Five-year Land Supply

Debate between James Cartlidge and Nigel Adams

Wednesday 4th July 2018 Westminster Hall

[Nigel Adams]

I have about nine minutes left—that is about right. My thanks go to a great Parliamentary Private Secretary.

Issues with the current five-year land supply model and slow build-out were a key feature of the housing White Paper. The Government are seeking to address that through a package of reforms to the planning system, including revising the national planning policy framework, which will be published this summer. The review of the NPPF is fundamental to delivering the 300,000 homes a year we need, and sets out a comprehensive approach to ensure that we get the right homes, built in the right places and to the right quality.

The revised framework implements around 80 reforms that were announced last year, and retains the emphasis on development that is both sustainable and locally led. Those changes include clearer expectations of local authorities and developers to deliver their commitment to unlock land, fulfil planning permissions, provide essential infrastructure, and ensure that homes are built to meet the diverse needs and expectations of communities. The measures include a standardised way of assessing local housing need; reforming the plan-making system to ensure that every part of the country produces, maintains and implements an up-to-date plan; and an opportunity for local authorities to have their five-year housing land supply agreed on an annual basis. The last two points are particularly relevant to today’s important debate.

It is important that local authorities plan effectively for the new housing required in their areas. Ultimately, new homes need to be provided through up-to-date local plans, produced in consultation with local people and communities. These are a vital element of the planning system. They are the starting point for planning decisions by planning authorities and inspectors. I welcome the progress that Babergh District Council, working with Mid Suffolk District Council, has made with their local plan preparations. I understand that the local authorities are aiming to submit them for examination by the Planning Inspectorate in spring next year.

It is important that adequate land is available to build the homes we need. Local authorities play their part by producing up-to-date local plans and identifying a five-year supply of housing sites. That provides clarity to local communities and developers about where homes should be built so that development is planned rather than the result of speculative applications. Every right hon. and hon. Member in the Chamber will have had experience of that. I have great sympathy with communities that feel that they have no control over planning, and nobody wants to see companies overtly gaming the system. However, we need more homes, and that is why communities should consider a neighbourhood plan—championed by many right hon. and hon. Members here today—to give them more control over the issue.

Demonstrating a deliverable pipeline of housing sites has been a long-standing Government policy. Since the existing NPPF was introduced in 2012, local planning authorities have been asked to identify and update annually a supply of specific deliverable sites, and to demonstrate a five-year land supply. Where the local authority cannot demonstrate that, the lack of supply means that plan policies are not considered to be up-to-date, and applications are assessed against the presumption in favour of sustainable development. However, the presumption in favour of sustainable development does not, and should not, mean development at all costs. Any adverse impacts of the development will still need to be taken into account.

The housing White Paper acknowledged that the current policy has been effective in bringing forward more permissions but has had some negative effects, as we have heard today from my hon. Friend the Member for South Suffolk. In response, we have proposed reforms to how land supply is calculated. The draft revised NPPF includes proposals to allow local authorities to agree their five-year housing land supply position on an annual basis and to fix it for a one-year period. The Department believes that taking up that opportunity should reduce the number and complexity of appeals, and provide greater certainty to all parties.

[James Cartlidge]

The Minister is making a fantastic speech. I am glad he has reached that point about appeals, because it seems to me very welcome that once someone has the five-year land supply and it has been signed off, they then have 12 months of security. At the moment, as soon as a council says, “We’ve got the five-year land supply,” there can be an immediate appeal by a developer and the certainty goes away. The issue therefore arises with councils that do not yet have the five-year land supply and do not have that security, but are giving many permissions. Can there be greater flexibility on that, as my hon. Friend the Member for Milton Keynes South (Iain Stewart) suggested?

[Nigel Adams]

My hon. Friend raises a valid point. We are hopeful that that will go a long way to eradicating some of the issues that he and right hon. and hon. Members have experienced. The idea is that it can be fixed at a one-year period. We will also see what other reforms are proposed as part of the review that my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) is planning.

It is worth mentioning that in return for being allowed to agree their five-year housing land supply position on an annual basis and to fix it for a one-year period, local authorities will need to be more realistic in planning to meet housing needs. The draft NPPF includes further clarity on how to calculate five-year land supply, and we intend to provide further guidance to support local authorities in their role.

I know my hon. Friend the Member for South Suffolk has concerns about the time that it takes to build homes after sites are identified and permission is granted. The Government want homes to be built faster, and expect house builders to deliver more homes, more quickly and to a high standard. However, as my hon. Friend mentioned, it is important to recognise that after planning permission for new homes is granted, a variety of factors can prevent development from starting and can slow down delivery.

Last year, my right hon. Friend the Member for West Dorset was commissioned to examine what can be done to speed up building on major sites. The review has been looking into the build-out of sites that have been granted planning permission. The aim is to close the significant gap between housing completions and the amount of land permissioned for new homes. The initial analysis, which was published last month, has presented some interesting findings on the delays in building out large sites and what helps to speed up build-out rates. I look forward to reading the final report, which is due in the autumn.

Coming on to the points raised by right hon. and hon. Members, my hon. Friend the Member for South Suffolk talked about local communities not having a say on speculative development. Applications for speculative development are still subject to local consultation, as are all planning applications. He also mentioned, as others did, that existing permissions are not being taken into account. The draft NPPF encourages the use of shorter timescales for starting development before the permission will expire, to encourage developers to build the permitted homes more quickly.

The hon. Member for Stroud (Dr Drew), who is flying the flag brilliantly for Her Majesty’s Opposition, talked about viability assessments. We recognise those concerns and, again, the draft NPPF includes new policies on viability assessments. My right hon. Friend the Member for Arundel and South Downs (Nick Herbert) talked about burning effigies at the start of his speech; that was slightly worrying, as I live in York, where Guy Fawkes was from. I hope my right hon. Friend takes that into account. Neighbourhood planning protection was included in the draft NPPF. We consulted on the draft wording, and I thank him for his continued work and suggestions in this area. We are considering those responses and will publish the final NPPF in the summer.

My hon. Friend the Member for North Cornwall (Scott Mann), who I cannot see in his place, talked about what we are doing to encourage small developers. We need to support small and medium-sized house builders and bring forward a greater variety of sites. My hon. Friend the Member for Henley (John Howell), who does a fantastic job as the champion of neighbourhood plans, said that the Government do not know how many authorities have a five-year land supply. Guidance is being produced to advise local planning authorities on how to publish their supply figure, so it will be publicly accessible.

I thank and pay tribute to Councillors Lamb and Stephenson, the hard-working councillors of my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke), who continue to fight for their local communities but appear to be being ignored by their local council, Leeds City Council. I hope that Leeds will have heard today’s debate and my hon. Friend’s excellent contribution. My hon. Friend the Member for North East Derbyshire (Lee Rowley) talked about the reporting of a five-year land supply. Alongside the—