
My Lords, we consulted on reforms to the National Planning Policy Framework and published our response on 12 December. We are determined to create a more diverse housing market that delivers homes to meet a range of needs. On the noble Lord’s particular point, we will respond to all 44 recommendations of the task force. However, my honourable friend in the other House, Matthew Pennycook, will look at this in the wider housing strategy.
(1 week, 3 days ago)
Grand CommitteeMy Lords, I am most grateful to my noble friend for initiating this short and very timely debate. I will refer in a moment to a speech that he made on 29 February on a similar theme, but he will not mind my saying that he is not one of the usual suspects who turns up to our debates on housing. However, his insight is invaluable, because he comes from a successful commercial background, providing consumers with what they need, which we have manifestly failed to do in housing, and he brings a clarity of purpose—and also a sense of impatience and frustration about the current system, with which I very much sympathise. Who could argue that where we are today is the right place on housing and planning? There was a very perceptive article by Paul Johnson in the Times on Monday.
Having read my noble friend’s speech on 29 February, I have some reservations about part of his approach. He proposed two simple principles to the world of housing, and what he said then bears remarkable similarity to what he has just said:
“I have time to suggest just two … It simply insists that all new development does nothing to materially devalue neighbouring homes and businesses. The second, the ‘carry your weight’ principle, requires all new development to leave infrastructure in the state in which it found it or better. Before 1947, such a free market system existed in broad terms; it delivered the architecture, streets, cities and towns that we love and cherish today”.—[Official Report, 29/2/24; col. GC 158.]
It also delivered some pretty terrible stuff that no planning system would permit.
I have difficulty with those principles, and I am one of the guilty party; I was Housing Minister for about nine years and Planning Minister for four. The trouble with the first principle is that it risks denying the country the new homes that it needs. After 41 years in another place—with those four years as Minister for Planning—I know that there are many people out there who will argue that any new development, however well designed, will materially devalue their homes or businesses. We have need of development, however. We need new pylons —who is going to welcome those?—we need new prison capacity to deal with overcrowding, and we need 1.5 million new homes to meet the Government’s target.
What we in fact need is a system that weighs the material devaluation to a few people against the wider benefit to society as a whole. That is what a planning system does and what a free market simply cannot do. A free market, for example, will not deliver the new towns that were delivered after the war and which we will need again. It would not have tolerated the compulsory purchase of land, nor would it have delivered the regeneration of Docklands by the 1979 Conservative Government.
Even if a market-led approach delivered the houses, what about everything else—the schools, mentioned by the noble Lord, Lord Mendelsohn, or the medical centres and so on that need to go with it? What about minimising the impact of climate change by promoting development near, for example, existing transport interchanges? How would we develop social housing—now delivered through Section 106 agreements—without a planning system imposing conditions? The planning system captures the difference between the £15,000 per acre and the £1.5 million by obliging the developer to provide the infrastructure and the social housing. I am not sure how the free market that my noble friend referred to would do that.
I also have a problem with the second principle of leaving the infrastructure in the state it was found or better. My concern is that the “or better” would not be provided were it not for the planning system—either through Section 106 or infrastructure levies—which insists that the person building the houses also provides the infrastructure. If that is not done by the developer, by capturing the land value, the burden would simply fall on the taxpayer, which is not a good option.
Where I agree with my noble friend is that we need to have a system that ensures that there is greater certainty about where development will take place and to have a construction industry that delivers. I am sorry if I have sounded very negative about my noble friend but, having tried over the past 30 or 40 years to do what he wants to do, there are some real issues that I am not sure the free market, or the commercial approach that has inspired his career, would address.
(1 week, 3 days ago)
Lords ChamberI agree with the noble Baroness that the voice of local people and local councillors in the planning process is absolutely vital. There is no intention to change the consultation rules on planning applications. Representations will be considered by any decision-maker in the process. The best way for councillors and communities to engage in the development proposed for their areas is through the local plan process, which will be agreed by the council. Where a controversial development is proposed that has not been planned for, councillors will continue to play a key role in representing the voice of their communities. There will be no change to the ability of local people to inform and make their views known about planning applications; this is about speeding up the decision-making.
My Lords, is not one of the problems with the planning system that a planning application is made which is in clear conformity with the local plan, the planning officers recommend approval but, because it is unpopular locally, the planning committee turn it down in order for the Secretary of State to take the blame? That just wastes a lot of time. Will the proposals that are being considered deal with that?
The noble Lord is quite right to pick up this point. It is the intention that, where applications are in conformity with the local plan, a speedy decision should be taken. The whole point of these reforms is intended to make that much easier, without removing the ability of local councillors and communities to make their views known on it. This is a working paper for discussion with the sector, and we hope that the sector will put its views forward. The intention is to speed up the process, not to have planning applications stuck in the system.
(1 week, 4 days ago)
Lords ChamberMy Lords, the noble Lord, Lord Sikka, mentioned a shortage of 251,000 skilled construction workers if the Government are to hit their target. Modern methods of construction have the potential to help meet that shortage and drive up productivity, but have had a mixed reception in this country because of a lack of sustained demand. As many of the 1.5 million houses will come from the public sector, can the Government use their purchasing power to relaunch modern methods of construction with a sustainable level of demand, to meet the productivity requirement and give the country the homes it needs?
I am grateful to the noble Lord for giving me the opportunity to say that I went to visit British Offsite with Weston Homes in Braintree earlier this week. What a fantastic example of British innovation, using recycled steel to build MMC products. MMC is an important opportunity to improve productivity in the construction sector, to deliver quickly the very high-quality energy-efficient homes we need, and to create new and diverse jobs. We are working to address the strategic barriers to the further uptake of MMC, including improved supply chain confidence, clarity for warranty and insurance markets, and planning reform. We will say more about that in the long-term housing strategy next year.
(2 weeks, 3 days ago)
Lords ChamberMy Lords, I am grateful to the noble Baroness, Lady Warwick, for sponsoring this debate and introducing it in such a compelling and moving way. Like her, I also look forward to the valedictory speech from the most reverend Primate the Archbishop of Canterbury. I pay tribute to the work of the Church under his leadership in raising the profile of housing and identifying some solutions, and, in particular, to the report of his commission on housing, Coming Home, which was published in 2019. I am sure he will want to develop some of those themes in his speech today.
This debate follows a similar one in March this year, which I initiated. I started that debate by saying:
“I want to outline what steps might be taken in the next Parliament to improve housing outcomes for everyone”.—[Official Report, 14/3/24; col. 2208.]
I then outlined a large number of policy changes and, in response to three of my suggestions, the noble Baroness, Lady Taylor, then in opposition, said:
“He raised some important issues around downsizing incentives, incentivising to sell properties from the private rented sector and institutional finance, especially pension funds. That is something we definitely have to look at”.—[Official Report, 14/3/24; col. 2231.]
So I will briefly refer to those three initiatives and gently inquire about progress.
I begin with the last, as the need for institutional finance for rented accommodation has been underlined by the passage of the Renters’ Rights Bill. I support that Bill, as I did its predecessor, the Renters’ Reform Bill, but, as I said then, it must be accompanied by measures to increase supply. All the evidence is that private landlords are exiting the market—a process accelerated by the recent Budget. The number planning to sell is predicted to grow exponentially next year, with a massive 41% of private landlords planning to sell at least some rental properties and only 6% planning to buy.
This has an important impact on rents. Recent figures from Zoopla show that there are now 21 households bidding for every property to rent. Recent Budget decisions were branded as “disappointing” by Paul Johnson, the director of the IFS. Referring to stamp duty, he said that
“at least part of the consequence will be to reduce the supply of rental housing and so increase rents”.
We need to put the private rented market on a much more sustainable basis.
Other countries have a different model, which we should progressively adopt. In Europe, long-term institutional finance provides secure, well-managed rental accommodation. In this country, it provides just 2% of the rented stock. We need progressively to reduce our overdependence on the private landlord, who can release this capital only by selling, and get the financial institutions to invest in what historically would have been an even better investment than equities. At the meeting that the Minister was kind enough to hold with me last week, she explained that she was working on this with the Treasury, which also wants pension funds to invest more in the country’s infrastructure—so where better to start than housing? Local authority pension funds have an interest in increasing housing supply, in turn helping the Government to achieve their ambitious target of 1.5 million new homes. We need urgent progress on that front.
I turn next to downsizing initiatives. There are 3.6 million homes with two or more spare bedrooms. Many older people want to trade down or rightsize, freeing up their homes for young families. An older person triggers a chain of movements promoting labour mobility and making better use of the country’s housing stock. In the medium term, the planning system should be much more proactive in ensuring the right mix of new build, and we look forward to next week’s NPPF to see whether there is a step in that direction. Professor Mayhew estimated that we need 50,000 homes per year for older people who want to rightsize, but we are producing only 8,000.
Finally, on incentivising to sell properties from the private rented sector, many families have to rent but, as I have said, private landlords are leaving the market due to high interest rates, concerns about impending legislation, a less attractive tax regime and new energy efficiency standards. We should say to private landlords that, if they sell to their tenant, no capital gains tax and no stamp duty would be paid. This would be not a right to buy but an incentive to sell. This would have a dramatic effect on home ownership for those who would prefer to own and not rent; it would almost certainly lower their housing costs and enable them subsequently to move up the home ownership ladder. The landlord could realise their capital without having to give notice to the tenant. It would be a win-win policy that I would gladly allow the Government to adopt.
I look forward to hearing from the Minister about the progress on the three initiatives that she commended only a few months ago.
(2 weeks, 3 days ago)
Lords ChamberThe full details will be published in the English devolution White Paper, but the intention is that mayors will have some strategic powers over major infrastructure in their areas and land use planning for housing. Noble Lords will see the details in the English devolution White Paper, which will be out shortly.
My Lords, the Government are planning a new generation of new towns to help achieve their targets, at the same time as they are planning to devolve more powers to regional mayors, as we have heard. The location of these new towns will be decided by central government and the new homes will be delivered by development corporations run by central government. Is there not some tension between their policies on new towns and on regional mayors, about which we heard a few moments ago?
As a new town girl, I absolutely celebrate the drive for new new towns. I know that Sir Michael Lyons, who is in charge of the task force for new towns, is working hand in glove with mayors and combined authorities to deliver this new generation of new towns. He will undertake significant consultation with them about both planning and location. The mayoral strategic development strategy will be part of this process as well. There is no conflict between new towns and devolution; they work very well together.
(2 weeks, 5 days ago)
Lords ChamberI thank my noble friend for his question. I agree with both him and Nye Bevan: this is a very important issue, and we need to set out how we support the transition to a low-carbon future in a changing climate. The National Planning Policy Framework will set that out, including the ways that both shaping places and building homes can contribute to radical reductions in greenhouse gas emissions and support renewable and low-carbon energy and associated infrastructure. The place-making aspect is very important. As someone from a new town, I have seen the benefit of good place-making. Of course, when my town was built, the idea of net zero was not on the scene, but we now need to take that into account too. We have consulted widely on the future homes standard, and we are currently considering further representations on solar. As I said, we will publish the NPPF before Christmas and the future homes standard early in the new year.
My Lords, as the noble Baroness just said, the Government will publish their conclusions on the NPPF by the end of this month. The consultation document suggested important new policies on housing targets, the grey belt, solar energy and wind farms. Will the House have an opportunity to debate the Government’s conclusions?
I thank the noble Lord for his contribution to all the discussion on this issue during the passage of the Levelling-up and Regeneration Bill. The NPPF will be published before Christmas and there will be an Oral Statement to both Houses, so there will be a chance to question that Statement then. I will take back his point about a debate on this subject, but of course, any noble Lord is able to submit any topic for debate, as we know.
(3 weeks, 6 days ago)
Lords ChamberTo ask His Majesty’s Government what progress has been made on remediating flats with dangerous cladding.
My Lords, I wish the noble Lord better—I know he is not feeling so great today. The pace of remediation has been far too slow, with only 50% of identified buildings beginning or completing works, and just 29% fully remediated. This has caused untold distress and expense for all those concerned. Further strong measures will be detailed in the forthcoming remediation acceleration plan. As set out by the Prime Minister, we are willing to legally require those responsible to assess their buildings and promptly enter remediation schemes. We will bring the full power of government to bear on this task.
My Lords, I am grateful for that reply. In the debate on Grenfell on Friday, the Minister’s colleague, the noble Lord, Lord Khan, said:
“Yesterday the Ministry of Housing, Communities and Local Government published its monthly remediation statistics. They show that, of the 4,834 residential buildings 11 metres and over in height with unsafe cladding that the department is monitoring … 50% … have still not started remediation”.—[Official Report, 22/11/24; col. 431.]
That is 250,000 families living in buildings that are not safe, in flats which they cannot sell, and who are confronted with high insurance premiums and service charges; and some of them are also confronted with unlimited remediation costs.
None of these leaseholders are responsible in any way for the difficulties they find themselves in. The NAO has now said that it may take until 2037—20 years after the Grenfell fire—for all the dangerous cladding to be put right, and we still have not identified all the dangerous buildings. I appreciate that the Minister has come to this relatively recently, but does she accept that if we do not get a grip on it, it will be the next major national scandal?
My Lords, I am very glad to say that we now have a Government, and a Deputy Prime Minister who is responsible for this area, who take this incredibly seriously. We will soon be publishing a remediation acceleration plan, which outlines the specific measures we are going to take to increase the pace of remediation, to find all the at-risk buildings quicker and to ensure that the residents at the heart of this terrible issue are supported in the process. There is no longer any excuse for those responsible failing to fix dangerous cladding on their buildings. The message is clear: use the routes we have created to get buildings fixed, and get on with the job.
The Deputy Prime Minister recently held a national roundtable with mayors, regulators and national building safety bodies to press home the urgency of this work, and most developers have now signed up now to the plan that she set out. But please be assured that we will not hesitate to use enforcement measures, and we have provided local authorities with funding to undertake the enforcement necessary.