Housing Benefit and Supported Housing

Debate between Helen Hayes and Brandon Lewis

Wednesday 27th January 2016 Commons Chamber

[Brandon Lewis]

I am going to make some progress, because many Members wish to speak, but I will give way again shortly.

Many supported housing tenants have multiple physical and mental health problems, histories of offending and dependency issues. They might be elderly, socially isolated or face barriers to accessing employment or living independently. We know that supported housing can also reduce costs to the wider public sector—for example, in health and adult social care or in criminal justice.

I am sure that the whole House will agree that we want all our families, friends and constituents to live fulfilling and independent lives, wherever possible in a home of their own. Some people need more help to do that, and supported housing gives them that assistance. It provides a place of safety and stability. It helps people get their lives in order. It improves their health and wellbeing, and it provides the platform from which they can reach their full potential.

My ministerial colleagues and I have been out and seen for ourselves, over not only the past few months but the past few years, the difference that supported housing can make. Homeless hostels, such as Shekinah in Plymouth, which I visited last January, provide not only accommodation but invaluable opportunities for people in recovery. The same is true for specialised housing for older or disabled people, such as the Lady Susan Court development in Basingstoke, which I have visited. The residents there are delighted with their homes, which have allowed them to maintain their independence. Their only regret is not having moved in sooner.

My colleague Baroness Williams has also seen how domestic abuse refuges, such as the Saheli Asian Women’s Project in Manchester, are helping women flee terrible abuse and violent relationships and start new lives. Protecting the most vulnerable in society and supporting their housing needs is just as much a priority as driving down the deficit. There need be no contradiction between those two aims.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

Last week I visited Camberwell Foyer in my constituency, which is run by Centrepoint; I was shown around by Shante and Tia, who live there. The Foyer provides brilliant support for young people who would otherwise be homeless for a period of time. It has expressed grave concerns to me about the impact that the withdrawal of housing benefit from 16 to 21-year-olds will have on youth homelessness, in relation to the demand for their services, which it fears it would be unable to meet, and also on young people who are ready to move on and will not be able to access housing benefit for the homes they need. How does the Minister answer that point?

Housing and Planning Bill

Debate between Helen Hayes and Brandon Lewis

Tuesday 5th January 2016 Commons Chamber

[Brandon Lewis]

As I have just outlined, we will be making further provisions about the reports through regulation, and there will be guidance giving more detail. I will be happy to speak with the hon. Lady and her colleagues in the weeks ahead.

New clause 34 enables the Secretary of State to use the power to direct the disposal of land in specified circumstances. These will be set out in regulations. One such circumstance could be where land is listed in a body’s surplus land report under clause 33—for example, land that has been held surplus for longer than two years or, in the case of wholly or mainly residential land, longer than six months. The Local Government, Planning and Land Act 1980 provides important safeguards, and I want to be clear today that they will continue to apply to the new provisions.

New clauses 35 and 36 represent a significant step forward in the transparency of performance on the sustainability and efficiency of the public sector estate. They extend requirements contained in section 86 of the Climate Change Act 2008 to provide an annual report on progress made towards making the estate more efficient and sustainable. New clause 35 provides for similar reporting requirements to apply to local government in respect of each local authority’s estate. Schedule 5 sets out local authorities in England that are subject to this new duty. Applying reporting requirements to the local government estate will strengthen accountability to local taxpayers and support local government’s drive to be more efficient and make effective use of their assets, as the best local authorities are already doing.

New clause 36 mirrors the 2008 Act requirements in respect of the Ministry of Defence military estate. The inclusion of the military estate in the annual state of the estate report will bring greater transparency to that part of the Government estate and its performance in key areas. Government amendment 8 specifies that new clauses 32 and 33 extend to England, Wales and Scotland.

In Committee, I was invited by my hon. Friend the Member for Wimbledon (Stephen Hammond) to consider the potential for fast-track planning applications and having a more competitive planning process. Other hon. Friends backed that up and made similar comments. I can now say that the Government are bringing forward new clauses 43 to 46 and new clause 75 to test the benefits of introducing competition in the processing of planning applications. New clause 43 would give the Secretary of State the power, by regulation, to introduce pilot schemes for competition in the processing of applications for planning permission. It will also give him the power to designate who participates in a pilot scheme. Let me be clear: this is about competition for the processing of applications, not their determination. The democratic determination of planning applications by local planning authorities is a fundamental pillar of the planning system, and that will remain the case during any pilot schemes that the Secretary of State brings forward. Let me also be clear that new clause 43 would require that any pilot schemes brought forward by the Secretary of State will be for a limited period specified in regulations.

New clause 44 provides that regulations may set out how any pilot schemes should operate. New clause 45 provides that regulations may include provision for the setting, publishing and charging of fees by designated persons and planning authorities in the pilot areas, and for the refunding of fees in specific circumstances. It would also provide for the Secretary of State to intervene when he considers that excessive fees are being charged.

New clause 46 provides that regulations may provide for the sharing of information between designated persons and planning authorities in pilot areas, and with the Secretary of State. Amendment 75 provides that new clauses 43 to 46 come into force on Royal Assent. Those new clauses will allow us to test, in specific areas of the country and for a limited period, the benefits of allowing planning applicants to choose who processes their planning application. That will lead to a more efficient and effective planning system, better able to secure the development of the homes and other facilities that our communities need and want. Introducing choice for the applicant enables them to shop around for the services that best meet their needs. It will enable innovation in service provision, bringing new resources into the planning system and driving down costs while improving performance.

[Helen Hayes]

I am pleased to have the opportunity to speak about the planning clauses of the Bill, even at this late hour. The Bill represents a very significant rolling back of the policies of localism introduced by the last Government, who sought to give local communities more control over both planning policy and local planning decisions.

Planning is a progressive discipline. It is the mechanism we have for brokering the differences between individual interests and collective community needs, ensuring that those who profit from development contribute to meeting the needs of the communities in which they are building, and protecting the things that we hold dear—whether local heritage, natural habitats, special views or simply the character and diversity of our local high street or neighbourhood.

The Government like to blame the planning system for the failure to deliver new homes, but objective evidence suggests that it is not the right target. On planning, the Government show again and again that they have an inaccurate analysis and a long-term plan that does not work. The number of homes being granted planning permission each year is about 230,000. That does need to increase, but it is not too far off the 250,000 homes we need in order to begin to make inroads on the housing crisis.

Yet if we look at the number of homes being delivered, either by starts or completions, we see that both stand at about 130,000. Recent research by The Guardian has revealed that the nine house builders in the FTSE 100 are sitting on enough land to build 600,000 homes. Against a backdrop of increased planning consents and continued deregulation, house building starts fell by 14% between April and June of last year.

The Government’s response is to seek to deregulate the planning system further, curiously through a series of centralising measures that will take control away from local communities and make it harder—not easier—to deliver new development. At a Communities and Local Government Committee meeting before the Christmas recess, the Minister for Housing and Planning mentioned a development in his own constituency of 900 homes that is being built out over 15 years. That frustratingly slow speed of delivery has nothing to do with the local planning system and much to do with a Government who simply lack the political will to increase the rate of home building to deliver what is necessary.

The Government’s cuts to local government funding are clearly having a negative impact on planning departments across the country, and I am pleased that Ministers appear to have accepted the arguments that I and other Opposition Members made during the Bill Committee stage: that councils should be able to operate a charging regime for planning services that enables them to recover the true cost of providing the service. Subject to the detail to be set out in the regulations, that should enable councils to resource their planning departments properly, even in a context of continued cuts to their overall funding. Further, it will help to ensure that under-resourced planning departments do not present a blockage to new homes being built. It will enable applicants to be sure of receiving a good level of service and swifter decisions, and help to scale up the level of planning permissions being granted to meet the need we have for new homes.

Housing and Planning Bill (Seventeenth sitting)

Debate between Helen Hayes and Brandon Lewis

Thursday 10th December 2015 Public Bill Committees

[Brandon Lewis]

Finally, I will respond to the many references that hon. Members have made throughout the Committee proceedings, in one form or another, to resourcing—in fact, the hon. Lady just referred to it. The spending review provides a reasonable offer to local government and an increase in resources over this Parliament in cash terms. By the end of this Parliament, local government will be able to retain 100% of local taxes to spend on local services. We have to be honest and clear about this: local authorities have been able to increase their reserves over the past few years from about £13 billion to £22 billion. Although they should retain sensible reserves, they should also look at how to prioritise the funding they have, and they must see planning as a core and important department. As I said at the start of my speech, we already have the powers to allow local planning authorities to set fees locally. I have undertaken to look at some of the suggestions that my hon. Friends made last week. With that, I ask the hon. Member for Dulwich and West Norwood to withdraw the new clause.

[Helen Hayes]

I thank the Minister for his response, and in particular for agreeing that planning services should be properly resourced in local authorities. I agree that there is scope for innovation. I saw innovation during my work in planning, but I think that the task of delivering the new homes that we need through the planning system cannot be fulfilled by innovation alone. Those services must be resourced on a basis that is proper, modern and fit for purpose, given that local authority resources are very stretched and that planning is competing with services that are of a different order of magnitude. I therefore wish to press new clause 24 to a Division.

Question put, That the clause be read a Second time.

Housing and Planning Bill (Fifteenth sitting)

Debate between Helen Hayes and Brandon Lewis

Tuesday 8th December 2015 Public Bill Committees

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I will be brief. I want simply to point out that one of the key problems with the Government’s extension of the permitted development rights is that they allow change to happen without consideration of local economic impacts.

We know that the cumulative loss of employment space as a consequence of permitted developments rights is a significant concern across London. We also know that there are no safeguards on the quality or the suitability of development. That is illustrated by the potential loss of music venues, which play an important cultural and community role in the locations in which they are situated. This is yet another example of the ways in which the Government are seeking to achieve short-term progress at the expense of longer-term outcomes and the quality and character of our neighbourhoods. I therefore very much support the new clauses.

[The Minister for Housing and Planning (Brandon Lewis)]

The aim of new clauses 19 and 20 is effectively twofold: first, to ensure that, where planning permission is granted for change of use to a residential use, the new residents’ amenity is protected; and secondly, to require that the cost of any mitigation measures needed to protect residents’ amenity, particularly against noise generated, is borne by the developer. I believe that the new clauses are unnecessary. They will impose inflexible requirements on local authorities and others where there are already appropriate protections to address these issues. One of my hon. Friends made that point this morning in our extensive debate.

In fact, the national planning policy framework itself incorporates the agent of change principle. It makes clear that businesses that want to develop should not have unreasonable restrictions put on them because of nearby changes to land use. Our thriving city centres are successful because they contain a vibrant and diverse mix of uses. It is therefore inevitable that modern city centre living will be co-located alongside other commercial and, as we heard, leisure uses. That is what makes our cities such dynamic places to live, work and, indeed, play.

In the case of planning permission granted by local planning authorities, they must decide the applications in accordance with the local plan unless material considerations indicate otherwise. Consideration of amenity impacts such as noise and disturbance is already a well established part of decision making, and the NPPF is a material consideration. National planning policy already establishes the principle that local authorities should approve applications for change of use from commercial to residential where there is an identified need for additional housing in that area—one thing that I hope we all agree on is the need for extra housing.

The framework also includes strong protections against pollution. It makes it clear that the planning system should prevent new and existing development from being adversely affected by unacceptable levels of pollution, including noise. The effects, including cumulative effects of pollution on health, the natural environment or general amenity, and the potential sensitivity of the area or proposed development to adverse effects from pollution, should be taken into account. In addition, planning decisions should aim to avoid noise which gives rise to significant adverse impacts on health and quality of life as a result of new development.

The framework goes further by making it clear that existing businesses that want to develop in continuance of their business should not have unreasonable restrictions put on them because of changes in nearby land use since they were established. The planning guidance supporting the framework is clear that the potential effect of the location of a new residential development close to an existing business that gives rise to noise should be carefully considered. The guidance underlines planning’s contribution to avoiding future complaints and risks to local businesses from resulting enforcement action. To avoid such situations, local councils are encouraged to consider appropriate mitigation, including designing the new development to reduce the impact of noise in the local environment and optimising the sound insulation provided by the building envelope.

I am keen to look further at this matter. I have been working with my hon. Friend the Minister for Culture and the Digital Economy, who is arranging for me to sit down and meet some of the music organisations that were mentioned this morning. If a business is working and a nearby building converts to residential housing, that is a good thing; we want more housing. It would be entirely wrong of the people who moved into the residential housing to complain about the business that existed before the residential housing was there. When I was the Minister with responsibility for pubs, I came across examples of residents who complained about a pub that had been there for 150 years two weeks after moving in next door. We need to ensure that those businesses are protected.

In December 2014, we made amendments to the planning guidance to underline planning’s contribution to protecting music venues, but I am interested in looking further at that issue. As I said, my hon. Friend the Minister for Culture and the Digital Economy has arranged for me to meet with those organisations shortly.

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[Brandon Lewis]

I suggest that the hon. Gentleman reads the national planning policy framework. It is only 50 pages long, and I am sure that it will entertain him this evening. I suggest that he looks at how local plans work, how neighbourhood plans work, and at consultation more generally. Even the corporations will come from local areas. On garden cities, towns and settlements and new settlements more generally, I am very keen, as are the Government, to work with various developers, but they will come from the area. There will not be the top-down, failed approach of the past.

Sustainable development in itself is hardwired into the planning system. It is absolutely central to the national planning policy framework, and rightly so. The framework provides a clear view of what sustainable development means in practice. It is explicit that the purpose of the planning system is to contribute to achieving sustainable development, and that three pillars are key: the environment, society and the economy. They are mutually dependent and cannot and should not be pursued in isolation. We do not need a separate, statutory, tick-box requirement around sustainable development that applies only in a case where an urban development corporation or new town development corporation has been created. It would be quite unhelpful and distorting to have a separate definition of sustainable development outlined that applies only to them.

Nor do I think that we should limit local flexibility. Where local areas decide that an urban development corporation or new town development corporation is the best way to deliver regeneration or, indeed, a new town or settlement, rather than ticking their way through that long list of objectives, they should have the freedom to create strong, sustainable communities in a way that best reflects their local circumstances. It is they who best know their local needs, not us sitting here in Whitehall.

Great place making in and of itself is secured not through detailed central prescription, but through good, strong, clear and transparent local leadership. That applies whether or not the development is led by an urban development corporation, such as in Ebbsfleet. A master plan has been worked through for Ebbsfleet that makes it very clear that the ambition is to see the development of garden city principles. I saw that just yesterday when I went to announce the new Didcot garden town development, which is looking for innovation as well as good-quality development.

We see that where settlements are being developed in areas right around our country, from Northamptonshire right the way through to the south-west and Hampshire. Indeed, we only have to look at the well known example of north-west Bicester, where 6,000-odd high-quality homes are being developed to zero-carbon standards. That is being done without central prescription, highlighting that local areas can be trusted to do the right thing and get the right quality for their local community. The local authority itself or the local development corporation when it is set up can deliver that, and should be empowered to do so without those strictures being put on them by central Government. I hope that that provides the hon. Lady with sufficient confidence to withdraw her amendment.

[Helen Hayes]

Will the Minister clarify whether the homes in Bicester that are being delivered to the zero-carbon homes standard were consented to and the process of their delivery begun prior to the abolition of the zero-carbon homes standard?

[Brandon Lewis]

There has not been a zero-carbon homes standard, and we have decided not to go forward with it. They are continuing it in Bicester anyway, and are in fact going to some quite interesting lengths. I say to the hon. Lady that, when I last visited Bicester, I was shown a really ambitious programme to develop a really sustainable community. In one area, the homes that are being built are provided with electric chargers for the cars, and the developer working with the local authority has negotiated with local car dealers to lend the new home buyers an electric car for a couple of weeks to show them how practical they are and how well they work in order to encourage electric cars. That is locally decided, not working to a tick-box from central Government. That is why it is right that local areas are empowered to do those things. More importantly, we should trust local people to do what is right for them. Time and again when we trust local people, they prove that they get it right. I am happy to continue supporting that, so I ask that the amendment be withdrawn.

Housing and Planning Bill (Fourteenth sitting)

Debate between Helen Hayes and Brandon Lewis

Tuesday 8th December 2015 Public Bill Committees

[Brandon Lewis]

Local people go through the process in the full knowledge that they are looking to allocate land. One frustration expressed by areas—while travelling around the country, I have spoken to people in a lot of areas that have done both local and neighbourhood plans—is that they go through all that work and must then effectively do it all again for every individual planning application, which defeats the object of the work that they have done in the first place. Our proposals will back up the work that they have done.

I finish on this point. On the brownfield register, I can reassure the hon. Lady that we intend to require local planning authorities to assess the sites that they propose to put on local registers against criteria to be specified in regulations. That will ensure that the sites are suitable for housing. We will shortly consult on our proposed criteria. We expect them to assess whether sites are available and capable of being redeveloped for housing, and whether development is viable. Local planning authorities already take such matters into account when assessing potential sites in their strategic land availability assessments. Local authority decisions will have regard to the national planning policy framework and to local plans. Our intention is that local authorities will draw on existing strategic housing land availability assessment processes as much as possible to identify and test the suitability of sites for inclusion on the brownfield register.

We also have a rigorous new burdens assessment process in our Department to ensure that local planning authorities receive the relevant resources to meet their statutory obligations. I therefore ask the hon. Lady to withdraw the amendments.

[Helen Hayes]

I thank the Minister for that explanation. It is good to hear proposals regarding some of the detail that might be included in the requirements for the brownfield register and the assessment process.

I remain unclear about the status of the proposed third route to gaining permission in principle—direct application to the local authority. I am unclear whether it might be possible to apply to a local authority for permission in principle for a site that is not on the brownfield register or in one of the other qualifying documents. If that is the case, what requirements for assessment and consultation will there be?

I want briefly to address Government Members’ comments about paragraph (b) in amendment 285. That proposal does not necessarily imply that costs should be borne by the taxpayer; it simply says that the Secretary of State should make provision for regulations that ensure there is adequate funding. Funding for local authority development management functions is an important issue, and we will return to it in the debates on some of the new clauses.

Points were made about environmental and other regulations, and I want the processes and guidance around permission in principle clarified. The hon. Member for South Ribble referred to her own experience, and I am sure that, as a developer, she was experienced and responsible in the projects she undertook. However, I have come across many developers in my constituency who have taken on sites, even under the current system, without knowing some of the constraints in terms of what lay under the ground or, sometimes, the demolition of the buildings on the site. Constraints exist anyway, and it is important that they are acknowledged up front in permission in principle. Unless they are, permission in principle becomes the emperor’s new clothes of the planning system—a piece of paper that purports to give someone permission, but which, when we delve down into the layers of detail and the constraints, offers only short-term certainty, leading to a whole lot of expense and heartache in the long term.

These were probing amendments, and I would like to return to this issue on Report, when we may have seen further detail from the Government. On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

Housing and Planning Bill (Thirteenth sitting)

Debate between Helen Hayes and Brandon Lewis

Thursday 3rd December 2015 Public Bill Committees

[Brandon Lewis]

I rise to give some clarity and, hopefully, confidence to the hon. Lady. As I said, the clause retains existing powers, but it also allows for more targeted intervention by enabling the Secretary of State to direct a local planning authority to prepare or revise a document and take other steps necessary for that to become part of the development plan in its area. That will be more targeted than the current heavy-handed approach. The existing requirement on the Secretary of State to give reasons for exercising those powers will be retained. The hon. Lady is quite right that those powers are used rarely—in fact, they have been used twice this year. The requirement in terms of local planning authorities reimbursing the Secretary of State will also be retained. He will have to give reasons.

Should the Secretary of State need to step in, the measures give him options that enable more decisions to be made locally, which is hopefully a beneficial change. For instance, if an authority is not making progress with its local plan, the Secretary of State could direct the authority to take steps to progress it. The authority would remain accountable for the plan and could determine with its community—quite rightly—how it will address the Secretary of State’s concerns most appropriately to get a plan in place.

The clause ensures that the Secretary of State will retain the ability to intervene and prepare or revise the plan in consultation with the local community. Importantly, when that happens, the clause will give the Secretary of State other options. He could, for example, return a plan to a local authority to take through the examination process or to decide whether to adopt a document. I hope that the hon. Lady accepts that that is a big step forward for localisation in the local planning process.

Question put and agreed to.

Clause 99, as amended, accordingly ordered to stand part of the Bill.

Clause 100 ordered to stand part of the Bill.

Clause 101

Planning powers of the Mayor of London

Question proposed, That the clause stand part of the Bill.

[Helen Hayes]

The Opposition support the aim of a planning process that does not inhibit the speed of potential delivery. London’s boroughs have a commitment to boosting London’s housing supply and building the homes that Londoners need in accordance with local priorities, but there is some concern about the planning requirements in the clause, which provide the Mayor of London with new powers of intervention. The Government must ensure that the new planning legislation that gives the Mayor greater powers to call in local planning applications does not undermine local planning controls that ensure that developments are of benefit to local communities and local development needs.

The Bill introduces new powers for the Mayor of London to call in planning applications in areas determined through the London plan. We support the Government’s ambition to ensure that the strategic importance of London’s housing supply is fully considered, particularly in those areas where it will have most impact. We also support more housing and a faster rate of home building in London. In July 2013, for example, more than 120,000 homes had agreed planning permission but had not yet been built.

It is not clear that the Bill gets the balance right between passing more power to the Mayor and local councils, or how it will achieve the right balance between rapid development and responsiveness to local communities. I would welcome more clarity on what the clause is specifically designed to achieve, why the change is necessary and what problems in the current London planning processes it will remove. Has the Minister consulted London’s local authorities on the new provision? Does he believe that responsiveness to local communities and the related duties of local borough planning authorities are safeguarded in the new provision? How will the role of authorities change? How will the provision be implemented?

Will the Minister publish further details on how the Mayor’s new intervention powers may be exercised in practice, safeguarding the need for active consultation with boroughs as part of the process, as well as detailed local community consultation? Will he make a commitment that any new intervention powers for the Mayor will be used only in instances of London-wide strategic importance?

To retain Londoners’ support for positive growth and development, it is critical that local communities have a say in planning decisions in their area. It is not clear how widely the new definitions of the London plan could be drawn or the extent to which the new powers could be used. There is therefore a risk that considerable new call-in scope could overwhelm the capacity of the Greater London Authority’s planning function and emphasise operational planning at the expense of its strategic role. It must therefore be ensured that any additional powers that seek to maximise the Mayor’s capabilities to control strategic housing supply do not undermine boroughs’ capabilities to deliver local housing stock. I would welcome the Minister’s response on those points.

[Brandon Lewis]

This clause, which amends sections 2A and 74(1B) of the Town and Country Planning Act 1990, empowers the Secretary of State to prescribe

“applications of potential strategic importance”

by reference to the Mayor of London’s spatial development strategy, otherwise known as the London plan or the London boroughs development plan document.

At present, the Mayor exercises powers under the 1990 Act to call in for his own decision certain planning applications of potential strategic importance for Greater London or to direct a local planning authority to refuse planning permission. The Secretary of State prescribes in secondary legislation which applications are subject to these powers. The practical effect of the clause will be to expand the circumstances in which the Secretary of State can prescribe applications as being of potential strategic importance, for the purposes of the Mayor’s call-in and refusal powers. For instance, it could allow different thresholds in growth areas identified in the London plan, allowing the Mayor greater influence over development in those areas where necessary. That would be an important additional tool to allow the Mayor to encourage development in key locations, helping to ensure the delivery of much needed additional homes.

The clause will also enable the Mayor, in circumstances prescribed by the Secretary of State, to issue consultation directions. These directions would require a London borough to consult the Mayor before granting planning permission for development described in the direction. The Secretary of State can already, under existing powers, issue similar directions to require local authorities to consult the Mayor when receiving applications for development on certain safeguarded wharfs on the River Thames or developments that would affect key London sightlines. In conjunction with the Mayor’s power to direct refusal of planning applications and policies in the London plan, those directions control development that might harm London’s capacity for waterborne freight or its protected views.

The effect of the clause would be to enable the Secretary of State to devolve decisions on which wharfs and sightlines to protect to the Mayor, which would complement the Mayor’s existing strategic planning role and allow the Mayor to be more responsive to London’s changing needs in the future.

Question put and agreed to.

Clause 101 accordingly ordered to stand part of the Bill.

Clause 102

Permission in principle for development of land

Housing and Planning Bill (Tenth sitting)

Debate between Helen Hayes and Brandon Lewis

Tuesday 1st December 2015 Public Bill Committees

[Helen Hayes]

I will not because I want to make progress, in the interests of allowing other Members to speak. The amendment in the name of my right hon. Friend the Member for Tooting seeks to ensure that homes lost to the rental sector under the right to buy and forced sales are replaced one for one, like for like, within the local area. I note that the Minister has been rather preoccupied with his emails while I have been telling the story of Simret, Petros and their children, but I hope that when he responds he will tell me that—

[Brandon Lewis]

The hon. Lady’s behaviour—her misrepresentation of what my hon. Friend the Member for South Norfolk said, and what she has said just now—is, to be blunt, very misleading to the Committee and Hansard.

[Helen Hayes]

I was concluding my remarks. I hope that the Minister will have a response for my constituents when he responds to the amendment.

Housing and Planning Bill (Fifth sitting)

Debate between Helen Hayes and Brandon Lewis

Thursday 19th November 2015 Public Bill Committees

[Brandon Lewis]

Again, this is one of the differences between the Government and the Opposition: we trust local people and local authorities to do the right thing for their local communities. That is what decentralisation is truly about.

Starter homes are a new product, designed to serve a pressing need. We have set out the key parameters: a starter home is available to first-time buyers under 40, at a minimum discount of 20% of market value, and subject to a price cap. A starter home is a new build property or a new conversion.

My hon. Friend the Member for Wimbledon is absolutely right; amendment 61 would replace the minimum 20% discount on the open market value with affordability criteria based on average local household income. Affordability would be determined by the local authority. Much was said on Second Reading about the affordability of starter homes. Research on affordability by Shelter was based on median house prices in each region, but I challenge whether first-time buyers actually access the market at the average house price.

The hon. Member for City of Durham made a point about the timelines and how the mortgage companies work. We work with and talk to developers and hear what they say. We will do the same with mortgage companies, which I have met, including the Council of Mortgage Lenders. If we apply the discount in perpetuity, we are in effect asking the lender to give a 100% mortgage, because the market value is not realisable. That simply does not fit with what we are looking to do. There are niche products out there that offer that, and there is a place for them, but I will touch on that in a moment.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I do not accept that no value at all could be realised by maintaining a 20% discount in perpetuity. The purchaser of the home would still be able to realise the uplift in value; the uplift in value would just be at 20% less than the market value, so as market values rise, there is still a value to be realised. Does the Minister accept that point?

[Brandon Lewis]

The hon. Lady is absolutely right, but that again highlights the difference between the Government and the Opposition, because she misses the reality that neither the mortgage company nor the property owner can ever realise 100% of the property’s value, which means that, at the point of taking out the mortgage, someone is effectively taking out a 100% mortgage. Banking and gambling on a future increase in a property’s value is partly what got this country into the mess with house prices we suffered under the previous Labour Government, so I am not prepared to put first-time buyers at risk in the way she outlines.

The average market price for homes bought by first-time buyers in 2014 was £173,000 in England, excluding London. That compares with an average house price for England last year of £243,000. In London, first-time buyers paid £364,000 on average compared with an average house price for London of £470,000.

We expect starter homes to be an entry-level property, valued at below the average first-time buyer price for the local area. We have examined affordability of homes for those who are currently in the private rented sector. If they were to buy in the lower quartile of the first-time buyer market, outside of London, up to 64% of households currently renting privately would be able to secure a mortgage on a typical starter home, compared with just 50% who could buy a similar property now at full market value.

Within London, up to 55% of households currently renting privately would be able to secure a mortgage on a starter home in the lower quartile of the first-time buyer market, compared with 43% who could buy a similar property now priced at full market value.

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[Helen Hayes]

I beg to move amendment 78, in clause 6, page 4, line 10, at end insert—

‘(6) Before issuing a compliance direction, the Secretary of State must take account of any local housing and planning documents based on an assessment of local housing needs.”

It is a pleasure to serve under your chairmanship, Sir Alan. There is a long-established principle that both planning policy and planning application decisions should be taken within a national framework in the context of considering local need. The coalition Government prioritised localism through neighbourhood planning and objectively assessing housing need. The Bill imposes a new obligation on councils in relation to starter homes, with absolutely no regard to objectively assessed local need. The new obligations do not cover other forms of affordable housing.

The Minister said a number of times that he sees starter homes as part of the mix. The Opposition support that, but it does not make sense, in that context, that such strong duties are being imposed on local authorities, in relation to starter homes, with no comparable measures to protect any other form of housing. Local need varies dramatically across the country. In each of my two boroughs, 20,000 people are on the waiting list for a council home. We have heard witness after witness query the lack of local discretion in the Bill for individual local authorities, and that is what the amendment would address.

Turning to some of the evidence we have received, the respected voluntary sector organisations Shelter and Crisis said that in most parts of the country, lower-income households would not be able to afford starter homes. They said that starter homes will primarily help couples without children and those on average or above-average salaries. They will be inaccessible to families on or below the Government’s national living wage in all but 2% of council areas. For single people on average wages or lower, only six local authority areas will have affordable starter homes.

The Home Builders Federation states:

“There is potential for market distortion if the numbers of Starter Homes that ministers are targeting to be built actually come onto the market. The effect is likely to be highly localised and could impact upon the saleability of units on new sites”.

The Royal Town Planning Institute states:

“Now not only is social rent and shared ownership potentially driven out and replaced by starter homes up to £250,000 in price, but this appears to be obligatory and not open to local negotiation. This lack of discretion may affect delivery.”

PlaceShapers states that it supports measures to increase home ownership

“but do not believe that this should be at the expense of those who also aspire to get on in life but are unable to afford to buy a home of their own.”

It believes that it should be left to the relevant planning authority to make decisions as to the mix of new homes.

All those comments are from respected organisations across a range of sectors saying that there is a need for more local discretion. The amendment would give local authorities a necessary safeguard by requiring the Secretary of State to take account of local need before issuing a compliance direction. That would help to ensure that the Government and the local authority are considering the same housing needs assessment and would give a safeguard that all types of tenure—the Minister says that he believes in all types of tenure—can be supported.

If local needs are overridden by the Government, the consequences will be serious. A reduction in the supply of homes for those on lower incomes risks exacerbating unaffordability and increasing the housing benefit bill. Combined with the housing benefit cap and the lack of regulation in the private rented sector, it will lead to an increase in homelessness. London already houses 49,000 households in temporary accommodation at considerable cost to the public purse. Without the amendment, which would create a safeguard that local needs would be considered, there is a considerable risk that the Bill will deliver new homes while ignoring the needs of those with the greatest housing need. That will make the housing crisis worse and cost the public sector more.

Without the amendment, there is also a significant democratic deficit. In London, borough planners have to take account not only of their local plans, but the London plan. All of that can be trumped by the new national-level requirement that is not subject to examination through a local plan process. How can the Minister be sure that Whitehall will know what is best in each locality and housing development? I do not think that he can. The amendment simply seeks to ensure that the new homes that are delivered, whether they are to rent or to buy, meet local needs.

The Minister has stated that the mix of tenures, among other things, will continue to be a negotiation between the developer and the local authority. If he is not willing to support the amendment, will he please explain how that will be the case? How is the Bill compatible with localism? How will the Bill not result in a reduction in the social housing provided for those in the greatest housing need?

[Brandon Lewis]

Clause 6 provides for a compliance direction if a local authority is failing to comply with its starter homes duties. Where the council has a policy in a local development document that is incompatible with the starter home duties, the direction would say that that policy must not be taken into account when certain planning decisions are taken. The hon. Lady gave some figures and details that we heard in evidence from Shelter last week. We outlined after that session, and earlier today, that the figures for new build homes in constituencies around the country simply do not stack up to back that argument.

The compliance direction must set out the Secretary of State’s reasons for making the direction and must be published.

It is important that we deliver the starter homes so that people have an opportunity to buy a home of their own with the 20% discount. That will open up home ownership to a new range of people who aspire to own their home but have been locked out of the market probably for the best part of a decade now.

We have considered carefully how best to frame the compliance direction. The new statutory duty on councils to support starter homes should have teeth, otherwise it will not deliver the housing opportunities for first-time buyers that are so badly needed. We want to ensure the compliance direction presents a strong incentive to councils to support the delivery of starter homes, but we also want to ensure that local plans continue to shape planning decisions for an area. We want local plans by, for and with local people.

As drafted, the direction would act on a policy or part of a policy that is being used to prevent delivery of starter homes. The remaining planning framework for the local plan would remain in force. Communities will continue to shape development in the area, and this is a reasonable and balanced approach. The direction would not act on a neighbourhood plan policy or a London plan policy. I want to reassure hon. Members that it is our firm intention that the compliance direction is a backstop provision. It would rarely be used, but it can act as a strong incentive to deliver. There are other examples of planning law where a sanction exists to act as an agent of change, but it is used sparingly.

The planning performance regime, introduced in the Growth and Infrastructure Act 2013, has already driven quicker decisions on applications for major development, from 57% to 76% in 2015. Only three councils have had to be designated, two of which have already been lifted out of that category as performance has improved. I want to reassure hon. Members that a compliance direction would be issued only after very careful consideration of the evidence by the Secretary of State. Councils must report on their actions to support starter home delivery under the requirements in clause 5. This will be core evidence, but there will be the opportunity for councils to submit further evidence to the Secretary of State. Any exceptional circumstances could be considered at this point.

The hon. Member for Dulwich and West Norwood spoke to her amendment to require the Secretary of State to take into account planning documents based on an assessment of housing needs. The local plan will contain valuable evidence on housing need. As plans are updated, we would expect the evidence to consider the needs of first-time buyers. Up to date, the Secretary of State could choose to take such evidence into account. However, this sanction is about the statutory duty to promote the supply of starter homes. We will set out clear guidance as to how councils should work to fulfil this duty, but this is not a negotiable ask; it is a clear legal requirement to support starter homes for first-time buyers. If we are to achieve a real difference for first-time buyers—the step change we need and want to see—we must ensure all locations do everything they can to deliver those homes for first-time buyers at a rate they can afford.

The Secretary of State should have discretion as to what evidence is considered. If there is overriding evidence that the council has done everything it can to comply with the starter homes duty, but has not been able to deliver, that could be taken into account. The element of discretion is necessary to ensure we have an effective and operable sanction. I hope that with that assurance the hon. Lady will withdraw her amendment.

[Helen Hayes]

I thank the Minister for his response. However, I find it astonishing that he appears not to be listening at all to evidence from a range of very respectable organisations that are all involved in the delivery of housing and deeply concerned about it. Councils across the country, including London Councils, which has given its support to the amendment, are deeply worried about the compliance direction. They are particularly worried about its use in order to trade off the needs of one type of housing need against another type of housing need.

Housing Supply (London)

Debate between Helen Hayes and Brandon Lewis

Wednesday 15th July 2015 Westminster Hall

[Brandon Lewis]

I will not give way at the moment, because of the time restraint.

Since 2010, we have been able to deliver more than 260,000 affordable homes in England, including more than 67,000 in London alone. We have exceeded the target that we set ourselves for the period to 2015, and we will not stop there. We will ensure that we deliver another 275,000 affordable homes by the end of this Parliament. That is the fastest rate of affordable house building in more than 20 years, and it will benefit communities across our country.

The constituency of the hon. Member for Ealing Central and Acton will benefit hugely from the resulting housing regeneration. Early work has shown that Old Oak Common alone could result in the development of up to 7,650 affordable homes, and we recognise that high earners in social housing should pay their fair share. That is why last week’s Budget, which some hon. Members who have spoken today have clearly not yet read, not only included our commitment to protect social tenants in England from rising housing costs by reducing their rents by 1% a year for four years, but will ensure that high earners who live in social housing are not being unfairly subsidised at the taxpayer’s expense.

[Helen Hayes]

Although the announcement of the 1% reduction in social rents will be welcomed by tenants, it will leave a £16 million hole in Southwark Council’s housing revenue account. Can the Minister give us an assurance that that money will be replenished by the Government to enable Southwark Council’s continued investment in affordable housing?

[Brandon Lewis]

I would like to see Southwark Council go further in developing more homes and using some of the £21 billion of reserves that councils have built up over the last few years. We are determined to make sure that tenants get a fair deal, particularly where social housing costs have increased at almost double the rate of the private rented sector over the last few years. We are committed to supporting the aspiration of ordinary hard-working people who want to own a home of their own. That is why we will deliver 200,000 starter homes over the course of this Parliament, at a 20% discount on market value.