Baroness Royall of Blaisdon
Main Page: Baroness Royall of Blaisdon (Labour - Life peer)Housing and Planning Bill
Baroness Royall of Blaisdon Excerpts“Affordable housing contributions in small scale development
(1) Local planning authorities may require sites falling within subsection (2) to make an affordable housing contribution, in cash or kind, determined by the requirements of the housing market of that area.(2) Authorities may require contributions from—(a) developments of 10 units or less, and developments which have a maximum combined gross floorspace of no more than 1000sqm (gross internal area), and(b) developments in a rural area or an area where—(i) planning permission for the site was granted wholly or partly on the basis of a policy for the provision of housing on rural exception sites;(ii) the site is in a national park or an area with equal protection to that of a national park; or(iii) the site is in an area designated under section 82 of the Countryside and Rights of Way Act 2000 (designation of areas) as an area of outstanding natural beauty.(3) In subsection (2) a rural area is defined as—(a) any settlement with a population of fewer than 3,000 people at the most recent national census, or(b) any settlement with a population of between 3,000 and 10,000 people at the most recent national census, and designated as a rural area by the Secretary of State following representations from the relevant local authority.”
Baroness Royall of Blaisdon (Lab)
My Lords, I rise to speak to Amendment 119. I am grateful to the noble Lord, Lord Best, the right reverend Prelate the Bishop of St Albans and the noble Baroness, Lady Parminter, for their support. I start with huge thanks to the noble Lord, Lord Best, and the noble Lord, Lord Cameron of Dillington, for the tremendous work that they have done on this Bill on behalf of rural areas. The negotiations with the Government have been assiduous, and the Minister has been in listening mode.
I am delighted that the Government have agreed to exclude rural exception sites from the requirement to build starter homes and that they have agreed in principle to enable councils to retain their remaining housing stock in rural areas with an exemption from high-value sales requirements. Of course, we wait to see the fine print of the government amendments but, despite the fact that the Bill was regrettably not rural-proofed when drafted, there now appears to be a real understanding that rural areas have very specific challenges if they are to remain as vital and vibrant communities.
The Government recognise that social housing in rural areas needs protection, but much more is also needed. The economic and social viability of our rural communities is dependent on there being a mix of housing, including affordable homes. With an acute shortage of affordable housing in rural communities, I simply do not understand why the Government are trying in Clause 143 to reintroduce the restrictions, already overturned by judicial review, that would mean that local planning authorities should not seek affordable housing for sites of fewer than 10 units.
As most residential development in rural areas is on sites of 10 units or fewer, the ability to seek affordable housing contributions on site, or as a commuted sum from these sites, is critical. In Shropshire, for example, 92% of its development is on sites of fewer than 10 units, and 86% on sites of fewer than five units. For Derbyshire’s rural local authorities between 2011 and 2014, 85% of their committed and completed development was on sites of 10 units or fewer. In 2014-15, 55% of affordable homes in villages were through Section 106 contributions on market sites. Much of this delivery is on sites of fewer than 10 units. In Shropshire, for example, 89% of its rural Section 106 affordable homes were on sites of fewer than 10 units. Because these market sites include homes to meet local affordable housing needs, they are much more likely to gain community support and avoid the delays and costs that result from opposition to development, so it is a win-win situation for the developer and for the mixed housing needs of the community.
In the same period, 44% of rural affordable homes were provided through rural exception sites, whose principal purpose is to meet local affordable housing needs. In seven areas, more than 50% of their rural exception site schemes were of 10 units or fewer, and in four of these more than 70% of their rural exception site schemes were of 10 units or fewer. As we heard in Committee, these sites are a critical source of commuted sums. As the availability of the government grant has declined, these are a vital source of capital funding, particularly for rural exception sites. Shropshire Council has raised £2.5 million from commuted sums, which it has used to help housing associations build 250 new affordable homes, and in the last three years Cornwall Council has raised more than £790,000 from its rural developments, all of it from sites of 10 units or fewer.
Baroness Williams of Trafford
My Lords, I thank the noble Baroness, Lady Royall, for raising an issue that I think is seen as important on all sides of this House. Her amendment would enable local planning authorities to require affordable housing contributions, in cash or kind, from small-scale developments and from developments in rural areas. I hope I can provide assurances of how we propose to use the power to support housing delivery and the fact that we recognise the issues faced by rural areas in particular.
During debate in Committee I explained that local authorities currently can set affordable housing policies in their local plans and use Section 106 agreements to secure affordable housing delivery and agree financial contributions in lieu of on-site affordable housing contributions.
We all agree on the importance of affordable housing, which is why the Government announced in the spending review investment of £8 billion to deliver 400,000 affordable housing starts by 2020-21. However, we know that, on particular types of site, the way in which affordable housing contributions are determined can delay development and affect housing delivery. Clause 143 will enable us to bring about a more consistent approach to how Section 106 agreements can be used in relation to affordable housing provision. This could include conditions on how planning obligations are sought for affordable housing. These can be varied by the type of site to which they apply.
We know that the details of any restrictions will require careful consideration to deliver benefits in enabling overall housing delivery while taking careful account of the need to deliver affordable housing. Measures implementing this power will be set out in regulations which will be subject to the affirmative resolution procedure, so noble Lords will have further opportunity for scrutiny.
It has been made clear in previous debates on this clause and others, including the debates on starter homes and high-value assets, that rural areas face distinct challenges. Concerns have been raised about the impact that the Bill could have on rural areas and we are committed to considering how rural exception sites are given discretion in any compulsory starter home requirement and how we can consider excluding them from high-value asset payments.
The power to make regulations in Clause 143 is a broad one and allows us to take into account the concerns raised. I am happy and willing to continue to work with the noble Baroness, Lady Royall, and the noble Lords, Lord Cameron and Lord Best, on what these regulations will contain. However, I cannot commit to bringing forward an amendment by Third Reading.
We recently heard from the Communities and Local Government Select Committee about the importance of monitoring the effect of this policy. By bringing forward any restrictions or conditions through regulations we can also ensure that they can be more easily reviewed so that they maximise the benefits for housing delivery more broadly.
I hope my reassurance and recognition of the particular issues faced by rural areas will enable the noble Baroness to withdraw her amendment.
Baroness Royall of Blaisdon (Lab)
My goodness, my Lords, this is a difficult one, is it not? Many vital points have been raised in this short debate, and I am grateful for the support that my amendment has received.
Everyone has made the point that 50% of affordable housing comes from Section 106 agreements, which is a huge amount for housing in rural areas. As the right reverend Prelate said, we should be talking about development and creating the future and not only about protection. The Government have already recognised that protection is needed, but we are looking to the future so that we can develop our communities in the countryside and ensure that they are vital. As the noble Lord, Lord Taylor, said, local authorities in all rural areas, not only those in AONB areas and in national parks, are looking for consideration and assurance that they will be able to continue to have affordable homes on Section 106 sites.
I know that the Minister wants to help, and she has been very generous with her time in discussions. We had a discussion about an hour and a half ago, when it was hoped that something could be put in the Bill—we need something in the Bill—and she said that she is not only content but happy to continue discussions with your Lordships about regulations and what should be in them. However, she has said that she could not come back with anything firm before Third Reading. I am tempted to continue discussions with the noble Baroness about how we might take this forward. However, I would do so only if she can give me permission to bring this back at Third Reading—in only two days’ time—if I feel that our negotiations are not getting anywhere. If she cannot give me permission to bring this back in the form of a similar amendment at Third Reading, I am afraid that I shall have to seek the view of the House. I ask the noble Baroness to give me permission to bring this back at Third Reading so that we can continue discussions in the next two days.
Baroness Williams of Trafford
My Lords, regrettably, I cannot. I therefore leave it in the hands of the noble Baroness as to what she would like to do.
Baroness Royall of Blaisdon
In that case, with great regret—I believe the noble Baroness is doing everything she can—I have to seek the opinion of the House, because this is such an important issue for housing in rural areas.