Housing and Planning

Charles Walker Excerpts

Tuesday 3rd March 2020 Westminster Hall

[Sir Charles Walker (in the Chair)]

Colleagues, before I call Mr O’Brien to move the motion, I note that there are a lot of speakers. If you intend to speak, I advise you to be parsimonious with interventions, because it is possible that some speakers will be crowded out.

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

I beg to move,

That this House has considered housing and planning.

It is a pleasure to serve under your chairmanship, Sir Charles. It is good to see so many colleagues here and I particularly welcome our brilliant new Housing Minister. I will talk about the wider reforms needed in planning and housing, but I want to start with not the where or what of what we build, but some of the problems caused by the way in which the development industry behaves.

The first problem is what has come to be known as fleeceholding. It has become the norm for bits of new estates, such as car parks and public areas, to be handed over to property management companies for their upkeep, with residents paying for it. Instead of being maintained by the council, the property management company steps in and offers to adopt those responsibilities more cheaply than the council would. Often, however, it makes a cheaper offer only because it is working on the assumption that it will be able to dramatically increase bills.

Several neighbourhoods in my constituency are up in arms about opaque and rapidly rising bills from these property management companies. For example, around Windlass Drive in my constituency, 120 households are charged £60 each to mow around a tiny balancing pond that is much smaller than this Chamber. Absurdly, while the council mows a much bigger area all around it, someone comes down all the way from Derby to mow that last tiny area. That fragmentation increases the costs to householders, and that cost is passed on to people in the form of higher bills. Likewise, residents of Coleridge Way were at one point asked to pay £300 a week for someone to drive over from Solihull to inspect a playground. Four households in Farndon Fields were asked to pay £2,400 for the maintenance of a tiny piece of car park, consisting of no more than 30 minutes’ work over five years. That is £2,400 for 30 minutes’ work—nice work if you can get it, Sir Charles.

These maintenance companies are opaque, and people who move out often have to pay them substantial fees to get the documentation they need. The Homeowners Rights Network and the National Leasehold Campaign have compiled many such horror stories. We could easily have a debate on fleeceholding alone. Having found that some companies have in fact broken the law, the Competition and Markets Authority is now taking action. I hope that the Minister will also take action against bad practice that falls below the threshold of criminal behaviour—the industry is full of cowboys—because my constituents are sick of wasting their time battling unfair bills.

The second problem with development is that of inappropriate access to sites. Residents who moved into new homes on Farndon Fields were told that there would be no development next to them for decades. That was not true. When a different developer got planning permission to build a new estate right next to them, it got an access route agreed that goes through their estate. It goes through tiny, narrow streets, past a playground and down a tiny cul-de-sac. There is mud all over the roads and huge lorries revving their engines outside people’s houses in the early hours of the morning. People on that estate face years of misery. We tried to get the developer to use a different, better access route through a field, but when pressed it said that the farmer was asking for too much money so it was not possible. In the end, the council did not want to be taken to tribunal, so it gave the developer that access route.

I have no idea how much the farmer was asking for, but if the Minister could find a way of creating a better way for councils and developers to secure temporary access routes that avoid disruption to huge numbers of households—it could be a temporary compulsory purchase order or some other solution that provides better access that is not obnoxious to residents—that would be very welcome.

Another big problem in my constituency this winter has, of course, been the flooding caused by inadequate drainage from building sites. Developers typically start work by scraping off the topsoil and only put in the drainage late in the construction process. This year, over winter, many have been caught short, as inadequate, temporary drainage has been overwhelmed by the amount of water. For example, on Kingston Way, developers caused huge flooding on the roads and flooding of people’s gardens. They have built a pathetic little muddy sandcastle to try to direct water down the drain. It is a pathetic reflection on an industry that constantly claims to have compassionate constructors. Again, some of that is for local councils to sort out, but if the Minister has an opportunity to change national guidance about the phasing of drainage works on new sites, that would be very welcome.

Another problem with construction practices is about how planning conditions are often violated, with it being difficult for councils to enforce them. Builders work beyond the hours they are permitted to work, lorries park in residential streets and firms fail to honour commitments on wheel washing, so residents end up tramping huge amounts of mud into their new carpets. At the moment, the onus is totally on the council to take developers to court, which is very cumbersome. I encourage the Minister to look at making it much easier for councils to enforce breaches of the rules through some kind of bond system or fixed penalty notice, because developers need to know that if they consistently breach the rules, they will face sure and swift sanctions, and it will cost them money if they break the rules.

The final set of issues with the industry’s behaviour relates to adoption. On Devana Way in my constituency, developers sold houses on new, tree-lined streets. It was beautiful, lovely, and people really liked the trees. However, the developer, after selling the houses to people, had a dispute with the council over adoption, which it solved simply by turning up one morning and ripping out all the trees. Wonderful! I do not see why any developer should be allowed to go ahead with constructing a new estate if it has not already secured agreement on who will maintain it. Developments should not go ahead without clear agreements on adoption and who will maintain what.

Those are some of the things we need to do to change developer behaviour in the industry. I now turn to the bigger picture. We need four or five big changes to the way in which we approach planning and housing policy. First, we need a clearer vision of where we want to build. I believe we must do more of it in our cities, because there are strong environmental and social arguments for that. It means more walking, better public health, less congestion, less pollution and lower energy use. As the Create Streets think-tank has pointed out, having denser cities does not have to mean ugly tower blocks. The densest neighbourhoods in all of Europe are in Barcelona and the densest in Britain are in Kensington, which are nice places to live. Britain currently has the least dense cities in Europe. We also have many cities that have shrunk, with Dundee, Glasgow, Liverpool, Sunderland, Birkenhead, Hull and Newcastle all having smaller populations in 2017 than in 1981.

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[Several hon. Members rose—]

[Sir Charles Walker (in the Chair)]

Order. I will impose a four-minute limit to start with, but it will probably drop to three minutes.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Charles. I will talk about Mostyn House in Parkgate, which was originally a boarding school and is now a listed building. Once the school closed, the site was certainly attractive to developers.

Revised plans to build apartments into the fabric of the old school were submitted halfway through its redevelopment. Despite the many efforts of under-resourced local authority enforcement officers, the developer, PJ Livesey, continually drags its feet, with the result that there is a list of outstanding works as long as your arm. Planning permission was only finally achieved some five years after residents first moved in. Developers have similarly patchy records elsewhere in the country, but because the system lacks the capacity to challenge these people, they continue to get away with it.

I have long spoken about the industrial scale mis-selling that arose as part of the leasehold scandal, and we finally saw official recognition of that last week from the Competition and Markets Authority. The situation at Mostyn House is slightly different but has many similarities. Little specific legal information was provided at the initial stage, particularly regarding planning and the leasehold position, and little documentation was produced in respect of service charges. What was provided was misleading and inaccurate on ongoing costs. There were also financial incentives to use panel solicitors and pressure to exchange contracts within a tight timescale.

Many people buying these apartments were experienced professionals whose concerns about those issues were assuaged at the time by the developer’s sales staff, who confidently stated that the purchase was covered by a Premier Guarantee warranty, which gave the buyers a 10-year guarantee similar to the National House Building Council’s. That sounds good, does it not—a Premier Guarantee warranty? It sounds pretty solid, and something to give certainty. Being compared to the NHBC’s guarantee gives it an air of respectability.

However, buyers might find that they have more rights if something goes wrong with their kettle. It is at best a dispute resolution service, not a guarantee, and is seriously compromised by virtue of being funded by the developers against whom it is meant to enforce the guarantee. Premier not only provides the warranty on the build of Mostyn House but also acts as the approved inspector in respect of building regulations. Premier is effectively employed as the building control and building regulation compliance body to inspect, approve and guarantee works undertaken by the developer that it is supposed to be insuring against.

After four years of back and forth, Premier’s surveyor recently viewed the development and agreed with the defects raised by residents. However, Premier is not prepared to progress the claims, even though water is pouring into apartments right now from the defective roofs, gutters and walls. Premier said:

“The remit of our service is to attempt to bring the two parties together, investigate the dispute and make recommendations…That being said, the conciliation service will not be suitable for all disputes.”

That is not a guarantee or warranty; it is a cop-out.

It is clear that some works by the developer were non-compliant, as additional fire separation works and modifications have had to be undertaken since occupation took place. How did Premier sign off those works in the first place? It is plainly evident that there has been a general lack of supervision of the development during its construction and a lack of inspections by the approved inspector. If it finds too many faults, it will have to pay out under its own insurance policy, funded by the developer. It is therefore easy to see how the temptation to be less than thorough could arise.

My constituents have been let down. The ombudsman has proven toothless and the Solicitors Regulation Authority ineffective. Indeed, anyone who cares to look at Trustpilot ratings for the ombudsman, the SRA and Premier will see that there is very little customer satisfaction anywhere in the country. There is a wholesale failure of regulation across the board on many issues, including in this case and others we have heard about. It is time that the Minister and the Government listened and sorted out this shambles once and for all.

[Sir Charles Walker (in the Chair)]

We will have to drop the time limit on speeches to three minutes.

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[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?