Levelling-up and Regeneration Bill

Earl Howe Excerpts

Committee stage
Monday 24th April 2023 Lords Chamber

Moved by

[Earl Howe]

281CA: Clause 115, page 148, line 30, at end insert—
“(iii) for “arising in” substitute “in respect of”;”Member’s explanatory statement
This amendment is consequential on the amendment inserting a new paragraph (ab) at the end of line 30 of Clause 115 in the minister’s name.

[Earl Howe (Con)]

My Lords, I will speak also to Amendments 281CB to 281CE. These amendments are aimed at creating greater opportunities for those people who want to build their own home by ensuring that local authorities make sufficient provision for self- and custom-build sites in their areas.

The Government believe that self- and custom-build housing can play a crucial role as part of a wider package of measures to boost home ownership and diversify the housing market, as well as helping to deliver the homes that people want. Self and custom build improve the design and quality of homes as they are built by the people who will live in them.

We are aware that, under the current legislation, some development permissions that are not necessarily for self- and custom-build housing are being counted towards a local planning authority’s statutory duty. This has meant there is an incomplete and inaccurate picture of self and custom build at a local and national level, which can distort the market and have wider impacts on small- and medium-sized enterprises and developers.

In the other place, the Government introduced Clause 115 to ensure that a development permission will count in meeting the duty only if it is actually for self-or custom-build housing. The Government have brought these additional amendments forward to further tighten up the Self-build and Custom Housebuilding Act 2015 to ensure that the intended policy aim of the original legislation is being met in practice.

Amendment 281CB ensures that only land made available explicitly for self-build and custom housebuilding qualifies towards the statutory duty to grant planning permission et cetera and meets demand for self and custom build. We have tabled the amendments to give the power to the Secretary of State to define in regulations the descriptions of types of development permissions that will count towards meeting this duty. This will ensure that only development permissions that are intended to be built out as self or custom build will be counted. The regulations are likely to require any permissions granted for self and custom build to be characterised by a condition or planning obligation making that requirement explicit. Amendment 281CE specifies that any regulations made under this new power will be subject to the negative resolution procedure.

Amendment 281CC ensures that any demand that a relevant authority has accrued for self and custom build through its self and custom build register that has not been discharged within the three-year compliance period will not dissipate after this time, but will roll over and remain part of the demand for the authority to meet under Section 2A of the 2015 Act. Amendments 281CA and 281CD are consequential, minor and technical amendments that amend the 2015 Act to ensure that Amendment 281CC works in practice. Overall, the amendments proposed ensure that the 2015 Act works as intended, without ambiguity.

These amendments, accompanied by our other interventions, including the launch of the Help to Build equity loan scheme and the Government’s response to Richard Bacon MP’s independent review into scaling up of self-build and custom housebuilding, will help to mainstream the self- and custom-build sector. This will allow more people to build their own home, help support SMEs and boost housebuilding. I therefore hope that noble Lords will support these amendments. I beg to move.

[Lord Best (CB)]

My Lords, I rise to support this group of government amendments aimed at increasing the number of homes built or commissioned by their future occupiers. I had the pleasure of piloting the Self-build and Custom Housebuilding Act 2015 through your Lordships’ House. It started as a Private Member’s Bill from Richard Bacon MP, who has tirelessly—I would say relentlessly—pursued his campaign to get the sector to scale up. Most recently, he has produced an independent review to boost the building of self-commissioned new homes across all tenures, and these amendments flow from the Bacon review to which the Minister referred.

In countries as diverse as Germany and New Zealand, much of the new housebuilding is done in partnership with its future occupiers who, if not actually building the homes, are specifying the form they take and working with an SME builder to meet individual requirements. The result in other countries is that homes are more varied, personalised, affordable and energy efficient. These amendments attempt to give this still fledgling sector further impetus by helping self-builders and custom housebuilders to get their hands on the land on which to build, rather than leaving the volume housebuilders to gobble it all up. The sector would be an important beneficiary of my earlier amendment on diversification on larger sites, but a shift to that Letwin-inspired development model is not going to happen immediately. Bolstering the existing means to get local authorities allocating land for self-build and custom housebuilding is eminently sensible. I congratulate Richard Bacon on his continuing tenacity, the Right to Build Task Force on getting the Government to take forward these amendments and the Government on accepting them.

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[Baroness Hayman of Ullock (Lab)]

I thank the Minister for introducing these government amendments. We have no problem at all with them. They seem fairly straightforward in what they want to achieve, but I would like to make the point that this is going to help provide only a small number of homes. I wonder what estimate the Government have made of the number of homes this will provide and what the demand is for this sort of housing. It would be quite interesting.

We are concerned about the number of houses being built, full stop, particularly since the Government abandoned their mandatory housing target. We feel that this Bill should be used to help the Government to concentrate on providing sufficient quality housing that includes both affordable-to-buy and social housing. Perhaps the Government could then bring forward an amendment on properly defining “affordable housing”; that would be a very useful amendment to see going forward.

As I said, I have absolutely no problem with this; I am quite happy to support the government amendments. However, we feel that the Government need to balance their interest in progressing this with their progress in meeting their stated target of 300,000 new homes.

[Earl Howe (Con)]

My Lords, I am grateful to the noble Lord, Lord Best, and both noble Baronesses, for their comments and questions. The noble Lord, Lord Best, is perhaps this House’s foremost expert on housing matters, saving my noble friend Lord Young of Cookham who is now looking at me.

To answer for now the question put by the noble Baroness, Lady Hayman, on the number of self-build and custom-build houses that we expect to flow from this, it is very difficult to estimate. We do think that those categories of housing have a definite place in the system. If I can enlighten myself, and her, further, I will be happy to do so. I hope she will have gained a sense that these amendments are designed to remove the barriers that have been identified in this area; certainly, we fully expect that to happen having engaged with the sector.

As regards a definition of affordable housing, I think that will have to be a long debate for another day—although we have touched on that subject before during these Committee proceedings.

As regards the question posed by the noble Baroness, Lady Pinnock, I think the instance that she cited will be addressed, in part at least, by Amendment 281CC. What we want to achieve in that amendment is that, where you have a register of self-build and custom-build applications that have not been discharged within the three-year compliance period, that demand will not dissipate after this time but will roll over. I will, however, write to her about enforcement on these particular applications and clarify that.

Amendment 281CA agreed.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, regarding Clause 123, we believe that this provision was added to the Bill subsequent to consideration in the other place, so it has perhaps not had the same scrutiny as other parts of the Bill.

Amendment 285AA, moved by the noble Lord, Lord Stunell, seeks to have the status of combined mayoral authority with planning powers added to the list of exemptions. A distinction was drawn previously in your Lordships’ House between the devolution powers conferred on mayors and the legislative powers devolved to Administrations, but what meetings and discussions have been held with devolved Administrations in this respect?

I express our concern, alongside that of the noble Lords, Lord Stunell and Lord Carrington, about the implications of this clause in any case. The noble Lord, Lord Carrington, argues that the clause should not be part of the Bill at all. I can understand this view as in this part of the Bill, as in others, there are very significant powers being taken by the Secretary of State to amend these long lists of 25 pieces of primary legislation, with limited scrutiny or consultation and without reversion to either House. That would give us great cause for concern. I hope that the Minister can respond to this, but we support the clause stand part notice.

[Earl Howe (Con)]

My Lords, I have listened carefully to the concerns expressed by the noble Lords, Lord Stunell and Lord Carrington, and hope and believe that I can fully reassure them both. I will respond to the noble Lord, Lord Carrington, in a second, but will begin by addressing Amendment 285AA, tabled by the noble Lord, Lord Stunell.

This amendment would restrict the nature of amendments that can be made under the power contained in Clause 123 so that the Secretary of State could not use it in relation to matters within a devolved competence or where a mayor has planning powers. Noble Lords will be aware that under Clause 123(6) any changes made by regulations under this section do not come into effect except where Parliament enacts a relevant consolidation Act and that Act comes into effect. In practice, these regulations will smooth the transition of the law from its current unconsolidated state to its future consolidated state. To do this, they have legal effect for only a moment, immediately before the relevant consolidation Act comes into effect.

Noble Lords will know that consolidation is a highly technical exercise restricted to the clarification and restatement of the existing law. This power is likewise restricted. It cannot be used to change the terms of devolution, nor to interfere in policy matters which are devolved. The power to make incidental provision in relation to a devolved competence is included here to reflect that much of planning and compulsory purchase law pre-dates devolution. Without this power allowing the Secretary of State to disentangle the law in England, we would be unable to ensure that in substance the legal position within devolved competence would be unchanged when the law applying in England was disentangled. In relation to the second—

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Earl for giving way. The provision in Clause 123(4) says:

“For the purposes of this section, ‘amend’ includes repeal and revoke”.


That sounds like a sledgehammer being used to crack a nut if it is a matter of consolidation.

[Earl Howe (Con)]

Consolidation in this area of the law is immensely complex. Frankly, we do not know the full extent of the relevant planning provisions that must be considered in any common consolidation exercise because the exercise has not been commenced.

[Baroness Hayman of Ullock (Lab)]

My apologies, but if it is that complex, is it not more likely that mistakes could be made, making it even more concerning that something could just be repealed or revoked without full comprehension or sufficient time? It is quite concerning.

[Earl Howe (Con)]

The noble Baroness should not be concerned, if I may suggest, as I shall go on to try to explain, because I have a little bit more to set out for the Committee. The power does not allow the changing of the terms of devolution once given effect in law, nor does it allow any changes to what planning powers can be conferred on any area as part of such a deal.

Finally on the amendment, I reiterate that in relation to the planning powers of mayors, there is no intention to remove the powers of district councils through devolution deals. I therefore hope I have persuaded the noble Lord that, as expressed, the amendment is not necessary.

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[Lord Stunell (LD)]

I thank the noble Earl for taking us through what for some of us is a kind of grade 1 learning experience, which he has dealt with very effectively. I have some considerable concerns which remain. I wonder whether he could go back to a point that he made in response to the noble Baroness a few minutes ago: that it was so complex and there were so many different pieces of legislation that it was not possible to give a list of all the complexities and so on which were involved. He also spoke about trust, and how the whole system might be undermined by opaqueness. If I connect those two remarks, he will perhaps see that to some extent the opacity means that the trust is not present on this side of the Chamber at the moment.

[Earl Howe (Con)]

I am sorry to hear that. The point I was seeking to make is that the general public need to trust the law and know what the law is, as does anyone dealing with the planning system. That is why the Government’s ambition is to put in train a consolidation exercise, which may take a considerable time. I have been quite frank with the Committee that there are not only 50 Acts that we know about which deal with planning and compulsory purchase, but—as my notes say—innumerable other Acts which cross-reference those 50 Acts. It will require a major legal exercise to bring all the threads together.

I cannot commit to a timescale for consolidation from the Dispatch Box today. There is a large amount of work to do before we can get to that stage and that will naturally have to be balanced against the wider legislative programme. It is for that reason that we are asking for this power to prepare the way—I think that is the best way of putting it—to make the ultimate consolidation a more achievable exercise.

[Baroness Taylor of Stevenage (Lab)]

I am sorry to keep pursuing this point but it is really very important indeed. Any of us who has worked on this Bill knows the difficulty of how many crossovers there are with other Bills. On the previous group of amendments, from my perspective and I am sure from those of colleagues on these Benches, we ended up referencing back through various Bills to get to the point that the amendments referred to. That does not make life easy, and I am sure it makes it very opaque for professionals and the public trying to deal with the system. That simply underlines yet again, as we have done many times through this process, that a planning Bill might have been a better option to get to the rationalisation of the planning system, but we are where we are with that.

We remain concerned about just how this exercise will be done. Will a whole series of statutory instruments come through? Will it just be for the Secretary of State to make the decisions and then change the legislation—I am not entirely sure how that works in process terms—or will we have a whole other Bill that will be the “consolidation of planning Bill 2025” or something? I am interested as to what the process will be for this, because we have 25 Acts here at least—there are probably more than that, in truth—that need amending.

[Earl Howe (Con)]

As I said, the exercise is an enormous one. It requires legal brains to get their heads around the statutes before we can even think about putting a consolidation Bill together. I am afraid I cannot be precise in answer to the noble Baroness but I will see whether I can clarify and distil what I have tried to say—obviously not very adequately—by writing to her. I will of course copy my letter to the noble Lords, Lord Stunell and Lord Carrington. In doing so, I hope I can provide complete reassurance about the intent behind these regulation-making powers.

[The Earl of Caithness (Con)]

My Lords, I have listened with great care to my noble friend. I understand about consolidation and legislation; it is immensely complicated. He used a phrase that I half wrote down—I missed the last bit because I was listening to the next sentence. He said that there is no intention to change. Does that mean that, when my noble friend and my noble friend Lady Scott leave their jobs, the next Ministers could have an intention to change, or does it mean that there will be no change, only consolidation?

[Earl Howe (Con)]

Consolidation by definition does not extend to changing the policy effect of legislation.

[Lord Stunell (LD)]

My Lords, I think the noble Earl will have detected a degree of unease right around the Chamber about how this clause will take effect, not just in the course of this Administration but in the hands of a different one at a future date. I have heard the discussion and learned a lot. I will need to read Hansard and the noble Earl’s letter when it comes and take a view on whether this is something to take further forward. In the meantime, I beg leave to withdraw the amendment.