Neighbourhood Planning Bill (Sixth sitting)

Debate between Helen Hayes and Roberta Blackman-Woods

Committee Debate: 6th sitting: House of Commons
Tuesday 25th October 2016 Public Bill Committees

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

My hon. Friend is setting out her case powerfully. It has been suggested that the proposal set out in clause 7 is a sledgehammer to crack a nut. Does she agree that it is a sledgehammer to crack the wrong nut, because what really needs to be addressed is the resourcing of local authority planning departments, so that they can apply the existing guidance thoroughly and rigorously, give each application the time it needs and properly negotiate with applicants to ensure that applications are policy compliant?

[Dr Blackman-Woods]

My hon. Friend, as ever, hits the nail on the head. It is the wrong target, which is exactly our point. A lot of information is available to local authorities, never mind their experience of applying conditions. The problem is not setting conditions, but the lack of resourcing for planning departments. As we rehearsed this morning, most people’s problem with pre-commencement planning conditions is not the conditions themselves but the time it takes to discharge them because of the lack of resources in planning departments. A lot of information is available to local authorities, so in general one would not expect them to set unnecessary conditions, because that would clearly be in breach of all the documents I have discussed.

I picked up, at random, a list of pre-commencement planning conditions from my constituency. The developer has just written to me about them, to ask me to ensure that the local authority discharges them, and I thought, “Here’s a helpful bit of information that has just dropped into my inbox at a very appropriate time.” To give the Committee some context, the development is taking place in a conservation area—a rather large student accommodation block—so one would expect the local authority to take some care and use some diligence over the pre-commencement planning conditions, and indeed it has. I want to go through the list—I will do so as quickly as possible—because Government Members are saying that these pre-commencement planning conditions are often unnecessary, yet when I went through the list I could not find a single one that was unnecessary. The list states:

“No development shall take place until samples of the materials to be used in the construction of the building hereby permitted have been submitted to and approved in writing by the local planning authority.”

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[Helen Hayes]

I was just about to say that in addition to the numbers, which I do not dispute are important, the size and type of homes that we are delivering matters. It matters whether we are delivering homes that families can live in and have a good quality of life in, or only homes that are too small even to fit adequate furniture into. Minimum space standards matter, and the Government have failed to address that issue. The provision of amenities matters. It matters whether there is a local park that is properly funded through the planning process. It matters whether the roads and pavements are of an appropriate standard, whether there is lighting and whether our neighbourhoods are attractive to live in. It matters whether there are places in schools and GP practices for an expanding population to access.

Above all else, affordability matters to my constituents. It is simply not fair and not appropriate that new homes are allowed to be delivered with no contribution at all to the affordable housing that we need more than any other type of housing in London. As a Member of Parliament for a London constituency, the Minister should, quite frankly, know that.

The extension of permitted development rights is a disaster for the delivery of the high-quality neighbourhoods with good facilities and services that we all want to see. We want to see the right numbers of homes being delivered, but we also want to build attractive and successful communities for the future, not tomorrow’s regeneration projects. I am deeply disappointed that, through the Bill, the Government are trying to patch up a broken policy, rather than accepting that it is not working in the way it needs to and reforming it to make it more fit for purpose, so that we can deliver not only the number, but the type and quality, of new homes needed within the successful neighbourhoods that we all want to see.

[Dr Blackman-Woods]

My hon. Friends the Members for Oldham West and Royton and for Dulwich and West Norwood have done an effective demolition job on the Government’s case for promoting permitted development. The Opposition are on record, on a number of occasions, as being totally against the relaxation of permitted development rights for all the reasons that my hon. Friends outlined, including the very poor-quality development that often ensues from developers taking a permitted development route.

It is not that we are against a change of use from offices or agricultural buildings to residential; we just think that it is critical that local people have a say on whether those changes of use take place. The process should take place through the planning system, not through permitted development. We are living with some of the huge consequences, such as poorly planned developments and neighbourhoods, emerging from too much permitted development.

On amendment 28, we are not in favour of permitted development, but if the Government are in favour of it, it makes some sense that they might actually want to know what is going on with it. To date, they are probably not that aware. The compilation of the planning register would elicit further information from local authorities about what is happening with regard to permitted development. The circumstances set out in clause 8 are too restrictive and will not capture some of the information that local authorities have told all members of the Committee is very important to them.

How many additional homes have been created through permitted development? What is the impact on any local council regeneration plans, and on the local plan? Those questions are important. Let us begin with the local plan. If a lot of windfall sites have emerged through permitted development, and a lot of homes—even of relatively poor quality—have been created that contribute towards meeting the housing need, there might be an impact on local plan provisions. The local authority might like an opportunity to tell the Minister and everyone else about the impact of permitted development on the local plan. It will also want to be able to give information not only on the type of housing delivered but on the number of homes, who they are for, whether they are affordable, their quality and a whole lot of other issues.

My most significant point about the amendment is what it would mean for regeneration, and I am really interested to hear what the Minister says about that. As my hon. Friend the Member for Oldham West and Royton touched on earlier, a number of cities and towns have areas with empty shops, pubs or offices, but they are empty for a reason: the local authority has or is developing a plan to regenerate the area. Local authorities have told us that a developer will now be able to come along, get the office block and say, “I can make a quick buck here by converting this block into housing through the prior approval route”—and bang goes the council’s ability to regenerate the whole area in line with a local plan that has emerged through the neighbourhood planning system or consultations with the community. That does not seem a very sensible way forward.

If I were the Minister, I would want to know whether a policy of mine was actually impeding local authorities from regenerating their areas because permitted development was getting in the way. I would want to do something to put that right and to help the local authority with that process. The Minister will know that the prior approval system in place for permitted development simply does not give a local authority the tools to turn down a permitted development, either for regeneration reasons or because it severely, or even mildly, affects the authority’s local plan.

Indeed, the prior approval system is very complicated. The Government make much of the fact that they have simplified the planning system; I could not help but smile when I saw the statutory instrument that they passed last year, the Town and Country Planning (General Permitted Development) (England) Order 2015, which is 162 pages long—such have been their extensions to permitted development. Each class of permitted development has different prior approval conditions, but none of them allows consideration of the issues addressed by our amendment. For instance, for a change from offices to dwelling houses, the local planning authority has to consider

“whether the prior approval of the authority will be required as to…transport and highways impacts…contamination risks…and…flooding risks”,

but it cannot take account of anything else. If the development will impede a regeneration scheme, the authority cannot even consider that. If there are huge energy conservation issues because the office block has poor energy efficiency, the authority cannot do anything about that either. If it thinks the materials are wrong, it cannot do anything about that. If it absolutely needs affordable housing in the area, it cannot do anything about that. There is really a very small list of things that it can do anything about, and that list certainly does not cover the issues in the amendment.

Neighbourhood Planning Bill (Fifth sitting)

Debate between Helen Hayes and Roberta Blackman-Woods

Committee Debate: 5th sitting: House of Commons
Tuesday 25th October 2016 Public Bill Committees

[Dr Blackman-Woods]

I am happy to answer the Minister’s question, but I am trying to find out what the Minister thinks about this particular subsection. Has he thought through a set of circumstances in which adding or removing a restriction or adding or removing a condition would make something acceptable in planning terms, but might have unforeseen consequences somewhere else? I am just giving the Minister an example because there could be environmental concerns. I suppose there are a lot of examples when we think about it. The removal of trees might be allowed under this clause, because that would be acceptable in planning terms, although I am not sure why it would be acceptable. There might be ongoing environmental or even social issues arising from that.

If we come back to the traffic measures, there is the issue of the roundabout. Traffic measures could be applied to make a development acceptable, and there could be absolutely dreadful issues for the local community in terms of air quality because of the requirement to make the development acceptable in planning terms. So the amendment is very much probing like amendment 15. We are trying to find out what this is all about in actuality. How will it work in practice? What sort of conditions might be set or removed by the Secretary of State? What is the impact of the decisions made by the Secretary of State and how will proposed section 100ZA(2)(a), (b) and (c) work in practice?

I will now move on to discuss amendment 16, which is innocuous and quite helpful. It simply asks for some consultation with local authorities when regulations are being drawn up. I actually thought this might be a helpful amendment for the Minister because, as we have already explained, we clearly have some difficulty understanding and finding an evidence base to support what is in clause 7.

If these regulations are to do the job that the Government want them to do—transfer powers to the Secretary of State, so that he or she can apply conditions or take conditions away—presumably they want the regulations to work in practice. These regulations really impact on the work of local authority planning departments, and local authority planning officers will be the people to know whether this clause is going to produce anything helpful or not in practice. It seems entirely reasonable that there would be a particular role for local authorities to contribute to the drawing up of the regulations, so that they are proportionate, and that the way in which the Secretary of State can interfere should be proportionate to the problem that the Government have identified.

I say that because nobody else seems to have identified pre-commencement conditions as a problem, but clearly the Minister thinks they are and some of his colleagues seem to think they are. All that we ask is that a very sensible approach is taken to local authorities, and that rather than simply having a set of regulations imposed upon them, which may or may not work in practice, they are involved in the process. Then, hopefully, we will get something commensurate to the problem and not a whole-scale transference of powers to the Secretary of State. I look forward to hearing what the Minister has to say.

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

It is a pleasure to serve under your chairmanship, Mr Bone. I have listened to evidence from both the development industry and local authorities both as a member of this Committee and as a member of the Communities and Local Government Committee. Although there are some examples, which have been much quoted, of the excessive use of pre-commencement planning conditions, the evidence is really not very strong. There are many reasons why the measures proposed in clause 7 are, in fact, an attempt to treat the symptom of a problem rather than the cause of that problem itself.

When asked, and when I have questioned them, all the witnesses—pretty much without exception—who have spoken about pre-commencement planning conditions have acknowledged, and in some cases spoken extensively about, the constraints on local authority planning departments. As we know, planning is the second most cut area of local authority services since 2010. It is an area that has, for good reason, lost out in the competition for local authority resources between it and statutory services such as children and adult social services, which affect some of the most vulnerable in our communities. To my mind, that is because the funding of planning, and in particular development management, is not on an appropriate footing.

I was very disappointed and frustrated that the previous Housing and Planning Minister simply ignored this issue during the debate on the Housing and Planning Act 2016, and did not acknowledge that we needed well-functioning, properly resourced planning departments to facilitate the building of the new homes that we need. It is absolutely not right that planning should be competing with services that are needed by the most vulnerable in our communities, and therefore we need a different way of funding planning departments.

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[Dr Blackman-Woods]

My hon. Friend is making a series of important points, which are helping us to understand pre-commencement conditions more thoroughly. Does she agree that the provisions in the clause will in fact make communities much more anxious about possible development in their area? The local authority may set conditions that will make a particular planning application acceptable and then find some way down the line that those conditions have been removed by the Secretary of State.

[Helen Hayes]

My hon. Friend is exactly right. It is so important that the voices of local communities are heard, particularly given the volume of development that is needed to deliver the new homes that we need in this country. Conditions are one way that a local authority can broker and establish a relationship between applicant and community and the genuine and material concerns that our constituents all have about development can be taken into account and addressed. Communities will find ways for their voices to be heard. If the planning system excludes those voices and makes those negotiations much more difficult, those voices will be heard in other ways: there will be an increase in applications for judicial review of planning applications and much more in the way of petitions, protests and attempts to frustrate development. It is right that the concerns of local communities are heard and addressed through the planning system.

I further take issue with the clause and support the amendments in the name of my hon. Friend the Member for City of Durham because it simply does not reflect or encourage good practice. It is widely acknowledged—the Committee has heard evidence from experts across the sector about this—that best practice involves applicants and planning authorities, having undertaken appropriate public engagement and consultation, coming together to agree what is necessary for an application to meet policy requirements in relation to a given site.

Members on the Government side of the Committee have made the point that there is cost and risk for applicants in taking applications through the planning process. That risk is mitigated and minimised when applicants fully understand and take into account the policy context and do everything possible to ensure that their applications are policy-compliant. To suggest that local authorities are in the business of refusing planning applications on a whim in a policy vacuum misrepresents what actually happens. In the case that a local authority makes a flawed decision, it is open to the applicant to appeal, and such appeals will succeed.

Housing and Planning Bill (Fourteenth sitting)

Debate between Helen Hayes and Roberta Blackman-Woods

Tuesday 8th December 2015 Public Bill Committees

[Helen Hayes]

I thank my hon. Friend for his helpful intervention. What would arise from the adoption of amendment 285 is the provision in the regulations whereby development in flood risk areas, including the issue of whether or not a development is in the floodplain, should have been identified and that information set out prior to permission in principle being granted. That would give some security to communities that development is not being undertaken in an irresponsible way.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

I refer my hon. Friend back for a moment to the intervention from the hon. Member for Croydon South. I think that part of the discussion that we had in the Committee last Thursday was exactly about that question of what would happen if something has permission in principle but it is then discovered that the site is an important archaeological site. Can the permission in principle be removed? I think there was clarification from the Minister, but perhaps he could return to that issue at some point today to say whether or not the permission in principle would be removed on that basis.

[Helen Hayes]

I thank my hon. Friend for that intervention. In drawing to a close, I simply say that the amendments taken together seek to ensure that permission in principle is underpinned by a sufficient level of knowledge about the site and its context, so that it is genuinely meaningful both to local communities and developers. Without that, I fear that developers will find this device to be a hollow one that provides no certainty at all, and communities will simply be let down and will feel the need to object to and challenge the process at the technical details stage, or through the courts.

I hope the Minister will consider the amendments and provide reassurance about the issues I have raised.

Housing and Planning Bill (Thirteenth sitting)

Debate between Helen Hayes and Roberta Blackman-Woods

Thursday 3rd December 2015 Public Bill Committees

[Dr Blackman-Woods]

Absolutely not. Lots of housing associations and local authorities have written to us to say that they are concerned about how the new public body will operate and how onerous interacting with it will be. One said:

“Administrating Pay-To-Stay…will be a near impossible demand upon our self-managed community. Inevitably we would need to look at outsourcing much of this work which will further add to the demise of”

their community.

“It will also be a drain on”

their resources. The point they are making is that they are concerned that the new public body, which will probably be very bureaucratic, will set up a lot of new systems with which social landlords will have to interact and which could put onerous burdens on housing associations and local authorities.

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

Does my hon. Friend agree that there are several other concerns about how the new public body will be regulated? Will the regulation fall within the remit of the Homes and Communities Agency or the Financial Conduct Authority? If the new body makes mistakes that have the potential to affect tenants’ tax return obligations and so on, how will they be rectified and dealt with in a timely manner? Will that be an additional burden on the public sector?

[Dr Blackman-Woods]

My hon. Friend makes a very important point. The subject of our next amendment is how the system will be regulated and subject to external oversight. I will not stray on to that amendment now, because I want to hear what the Minister has to say about the issues raised by amendments 220 to 222.

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[Dr Blackman-Woods]

I was on amendment 228. We want to ensure that from the proceeds of this particularly awful scheme, we at least get a positive outcome, a benefit in the form of some additional social housing. I look forward to hearing what the Minister has to say.

[Helen Hayes]

I support the remarks of my hon. Friend the Member for City of Durham about this extraordinary clause. It is extraordinary in its anti-localist and centralising nature. How can a local authority possibly be expected to estimate the employment fortunes of its tenants, which is in effect what the clause asks for? Is the local authority to conduct an annual appraisal of its tenants? Is it to ask them how things are going at work? Is it to ask them about their aspirations and the likelihood of their getting a pay increase?

Two things about the measure are problematic. First, it requires councils to make estimates based on information that they do not have and cannot possibly control. Secondly, there is no justification for why these payments should be made by local authorities to the Government in any event. The money should be used to deliver new homes and, if not to deliver new homes, to invest in the services that councils provide to their existing tenants and residents.

The Government resolutely refuse to regulate the private rented sector to moderate rents at all, but they will intervene in the rent setting of councils and housing associations. That is despite the advice of David Orr at the National Housing Federation, with which they have entered into the voluntary deal, that it is entirely inappropriate for the Government to engage in the process of setting housing association or local authority rents. The Government propose to require advance payments from councils. How will the measure in any way help to solve the housing crisis? How is it in any way of benefit to residents? How is it in any way compatible with localism?

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[Helen Hayes]

Does my hon. Friend agree that, although there is no excuse for local authorities to have an inefficient plan-making system, a major contributory factor in some cases is the extent of cuts to local authority budgets? Planning is the second most cut service provided by local authorities, after cultural services. The Minister should be addressing how local authorities are to resource the timely completion of their local plans. All other things—efficiency, and so on—being equal, resources are the problem.

[Dr Blackman-Woods]

My hon. Friend makes an excellent point, and it is a point that we sought to address in the Lyons review by considering additional income streams that could flow into planning departments. Of course, in addition to the cuts that have been applied to local councils and planning departments, the Government’s changes, particularly to permitted development rights, have taken a huge lump of resources from local authorities because they are not able to apply the same fees for permitted development changes as they would for planning approvals. I am sure that the Ministers are well aware of the issue of the resourcing of local planning departments. I speak to lots of developers, and not one does not raise the issue. They all start by saying, “Look, the major barrier we currently have to getting planning permission is the fact that local authority planning departments are massively under-resourced”—they use the word “massively”—“and are having to take the brunt of cuts in some areas.” Councillors are having to make really difficult decisions about whether to cut their planning departments or care services.

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[Dr Blackman-Woods]

Thank you, Mr Gray. I had better continue my discussion of new clause 14. I want to set out for the Committee the direction of travel on planning that we would like to see in the Bill. It might be slightly at odds with what the Government have outlined in clause 96, which, although it is concerned with local plan-making, seeks to take a direction that we would not entirely agree with. New clause 14 will ensure that planning decisions fully consider the need to create places and buildings that meet the needs of all sections of society across their lifetimes. It would provide support for plans and planning decisions that seek to meet locally assessed needs for accessible homes. Clause 96 is relevant because we are not sure that the interventions it will bring about will address the issue.

We want to see support for plans and planning decision making that would not only be based on locally assessed needs, but would seek to address particular needs. That is why the assessment of all needs is important. Sometimes, as the Minister will know, it is easy to overlook the number of fully accessible homes that are required in local plan making, for example. That needs to be based on a very careful consideration of what disabilities people might have in a particular area, and how that need might grow or diminish over the whole plan period.

What we would expect to see from local authorities is therefore not only some input in the local plan to demographic change and the realities of what an ageing population might mean for an area, but perhaps designing housing of a lifetime quality that would enable housing stock, particularly new housing that is developed, to be able to be applied to families and to people with special needs so that they do not have to move. What do the Ministers think about building lifetime homes that would be fully accessible over a lifespan? Or do they want more specialist housing? How do they think such housing would be planned for and built?

The new clause also has something about housing for older people. I was struck, as I am sure other members of the Committee were, in the evidence sessions at the beginning of our deliberations, by how many people across the sector were concerned with the needs of older people. Housing associations told us there is a real issue about supported housing for older people and people with special needs, and how it can be delivered.

[Helen Hayes]

Does my hon. Friend recognise the huge amount that has been invested by the development industry following the previous lifetime homes standard? The new clause would be a means by which that investment, which is no longer a cost to the industry but an efficiency, could be captured and taken forward, and we could all see the benefits of it.

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[Dr Blackman-Woods]

I absolutely accept that. My hon. Friend is absolutely right to remind me that local authorities do a very good job in trying to assess local housing need. The purpose of the new clause is to make sure that in doing so they understand the need for accessible homes, and perhaps look at ways of adapting future stock to meet the needs of people over a lifetime, rather than only having to think about specialist housing. It is about how the definition is made.

New clauses 14 and 15 need to be considered together. Through new clause 15, we seek, in the light of clause 96 on the power to direct amendment of a local development scheme, to test the Minister on whether the local plan will have primacy in local planning, or whether clause 96 will give primacy to another body or document. With these new clauses, the Opposition want to assert the primacy of the local plan in plan making in this country. We think that local authorities best understand the needs of local communities. Although the local plan-making process could be improved—I will talk about improvements that could be made in a moment—what we like about it is that local authorities have to consult their local communities extensively when they put their local plans together. Therefore, all parts of the community are involved in the creation of those plans.

There are lots of different methods that local authorities can use to ensure that the community is not only involved in putting together the local plan, but actively participates in it. Committee members have had information about the charrette system, which can help local communities to participate actively in the plan making. There are excellent examples from across the country. In the south of my region, Scarborough is a very good example. With new clause 15, we are asking the Minister, in the light of clause 96, to ensure that primacy is still given to the local plan.

[Helen Hayes]

In my 18 years of working as a planner, I worked with many local communities in the charrette process that my hon. Friend describes, which is an efficient way to get communities to buy into and give informal consent to new, high-quality developments that contain the appropriate community facilities. In many instances, it helps local authorities to deliver more developments than they would otherwise have been able to deliver. It is therefore a democratic and efficient means of supporting plan making.

[Dr Blackman-Woods]

My hon. Friend makes a really important point, which I should have emphasised when I started to discuss the new clauses. We tabled the new clauses because we want positive planning. We want to encourage local communities to get actively involved in planning, and to give their permission for new developments in their area. We want them to be fully involved in the consensus-making system, and in saying what their areas should be like in 20 or 25 years’ time.

Those of us who have had a degree of involvement in that process in our constituencies are often surprised, in a very positive way, by how people think about their local community, and how they want it to look in 25 years’ time. They not only want to ensure that there is housing for their children and grandchildren, although that is incredibly important given the housing crisis, but they want it to be in communities in which people want to live. That is why positive planning is so important.

I want to spend a moment or two on new clause 16. We want a planning system that is plan-led and fully inclusive. That is the point of new clause 14. New clause 15 is about giving primacy to local plans, and new clause 16 is about what we want those local plans to encompass that we think they are in danger of not encompassing under clause 96. This is about place making. It is unfortunate that there is absolutely nothing in this part of the Bill on how we ensure that the local plans and interventions proposed deliver a planning system that looks at all of the infrastructure needed to make places that people want to live in. I was struck by the number of witnesses who said in their evidence to the Committee, time and again, that the Government’s proposals do not give enough consideration to the infrastructure needed to underpin housing.

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[Dr Blackman-Woods]

I will get on to the specific provisions, because it is important that this is read into the record. It would be wonderful if the Minister accepted what we are arguing for in new clause 16.

[Helen Hayes]

In relation to planning, does my hon. Friend agree that the problem with the Bill—the problem that new clause 16 seeks to address—is that it entirely lacks ambition for our planning system in this country? There is no ambition for planning. Planning is regarded in the Bill entirely as a constraint on development, to be minimised, whereas in fact it should be a set of facilitating processes helping to bring new development forward. In particular, there is no ambition for quality of place, or design quality and design standards in any sense, and no ambition for the sustainability of the communities that we create through the planning system. New clause 16 would address that.

[Dr Blackman-Woods]

My hon. Friend is exactly right. The problem that we want to address is the lack of vision for a planning system. Too often the Conservative party has characterised planning as a block to development, whereas we argue that if planning is done in the right way, and if the approach is fully inclusive, that brings communities along in the planning system. They help to plan neighbourhoods and that can speed up planning further down the line.

Perhaps something else happens as well—something that is even more important. We need a system that designs the communities that people want to live in, which should be fully sustainable. We have tried in new clause 16 to outline changes and improvements, and what the planning system should encompass to make that objective achievable, so that it can take root. We want a planning system based on principles of sustainable development that would positively identify land suitable for development in line with economic, social and environmental objectives, so as to improve the quality of life, wellbeing and health of people and the community.

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[Helen Hayes]

I recently had the privilege of hearing Al Gore speak in London. He expressed his puzzlement—that was the moderate and polite term that he used—at how this Government had taken so many steps in the wrong direction on climate change. Several of those policy decisions related to planning. Does my hon. Friend agree that that is what lies behind the importance of the reference in the amendment to the Climate Change Act 2008? [Interruption.]

[Dr Blackman-Woods]

If I can continue to outline the measures in new clause 16, I will do so. My hon. Friend makes a good point, and gives additional evidence that such principles must underpin local planning if we are to create communities where people want to live.

Housing and Planning Bill (Tenth sitting)

Debate between Helen Hayes and Roberta Blackman-Woods

Tuesday 1st December 2015 Public Bill Committees

[Dr Blackman-Woods]

The hon. Gentleman needs to make that point to the housing associations themselves. They have told us in their evidence to the Committee and to the Communities and Local Government Committee that, on the basis of what has happened with both the Welfare Reform and Work Bill and the Housing and Planning Bill, they will re-profile their activity and adjust their business plans, unfortunately moving away, it appears, from the provision of social housing for rent.

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

Will my hon. Friend give way?

[Dr Blackman-Woods]

I will of course give way to my hon. Friend, who is on the Communities and Local Government Committee.

[Helen Hayes]

I want to remind the Committee of the evidence we heard from housing associations in relation to the pay-to-stay provisions. The provisions will place an additional heavy burden on the associations, and many of them do not feel confident of discharging them within their current resources. Does the hon. Member for Thirsk and Malton not agree that, in that context, suggesting that housing associations can simply make redundancies to make up for the loss of income is unrealistic?

[Dr Blackman-Woods]

My hon. Friend makes a good point, and when we come to discuss the pay-to-stay provisions, we will hopefully be able to re-emphasise it.

In evidence to the Select Committee, housing associations say that what they build over the next 10 years will change. They say:

“There will be less affordable rent and more low-cost home ownership going forward.”

We are not against more low-cost home ownership. We are trying to elicit from the Minister whether he thinks it important that the social rented housing is replaced, and whether the measures in the Bill make that more difficult or easier. Stonewater says it is

“looking at the product mix…We are re-profiling…our activity”.

L&Q states:

“We have committed to a minimum of 1,000 new affordable rented homes a year. That is less than we would have produced prior to the rent reduction.”

It is also clear from the evidence to the Select Committee that the change in business activity will not be immediately apparent. It will perhaps be 2018 before plans for affordable rents are effective, because many schemes are already in the pipeline and have already been costed, with some of them already being built.

The sector is anxious and it is not clear where the replacement costs will come from. The Committee has received two helpful notes on that topic. One of them is from the Chartered Institute of Housing, which has identified a funding gap, particularly in relation to the sale of high-value local authority housing—a matter we will probably come on to this afternoon. It questions how the Government will fund the whole scheme and make up that funding gap.

There were some announcements, and some additional capital was put forward, in the autumn statement last week. However, as my hon. Friend the Member for Greenwich and Woolwich outlined earlier, in the last few days the Office for Budget Responsibility has said that it still thinks that there will be a reduction of 34,000 homes because of the measures in the Bill and in the Welfare Reform and Work Bill. There is a challenge to the Government to highlight clearly how the replacement will be funded.

I hope the Minister has looked at the very helpful briefing from the Chartered Institute of Housing—after all, the CIH knows something about the delivery of housing in the country—and at the note from PlaceShapers, which raised a very interesting issue for the Committee, which we perhaps have not talked about enough so far: how the valuation gap changes in different parts of the country. For example, in the north, a property could be sold for £50,000. There would be a discount attached to that. However, the replacement property would cost about £135,000 or even more. Replacement costs are coming in at about three times the level at which homes in the affordable rented sector are sold off.

Again, it is not clear from anything that we have heard from the Minister how replacement costs will be guaranteed, whether or not it will be on a like-for-like basis, and how he will seek to ensure that we are not losing the social rented homes that we so desperately need across all areas of the country, and how he will try to persuade housing associations that they should not alter their business plans at this time and not move away from the provision of affordable housing to rent. As the Minister knows, and indeed as all Committee members know, that is because we need more housing across all tenures, and it would be wrong of the Committee to support legislation that would cut support for the local cost of ownership, because that would happen at the expense of social housing to rent, which we desperately need.

--- Later in debate ---

[Helen Hayes]

I want to speak briefly—I am conscious of time this morning—in support of the amendment in the name of my right hon. Friend the Member for Tooting (Sadiq Khan). I will refer to a specific example that illustrates why we on the Opposition side are not at all opposed to the principle of extending home ownership, but why that must not be at the expense of other housing needs in London.

A family came to my surgery on Friday—I have their permission to use their example because they were very keen that the Minister should hear it. Simret and Petros came to my surgery with their 14-year-old daughter, Mariam. They have three other children: a 12-year-old daughter, a five-year-old daughter and a three-year-old son. Petros worked as a dispensing technician in the local pharmacy, and Simret is a part-time teaching assistant who is studying to be a teacher. They are housing association tenants living in a two-bedroom property. Their children sleep in bunk beds, with the older two girls on the top bed and the younger boy and girl on the bottom. They came to see me on Friday and they told me, with great grace and forbearance, about the impact that this housing situation is having on their lives. It is having an impact on their health and wellbeing as a family, on the ability of their children and Simret to study, and on their family relationships. I was extremely moved by their story.

Would the Minister be able to tell me what there is for this family in the Bill? They do not earn enough or have sufficient savings to raise a mortgage, so although they are housing association tenants they will be unable to access the right-to-buy provisions. They certainly do not earn enough to raise a mortgage to buy a starter home at £450,000. If Simret qualifies as a teacher, they will be over the pay-to-stay threshold and will have to pay market rent, further reducing their ability to save for a mortgage. In the meantime, they are bidding each week with their housing association and the council, but there are never any three to four-bedroom properties available. Three to four-bed properties are exactly those most likely to be sold under the right to buy, and they are the most likely to fall into the category of high-value council homes.

There is a final point to make about this family. They are settled in Lambeth. Their children are at local schools, and Simret and Petros make a valuable contribution to their local community through their work and the life of their local church. They are Londoners, and they are Lambeth Londoners. They should not have to move further afield in order to access the housing they need.

[Dr Blackman-Woods]

My hon. Friend makes a very important point in emphasising, through real people, what the impact of not replacing like for like can be on tenure. Perhaps she would agree with Councillor Philippa Roe’s written evidence submitted to the Committee, in which she stated that:

“The agreement between government and housing associations means that they will implement the right-to buy-extension on a voluntary basis. They will not be required to replace homes which are sold in the same area or with the same tenure. This could lead to a reduction in social supply for homeless households in Westminster and London, particularly in central areas where rebuilding is more expensive. This is likely to contribute to those households increasingly being accommodated in expensive temporary accommodation and staying there longer while they await permanent rehousing”.

Does that not point to the lack of permanent housing that is very much affecting my hon. Friend’s constituents?

[Helen Hayes]

I hope that the Minister will listen to the evidence from Westminster City Council on this, which illustrates that the point I am making applies across the whole of London.

Housing and Planning Bill (Fifth sitting)

Debate between Helen Hayes and Roberta Blackman-Woods

Thursday 19th November 2015 Public Bill Committees

[Dr Blackman-Woods]

I think our roll has come to a shuddering standstill.

We tabled the amendments largely as probing amendments because there is so little information in the Bill about how the monitoring will be carried out. Although it says that reports will be available to the public, it does not say how they will be made available, how often they will be available, in what form they will be published and whether they will be on authorities’ websites. The Bill gives the Secretary of State powers to outline the reports’ form, content, timing and so on.

Presumably, at some point we are going to see a set of regulations. Perhaps we will have to postpone some of the detail of this discussion until we see that. Our plea to the Minister is that he makes the information readily available to people. It should probably be made available on an authority’s website because that is how most people access information these days—not everyone, but most people. It needs to be available in other ways too, and it needs to be put in context. With that, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 5 ordered to stand part of the Bill.

Clause 6

Compliance directions

[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?

[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.

[Dr Blackman-Woods]

My hon. Friend is making a powerful point. Drastic action could be taken by the Government, which is likely to ensure that local authorities, in seeking not to be subject to a compliance direction, will indeed prioritise the delivery of starter homes above everything else. That is our concern.

[Helen Hayes]

I thank my hon. Friend for her intervention. She makes a very powerful point. I would like to return to the amendment as we progress through the Bill, because it seeks a simple assurance that local democracy will be the overriding consideration in the delivery of housing across all layers of decision making on housing. I beg to ask leave to withdraw the amendment, but I will not hesitate to come back to the matter at a later stage.

Amendment, by leave, withdrawn.

Ordered, That further consideration be now adjourned. —(Julian Smith.)

Housing and Planning Bill (Fourth sitting)

Debate between Helen Hayes and Roberta Blackman-Woods

Thursday 19th November 2015 Public Bill Committees

[Dr Blackman-Woods]

What I would say to the Minister is, on total net supply of housing, even on the Department’s best figures and with some drastic measures to increase supply, such as office-to-residential, that are not likely to continue for too long, we are still delivering 60,000-plus units less than a decade ago. I would have thought it was important to put it in the Bill that the Government want to increase supply across all tenures, because that would be a clear signal to the people with concerns out there to show that starter homes will genuinely be in addition to all other forms of housing to be delivered and not instead of them. I am therefore not certain why the Minister, especially if he is doing all these amazing things across all types of tenure, does not want that recognised in the Bill. Perhaps we will ponder that issue. No doubt we will bring it back again.

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

The key issue that the Minister has not addressed, which is fundamental, is that when developers deliver new homes, they have a pot of money for homes under the affordable category that stretches only so far. That is why there is such considerable concern about starter homes squeezing out other forms of affordable housing. It is not because those other forms of affordable housing will not exist any more, but because the pot will only stretch so far. I do not think that the Minister has answered that point.

Housing

Debate between Helen Hayes and Roberta Blackman-Woods

Wednesday 10th June 2015 Commons Chamber

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

I welcome you, Madam Deputy Speaker, to your new role. It is a pleasure to see you in the Chair.

It has been an interesting—but quite short—debate. I congratulate in particular the Members who made their maiden speeches. The hon. Member for Croydon South (Chris Philp) spoke passionately about the achievements of his constituents and his predecessors. My hon. Friend the Member for Norwich South (Clive Lewis) reminded us of the importance of increasing the diversity of Parliament and this Chamber. He conjured up an amazing image of cathedrals and castles in Norwich and of their being defiant against injustice, which I am sure we would all want to emulate. My hon. Friend the Member for Leeds East (Richard Burgon) spoke very movingly about the wide range of issues facing his constituents and how the actions of this Government and the previous Government are exacerbating them. He did a very good job in speaking up for all his constituents and speaking about the support they need and are not getting from this Government. My hon. Friend the Member for Hornsey and Wood Green (Catherine West) gave a moving speech. She reminded us of the problems facing “generation rent” and the difficulty young people have in getting into the housing market, the need to promote social mobility and, especially in London, the need to address rising house prices, which are putting housing beyond the reach of so many.

Elsewhere in the debate we heard a wonderful speech from my hon. Friend the Member for Westminster North (Ms Buck), who highlighted the particular problems of housing in London and the need to breathe new life into shared ownership. The hon. Member for South Suffolk (James Cartlidge) made some interesting points about the need to reform buy to let and I will be interested to see how those on his Front Bench respond to them. The hon. Member for Eastleigh (Mims Davies) made some interesting points about the need to do more to promote neighbourhood planning and ensure that infrastructure is in place to support new housing—a point emphasised by the hon. Member for Fareham (Suella Fernandes).

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

Does my hon. Friend share my concern that the removal of section 106 and community infrastructure levy tariffs from the proposed new starter homes programme will result in our building communities that are not well enough supported by the infrastructure and the services that they need to be successful in the future?

[Dr Blackman-Woods]

My hon. Friend makes an excellent point; it is one that we made a number of times when we were opposing the Government’s changes to section 106 agreements. Those changes are incredibly short-sighted and will lead to a long-term dearth of the infrastructure that our country so desperately needs.

Our housing market is in crisis because the Government are failing to build the homes that our country needs. We need 245,000 homes to be built every year in England alone, just to keep up with demand, but only 125,000 new homes were built in England between April 2014 and March 2015. Recent figures from an LSE report demonstrate clearly that house building figures were much lower under the coalition Government than under the previous Labour Administration. Indeed, house building fell during that time to its lowest level since the 1920s.

Between 2011 and 2014, the total shortfall against the need for new homes was a massive 515,000. This has led to record numbers of young people in their 20s and 30s living with their parents. Analysis by the estate agent Savills has shown that in areas such as the south-east, where there is high demand and a strong employment market, approvals for new builds are

“falling well below objectively assessed need”.

In other words, even the homes that are being built are not necessarily in the places with the most acute housing need.

As a result of the Government’s continuing failure to tackle barriers to housing supply, prices are continuing to rise, reflecting sky-high demand. Even though there is deflation in other parts of the economy, the annual rate of house-price inflation is now 8.6%. House prices have outstripped wage inflation and hit an affordability ceiling in all parts of the country, with figures for last year showing a salary-to-house-price ratio of 10 times across the UK. Houses are unaffordable right across the country, with a rate of seven times in the north-west and 14 times in London. As prices are pushed beyond the reach of an increasing majority of us, home ownership has fallen to a 30-year low.