Park Home Residents: Legal Protection

Scott Mann Excerpts

Tuesday 1st October 2019 Westminster Hall

[Sir Christopher Chope (Christchurch) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Hollobone. I hope that in due course you will be correctly described on the nameplate that currently refers to the missing chairman.

I thank my hon. Friend the Member for Worthing West (Sir Peter Bottomley) for moving the motion and ensuring that we got under way as quickly as possible, and I thank you, Mr Hollobone, for coming along at very short notice to fill the vacancy.

I welcome our new Minister. When he looks back at his career many years hence he will recall that his first debate was one with procedural irregularities that, with a bit of help from the Clerk, had to be overlooked.

When this debate was selected, I had the privilege of being able to speak to the Housing Minister, my right hon. Friend the Member for Tatton (Ms McVey), who told me that she would have liked to be able to respond to the debate because the subject is close to her heart. She is, however, in Manchester doing a lot of other debates, but she said that in her absence her new junior Minister would be well briefed and able to respond, and she offered to meet me to discuss my concerns and said that she would attend an early meeting of the all-party group to discuss our concerns.

Sixty years ago, in 1959, Sir Arton Wilson produced a report for the Government that found that the legislation applying to people living in caravans was both unclear and insufficient. The Government’s response was quick, enacting the Caravan Sites and Control of Development Act 1960. The Act stipulates that occupiers of land must acquire a licence from the local council before using the land as a caravan site. The Act defines a caravan site as,

“land on which a caravan is stationed for the purposes of human habitation and land which is used in conjunction”

therewith. Section 29 defines “caravan” as including,

“any structure designed or adapted for human habitation which is capable of being moved from one place to another”.

Over the years the term “caravan” in relation to permanent residential accommodation has been replaced by the expression “park home”. In law and practice, however, park homes—and mobile homes—are caravans. They are chattels rather than real estate. Section 1(1) of the 1960 Act provides that

“no occupier of land shall...cause or permit any part of the land to be used as a caravan site unless he is the holder of a site licence”.

Section 1(2) provides that any occupier of land who

“contravenes subsection (1)...shall be guilty of an offence”.

Section 3(3) provides that a local authority may issue a site licence only if

“the applicant is, at the time when the site licence is issued, entitled to the benefit of a permission for the use of the land as a caravan site granted under Part III”

of the 1947 Act.

Local councils have the power to refuse, revoke or impose limitations on a site licence if it is deemed necessary. The conditions that can be attached to such licences are set out in legislation. The most recent addition was the Mobile Homes Act 2013, a private Member’s Bill facilitated by my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps) when he was Housing Minster, which was brought before the House and ably carried through to enactment by my hon. Friend the Member for Waveney (Peter Aldous), whom I am delighted to see in his place today. He used his place in the ballot to ensure that such an important issue would be the subject of private Members’ legislation in the absence of parliamentary time for Government legislation.

The 2013 Act contained a power for the Government to introduce a fit and proper person test for anyone applying for a site licence. That provision has been the subject of a recent public consultation, to which I am sure my hon. Friend will refer in closing. There has therefore been extensive and growing regulation of those who own or operate sites for residential park homes, but none of the legal protections afforded to residents of such homes by the 1960 Act and subsequent Acts applies if the site on which the park home or caravan is situated is unlicensed. The main purpose of this debate is to raise public awareness of that issue, and to highlight the failure of local authorities to enforce the requirement for site licences.

The unwillingness of local authorities to protect vulnerable residents is leading to a proliferation of unlicensed sites on which residents are at the mercy of unscrupulous site owners. The problem has become even more widespread because of recent controversial planning decisions that have enabled many caravan parks that were previously used and licensed only for touring and for non-residential purposes to be reclassified as year-round fully residential sites.

One such decision is that of 15 February 2018 in respect of two appeals against the refusal of Christchurch and East Dorset Councils to grant a certificate of lawful existing use for the permanent residential use of 45 caravans on land on the north side of Matchams Drive. At the time of the appeal, the site was subject to a licence granted to the Bournemouth and District Outdoor Club for use by touring caravans, but following the appeal decision the site is being developed and used for the siting of permanent residential caravans, despite no variation of the original site licence having been granted and without any transfer of that licence to the new owners.

Paragraph 49 of the appeal decision in respect of Matchams Drive, which is now being renamed Silver Mists, referred to the fact that the site licence conditions would protect infrastructure with respect to issues such as hard standing and drainage. The inspector said that the council retained control

“by virtue of the manner in which the licence is framed. This might include the need for planning permission for certain works, as set out in the licence”.

He went on to say, in paragraph 58:

“Trees on the site are the subject to a Tree Preservation Order…and that would apply irrespective of the outcome of this appeal.”

In paragraph 45, he stated:

“The site is secluded with a perimeter fence and gates. When entering the site it is surrounded by mature planting. There is nothing in the LDC application that would lead to a finding that this would change.”

If you visited that site today, Mr Hollobone, you would see that it is more like a moonscape—devoid of vegetation, with monumental earthworks having taken place and most of the trees and vegetation having been removed, despite the site being in a protected heathland habitat. These issues should have been controlled by the local authority through the site licence process, but there has been a reckless failure to take action. One of the park homes that is currently being advertised on that site is 50 feet by 20 feet, with two bedrooms and two bathrooms, and priced at £379,950, but it does not say anywhere that it is on an unlicensed site.

Silver Mists is within 400 metres of protected heathland. Under the severe restrictions in the habitats directive it would never have been given planning permission as an ordinary residential development, but there will now be 45 new permanent dwellings on the site, making a mockery of the protections that Natural England seeks to enforce on environmental grounds. Paragraph 3.4 of the supplementary planning document, “The Dorset Heathlands Planning Framework 2015-2020”, states that

“caravan and touring holiday accommodation”

is

“likely to have the same effect”

on the heathland as residential development. That is not the opinion of Natural England, but that organisation seems unable to enforce its own rules against caravan sites, even though it imposes the same rules with total inflexibility and rigour on any new proposed residential development, however small.

Although the issues relating to Silver Mists are matters for the new unitary Dorset Council, the largest number of unlicensed sites in my constituency are in the new Bournemouth, Christchurch and Poole unitary authority area. The property section of the current edition of the Christchurch Times, a popular weekly newspaper, contains two full pages of advertising that promotes park homes provided by RoyaleLife. These include New Forest Glades in Matchams Lane and New Forest Glen, currently known as Tall Trees, in Matchams Lane. Despite their names, both sites are well outside the New Forest. What is more serious, however, is the description of the homes, which are offered for sale as “single storey” and coming from “the UK’s largest bungalow provider”. They are not bungalows. The “Collins English Dictionary” defines a bungalow as

“a one storey house, sometimes with an attic”.

It also quotes the origin as coming from the 17th century Hindi word “bangla”, meaning a house of the Bengal type. To describe a caravan as a bungalow must surely be a breach of advertising standards.

The promotional material omits any reference to the fact that the homes are caravans or park homes—and, therefore, chattels rather than interests in land. It highlights one of the consequences flowing from such status—the exemption from stamp duty—but fails to mention liability for 10% to be paid on resale. Furthermore, it does not refer to the fact that, as caravan sites, they have to be licensed under the 1960 Act, but are not.

New Forest Glades, formerly known as Port View Caravan Park, benefits in planning terms from a certificate of lawfulness permitting the siting of caravans for residential use on the land identified in that certificate. An application has been submitted to Bournemouth, Christchurch and Poole Council for a caravan site licence, but the land identified in the application is not co-extensive with the land identified on the approved plan. When I first complained to the council I was told that the applicant had not even paid the required fee for the application. The council is advising the applicants that unless their current application is amended it will be refused. New Forest Glades is, therefore, being heavily marketed as a site for expensive new luxury bungalows, some of which are, I believe, already occupied. The caravans are not bungalows and do not even enjoy the benefit of a site licence, and gullible members of the public are being seduced by sharp marketing and misleading advertising into buying homes that are no more than chattels on unlicensed and therefore illegal sites.

[Scott Mann (North Cornwall) (Con)]

My hon. Friend highlights some of the poorer practice in the industry, but to shine some light on the situation I would like to highlight some of the better practices. I had an email from Mother Ivey’s Bay Holiday Park yesterday, telling me that it champions the real living wage on its park homes, gifts 1% of its hire fleet to families in need through the Family Holiday Association, and never permits residential occupation of its holiday parks. Is there a lot we can learn from holiday parks such as Mother Ivey’s Bay, which are industry exemplars?

[Sir Christopher Chope]

My hon. Friend makes an important point. We can learn a lot from them and the best way to encourage them is to take strong action against rogue traders. I shall come on to those points later.

Oral Answers to Questions

Scott Mann Excerpts

Monday 22nd July 2019 Commons Chamber

The Secretary of State was asked—

[Scott Mann (North Cornwall) (Con)]

1. What steps his Department is taking to reduce the time it takes to build new homes.

[Alex Burghart (Brentwood and Ongar) (Con)]

19. What steps his Department is taking to reduce the time it takes to build new homes.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

More housing was delivered across England last year than in all but one of the past 31 years. We have examined the recommendations of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) on the build-out review, and the Government responded in full at the spring statement earlier this year with a commitment to speed up the planning system and introduce new guidance to encourage diversification.

[Scott Mann]

May I give the Secretary of State some feedback from architects and planners in Cornwall? The community infrastructure levy is having a detrimental impact due to not only the onerous nature of the number of forms that need to be filled out, but the fact that sites that could be deliverable are not coming forward because of the money. Will he look at that to see whether he can bring forward more sites, because we all want more houses in Cornwall?

[James Brokenshire]

I thank my hon. Friend for the input from Cornwall, which, as he knows, is where my family hail from, so I take particular interest in it. Small developers can benefit from exemptions for self-build homes and developments of less than 100 square metres. The CIL contains flexibility and some exemptions, and we introduced guidance in July, but I will certainly listen to my hon. Friend and, indeed, other hon. Members about the community infrastructure levy.

Shared Prosperity Fund

Scott Mann Excerpts

Tuesday 14th May 2019 Westminster Hall

[Dan Jarvis]

As always, my right hon. Friend makes an important point. I hope that what is starting to emerge as a consensus in this place is that whatever happens over the next few weeks, months and years, business as usual and the way we have done our politics previously are not going to cut it. This is an opportunity to look at how we invest in our regional communities and to empower decision making at a regional and local level. That is not a silver bullet solution—it will not necessarily address all the challenges that we face—but it has to be part of the solution to many of the concerns that our constituents have.

My right hon. Friend provokes me to make another point. This country has one of the most centralised systems of public finance, policy making and political control of all the OECD nations. The Guardian—I am not sure whether the Minister is a regular reader—reported that local government in this country controls only 1.6% of GDP. That figure is 6% in France, 11% in Germany and 16% in Sweden, yet local government delivers around a quarter of all public services. The inevitable consequence is that decisions, however well meaning, do not always adequately reflect the needs or opportunities of local areas.

The issue is no more acute than in the way that successive Governments have decided where to prioritise investment. I have made this point many times before: when it comes to spending on transport infrastructure, the gap between more affluent areas, such as London and the south-east of England, and the north is particularly stark. Despite the work of the Minister and those in Government supporting the northern powerhouse, it is still the case that, since the northern powerhouse was introduced by the Government in 2014, public transport investment per person has been three times higher in London than in Yorkshire and the Humber.

It is no surprise that that is the case. However herculean the efforts of individual Ministers, the rules of engagement are stacked against us. The inequalities are built into the criteria of the Treasury Green Book model, which favours infrastructure development in more affluent areas, meeting existing demand rather than stimulating latent potential. In the words of my friend and neighbour, the Mayor of Greater Manchester, Andy Burnham—himself a former Chief Secretary to the Treasury—the Government have

“a tendency to shovel more and more into the areas that are already doing well.”

We see that in transport investment and other Government programmes.

[Scott Mann (North Cornwall) (Con)]

I am grateful to the hon. Gentleman for securing this debate. Does he acknowledge that it is not just the north that suffers this problem? Some areas in the south-west have exactly the same difficulty. Does he agree that the Treasury should have other mechanisms, rather than looking at just the economic benefits? Perhaps it could look at the social benefits of putting money into areas such as his and mine.

[Dan Jarvis]

I absolutely agree, and I always try to choose my words very carefully. Not for one moment will Labour try to pit the north against the south, or different parts of the country against each other. I absolutely accept that there are different needs in the remoter regions of our United Kingdom. The hon. Gentleman is absolutely right to make the point that there are areas of deprivation in the south, south-west and south-east, and indeed in London, just as there are in the north. That is why it is so important that we take this opportunity to get the design of this fund right, so that every corner of the country will be best placed to benefit from it.

I was about to make the point that in 1960 the UK had the highest levels of productivity in Europe. Now, though, a French worker produces, on average, more by the end of Thursday than a worker in the UK does by the end of the week. In the UK, the gap between the richest and poorest regions is around 150%, which is almost twice as large as in France and three quarters larger than in Germany. Such gaps in wealth distribution and productivity are neither normal nor inevitable, but for some of our most deprived regions they are increasing. The consequences of public policies and investment decisions entrench the economic and social divide. If we fix that, the prize will be huge.

Looking at the north of England, Transport for the North’s “Northern Powerhouse Independent Economic Review” suggests that we could add £97 billion to our economy by 2025, which is over and above business-as-usual levels. Over the same period, we could add 850,000 jobs, which is also over and above business-as-usual levels. We can do that by focusing on what we are good at. In South Yorkshire, the same qualities that fired the world’s first industrial revolution now power our 21st-century advanced manufacturing and engineering story. Companies such as Rolls-Royce, Boeing and McLaren have chosen our region because we are in the vanguard of developing new materials and solutions to real-life manufacturing and engineering problems. This must be the start of our economic transformation, not the end. To go further, we must have the tools and resources.

--- Later in debate ---

[Scott Mann (North Cornwall) (Con)]

Cornwall has been a net beneficiary of objective 1 and convergence funding, as we have heard from other Members, for the past 20 years. If we step away from the coastal towns that many people visit on holiday, we find pockets of rural deprivation that successive Governments have found difficult to identify. Although the moneys that have flowed into Cornwall have been welcome, there have been challenges with how the money has been administered. I want to raise those challenges with the Minster today in the hope that we can avoid them when we allocate the shared prosperity fund.

Cornwall was a net recipient of almost £1 billion over 20 years. Although there have been some noteworthy allocations of the cash—probably the most important and successful was the roll-out of superfast broadband across Cornwall—much of the money was allocated to buildings and industrial parks. Without a strategic investment plan, the net result over the past 20 years has not really moved the dial. Much of the failure came from the application process and does not reflect any lack of will by the people administering the funds. Most of the businesses in North Cornwall are small family businesses employing between five and 10 people. They generally work six days a week, 10 hours a day, and did not have compliance teams that could pore over complex and onerous forms. There was therefore a tendency for the bigger companies and charities to put in their bids, and because they had the time and the resources, they were able to make the applications that the small businesses were unable to.

One stat that struck me was in a recent cost-benefit analysis of the objective 1 funding: for every £250,000 that was spent, Cornwall was the net beneficiary of one job. That fundamentally illustrates why small businesses were unable to access the money when that is exactly where it needs to go. Can we simplify the application process to make the shared prosperity fund easier to access? The countryside productivity small grants scheme, a similar fund, is administered by DEFRA, which is simpler and much more straightforward.

We are still waiting. After assurances that the funding criteria would be in place, we are still in the dark. I encourage the Minister to lay out the fund as soon as is practical, so that Cornwall can benefit. Cornwall has seen historic growth over the last five years. Unemployment is at record lows and tourism in the county is booming off the back of great weather and the devaluation of the pound.

Many of the small businesses in North Cornwall are exporting for the first time, but we need to start investing in people. Young people growing up and going through secondary education and college will now work until they are 80 and will have at least four careers in their lifetimes. The Government need to invest in those young people in college and give them a future by moving the dial on their social mobility.

In summary, we need a more straightforward process, quicker allocation and the apprenticeships and investment in skills that our young people need.

Oral Answers to Questions

Scott Mann Excerpts

Monday 28th January 2019 Commons Chamber

[James Brokenshire]

As the hon. Lady will know, we have raised standards on fitness for human habitation in legislation that was supported across the board, and improved the support to ensure that we have a stronger, more positive private rental sector market. Conversations are continuing, and I recognise the point that she makes about raising standards and ensuring that the sense of opportunity is firmly in place.

[Scott Mann (North Cornwall) (Con)]

For many young people, the biggest obstacle to getting into the housing market is the value of the land. What discussions will the Secretary of State have with the Department for Environment, Food and Rural Affairs about grading agricultural land to see if we can utilise some of the less good land for house building? [Interruption.]

[James Brokenshire]

Yes, firmly in Cornwall. The national planning policy framework is about empowering some of those local decisions and choices, in Cornwall and elsewhere. I am continuing to discuss how we can have that additionality—that positive benefit that we can unlock from our national environment through our planning work—with colleagues at DEFRA and others across Government.

Oral Answers to Questions

Scott Mann Excerpts

Monday 10th December 2018 Commons Chamber

The Secretary of State was asked—

[Scott Mann (North Cornwall) (Con)]

1. What his policy is on land value capture.

[The Secretary of State for Housing, Communities and Local Government (James Brokenshire)]

The Government have recently published their response to the Housing, Communities and Local Government Committee’s report on land value capture. We have committed to using existing mechanisms of land value capture as effectively as possible and are bringing forward significant changes to developer contributions in order to do so.

[Scott Mann]

Given that many challenges on housing delivery rely on the availability of land, will the Government consider introducing a Bill to make it easier for sites that have not been earmarked for development to be provided for local housing developments and have value captured?

[James Brokenshire]

I certainly recognise the need for more homes, including more rental and affordable homes for people, as we deliver against our agenda. The best way to do that is through local plans, which allow local councils to provide housing in suitable locations. Local plans will certainly ensure that local communities get the houses they need, but I take on board the point my hon. Friend rightly makes about communities and making sure that value is felt.

Housing and Home Ownership

Scott Mann Excerpts

Tuesday 16th October 2018 Westminster Hall

[Neil O'Brien]

My right hon. Friend makes an extremely profound and important point.

A lot of councils are now getting back into the business of building new places. They are being forced to, because if they do not want to mess up every village and town in their area, they need to build new stand-alone places. We need to ensure that they have the tools and expertise they need to make that work.

[Scott Mann (North Cornwall) (Con)]

My hon. Friend has brought a very important debate to the House. When we build around existing settlements, we tend to have inflated land values before things have even started. Having new settlements will allow us to capture some of that value to provide some of the infrastructure. Does he agree?

[Neil O'Brien]

My hon. Friend is absolutely right. I agree in the strongest possible terms, and will come to that point in a second.

Where there have been good new planned settlements, such as Poundbury or Nansledan, they have often been because of a visionary landowner in the area, but we cannot always rely on that. Sometimes, other good ideas have gone wrong because developers have wiggled out of their commitments or planners have failed to get control over the land. How do we make sure that we always build good new places? I would love to see Homes England become a supporting masterplanner for local authorities. I would love us to build on the housing infrastructure fund, which is a brilliant initiative. I would love more central encouragement, which is already coming from the Minister, for good vernacular design.

As ever, the other thing we need is money. That brings me to the third of the reasons why people oppose development—because there is not enough benefit for existing residents. As my hon. Friend the Member for North Cornwall (Scott Mann) mentioned, when planning permission is granted, there is typically a big increase in the value of land, but too little of that flows to existing residents. The Centre for Progressive Policy estimates only about a quarter of the value goes to the local community.

--- Later in debate ---

[Kit Malthouse]

The primary requirement we have for garden communities is that they have strong local support and are supported by local democratically elected politicians. We would, for example, not countenance a proposal for a garden community that came forward against the wishes of the local authority or local authorities concerned. My right hon. Friend may have noticed—this points to an issue that my hon. Friend the Member for Harborough raised about capacity and capability—that we recently changed the regulations so that we can have locally-led development corporations. They are brought together and approved by the Secretary of State, but under local initiatives and with local control, to try to deliver some of those communities more effectively. Local control, consent and engagement are key, in terms of both acceptability and development.

Another issue that has been raised is increasing density, which we believe is also important. We need to make sure that we make the most effective use of underutilised land. That is a crucial part of our focus. Higher density development and the development of brownfield land can play a significant role in increasing housing supply in urban locations, especially in areas that are well served by public transport and in town and city centre locations. The revised NPPF requires local planning authorities to be more proactive in identifying opportunities to make more effective use of land. That includes planning for higher densities in locations that are well served by public transport, and reallocating underutilised land to serve local development needs better.

I disagree slightly with my hon. Friend the Member for Harborough about the requirement to build towers to achieve density. In central London—a place that I know very well, having served there as a London Assembly member and councillor—some of the densest areas are in fact some of the most desirable, and they are low-rise. It is probably still the case that the densest part of central London is Cadogan Square. Towers do not necessarily deliver density, and they can often be intrusive. Our framework goes further by stating that local authorities should support the use of airspace above existing residential and commercial buildings to provide new homes, as my hon. Friend said. We recognise that there is more to be done, and that is why we have just announced that we will publish proposals for a national permitted development right to permit people to build upwards on existing buildings rather than just to build out.

Important in all of this is the need to diversify the market. We believe that to increase our housing supply we have to be innovative and boost the development sector to allow both large and small builders to flourish and to build the homes that our communities need. The Government fully recognise the important role that small and medium-sized house builders play in delivering much-needed housing in this country, and we are committed to ensuring that this support is in the right place. We have already put in place a number of initiatives to help SME house builders to grow and develop, including the home building fund, the housing growth fund and the housing delivery fund, as well as proposals to make it easier for SMEs to identify land.

We believe that that is a critical way to encourage innovation. The market has agglomerated into a small number of large players, which are perhaps not as innovative as they could be. If we can create a more vigorous market of people competing to build houses and competing for our custom, they are likely to be much more innovative in their method, supply and typography of housing, and they may well cater to different parts of the market and look at sites that larger builders might not.

[Scott Mann]

My hon. Friend is doing a cracking job, especially with his “more, better, faster” campaign on housing delivery. My point is about self-build—he has not mentioned it specifically, but I know that it is part of the Government’s strategy on delivery. Does he agree with the sentiment that there is no better help that we can give to an individual than to allocate them a plot and allow them to build their own home?

[Kit Malthouse]

I wholeheartedly agree on self-build, which I am very keen to encourage. Something like three out of every four houses in Austria are self-built or custom-built. It holds enormous capacity for the future. I recommend that my hon. Friend go and visit a site called Graven Hill just outside Bicester, which is the largest self-build site in Europe and which will deliver about 1,400 self-build homes. It is quite something to see—an amazing array of different houses. There is a house that looks like a stealth bomber sitting next to a Swiss chalet, a Cotswold cottage and a flat-pack house from Poland. As I said on the fringes of conference, I think the site will be a conservation area in the future because of the effervescence of design that is taking place there. We are very keen to encourage self-build.

Finally, one of the big issues—

Council Tax and Second Homes

Scott Mann Excerpts

Tuesday 26th June 2018 Commons Chamber

[Derek Thomas]

I am quite impressed by that intervention. It was quite a thing to hear, and I am sure that it will go on public record and that people will refer to it in future.

I have raised this issue with the Chancellor of the Exchequer since I was elected in 2015. I have raised it with three separate Secretaries to the Treasury, and I raised it once again just a couple of weeks ago in a debate in Parliament. I have a simple ask: every property that has been built as a home should pay council tax. I argue that the Government should close this loophole, allowing the authority to collect the council tax charge to provide public service and enabling the Government to divert cash towards the provision of homes for local families.

I remember—I was a counsellor and a parliamentary candidate in St Ives at the time—when business rate relief was introduced. It was clearly done to support our high streets and, for many, it has had a significant benefit. However, I do not believe for a minute that that relief was ever intended to create a route to enable a homeowner to avoid paying council tax, or business rates when a property is used as a business. Do not get me wrong: I am well aware of the contribution that tourism makes to the economy of Cornwall and Scilly—to the local economy, through the jobs it provides and through all the contributions that allow our high streets to have a fighting chance of survival—and I recognise the role that holiday lets play in supporting the sector. I am not seeking to oppress the tourism sector but to install some fairness in the housing system and identify some much-needed cash that can be used to provide the homes that my constituents and constituents across Cornwall need.

[Scott Mann (North Cornwall) (Con)]

My hon. Friend is doing an exceptional job of talking about this issue, which is important for many of my constituents and his. Has he thought about how it might be implemented on the ground so that Cornwall Council and other local authorities can benefit for the personal benefit of the taxpayer?

[Derek Thomas]

That is why I believe that this is an opportunity for the Government to simplify council tax. If they know that every property built as a residential property is due for a council tax charge, surely that simplifies it. What the Government then decide to do about whether the properties are registered for business rates or not should be left to someone far brighter than I am. I am glad that I have two Cornish colleagues in the Chamber and that other Cornish colleagues support this campaign—

Planning: Local Communities

Scott Mann Excerpts

Wednesday 23rd May 2018 Westminster Hall

[Nicky Morgan (Loughborough) (Con)]

I beg to move,

That this House has considered the role of local communities in the planning system.

It is a pleasure to speak under your chairmanship, Mr Owen, on a very different topic from the serious one that has just been discussed, but one that is no less serious for the local communities involved. This issue generates almost more correspondence than Brexit, but the Minister will be pleased to hear that Brexit is not on the agenda for the next half hour. I am sure that he has heard these points before, but as the new national planning policy framework is being considered at the moment, I feel it is important to remind the Government of them.

In the short time available, I want to touch on three points, and I know that other hon. Members may want to intervene on me or the Minister. I particularly want to talk about how the five-year land supply is being stymied by developers. I also want to talk about how residents learn about appeals, and how poorly worded planning conditions can let communities down.

As I mentioned during ministerial questions on 12 March, Charnwood Borough Council—of which, for the sake of full disclosure, my husband is the leader—has approved planning permissions for 10 years’ worth of housing. However, the difficulty is getting the developers to start building, and the consequences of that building not happening. In response to my question, the Minister for Housing stated that my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) is reviewing build-out rates. I have now read my right hon. Friend’s preliminary update, and it cannot be right that developers are able to sit on lucrative land and restrict housing supply for their own financial gain, at a cost to councils that have fulfilled their obligation to provide five years’ worth of housing land and are granting permissions accordingly. That also affects local communities, which often accept more house building with no associated infrastructure improvements.

In February, I received an email from one of my constituents living in the village of Burton on the Wolds, who highlighted this problem:

“I wanted to write to you about the planning application for 58 houses which has been made recently for my village. A nearly identical application from the same developer was turned down unanimously by Charnwood’s planning committee in 2015 and the case against it has only become stronger since...My reason for writing to you about this is that I want to register my disappointment at the role governmental policy appears to have had in this renewed application. The applicant’s documentation makes it clear that they have put forward this scheme again because Charnwood’s housing supply has dipped below the 5 years’ worth they are required to demonstrate. The reason: slow development on land with planning permission has forced CBC to reduce their forecast for house completions.”

My constituent concluded:

“Any system that rewards developers for not doing the very thing we need them to do—build houses swiftly—clearly ought to be scrutinised.”

[Scott Mann (North Cornwall) (Con)]

Does my right hon. Friend agree that sometimes large local authorities do not help themselves by allocating very large sites, and would she commend Cornwall Council, which is looking at reducing the size of developments to support smaller supply chains?

[Nicky Morgan]

I thank my hon. Friend very much for that intervention; that sounds like an eminently sensible solution. Part of the reason for the tone of this debate is that it should be down to local communities—such as Cornwall Council, no doubt at the instigation and with the support of local Members of Parliament—to do the right thing for their area. My hon. Friend makes a good point: it may well be that smaller sites are more deliverable. The only caveat is that often, smaller builders find it harder to get the finance to get started, and Ministers are aware of that.

--- Later in debate ---

[Rishi Sunak]

My right hon. Friend understands the power of enterprise and makes her point well. I shall ensure that my right hon. Friend the Member for West Dorset is aware of her point. It would be wrong for me to prejudge the final conclusion of his report, but she highlights a point of interest and I am sure that it will be taken into consideration in his deliberations.

I am delighted that we were joined in the debate by my hon. Friend the Member for Henley, who is the Prime Minister’s champion for neighbourhood planning. I attest to his personal ability to galvanise and support local communities as they go through the local neighbourhood planning process, not only in my constituency but up and down the country.

[Scott Mann]

On local democracy, I see the Minister’s Parliamentary Private Secretary, the hon. Member for Morley and Outwood (Andrea Jenkyns), in the Chamber. We were vice-chairs of the all-party parliamentary group for local democracy and firm believers that town and parish councils should be given the ability to allocate within their developments some registered social landlords’ properties, taking them away from the local authority and putting them into the hands of the real decision makers. Will the Minister look at that at a later date?

[Rishi Sunak]

I applaud the work in support of local democracy not only of my fantastic PPS, but of my hon. Friend the Member for North Cornwall. Indeed, it was a pleasure to attend the conference for star councils held by the National Association of Local Councils, which highlights the important work of parish councils. I am happy to look into the matter he raises, but he will forgive me for not giving a specific answer right now.

Through neighbourhood planning, communities may have an even greater say in how their areas are planned and real power to shape the future development of their areas. Neighbourhood planning provides communities with a powerful set of tools to say where developments such as homes, shops and offices should go, what they should look like and what facilities should be provided. I am delighted that more than 2,400 communities have begun to shape the future of their areas. Some 13 million people across England now live in a neighbourhood planning area, and four of those areas, including Barrow upon Soar, are in the constituency of my right hon. Friend the Member for Loughborough. I am grateful for her previous contributions in the House, which have demonstrated her support for community-led planning.

My right hon. Friend asked about support. The Government continue to support groups not just through the valiant efforts of my hon. Friend the Member for Henley, but financially, too—£23 million has been made available for various support programmes, from this year through to 2022. Support is also given through regulation: when a planning application conflicts with a neighbourhood plan that has been brought into force, planning permission should not normally be granted.

We recognised, however, that some neighbourhood plans were being undermined because the local planning authority could not demonstrate the five-year land supply. To remedy that, in December 2016 the Government issued a written ministerial statement to ensure that national planning policies provide additional protection to such communities. The specific change was to protect neighbourhood plans that are less than two years old and that allocate sites for housing, as long as the local planning authority has more than three years of deliverable housing sites. That was the point that my hon. Friend the Member for Henley made. I understand that the local authority of my right hon. Friend the Member for Loughborough has a supply for more than three years, so that protection should be particularly helpful in her case.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Scott Mann Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 1st May 2018 Public Bill Committees

[Rishi Sunak]

As we have discussed in the past, our housing market is not working as well as we would like. Young people are struggling to get on the property ladder, and to enjoy the same opportunities as their parents and grandparents. Today, the average price of a house in England is almost eight times the average income, compared with four times the average income in 1999.

The Government are committed to boosting housing supply to ensure that hardworking people have a secure place to call home. Our reforms put us on track for an average of 300,000 homes to be delivered per year by the mid-2020s. Although building new homes is undoubtedly a fundamental part of fixing a dysfunctional market, we must also make more use of the our existing stock. It cannot be right that while many are waiting for a house to call home, thousands of properties stand empty, some for years. Homes left empty for the long term can be a blight on a neighbourhood, as well as the site of crime and antisocial behaviour.

[Scott Mann (North Cornwall) (Con)]

I have spoken to the Minister about this several times, and I know he understands the challenges we face in Cornwall with second home ownership and vacant properties. How will the Bill differentiate a second home and a vacant home?

[Rishi Sunak]

My hon. Friend has raised second home ownership in his rural constituency many times with me and other colleagues, and he is right to do so. Rural areas face challenges with second home ownership—coming from a rural constituency myself, I fully sympathise with some of his points.

Current legislation makes a distinction between second homes and empty homes. We are considering long-term empty homes, which are defined as homes which are “substantially unfurnished” and have been unoccupied for two years. Second homes are covered by a different part of council tax legislation, and the Government previously removed the necessity for local authorities to charge a discount on council tax. They are now allowed to charge the full amount. My hon. Friend will be aware that the Department is considering the treatment of second homes and business rates—he and other colleagues have asked me whether it is appropriate for some second home owners registered for business rates to benefit from small business rate relief and therefore pay no taxes, and whether our legislation captures fair use of that provision correctly. I am currently investigating that.

Before 2013, councils could not collect council tax from properties that had been empty for up to six months. Since then, we have ensured that councils can charge the full rate of council tax on such properties. That same year we enabled local authorities to charge a council tax premium of up to 50% on long-term empty homes. That power has been taken up by nearly 90% of councils, all but three of which applied the full 50% premium in 2017. The number of long-term empty properties subject to a premium has fallen by 9% among those councils that have used the power every year since 2013.

There are carrots as well as sticks. The new homes bonus scheme gives local authorities the same financial reward for bringing an empty home into use as for building a new one, and the Government have allocated £7 billion in new homes bonus payments to local authorities since 2011. Following those interventions, the number of properties left empty for six months or more has reduced by a third since 2010, from 300,000 to just over 200,000. The Bill goes even further, and doubling the cap on the empty homes premium will allow local authorities to strengthen the incentive to bring empty homes back into use.

Different areas will have different housing needs and different numbers of long-term empty homes. It is therefore right that decisions on whether to apply a premium and the exact rates to be charged are taken at local level as before. Councils are acutely aware of the needs and demands of their areas. We recognise that local authorities will want to reflect carefully on the local housing market in deciding whether to issue a determination: for example where a homeowner is struggling to rent or sell a property in a challenging market. We are clear that the premium should not be used to penalise owners of homes that are genuinely on the market for sale or rent. We published guidance to that effect in 2013, reminding local authorities to take into account the reasons why a property is empty.

Hon. Members may finally wish to note that this provision would not bring any additional properties within scope of a premium. Only properties that could have been liable might be affected by the new higher premium.

Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Scott Mann Excerpts

2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 23rd April 2018 Commons Chamber

[Eddie Hughes]

The hon. Gentleman makes a powerful intervention given the fact that yesterday, only 24 hours ago, he ran 26.2 miles, and look at the man we see before us this evening—not a break of sweat on him. Clearly, he is not just an incredible athlete, but a gifted intellectual, and I acknowledge what he says, but completely disagree with him.

As I was saying, we have moved from 300,000 empty properties down to 200,000 empty properties, and that is, in no small part, owing to the fact that we previously introduced this council tax premium.

[Scott Mann (North Cornwall) (Con)]

I am aware that the issues in Walsall North might not be the same as those in Cornwall, but I do appreciate and share the view that we have a mutual interest in making sure that these vacant properties are brought back into use. Does my hon. Friend think that his local authority, like mine, will appreciate these changes?

[Eddie Hughes]

I agree entirely with my hon. Friend, not least because this Government, being the free-thinking Government they are, are not imposing this duty on councils, but giving them the opportunity to apply this measure should they choose to do so, so they will have the opportunity to increase the premium from 50% to 100%. No doubt, Madam Deputy Speaker, you are thinking, “What might they do with that extra money?” I personally suggest that they use that extra money for services for their local constituents in order to drive down bills, increase efficiency and make sure that they either optimise their use of council tax, or possibly decrease their council tax in order to ensure that hard-working families benefit from the change to the law.

--- Later in debate ---

[Eddie Hughes]

My hon. Friend makes a very valid point.

Let me borrow a slightly amended phrase from Shelter, which said, “The housing crisis isn’t about homes—it’s about people.” I agree with that principle completely. When people see that there is an increase in demand for property and know that properties in their neighbourhood have been left vacant for a long time, they are probably scratching their heads and thinking, “This Government are so progressive and so able in so many areas—why are they not tackling this issue?” Well, today they are.

[Scott Mann]

My hon. Friend talks about the individual. The property of an individual who fell on hard times might become run-down because they had run out of money. Does he think that at a later stage the Government might consider investing money to bring back into use vacant properties that have fallen into disrepair?

[Eddie Hughes]

My hon. Friend has suggested an innovative solution to some elements of the housing crisis. However, we should bear it in mind that there is flexibility with regard to the application of the enhanced rate. Whereas councils can currently apply a premium of 50%, clause 2, which amends section 11 of the Local Government Finance Act 1992, introduces the flexibility for them to apply a premium of between 50% and 100%. That flexibility with regard to the interpretation and application of this law will allow some scope to cover the sorts of cases that he mentioned.

--- Later in debate ---

[Michelle Donelan]

I thank my hon. Friend for his very valid point and I completely agree. We all have sympathy with the case he outlines and have heard many similar examples throughout our constituencies. This is not just about existing businesses; it is also about people who are looking to get into business—the entrepreneurs and business owners of tomorrow, who will look at this tax and think the risk is too high.

[Scott Mann]

I appreciate that my hon. Friend represents a rural constituency similar to mine that is made up of small businesses, which are the lifeblood of our rural constituencies. She is laying out a futuristic vision of businesses cobbling together under the same roof. If this part of the Bill were not implemented, all those businesses would be charged retrospectively under a different format. The Bill is supporting our rural economy.

[Michelle Donelan]

I completely agree. It is true that the Bill will particularly help new models of business. It is also important that the Bill will have retrospective effect. Businesses that have been affected can have the amount owed to them recalculated and backdated.

--- Later in debate ---

[Michelle Donelan]

I completely agree and I will come on to deal with that point.

I want to reiterate the point that empty homes attract squatters, which can result in vandalism and antisocial behaviour. That helps to bring down areas and can be upsetting for local residents. Residents often come to my surgery asking, “Why is that property still empty and what can we do about it?” Today, we have an example of what we can do about it, with a measure to incentivise people to use those empty homes.

[Scott Mann]

I am interested in the point that my hon. Friend the Member for Havant (Alan Mak) made about local authorities ring-fencing some of the money for better use. We have a big problem in the south-west with affordability. Does my hon. Friend the Member for Chippenham (Michelle Donelan) agree that local authorities could consider ring-fencing some of this money so that we can deliver affordable houses for people who live and work in her constituency and in mine?

[Michelle Donelan]

I completely agree. The housing crisis is one of the biggest challenges that we face in this country, so it is right that local authorities would look to ring-fence funds. I am sure that a number of them appreciate the fact that this is a key issue for their residents and will prioritise this. They are best placed to understand their residents and to make decisions based on the local area, because every area is different.

I want to stress the point that locally people are sitting on properties, waiting for their value to go up. They do not want to rent them out because of the hassle, inconvenience or stress that that can cause. That is a problem because, if they are not selling them, those properties are left empty while people are waiting to get a property. That situation cannot continue. However, I think that the two-year period is fair.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

I thank the hon. Members for Denton and Reddish (Andrew Gwynne) and for Oldham West and Royton (Jim McMahon) for their constructive comments on the Bill, and I will address some of their specific points shortly. We have had an incredibly interesting and entertaining debate, and one of the more succinct that I have heard in my time at the Dispatch Box. It has been extremely helpful to hear Members’ views today, ahead of further scrutiny of the Bill in Committee. It was great to hear some thoughts on what we can do to make progress on this issue.

The Bill will take forward two specific, short and important measures to promote fairness. It will provide fairness for hard-pressed businesses facing an unjustified tax hike, backdated where necessary. Those businesses have already paid their fair share, and deserve our support rather than being burdened by sudden and unreasonable demands. The Bill will deliver the Government’s goal of supporting those businesses, by restoring accepted and understood practice in the business rates system.

The Bill will also help those seeking a place to call home. It cannot be right that so many in our society are struggling to find somewhere to live while properties lie empty across the country.

[Scott Mann]

My hon. Friend is aware of the challenges that we face in rural areas, especially in Cornwall, where we welcome the vacant homes premium, but how will local authorities be able to differentiate holiday homes and vacant properties? Some holiday lets are not let for a long period of the year.

[Rishi Sunak]

My hon. Friend makes an excellent point and the issue of housing in rural areas was also raised by my hon. Friend the Member for Copeland (Trudy Harrison). He is right to highlight the issue. Legislation makes a distinction between long-term empty homes, which have been unfurnished and unoccupied for two years—those that the Bill seeks to address—and homes that are considered to be second homes, which are at least partially furnished and occupied on occasion. My hon. Friend the Member for North Cornwall (Scott Mann) will know that the coalition Government ended the presumption of a council tax discount for such second homes and levied a stamp duty surcharge on them. I will return to those measures when I respond to some of the other points raised.

My hon. Friend the Minister for Housing deserves enormous credit for the energy with which he has approached his new portfolio to make good on the Government’s commitment to fix our broken housing market, and the Bill is a small part of the process of doing that. Since 2010, we have introduced measures, including the £7 billion new homes bonus scheme, that have reduced the number of properties empty in England for six months or longer by a third, as we have heard tonight. But there is more to do, and the Bill will allow councils to levy an additional 50% premium on long-term empty homes, leaving the discretion on that decision with local authorities for all the reasons hon. Members have mentioned.

I pay tribute to my hon. Friend the Member for Harrow East (Bob Blackman), who has incredible experience of local government and brings it to bear on these matters. I join him in paying tribute to the hon. Member for Sheffield South East (Mr Betts), who we were all happy to see back in his place tonight. My hon. Friend raised the issue of pre-legislative scrutiny of the Bill and I am grateful for his comments. I also put on record my thanks for the work of the Housing, Communities and Local Government Committee in engaging extensively me with and my officials on the various technical issues raised. In particular, the Committee was right to pick up on the issue of voids and whether the Bill would capture the definition accurately. As my hon. Friend will have seen, the Bill takes into account the question that the Committee raised and we have worked with experts in the sector to tweak the definition. I think that will address the Committee’s concerns.

My hon. Friend rightly highlighted the issue of small businesses and cash flow, and urged us to press on as fast as we can. That is what we are trying to do. In response to letters from the Committee questioning the timing of the pre-legislative scrutiny, I said—and I repeat to the House tonight—that that is why we moved as quickly as we did. Instead of the normal process of 12 weeks, we had a slightly shorter process of eight weeks for that scrutiny, so that we could get the Bill on to the statute book as soon as possible and bring some relief to the small businesses facing cash-flow issues.

I turn to the oratorical tour de force from my hon. Friend the Member for Walsall North (Eddie Hughes). He said that the Bill is not sexy, but on the contrary these are the matters that keep local government Ministers, and the hon. Member for Oldham West and Royton, up at night. My hon. Friend will be pleased to know that we are focused on the detail. He was right to highlight to all hon. Members the particular delights of Beechdale, which they will all want to join me in visiting at the earliest opportunity, not least to shop the delights of Rob Mullett Butchers and the grocery store run by Jane and Phil. My hon. Friend also made a broader point about the importance of regenerating our urban centres, which was picked up by my hon. Friends the Members for Cheadle (Mary Robinson) and for South Suffolk (James Cartlidge). I can assure my hon. Friends that the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), who has responsibility for high streets, will have listened carefully to everything they said and will use their remarks as he develops policy to benefit our high streets around the country.

My hon. Friend the Member for Walsall North asked specifically about exemptions. I am pleased to tell him that council tax exemptions are already in place for people living in service accommodation or for those in the armed forces who are serving elsewhere and whose homes are therefore empty. Indeed, there are specific statutory exemptions for properties left empty for a purpose, for example when a person goes into care. There are also discretionary discounts for houses that are empty because of special circumstances such as hardship, fire or flooding, and I hope that addresses Members’ concerns on that point. My hon. Friend also kindly paid tribute to the drafting of the Bill, for which I cannot take enormous credit—I pay tribute to the officials, the ratings agencies and other experts who helped to draft the legislation to make it ready for today.

My hon. Friend the Member for Chippenham (Michelle Donelan) outlined yet again why she is a strong champion of small business in her constituency and around the country. She talked about entrepreneurship, and it is exactly right that our tax system and our policy supports the entrepreneurs not just of today, but of tomorrow. Supported by my hon. Friend the Member for Havant (Alan Mak), she, as ever, made a compelling case for why this Government and this measure will continue to support entrepreneurship across our nation.

I turn to some of the questions raised by the hon. Member for Oldham West and Royton. He asked specifically about the amount that will be raised from this measure. The stats are that 60,898 properties were subject to the measure in the last year, and 291 of 326 local authorities—90%—levied the premium. All but three of those levied the full 50%. That raised about £38.7 million, so an additional 50% would obviously double that. Just so that he has the full picture, if all local authorities used the full premium, that would equate to about £42 million and therefore, in total, £84 million.