Baroness Hodgson of Abinger Portrait Baroness Hodgson of Abinger (Con)
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My Lords, I am afraid that I am not completely in tune with my noble friend Lady Coffey, for which I hope she will forgive me. While I agree that maintenance and repairs are essential and should not be held up in any way, I urge caution about some internal changes.

In recent years, a minimalistic approach has gained popularity. In the case of grade 2 listed buildings, this may mean ripping out features of historic importance and changing floor levels, ruining the proportions and character of beautiful, old buildings. While I acknowledge that there is a balance to be struck, as sometimes, with modern living, removing a wall or making small changes can be beneficial, I would urge that this is not done without oversight.

I draw the House’s attention to the fact that buildings of 1850 and before receive pretty much automatic listing. However, there are many lovely houses that are built after this, especially Victorian houses from 1850 to 1900, and they do not qualify because they are not considered special. They have no real protection. Even where those houses fall in a conservation area, it will mean that only the façade is preserved.

We are losing internal features of many historically interesting buildings. We need to put a brake on this, because once gone, we will never get them back.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, the whole purpose of listed building legislation is to ensure the integrity of the listed structure. The requirement to apply for listed building consent is in order to protect the building from inappropriate changes which would compromise the listing. Many people in civic society care deeply about retaining and protecting listed buildings. As listed building applications are free, as we debated on an earlier day in Committee, that helps those who own listed buildings—there is no cost to it. Heritage planning officers know that some buildings need a fundamental change of use if they are not to lie empty and decay. That is okay, as long as it goes through a listed building consent application.

I know that these are large changes, but I will give one example. In my own town, there is a grade 2* listed building which is a former united reformed chapel—there are lots of great methodist, congregational or united reform chapels in the north. It was altered to become an Indian restaurant, allegedly the largest in the world, with room for 1,000 people. Subsequent alterations to the access, inevitably with lots of stairs to reach the front, were given permission, but the listed building consent application enabled local people to know that a treasured building was not being changed without the appropriate permissions. Even if such changes are relatively minor in comparison to the structure as a whole, constant minor changes could nevertheless add up to a big change that would not be appropriate and compromise the integrity of the listing.

As your Lordships can perhaps tell from the comments I have made, I am not a supporter of the amendment proposed by the noble Baroness, Lady Coffey.

Lord Jamieson Portrait Lord Jamieson (Con)
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My Lords, my noble friend Lady Coffey raises an interesting issue on exemption for listed buildings for internal repairs and renovations. I understand the desire for a lightening of the regulatory burden and that this a probing amendment, but there is also a need for balance. I look forward to the Minister’s response.

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In conclusion, together these amendments embrace both print and digital distribution, meaning that councils can maximise transparency, strengthen their relationships with local media and fulfil their statutory obligations more effectively. A modernised system would serve residents better, support journalism where it is most needed and ensure that public notices achieve their purpose in today’s media ecosystem. Noble Lords will notice that I have gone to some lengths to establish that these notices should be placed in quality outlets. I have done so by requiring regulation by IPSO and Impress and requiring that they have a substantial local presence. There may be other and better ways of doing this but, at the end of the day, we are asking councils to exercise their own judgment as to how best to get this information out to their local population. I beg to move.
Baroness Pinnock Portrait Baroness Pinnock (LD)
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I am amazed that no other Members of your Lordships’ House want to speak about local news and newspapers. I broadly agree with the amendments in the name of the noble Lord, Lord Lucas. He is absolutely right that the question we have to ask ourselves is: with the sad decline, as I see it, of printed local news, how best do we make sure that important public notices, as defined in legislation, that are currently placed only in printed news outlets, get a greater reading and more information about them spread by including them in reputable or quality online news outlets?

I agree with the noble Lord that it should be both, because a number of people still read a paper version of a local newspaper. I am amazed that there are people where I live—they contact me—who read these public notices and ask, “What on earth is going on here?”, even though they are printed in font size 6 or 7, so you need a magnifying glass to read them. I wonder whether the noble Lord, Lord Lucas, has considered that public notices in the print media are very tightly printed, and how they can be accessible online. Sometimes, you get a whole page of public notices. I generally agree that we have to do something to make sure that more people have access to important information.

My understanding is that currently there is a public notice portal—public notices are gathered from the print media and put on to this portal. It would be interesting to know whether the noble Lord, Lord Lucas, is thinking about enabling councils, through legislation, to choose whether to publish directly on to that public portal.

Generally, I more or less support the noble Lord, Lord Lucas. We have to have reform and your Lordships’ House and others have considered this in detail, so the question is how we set about it. With those remarks, I look forward to other comments on this group of amendments.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, the amendments in the name of my noble friend Lord Lucas highlight and reaffirm the importance of local news publishers. Increasingly, these are online, but not always. Some areas still have quite successful newspapers that have print runs, sometimes daily but now often weekly, but this differs in local areas, so I think that local authorities are best placed to decide what medium they use for advertising all things planning.

On this side of the Committee, we support the existence of local news publishers across the United Kingdom. As we have heard, they serve as an important conduit between local people and their authorities and are crucial for upholding community engagement and local democracy, values which I hope all noble Lords will join me in supporting. Indeed, the importance of local news publishers is even more significant when we consider it in context of important planning and development decisions. Local people are those most affected by such decisions and it is important that their voices are heard and meaningfully listened to. Local news publishers play a vital role in making sure both that local people are represented and that the relevant information is disseminated to them. I hope that the Government will take these amendments seriously and I look forward to hearing how they will be addressed.

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Moved by
209B: Clause 105, page 147, line 8, at end insert—
“(za) in subsection (2), at end insert “unless the acquiring authority states that the whole of the land is being acquired for the purpose (or for the main purpose) of provision of sporting or recreational facilities in which case subsection (5) shall not apply.”” Member’s explanatory statement
This amendment would enable hope value to be disregarded in calculating the compulsory purchase value of land, where it is being purchased for recreational facilities.
Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, this amendment relates to removing—or “disregarding”, to use the legislative term—hope value from recreational land that is to be purchased for public use.

The principle of hope value was debated at length and in detail during consideration of the then Levelling-up and Regeneration Bill in your Lordships’ House. It was agreed by the Government of the time that hope value could be disregarded by acquiring authorities for a number of purposes—including for schools, for example. However, hope value for public recreational uses was not included in the list of categories where hope value could be disregarded.

So Amendments 209B and 209C in my name seek to add the disregarding of hope value by acquiring authorities into the legislation. The reason for that is fairly straightforward and obvious. On a previous day in Committee, we had a debate on the importance of recreational land. My noble friend Lord Addington and the noble Lord, Lord Moynihan, made a strong case for better planning and more openness to planning applications for sporting use. These two amendments seek to add to that.

The importance of the availability of public recreational land cannot be overstated. In days gone by, children could go out of their front door and play in the street without risk. Now that is not possible because of the obvious influx in terms of every household having a car. So, in order for them to play outside, children have to be taken somewhere. If there are not enough “somewheres” to go to—somewhere to kick a ball in a local recreation area; a park, somewhere to go and walk round a lake; or somewhere to play on playing equipment that is provided—it is a huge loss to the development of young people.

Sport, such as the World Athletics Championships—I am an athletics fan, although I could not get to Tokyo—is really important to this country, so it is important that all children have opportunities for play. If local authorities wish to extend the use of recreational areas, it is best if the cost of that land is not added to by hope value.

Those two simple amendments have the same purpose: to enable local authorities to buy land for recreational use without hope value attached to it. I look forward to hearing about the other amendments in this group, and will respond to them when I reply to the Minister. With those short but, I hope, strong messages showing that this is an important issue, I beg to move.

Lord Roborough Portrait Lord Roborough (Con)
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My Lords, I shall speak to Amendments 210 and 211 in my name and Amendment 227G in the name of my noble friend Lord Sandhurst. I refer the Committee to my register of interests, as I have previously disclosed on this Bill.

When we say that the Conservative Party is under new management, we mean it. We are rightly proud of much of the work that went into the Levelling-up and Regeneration Act 2023, but we are also clear about areas where improvement is needed. I have tabled Amendment 210 to address one such issue, an issue that sits uncomfortably with our core principles of property rights and fair compensation. We believe deeply in the right of individuals to own property, and that such ownership should not be disturbed lightly. When it is, compensation must be fair and transparent and reflect the true value of what is being lost. That includes hope value.

Hope value is not a vague or abstract notion; it is a well-established component in the valuation of land and property, used not only in sales but in inheritance tax assessments and a wide range of commercial transactions. It reflects the possibility that land might in future obtain planning permission for a more valuable use. It is the very element that allows developers and others to bring forward land for development, persuading reluctant landowners to sell by recognising the future potential of their land.

To disregard hope value is to ignore how the market works. It risks undermining confidence in the land market and creating new barriers to development rather than removing them. The valuation methodologies underpinning hope value are well understood, professionally governed and economically rational. They are consistent with option valuations in financial markets, although I am not sure they go so far as to use the Black-Scholes option pricing model.

If a site has no realistic prospect of future development, its hope value will naturally be nil or negligible. However, where a site has a reasonable expectation of future change in use, reflected in prices agreed between buyers and sellers, we must ask why the Government or local authorities should be entitled to disregard that. In doing so, they risk ignoring market signals and distorting resource allocation. If the market values a piece of land as having the future potential for residential development but the authority wants to use it for a different, potentially less efficient use, that should prompt reflection, not concealment.

In a helpful Written Answer following Second Reading, the Minister set out the intended application of these provisions. That response included reference to land for educational and health purposes but also to housing, and not necessarily affordable housing. That gives little comfort. The noble Baroness, Lady Pinnock, has moved her Amendment 209B, which seeks to expand this to recreational facilities. Needless to say, we do not support that.

We are told that the powers will be used to support affordable housing schemes, but in practice the drafting is broad, the safeguards are weak, and I see no mechanism that protects landowners should the purpose of the CPO change after acquisition. Could the Minister clarify? Would these provisions still apply if the land were no longer used for the original purpose stated in the CPO? Clear guidance—or, better still, an amendment to the Bill—could help to avoid costly litigation in the years to come.

The Minister’s letter also cited examples where removing hope value might help to bring forward certain sites, such as brownfield land where viability is an issue, infill plots, and allocated sites that have not yet come forward, but that analysis does not hold. If viability truly is an issue, the hope value will already be low or nil, and on infill or allocated sites it is not the price that delays development but the length and complexity of the planning process and the delays caused by responses from statutory consultees and agencies.

I hope I have persuaded the Committee that removing hope value does not unlock land or accelerate housing delivery. On the contrary, it undermines property rights, weakens trust in the planning system and may ultimately deter landowners from bringing land forward.

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Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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I cannot give the noble Lord that reassurance this afternoon. I am sure that he will understand that that is not included in the Bill at the moment—he may want to consider something on that later—but I understand the reason that he is saying it. We have, however, said very clearly that there will be the possibility for the private sector to contribute to EDPs. We are encouraging our colleagues in Natural England to develop that further.

Amendment 325, tabled by the noble Lady Baroness, Lady Hodgson, would restrict Natural England’s ability to use CPO powers to purchase land that is in use for the grazing of animals or is high-quality agricultural land. As I have just set out, there is an extremely high bar for the compulsory purchase powers under the NRF, with the Secretary of State having to approve any use of these powers. As I said in my response to the amendments of the noble Lord, Lord Roborough, there is a clear need to ensure that CPO is available, albeit with this very high bar. The use or future use of land will of course be taken into consideration by the Secretary of State, and I set out earlier this afternoon the consideration in both the land-use framework and the NPPF that land in other use must be considered before resorting to agricultural land. The Secretary of State will take that into consideration when considering whether to allow the CPO, and will ensure that sensible choices are made that align with the Government’s wider objectives, not least in respect of food security, which is a discussion we have had many times in your Lordships’ House. With this explanation, I hope that the noble Baroness will not press her amendment.

Amendment 227G, tabled by the noble Lord, Lord Sandhurst, relates to the use of compulsory purchase powers and compatibility with the European Convention on Human Rights. It seeks to place a requirement on the Secretary of State to lay before Parliament, within one month of the Bill receiving Royal Assent, a report assessing whether the rights of individuals under the European Convention on Human Rights are adequately protected in the exercise of compulsory purchase powers by local authorities.

The power to compulsorily acquire a person’s land is a draconian power which engages the ECHR and raises questions of common-law fairness; I think the noble Lord, Lord Sandhurst, referred to that himself. A fundamental principle of the compulsory purchase process is that the confirming authority should be sure that the purposes for which a compulsory purchase power is proposed justify interfering with the human rights of those with an interest in the land affected. Acquiring authorities must demonstrate to the confirming authority that such an interference is so justified. When making their decision on whether there is a compelling case in the public interest for each individual CPO, the confirming authority must always give consideration to the provisions of Article 1 and, in the case of a dwelling, Article 8 of the ECHR and the impact of the proposed CPO on the individuals affected.

The compulsory purchase process also enables the exchange of written representations and the holding of inquiries and hearings into objections conducted by an independent inspector, reporting to the Secretary of State, whose decision is subject to legal challenge to uphold the rights enshrined in Article 6 of the ECHR. When justifying their CPOs, the Government guidance on compulsory purchase is clear that acquiring authorities should address the potential harm to private rights and how the impacts on human rights from the respective order have been considered. The compulsory purchase process already provides protections to the rights of individuals affected by compulsory purchase and, for these reasons, I ask the noble Lord not to press his amendment.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I thank the Minister for her very detailed response to this group of amendments, but I am rather disappointed that the Government did not feel able to add a public recreational use to land that is to be disregarded for hope value by acquiring authorities.

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Baroness Young of Old Scone Portrait Baroness Young of Old Scone (Lab)
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My Lords, I briefly remind the Committee, and also the Minister, that much of this could be avoided by implementing the land use framework approach to land use, which is a method and tool intended entirely at various scales—national, local, regional and on individual land holdings—to balance all these competing demands for land. I am very much looking forward to it coming out, hopefully before this Christmas, but noble Lords have heard my Christmas speech before.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, the noble Baroness, Lady Young, has made the point that we on these Benches would wish to make.

Lord Roborough Portrait Lord Roborough (Con)
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My Lords, I speak in support of Amendment 214 in the name of my noble friend Lord Hodgson of Astley Abbotts and thank him for bringing forward what is, I believe, a thoughtful and timely intervention. The amendment seeks to ensure that the Government provide annual updates on agricultural land lost as a result of the Bill, along with any consequent risks to the UK’s food and water security.

We have heard, both in and beyond this Chamber, growing concern about the pressures being placed on agricultural land—particularly the cumulative effect of development, including infrastructure and renewable energy projects, on land that has long supported our domestic food production. This is not an abstract concern. Recent debates around the siting of solar farms on high-grade best and most versatile agricultural land have brought this issue into sharp relief. Although renewable energy is vital for our long-term sustainability, it must not come at the cost of food security.

Food security is a strategic national interest. The experience of recent global shocks, from the pandemic to the war in Ukraine, has reminded us just how important it is to maintain a strong, resilient domestic food supply. Once high-quality agricultural land is lost to development, it is not recovered. We must therefore be careful stewards of this finite resource, particularly the best and most versatile land, as my noble friend Lord Fuller pointed out.

My noble friend’s amendment rightly presses the Government to monitor and report on these risks with due seriousness. The principle of ensuring that we do not undermine our food and water security through planning reforms is one that I believe all sides of this House can support. If I may provide some reassurances to my noble friends, global food production has grown at 0.7% on average per annum for decades, in line with global population growth. That is on stable acres, with lost acres in some regions of the world balanced by other regions, such as Brazil. Acres of land that are lost in this country to development are most likely being replaced by the Cerrado, and possibly even rainforest, being cleared in Brazil. There is a serious leakage issue when we lose our agricultural land. On that, I highlight my register of interests, including as a shareholder of SLC Agrícola in Brazil.

I look forward to the Minister’s response to this amendment and to hearing how the Government intend to safeguard these critical national interests as the Bill progresses. I also support the comments of the noble Baroness, Lady Young, on the land use framework.

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Lord Cromwell Portrait Lord Cromwell (CB)
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My Lords, the noble Lord, Lord Cameron of Dillington, and the noble Earl, Lord Lytton, have added their names to my amendment; they both apologise for being unable to be present in the Committee today.

This amendment would introduce a code of practice for compulsory purchase. It is widely accepted that, provided it is carried out appropriately, the state should have the right to acquire people’s homes and businesses in the interests of the nation. Noble Lords will be relieved to know that this amendment will not reopen the whole debate around that issue—I hope that buys me a few extra minutes.

Compulsory purchase was established on three assumptions: that it would be a quicker way to acquire land in the public interest; that it would make it possible to do that at a cost below market rates; and, importantly, that it would be a last resort if a voluntary sale could not be agreed—or so the theory went. However, anyone who is familiar with the process and practical realities of compulsory purchase will know that it is not at all quick or cost effective, with timelines running into years and with the costs of public inquiries, surveyors, lawyers and other actors on both sides.

It is widely acknowledged by professional agents—regardless of which side they work for—that, contrary to the original theory of compulsory purchase, the costs are always considerably higher if the party is being forced to sell rather than doing so on a voluntary basis. A consensus is often achievable, but only if the acquirer’s agent works with the seller rather than acting, frankly, as a bully boy for the Government.

The related issue of hope value was addressed in an earlier group. I will not cover it again beyond saying that the ability to compel property to be given up—I will not use the word “sold”—at well below its market value is, of course, attractive to those with the compulsory power but brutally costly and disruptive to those on the receiving end.

So how does this work in practice? The actual exercise of compulsory purchase powers has been devolved by the Government to a growing number of agents. These powers enable the agents to force people to leave their homes, to give up their businesses and their land, and to do so below market prices. Agents receiving these aggressive powers are commercial entities governed by financial and time-related performance targets.

Perhaps inevitably, these incentives and the imbalance of power between government-backed agents and ordinary citizens have created a real, growing problem around the behaviour of agents acting for the acquiring government authorities. Agents’ ability to compel a sale means all too often that they ignore normal conveyancing practices and refuse to recognise the justifiable concerns and interests of those whom they are forcing to sell, who are all but powerless and cannot realistically afford to challenge them. Noble Lords should be under no illusion: the lack of proper constraints means that a culture has widely grown up of the strong-arming and intimidation of those who are forced to sell by government-appointed agents.

There is also the profiteering practice that agents and authorities are sometimes shy of talking about, some of which has been referred to by others, of the acquiring authority then selling on the land for commercial purposes as a whole or in parts at full market value and pocketing the profits—with the agents, of course, paid to arrange the disposals.

To make the situation more real to anyone struggling to believe what I am saying or who is not involved in compulsory purchase, here are three quick live cases that I am aware of and, for clarity, in which I have no interests to declare. In the first case, both sides of a transaction had already agreed voluntarily to sell one field and give a right of access over an adjacent one. But at exchange the agent for the acquirer presented out of the blue a plan that included further land that was not part of the agreement. When this was pointed out, the acquirer’s agent immediately cut off communication and went to use compulsory purchase on all the land.

In the second case, a farmer was approached by an infrastructure provider for initial surveys. As the land was designated ecologically sensitive, he instructed an agent to prepare a bespoke licence agreement to give access to the provider. The infrastructure provider abruptly cut communications partway through the drafting process with no reason given and served a compulsory notice for access. The notice, and the developer’s subsequent trespass, then went on the wrong property and was not subject to discussion. Legal proceedings followed, which were inevitably costly for both sides and created substantial delays.

Case 3 is a simple quote from one forced seller:

“The bypass went straight through the middle of our farm taking 36 acres and all the buildings. Eight years after the bulldozers went in, we are still owed £136,000. When that is eventually paid, we will have to pay capital gains tax (at the new increased rate) on that compensation. How can it be fair that the government can destroy our farm and pay us in return a fraction of what it’s worth? … capital projects need to be built for the benefit of the nation, but surely in a decent, fair country, those concerned should be compensated with 100% of the value of the asset taken and paid before the land is occupied”.


I remind noble Lords that they were still waiting eight years later. I underline that there are many similar stories across this country.

Finally, I cannot resist mentioning HS2. Even on the northern section, which was cancelled two years ago, farmers still have barren strips of land through the middle of their farms, commandeered by HS2 but still not yet handed back. Matters are made worse with HS2 by the splitting of responsibilities between the Treasury and Department for Transport, with neither taking responsibility for the poor behaviour of agents. There are cases where farmers are not being paid for years and householders, having been given three months’ notice to get out, then not being paid for up to nine months. As one affected party put it—this is a different case—

“7 years after they unilaterally took our land we are still waiting for payment at just 70% of the value of the land and the matter is now being dragged through the courts”.


So what rules are there? The Royal Institution of Chartered Surveyors has published baseline standards that it considers should apply to people acting for the acquiring authorities and the claimants. While I urge the Minister to look at and publicly endorse these standards, RICS has jurisdiction over its members only—not, for instance, over a non-member profession or a project management team.

Furthermore, crucially, these and other existing guidance rules do not cover two things that loom large in practical compulsory purchase experience: defining and preventing bullying tactics, and failure by agents or the acquiring bodies themselves to make prompt payment when due. We cannot go on in denial of this problem. That is why this amendment proposes the introduction of a proper code of practice for compulsory purchase: to negotiate and agree values et cetera in good faith, with the possibility of compulsion genuinely as the last resort rather than the starting point, and to pay full value in advance of taking possession, as is systematically the case in the commercial world.

I pose two questions to the Minister. First, does she share my belief that no one should be expected to give up their house, land or business only to find themself with no money to buy another house due to non-payment by the acquirer, or to have part or all of their business forcibly removed from them before payment? Secondly, does she agree with me that the Government’s announcement that they will issue financial penalties to persistently late-paying businesses should include penalties on late-paying agents and other authorities when exercising the powers of compulsory purchase on behalf of the Government?

This amendment, by making the conduct of compulsory sequestration of land subject to an agreed code of practice, would provide a check on the current abuses and the practical problems that I have outlined. As noble Lords will know, I am always concerned not just about our making laws that make us feel happy but with enforcement, and it will therefore come as no surprise that part two of the amendment addresses this squarely.

I look forward to the Minister’s reply to my two questions, and I ask the Government to accept this simple but urgently needed and positive amendment, particularly before handing out additional compulsory purchase powers to Natural England. Finally, I should mention that this is very likely to come back on Report. I beg to move.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, before I introduce my amendment in this group, I say that the noble Lord, Lord Cromwell, has raised some very challenging aspects of compulsory purchase, particularly that of late payment. I will wait for the Minister to respond to that. There is no purpose in having this balancing act, which the noble Lord explained, between individuals and the state if the state does not play fairly by the rules.

Amendment 219 in my name and cosigned by the noble Baroness, Lady Jones of Moulsecoomb, is on the face of it quite radical. In fact, however, all it would do is put pressure on housebuilders to fulfil the planning permissions they have obtained. Planning consents already have a standard three-year period in which to begin construction. Where development is seen to be more challenging, a longer period of five years is sometimes available. Those time periods are not unreasonable. If a housebuilder is seeking to develop a plot of land, they have three years in which to implement or at least to start construction.

Members on all sides know that there is a desperate need for more housing. All political parties have made the case for more housing, in different numbers per annum, but this is not about the numbers game; it is the building of them that is important. The ONS has estimated that there are already 1.2 million outstanding permissions for housing units, as yet unbuilt. I will not use the term “land banking” because there are plenty of arguments out there, and investigations have been made by public lobby groups to point out that land banking is too broad a term for what is going on. Obviously, the reasons are quite varied. Some depend on national and local economic outlooks; nevertheless, 1.2 million units have not been built when we need new homes.