Five-year Land Supply

Alec Shelbrooke Excerpts

Wednesday 4th July 2018 Westminster Hall

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

The simple truth is that our constituents, the public, have no faith left in the planning system. That is hardly a surprise when one is dealing with, to be frank, the rank incompetence of a council such as Leeds City Council. It has created a totally over-inflated housing target figure, which even the academics at Leeds University have claimed simply could not be built in the timeframe laid out, yet in the next couple of weeks we are to go into a public inquiry in which we assess whether Leeds City Council’s site allocations plan is sound. How can something be sound if it is based on fantasy figures?

Leeds City Council has lost almost every single Planning Advisory Service appeal; every time, the PAS says, “You don’t have a five-year land supply.” But the figure is being inflated to say that we need tens of thousands more houses than we actually need. It is, therefore, very difficult to come up with the land supply for houses that are never going to be built.

What are the consequences of that? Sites are being put forward to be built on that should never have been involved. They are the prime sites, where a developer will say, “I’m going to build on that site and get the housing numbers up.” They quite legitimately do not have to build on the brownfield sites, because the council has said, “This is a site you can build on.” The developer then starts to build on that green-belt and greenfield site, and they get far more revenue from that. There is no incentive for them to move elsewhere.

In the past five years, Leeds City Council has granted 25,148 planning permissions. Of those, 4,429 expired—they were not built within the specified timeframe—and only 3,680 were built. Therefore 17,039 remain unbuilt, yet Leeds says that we need to find planning and space for another 70,000 houses.

I realise that the Minister cannot respond to this, but his constituency neighbours mine, and the councils in his constituency, especially Harrogate Borough Council, are planning to build tens of thousands of houses on the border of my constituency. At the moment, Leeds City Council is not taking any notice of that, and it is saying that we need to expand. Councillor Alan Lamb from Wetherby, Councillor Ryan Stephenson from Harewood, and Councillor Matthew Robinson have been at the forefront of fighting back against Leeds City Council, but it is a Labour majority council by quite some margin. Even the independents—I pay tribute to Councillor Mark Dobson, who is an independent in Garforth in my constituency—have been fighting against the Labour council on those numbers, but they just get ridden roughshod over.

On 1 August, I will be at a site allocations plan inquiry arguing why a grade II listed parks and gardens site should not be built on. I will be doing that because Leeds City Council refuses to reassess the numbers it came up with on the basis of totally out-of-date migration figures from the early and mid-2000s, when numbers were much higher than they are now. Even now, demand is declining, although the council says that it is going up. The inspector has said, “It is not my job to assess the numbers. That was done in 2012. We are here to judge the soundness of the SAP.” How can we possibly judge the soundness of the plan when we are dealing with fantasy numbers?

We have lost every PAS site appeal in my constituency. The only one left is Scholes. The plan to try to save that PAS site and build somewhere else on the Parlington estate would increase the traffic flow through that village by 300%—that is Leeds City Council’s highways department’s own figure. Even the solutions that Leeds City Council comes up with to try to save a village actually destroy that village by shifting the problem elsewhere.

I absolutely agree with my hon. Friend the Member for South Suffolk (James Cartlidge), and I congratulate him on securing this debate. I also congratulate my right hon. Friend the Member for Arundel and South Downs (Nick Herbert). It has to be about how many houses we build, not how many permissions we have. Quite simply, in my constituency alone, almost 75% of the planning permissions have gone unbuilt. How on earth can someone put forward a plan that says, “Actually, Elmet and Rothwell needs another 12,000 houses,” when 75% of the permissions granted have not yet been built? The whole thing needs to be reassessed.

I ask my hon. Friend the Minister to feed back to his Department that, unless the numbers are accurate, these processes are completely unsound. All we are doing is giving a licence to build on the green belt and greenfield land, rather than tackling brownfield land, which consequently means there is no affordable housing.

[Lee Rowley (North East Derbyshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I, too, congratulate my hon. Friend the Member for South Suffolk (James Cartlidge) on securing the debate. The problem is countrywide and it affects North East Derbyshire. At times, this debate has seemed like a self-help group where we all put our concerns and difficulties on the table.

We are experiencing similar difficulties in my constituency, because a council has abjectly failed to discharge its responsibilities over several years—more than a decade. Just as my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) described, that will bring about a plan loaded with too high a number of houses to be built in my part of the world. At the same time, because the five-year housing land supply has only just been put in place, it has caused a significant number of speculative planning developments to be submitted in places that are inappropriate under the plan and objectively inappropriate for people who live in the area and know it best.

Over the past couple of years, North East Derbyshire has experienced 11 separate planning applications in areas that the local plan would not allow to be developed under any other circumstances. Those applications are for more than 1,300 homes. Given that our district has to build only 6,600 homes over a 15 to 20-year timeframe, 1,300 homes that should not have been applied for in the first place represent a significant increase in the number of houses that are needed. The area in the bottom half of my constituency is already slated to take 3,000 new houses that local residents have accepted and, in some ways, embraced, so this is not about nimbyism. It is about houses being built in the wrong place because councils are failing to put in place the right plans and failing to discharge their responsibilities. As a result, we are seeing the loss of greenfield sites and other places where houses would otherwise be considered completely inappropriate.

I draw hon. Members’ attention to two problems with the five-year housing land supply. The first is methodology. My hon. Friend the Member for Elmet and Rothwell made the point about over-inflated numbers. In the same way, my district council did not get the target figure of 280 houses a year right in the first place, and it is now about to replace that with a figure of 332 houses a year, which will further undermine local residents’ confidence that our planning system knows what it is doing.

Despite not having the correct top-line figure, when the council assesses the deliverability of the planning permissions that have been put in place, it talks to the developers themselves, so the developers get a second opportunity to say whether they will build in places where they already have planning permission. That retards the overall five-year housing land supply and gives developers more opportunity to get housing planning permissions through. That methodology is a huge problem.

The second problem is competence. The political leadership in my local council has been thoroughly incompetent in ensuring that North East Derbyshire is protected from inappropriate and speculative housing developments. The authority monitoring report, which my hon. Friend the Member for Henley (John Howell) outlined to some extent, is a publication that appears and disappears at will. The 2014 version appeared a year late—a full year after the council decided it had a 2.15-year housing land supply. The 2015 version did not even appear, and was just amalgamated into a 2015 and 2016 report. Again, that appeared nine months after the number was calculated.

We did not know what our housing land supply was until a special report was taken to the council in October. I am pretty sure, because I spent some of last summer trying to calculate it, that the council knew many months beforehand that it had hit the five-year housing land supply, but it chose not to report or announce it until October. When some planning applications went through, including one on Fanny Avenue, Killamarsh, it was stated that the absence of a five-year housing land supply was at least partly why they were approved.

My council is clearly completely failing, not just on the plan as a whole, but on the five-year housing land supply, and as a result I have to go and talk to residents in Wingerworth, Old Tupton, Ashover, Killamarsh and North Wingfield, where another 250 houses have just been put on a site that should not be developed on, and never has been, because the plan is not in place. That is unacceptable. I support the Government’s localism angle, and I accept that it works in principle, but when councils do not discharge their responsibilities, we reach the point that North East Derbyshire has got to. A huge number of houses are being built, potentially in the wrong places, and the only way to stop them is a huge amount of heartache and angst and huge numbers of planning inquiries.

[Alec Shelbrooke]

On the point about councils’ incompetence, Leeds City Council has been heard to say that it simply cannot be bothered to reassess the numbers. It has now moved to a position of saying, “We will assess the numbers after the site allocations plan.” If it reduces the numbers, it makes it even easier to build on the green belt and greenfield land.

[Lee Rowley]

My hon. Friend makes a correct and important point.

The only way that we can have any semblance of control over the planning system is by extraordinary displays of public opposition to applications that should never have gone through in the first place. Hundreds of hours of residents’ time are lost on many meetings that should not have to happen. Hundreds of thousands of pounds are allocated to planning inquiries that should never have started. All of that retards confidence in a planning system that is quite rightly trying to deliver the houses we need in this country for the long term. I understand that this is a challenging area, and hon. Members from both sides of the House have outlined why, but when councils do not discharge their responsibilities, we get to the place that North East Derbyshire has got to, which totally undermines the trust and belief that councils and the planning system can deliver.

--- Later in debate ---

[Neil O'Brien (Harborough) (Con)]

I congratulate my hon. Friend the Member for South Suffolk (James Cartlidge) on securing this important debate and on his thoughtful speech.

Let me take a step back. Why is it that the centre of Government in the UK has felt the need over successive generations—from the planning by appeal of the 1980s, to the regional spatial strategies of the 1990s, to the five-year land supply—to have some vehicle to ensure that councils come up with local plans and that they deliver housing? Why is it that so many people oppose new housing in our country and so many councils oppose what developers come up with?

I think that there are two underlying reasons why people oppose so much new development. First, we build in the wrong places. Too much development is tacked on to the end of existing villages and towns, without the proper infrastructure—the new roads, parking spaces, GP surgeries and school places—that is necessary to support it. There is a terrible example of that in my own constituency on the Gartree Road, where the local Lib Dem-run council has decided to put in its own local plan a proposal for a large site on a road that is already congested, with the proposed houses being pushed right up against existing residents’ homes, when there is no need for that to be the case.

Secondly, there is no benefit or compensation for existing residents who are affected by new development. On Farndon Fields in my constituency, residents have to put up with construction traffic coming past their new homes, as well as dust and noise from the construction site, and there is no pay-off or compensation of any kind for them for putting up with all that.

How can we remedy these underlying reasons why so many of us oppose new development? The first thing we need to do is capture more of the benefits of development for the community. At the moment, only around a quarter of that huge uplift in value that we see when planning permission is granted is captured by the local community, with the overwhelming majority going to the lucky landowner and the developer. Other countries capture far more value from development for the community, which is then ploughed into decent landscaping, greater separation areas, more green space and better infrastructure for the community.

The second thing we need to do is give councils greater discretion over how they spend the revenues they get from the community infrastructure levy and section 106 agreements. Although we capture more value than we did 10 years ago, once we take out the amount that is spent on social and affordable housing, less money is actually being spent now in real terms than 10 years ago on landscaping, community infrastructure and all the things that benefit existing residents. Therefore, let us give councils more discretion over the way they spend those revenues.

Finally, let us make sure that councils have the powers—be it through compulsory purchase order, or through their ability to buy and control land—to do what local councils in other countries in Europe, the US and Asia already do: provide a lead role in assembling and preparing land for development. That is the norm in most of the rest of the world; the UK is unusual in not having that arrangement. That is why a UK council cannot control the speed with which a developer builds out.

In fact, in the UK the one thing that is not up for negotiation is the price paid to the landowner. Everything else can go hang. The amount of social contributions can be pushed down by the developer, and the speed of build-out can be extended over many, many years in order to keep the price up. The only thing that is fixed in our system is the price paid to the landowner. Let us turn the system around and have a more European-style approach to the matter.

As well as doing all those things, let us have a different approach to the way we go about development. In more rural or suburban areas, such as mine, I would love to see more development happening in stand-alone developments, so that we can provide infrastructure and a whole planned approach to a new community, rather than tacking things on and overloading all of our existing villages and towns. Let us build new communities where we will disturb fewer people.

[Alec Shelbrooke]

On that point, I share my hon. Friend’s view that when there is the demand to build such huge numbers of homes, there should be a stand-alone community. However, the phrase “stand-alone” must mean stand-alone, and not a community that is dumped in a place, such as the Parlington estate in my constituency, which would have a massive effect on the villages around it? Development needs to be stand-alone.

[Neil O'Brien]

My hon. Friend is absolutely right and we are lucky to have with us here today one of the Members for Milton Keynes, because Milton Keynes shows us what proper, planned development can do; it can create nice places that lots of people want to live in.

I would like to see more of the development in this country happening in our cities. Changes such as the development of the modern knowledge-based economy mean that our cities are both where support for new development is highest and where the demand for new development is highest. Let us try to build more in our cities. Let us help inner-city councils build more, by liberalising building up, by giving them devolved powers over public transport, and by giving them the powers to assemble land, in order to unlock fragmented brownfield sites, so that we can actually get more built in our cities. That is how we can have a new approach.

My hon. Friend the Member for South Suffolk is right to raise the issue of the five-year land supply. At the moment we have three tests on local councils: the requirement to have a local plan, the five-year land supply and the new delivery test that will be coming in over the coming year. Effectively, we have a belt and two braces. Of those three tests, the most opaque is the five-year land supply. It is extremely difficult for a council to know whether it has a five-year land supply, and it is extremely easy for developers to game that process and keep councils deliberately below the five-year land supply to stop them getting control over development in their area. It is the weakest of the three existing tests.

I end by agreeing strongly with my hon. Friend the Member for South Suffolk. He said, “It is perfectly reasonable to expect our councils to have a local plan, but how can we impose these tests on them without giving them the tools to control developers, development and where things happen?” The heartbreaking thing in many constituencies is where a council wants to do good development and build a real new community with proper infrastructure and a real heart, or the community has worked for two years to come up with a neighbourhood plan that works for the specific circumstances in that area, and developers come along, game the system and cut off at the knees our local elected representatives and the people who have worked hard to build neighbourhood plans. That is the killer in those situations. There is nothing more corrosive for public support for our current planning system than when we see councils that want to be brave and do good new development have their good plans cut off at the knees by developers gaming the system.