Local Housing Need

Baroness Donaghy Excerpts

Thursday 14th September 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

I thank the noble Lord, Lord Best, very much for his contribution and I welcome the work that he does in this area. He set out two anxieties, the first of which was affordability. The fact that in the formula we are looking at the areas where prices are highest and affordability is a real issue—and putting an additional obligation on those areas to deliver more housing—should have a beneficial effect on prices in those areas. I agree that that could be exaggerated but, nevertheless, it will put some downward pressure on prices.

The second issue that the noble Lord raised was quality. I very much agree with what he said, and perhaps it is a point that I should have addressed earlier. This House has taken a particular interest in quality and design—and I think of the response that I gave in a debate on a Select Committee report on this very issue led by the noble Baroness, Lady Andrews. We are seeing what we can do within the department to mainstream design much more as an important part of the process. It is important.

The other thing that I should have picked up in response to the noble Lords, Lord Kennedy and Lord Shipley, is planning committee fees. In addition to the money that we talked about in the Statement itself we will soon bring forward an SI on the 20% increase in planning fees. In the consultation there will also be, as noble Lords will see when they read it, an additional 20% on those authorities that deliver the housing set out in their housing need targets. That incentivises it, and of course that money must be ploughed back into the planning department; that is one of the attached conditions. I am sure that that will be beneficial too.

[Baroness Donaghy (Lab)]

My Lords, I welcome the Government’s intention for there to be an open and honest approach. As part of that, it is important that we all accept that successive Governments have not succeeded on the issue of housing for our country.

I was disappointed that so much was made in the statement about the record number of planning permissions. We all know how meaningless that is. There is already a mountain of planning permissions that have not been acted on. However, I am interested in the steps in the consultation. If the first two on the household growth projections and increasing homes in less affordable areas are carried out—one on accuracy and one on building homes in areas of real need—they will be very good steps indeed. I will ask a little more about the third step, which is setting a cap on the level of increase that local authorities should plan for. I was not quite clear what that meant for existing local authority planning.

I will ask a bit more about what plans the Government have to enable more local authority housebuilding. It may have more than doubled, as the Minister said, but it has probably more than doubled from a pretty pathetic figure. Enabling local authorities to expand any housebuilding projects would help enormously.

My final point is about the construction industry, which has not been mentioned. It is going through some relatively bad experiences, certainly outside London. Balfour Beatty has been making hundreds of very experienced construction workers redundant. I know the housebuilding sector is rather different from some of the very big construction companies, but I wonder whether the Government are in consultation with those construction firms to ensure that they are around and able to build these houses, and that their workers are in the right place to help build them.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness, Lady Donaghy, for her characteristically honest and candid contribution on the shared blame we all have relating to the problems we face and why we must all move forward together. As she rightly said, this is about seeking to build more in less-affordable areas. As I said, that should have a beneficial effect in those areas, particularly for people struggling to buy. As I said, the cut-off date for existing local plans is that if they have gone in before 1 April 2018 they will not be subject to the new, consulted-on regulations. That is the cut-off deal.

The noble Baroness referenced the need for more local authority building. I agree. She will know, and I think I mentioned this previously, that we are seeking to do bespoke deals with authorities up and down the country. We are in discussion with many authorities. We are certainly at a fairly advanced stage with Leeds and the West Midlands, but there are others.

The noble Baroness then mentioned the construction industry. Obviously we consult it, particularly on employment issues and the impact of Brexit on the workforce, where we have concerns, as set out in the Farmer review, which was an independent review but commissioned by the Government on the industry. It is something we look at very closely and we are in discussion on a regular basis with developers about the industry’s needs.