Local Housing Need Assessment Reform

Edward Morello Excerpts

Tuesday 13th May 2025 Westminster Hall

[Edward Morello (West Dorset) (LD)]

It is a pleasure to serve under your chairship, Mrs Hobhouse, and I congratulate my hon. Friend the Member for Horsham (John Milne) on securing this important debate.

In West Dorset we face growing housing challenges. Young families are struggling to find homes in villages where they were raised, key workers cannot afford to live close to their jobs, and older residents wanting to downsize find too few suitable options. We need more homes, but they must be affordable, well designed and rooted in the needs of the people who live in them. For the record, our landscape is—in my totally unbiased opinion—the most beautiful in the country, with over 70% of West Dorset falling within the protected national landscape, or area of outstanding natural beauty, as it was formerly known. It is a landscape at the heart of our £320 million tourism economy. Housing policy must reflect the balance we need to strike between delivering homes for our residents and protecting the places that define our communities.

Building more homes must not mean building the wrong homes in the wrong places. The standard method for assessing local housing need currently fails to reflect the complex reality of rural communities such as West Dorset. Rigid housing targets, imposed without flexibility or enough local insight, risk forcing inappropriate developments on these precious areas, undermining the very qualities that sustain our economy and our environment. We need a system that empowers local authorities to deliver the right homes in the right places and with the right infrastructure.

In West Dorset, 78% of homes are under-occupied, with nearly 46% having two or more surplus bedrooms. It is not a crisis of space; it is a crisis of sustainability. Nearly half our population is over 55, and many older residents are living in homes that are simply too large for their needs and are unable to downsize while staying in the communities that they love, while young families are priced out of moving in, or moving back to the communities where they grew up.

It is not just about numbers; every home must come with the infrastructure it needs. Too often, developments in our area go ahead without the GPs, schools, dentists and roads needed to support them, let alone the sewerage system. In West Dorset, our sewerage infrastructure is outdated and overwhelmed. Last year alone, we saw 4,200 sewage spills. It is an environmental and public health disgrace, yet water companies are still not statutory consultees when housing need is assessed or developments are approved. This must change. If the Government are serious about protecting our environment while building new homes, they must require water companies to be involved from the outset, to ensure that the infrastructure can cope and that new homes do not just add to an already failing system.

In constituencies such as mine, many homes sit empty for most of the year, driving up prices and hollowing out our towns and villages. We must give councils the tools to tackle this through planning powers and council tax premiums, and by properly assessing the impact of holiday lets and second homes when calculating housing need. The Liberal Democrats believe that this should be a local authority-driven process. Councils know their areas best. They should have the powers to set planning fees, buy land at fair prices and shape the future of their communities. Development should be community led, not developer led.

If the Government want to build 1.5 million homes, which are sorely needed, then we must reform the standard method so that it reflects reality. Let us give local councils the tools and flexibility to deliver the homes and residents they need in ways that infrastructure and environment can support, as well as taking occupancy rates into account, in order to identify the needs of people to downsize and stay in their communities, and also make water companies statutory consultees, because we cannot build a sustainable future on crumbling foundations. West Dorset does not need imposed numbers. It needs good, affordable homes that work for local people, protect the land and restore trust in the system.