Housing and Planning

Alex Cunningham Excerpts

Tuesday 3rd March 2020 Westminster Hall

[Alex Cunningham (Stockton North) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Charles. I congratulate the hon. Member for Harborough (Neil O'Brien) on securing this debate. His speech was comprehensive and full of good ideas, some he may have read in our policies. I have no doubt the Minister, however excellent or fabulous he is, will have benefitted greatly from listening. I would go as far as to suggest that the hon. Member seeks membership of the upcoming Bill Committee where there will be lots of scope to legislate on the matters that he has raised today. The same could be said for other hon. Members who have contributed.

My hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) spoke of land reform—that £5 million piece of land eventually being auctioned from £25 million; I don’t know what the final figure was. What an illustration of our failing system and our struggle to get the affordable homes we need. She linked housing and climate change, as well.

The hon. Member for Filton and Bradley Stoke (Jack Lopresti) also recognised the crisis in housing and spoke of MPs being nimbys, opposing housing development in their constituencies—something for us all to think about. My hon. Friend the Member for Reading East (Matt Rodda) spoke of the shortage of professionals to manage planning. I know there is a crisis in that across the country. My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) spoke of the leasehold scandal, with homebuyers misled and landed with huge ongoing bills. He said people have more rights if their kettle goes wrong.

My hon. Friend the Member for Oxford East (Anneliese Dodds) spoke about her concerns about the first homes scheme. I have heard her speak several times about how new developers are being let off the hook on providing new affordable and social homes. My hon. Friend the Member for Ealing Central and Acton (Dr Huq) talked about high-rises—they are 55 storeys high in her constituency, and there are more tower blocks across the piece. We need houses for our ageing population on the ground floor. My hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) spoke about greenfield sites that are not very green, the million homes that could be built around railway stations and the wrong status for so-called green-belt land in her area.

Labour’s plans for housing at the general election were bold and ambitious, but they were necessary. We said on day one that we would start the changes within Government to set up a department for housing, which I hope will happen soon. That would bring together the powers to plan and build new homes and regenerate existing housing across the country.

Despite the election result, Labour was right on housing and we will continue to make our case. We said that within the first year, we would take action to take profiteering out of the land market, which has a severe impact on planning and housing. We said we would revise planning rules and guidance to support the delivery of more genuinely affordable homes through the planning system and we said we would publish plans to make the country’s homes greener and warmer with a new zero-carbon homes standard and retrofit programme.

Our ambition was bold, and we encourage the Government to look at our manifesto closely and recognise the good ideas—some of which we share with Conservative Members, judging from some of the speeches we have heard this afternoon—for what they are. More importantly, we know that we must act. It is easy to talk about house building without recognising the obstacles in the way of doing so. Housing and planning go hand in hand. In order to plan, we must have the resources to do it, such as land. The broken land market is at the heart of our housing crisis. Land ownership, as we have heard, is often opaque, with little transparency on who owns what.

Public land has been sold off for a short-term profit as funding from central Government has dried up. As we have also heard, current planning rules and legislation give windfall gains to landowners and traders at the expense of local communities. We must do better, and work together to look at how we can ensure that our housing and planning system is genuinely fit for purpose.

I was interested to read the article written by the hon. Member for Harborough on what needs to happen to resolve the housing crisis. It was refreshing that he accepted in his article that after 10 years of his Government, we still have a housing crisis. I was pleased to see him outline that there are genuine problems and barriers with regard to housing, and he made a clear case for how these matters can be addressed.

I have spoken before about my 27-year-old researcher, who earns a good salary and has a second income from being a local councillor, but still cannot afford to buy a house in the area where she lives, far out in London’s zone 6. She has been saving for many years and will save for many more to get a deposit, but then she will be ruled out due to her income not being high enough to get a mortgage. Her generation and the generations to come are doomed to fail unless we remove those barriers and make home ownership a reality rather than a dream. But for that to happen, we need to build more homes—not just homes but genuinely affordable homes that people with a range of incomes can afford. However, if local councils and housing associations cannot afford the land on which to build those affordable homes, they will be halted before they can even get going.

Large spaces of land are too expensive for councils and housing associations, so instead—as the hon. Gentleman outlined it in quite some detail—smaller developments are often the only option. That means we are not hitting the capacity that we need to. It is all well and good for private developers to buy land and build housing, yet more often than not such property is tiny flats in prime central London locations that ordinary people cannot afford to live in. The flats around Battersea power station area are an example—they probably call them “apartments” around there, mind. That area is a prime location, but the properties are bought up by people who can afford to buy them yet do not live in them. If anyone goes past those properties in the evening, they will see that most of the lights inside are off. Such developments add to the total number of dwellings that are built, but they are not being occupied by the people who most need a home: those who cannot afford to buy a home in any part of London, let alone a central part where, they may be living already in sub-par accommodation with several other people; and those who grew up in these areas, and are now priced out of staying there.

It is not good enough just to view building homes as the answer. There need to be those genuinely affordable homes, which is what the planning system must account for. Labour’s plan would have meant that at least 150,000 new council and housing association homes a year would have been built within five years—decent homes that people can actually afford to live in. I do not expect this Government or any Conservative Government to match our pledge on the issue or even to come close to it, but the system has to change.

[David Linden]

I am listening to what the hon. Gentleman is saying about making sure that we invest in council housing and housing association properties. However, one of the things that I am very struck by when looking at the system here is this obsession with the right to buy, which so often means that housing associations and councils are building these properties only to flog them off. Is it Labour’s proposal to abolish the right to buy, which is what we have seen in Scotland?

[Alex Cunningham]

There is no doubt about it; there is this bias towards owning a home, and time and again we hear MPs, particularly on the Government side, talking about that ambition. These days, however, many people, even well-paid researchers in Parliament with a second income, cannot afford to do that, so we have to address homes for rent as well.

Currently, it feels that we have piecemeal development, with half a dozen flats built here and a few houses built there. That will never address what we need, and so we have longer and longer housing waiting lists, and people are being priced out of the private sector, as the hon. Member for Glasgow East (David Linden) has just mentioned.

One way in which we can show we are taking housing and planning seriously is by empowering local authorities to strengthen their planning departments. They really need more planning officers. I think that most planning officers now work in the private sector, popping up at all these appeals that are held across the country, and of course it is the developers who win out at the end of the day. However, councils do not just need resources; they also need the confidence and the guidance from Government in order to crack on with things.

[Dr Huq]

My hon. Friend is making a brilliant speech. Does he agree that conservation officers also seem to have been cut from every council, as well as design review panels, and that beauty is being sacrificed in this transactional way?

[Alex Cunningham]

It is not just happening in the planning sector; it is happening across local authorities. My own local authority in Stockton has lost more than half its budget since 2010, so there is a shortage of expertise across the piece in local government to hold developers and other organisations to account.

I back what the Royal Town Planning Institute has argued for, which is championing civic planning, and building strong and responsive local planning authorities. The RTPI has also recommended that central Government do more by providing grants for social housing, by providing stronger direction on suitable land for housing, and by sharing more of any land value uplift with the public and using that uplift in value to fund affordable housing. The ideas are there and the hon. Member for Harborough has helped the Minister immensely.

That said, I also value the hon. Gentleman’s contribution to the ongoing debate in Parliament about how we can move forward on housing in the best way possible, and I look forward to hearing more of what he has to say in the future. However, the bottom line, which is where I have just got to in my speech, is that it is up to the Government to be prepared to take the steps to make change happen.

[Sir Charles Walker (in the Chair)]

Minister, will you leave just two minutes at the end for Mr O’Brien to wrap up, please?

--- Later in debate ---

[Christopher Pincher]

I would say that we need to build more homes in London. That is a conversation that we are having with the Mayor and with local authorities, because if we are to get those people into homes that they desire, we need to ensure that we are building them.

We have also cut the red tape—a perennial bête noire—making it quicker to plan and build homes that people want to live in. However, there is far more that we need to do to address the housing challenge. We are implementing planning reforms to ensure that our planning system creates and supports thriving communities, and to improve the quality, quantity and speed of home building. As I said, we will introduce the planning White Paper shortly, setting out our proposals to make the planning process clearer, more accessible and more certain for all users, including homeowners and small businesses, and I look forward to responses from colleagues across the House. The White Paper will also address resourcing and performance in planning departments, which various colleagues mentioned, and ensure that timely decisions are made.

The Government set national planning policy, but it is important that decisions and policies are made locally. We are clear that councils and their communities are best placed to take decisions on planning issues affecting their local area within the context of national planning policy. Local plans play an important role in outlining the homes that an area needs, and I believe that such plans can deliver local decisions that will remain at the heart of the planning system. Local plans provide clarity to communities and developers about where new homes should be built and how they should look, and such plans identify what developments are needed in an area, supported by the right infrastructure.

[Alex Cunningham]

Will the Minister give way?

[Christopher Pincher]

I will give way to the hon. Gentleman briefly; I am conscious that time is pressing.

[Alex Cunningham]

The developer Persimmon applied for planning permission for a large site on Junction Road in my constituency. It was told, “No, you can’t have planning permission.” The Government inspectorate overturned that decision. How are we going to strengthen the powers of local authorities, so that when they make a decision, having consulted the local community, that decision stands? Now Persimmon wants to build even more homes on the same site.

[Christopher Pincher]

The hon. Gentleman makes an important point. I do not know the specific case, but we need to ensure that the codes that we use, and those that the Planning Inspectorate uses, are fit for purpose, to ensure that when a good plan is introduced, for a site that has appropriate permissions, those developments are built.

Plans that are needed in an area, supported by the right infrastructure, help to ensure that what is planned for is sustainable rather than the result of speculative applications. That also ensures that we build in greater community support. So far, 90% of councils have an adopted local plan compared with just 17% in 2010. Some are a little long in the tooth, but I am pleased that the constituency of my hon. Friend the Member for Harborough adopted local plans for both his authorities in 2019, so those plans are nearly brand new.

I assure the hon. Member for Dulwich and West Norwood (Helen Hayes) that the Government are committed to reviewing permitted development rights for the conversion of buildings to residential use, particularly respecting the quality and standards of those buildings. The review will report, and I will ensure that the report is available to her in due course.

It is also crucial that local authorities plan for the right number of homes. That is why, in July 2018, we introduced a new standard method to assess the minimum number of homes that an area needs. It does not set a target; it is simply a starting point from which authorities consider any constraints, and see whether need is more appropriately met in neighbouring areas. Following the latest household projections, the standard method was changed to ensure that it was consistent with delivering the homes that the country needs. We are reviewing the method and will consult on longer-term options in due course, because we recognise that we need to diversify the products on the market in order to drive up supply.

I will say a few words on small and medium-sized enterprises before I let my hon. Friend the Member for Harborough wind up. We are supporting SME housebuilders with a package of measures to help the sector to grow and develop, including the home building fund, the housing growth and housing delivery fund, the ENABLE Build guarantee scheme, and our ongoing reforms to the planning system, more of which he will hear about in due course. We believe that SMEs have a key part to play by increasing their output, as the biggest home builders in our country will not meet the Government’s housing building target alone. SMEs are well placed to help to deliver new homes, welcomed in their communities rather than resisted, and those homes will be built to last. Not only do we need to supply more homes, we need to make the dream of home ownership, as the hon. Member for Stockton North called it, a reality.

I hope that Members can see that the Government are truly committed to addressing the problems raised in the debate. We know that we need to build more of the right homes, of the right quality and in the right places, so that the housing market works for all parts of our community. We are determined to do that, and I invite all hon. and right hon. Members to step up to the plate and help us to tackle that challenge.