Planning and House Building

Felicity Buchan Excerpts

Thursday 8th October 2020 Commons Chamber

[Bob Seely (Isle of Wight) (Con)]

I beg to move,

That this House welcomes the Government’s levelling up agenda and supports appropriate housing development and the Government’s overall housing objectives; further welcomes the Government’s consultation, Planning for the Future, updated on 6 August 2020, as a chance to reform housing and land use for the public good; welcomes the Government’s commitment to protect and restore the natural environment and bio-diversity; and calls on the Government to delay any planned implementation of the changes to the standard method for assessing local housing need proposed by the Government’s consultation, Changes to the Current Planning System, published on 6 August 2020, and Proposal 4 of the Government’s consultation, Planning for the Future, on a standard method for establishing housing requirement, until this House has had the opportunity to hold a debate and meaningful vote on their introduction.

I speak in support of the motion, which is supportive of the Government’s aims overall but requests that the new algorithm, process and formula should not be introduced without a meaningful parliamentary vote, I assume in a Bill next year.

In our manifesto, we promised to level up and connect the country so that everyone can get a fair share of future prosperity. If levelling up means anything, it surely implies an integrated plan for infrastructure, jobs and housing to revive overlooked northern and midland towns and to stop the endless drift of jobs and opportunities to the south, the shires and the suburbs. I support levelling up 100%, but broadly speaking, the danger in the way the new targets have been shaped is that the biggest housing increases will be in rural shires and suburbs, and the biggest falls will be in the urban north and midlands. The worst of all worlds would be to hollow out our cities, urbanise our suburbs and suburbanise the countryside, yet I fear that that is what we might accidentally achieve. That is not levelling up; it is concreting out, hence this debate.

The figures I will be quoting from the House of Commons Library show that in rural and suburban England, excluding cities, the new algorithmic process demands an additional 772,072 homes—more than three quarters of a million—or more than 100 new towns of 7,000 souls. The new total for shire England, minus the cities, is 1,513,529 properties, or more than 200 new towns. Both those figures are underestimates, in that, for example, they do not include Dorset, Cornwall or the Isle of Wight. So over 15 years, compared with current agreed local plans, rural and suburban Gloucestershire will see an additional 29,000 homes, taking the total to 54,000; rural and suburban Surrey will see an extra 45,000, creating a new target of 84,000; and in rural and suburban Northamptonshire, an extra 26,000 will take the total to 72,000.

However, while the suburbs and countryside see dramatic rises, the numbers for the cities, where there are already infrastructure and services, will fall. For example, over 15 years, against the current standard method, Manchester falls by 14,000 over 15 years, but Cheshire East rises by 10,000; Nottingham city falls by 3,700 while Nottinghamshire rises by 25,000, and Southampton falls by 2,500 while Hampshire rises by 26,000 to 115,000 overall. Targets for Liverpool and Newcastle are 48% and 56% lower than their current building rates, and 30 local planning authorities in the north have targets lower than their current building rates.

We have shrinking targets in cities and rocketing targets in shires. The glaring exception to that urban free pass is London, which sees astonishing rises against local plans over a 15-year period. Westminster’s housing requirement is up 438%; Barnet sees an additional 50,000 properties, Bromley 27,000 and Hillingdon 21,000.

[Felicity Buchan (Kensington) (Con)]

My constituency of Kensington sees a seven-times increase relative to the December 2019 proposed London plan. While we all want to see more housing, does my hon. Friend agree that targets need to be achievable and realistic?

[Bob Seely]

If the targets are unrealistic, it will cause grief for no purpose, so I thank my hon. Friend for her remark.

In the last three London boroughs that I mentioned—Barnet, Bromley and Hillingdon—alone, the algorithmic process demands a total of 153,938 new properties, or the equivalent of 20 small new towns in three London boroughs. I am sure the Minister and I would agree that we need to increase density to make better use of land, but we need our targets to be achievable.

All this is being done for the absolutely laudable reason of affordability. That is exceptionally important, but the Royal Town Planning Institute says that increases in house building do not necessarily have a discernible impact on price. The why is complex; developer choice, foreign investment purchases, stamp duty and slow wage growth all play a role, but, above all, land banking may show why the liberalisation of permission does not necessarily equal more supply.

--- Later in debate ---

[Christopher Pincher]

I can give my right hon. Friend that absolute assurance.

On the question of the near-term local housing need calculation, it might be helpful if I explain the background to our proposals to revisit it. In 2018, we introduced a standard method for calculating local housing need that was designed to give communities the transparency they deserve by showing the minimum number of homes that areas need, but it is clear that the current formula for local housing need is inconsistent with our manifesto aim to deliver 300,000 homes a year by the mid-2020s. Existing adopted local plans provide for only 187,000 homes per year across England. This is not just significantly below our ambition but lower than the number of the homes we delivered last year. It is also lower than the estimate of groups as diverse as KPMG and Shelter who say that we need to deliver homes for sale or for rent north of 250,000 per year to meet our need.

To address that in the short term, we committed to reviewing the standard method at this year’s Budget. The consultation is now closed, but I can assure the House that over the past two months my Department has actively engaged with the sector and is listening to feedback. Many right hon. and hon. Members will know that I too have been listening and discussing carefully. I am especially mindful that Members are concerned about geographic imbalance—having too many homes in the south and not enough in the midlands and the north. Equally, I recognise anxieties about what these changes might mean for our countryside in contrast to our urban areas. I therefore want to reassure the House that through this consultation process we are committed to addressing any supposed imbalances. I recognise that our future is not just about what we build but where we build it. The standard method has focused on affordability. That is natural, because our concern is that there are areas that are least affordable, and it cannot be right that where historically supply has not kept up with demand, people are prevented from living where they most want or need to live. But we must also consider other factors. The House has considered, and we will consider, such factors as stock renewal, so we level up those areas of our country—not just the midlands and the north; there are areas of East Anglia, too—that suffer from poor-quality housing and infrastructure; and brownfield regeneration, so we improve home-building opportunities in our towns and cities on urban land for too long derelict or unloved.

Our changes to the standard method in the short term will be just a starting point. We know that the housing numbers generated by the standard method will not necessarily be the numbers that areas plan for, because of the physical and geographic constraints placed on them, as my right hon. Friends the Members for Epsom and Ewell (Chris Grayling) and for East Hampshire (Damian Hinds), my hon. Friends the Members for Colne Valley (Jason McCartney) and for Leigh (James Grundy) and many others mentioned. Land availability or local constraints might mean that there is a need for neighbouring areas to meet demand more appropriately. We look forward to giving our detailed response to the consultation following a careful analysis of all responses. Until such time, all the figures that are bandied about in the media, some of which were quoted in the House today, are entirely speculative.

Our White Paper “Planning for the Future” represents our long-term aspirations to reform our planning system to make it fit for the future. Anyone who knows our planning system knows it to be opaque, slow and almost uniquely discouraging for all but its most expert navigators. Currently, it takes on average seven years to complete a plan and a further five years for associated permissions to be granted. Our planning White Paper proposes a modern, digitalised and map-based system, with up-front strategic controls, leaving local planning authorities and, crucially, local communities much more empowered to design the neighbourhoods that they want, that look the way they want, and that have the infrastructure they need.

The House will be concerned to hear that only around 3% of local people respond to planning applications. In local plan consultations, engagement can fall to less than 1% of the local community. That is simply not acceptable in a modern democracy, and we will change the system to increase local involvement. Our planning White Paper proposes a simpler, clearer process for planning design.

[Felicity Buchan]

Does my right hon. Friend agree that when it comes to designating zones, it is important that that is done by local authorities rather than metro Mayors, since they are closest to local communities?

[Christopher Pincher]

Local planning authorities have a crucial role to play. They are the building blocks of local democracy, and certainly they should be responsible for designating what goes on in their local authorities.

Importantly, one of the factors we have to contend with is land constraints such as national parks, green belts and flood risk, so that we identify the most appropriate land. We continue to welcome views on how we can best implement this and will reflect very carefully on those before proceeding, particularly on the incentives we can provide to small and medium-sized enterprises and other developers to get building—that was mentioned by a number of Members across the House—and how we can encourage greater neighbourhood involvement. I am keen to ensure that the present neighbourhood planning system and neighbourhood plans find their place in our new regime, and I encourage contributions and thoughts on how that might be achieved.

Importantly, a number of Members raised the issue of infrastructure, including my hon. Friends the Members for Leigh, for Totnes (Anthony Mangnall), for Arundel and South Downs (Andrew Griffith), for Dartford (Gareth Johnson) and for North East Bedfordshire (Richard Fuller). We welcome further thoughts on how best to deal with this.

For many proposed new developments, a key concern and source of local objections is the lack of critical infrastructure. Today’s system of developer payments for affordable housing and infrastructure is slow and uncertain. Negotiations between councils and developers, where big developers have greater firepower, cannot be relied upon to provide what communities truly need. Indeed, 80% of local authorities tell us that the section 106 system of contributions is too slow. Our White Paper proposes a nationally set infrastructure levy, which will not only simplify the system but ensure fairer contributions from developers, increasing the overall revenue we raise for infrastructure such as schools, roads, clinics and playgrounds. As a result, we intend it to deliver at least as much affordable housing as presently and provide much-needed infrastructure much earlier in the process.

We are keen to receive feedback, including on whether the proposals for a national levy might benefit from greater localisation. The consultation is open until 29 October, and I encourage all to contribute and set out their views on how our proposals can be improved. We will then set out our final decisions and proposed next steps through a Government response.

In closing, I wish to thank again all those who have spoken today. I very much welcome the contributions, which, though short in duration, were long on local wisdom and value to this important debate and to our consultations. We will reflect carefully on what we have heard and the feedback we receive. As we advance, we will endeavour to keep the House well-informed of these important changes, because make no mistake: they are important. They are what we need to do to deliver 300,000 good-quality new homes a year in the places that need them, and in the long run, they are what we need to do to build back better after covid-19. They are what we need to do to meet the aspirations of the people we serve now and in the generations to come.