Low-Cost housing

Jim Shannon Excerpts

Wednesday 8th February 2017 Westminster Hall

[John Penrose]

The hon. Lady just gave a classic example of this instinctive British fear. I have discovered that in general if people see a beautiful building that is well-designed and moderately, but not too enormously, tall—Manhattan being an example of where things are incredibly tall—many of those concerns are greatly reduced. The taller something is the more impact it has on everybody else for miles and miles around and therefore the greater care we have to take. There is a middle ground that I will talk about in a minute, which will provide us with a great deal of building and housing opportunity to reduce the cost of housing without having to make everywhere look like Manhattan, if I can put it that way.

The hon. Lady’s intervention leads me to say that we need to throw off these mental shackles—these 50-year-old emotional architectural scars—and instead count the blessings of building up, not out.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing forward this important issue of how we better utilise our space. He will know—I am sure this is the case in his constituency, as it is in mine—that people have the opportunity to live above shops. That is a special scheme brought in by local councils and local departments and is a way of utilising the space that is there. Does he agree that that is one method for addressing the issue of low-cost housing?

[John Penrose]

That is a very good example—a classic example—of the kind of thing we need to look at. Many British high streets are two storeys, or perhaps three storeys, tall. Not only are those upper storeys lightly used, and in some cases unused, but there are two or three further storeys of fresh air above them that could be developed into housing as well. The crucial point that was made yesterday in the White Paper, but has been more broadly accepted for years, is that the only way to bring down the overall cost of housing in this country is by increasing the supply. We have to make sure that more of this stuff is built and finding those right, convenient locations near social and physical infrastructure is crucial. I will expand on that point a little more in a minute, but the hon. Gentleman has touched on a particularly good example.

I was about to number the blessings of building up, not out and I shall now carry on doing so. First, it will attract much needed new investment to regenerate and save tired or rundown town and city centres, bringing fresh life, a broader mix of businesses and longer trading hours to high streets that—as the hon. Member for Strangford (Jim Shannon) mentioned—are suffering under the twin attack of out-of-town shopping centres and online retailers.

Secondly, building up, not out could help break the stranglehold of large house building firms over the number of new homes that are built. Those firms tend to focus on larger sites, whether greenfield or in towns, and rarely pick up smaller plots where an individual bungalow or two-storey shop could be redeveloped into four or even eight smart new apartments on the same site. By releasing lots of overlooked smaller urban plots we can create a fast-growing cadre of insurgent new developers, adding much needed new capacity and competition to the sector and its supply chains and speeding up the too comfortable, cosily slow rate at which the big firms currently convert their land banks and planning permissions into completed homes.

Thirdly, building up, not out will reduce urban sprawl by cutting the pressure from builders to concrete over green fields and green belts at the edges of towns and villages across the country. Given the strain and pressure on our green spaces, they should be our last building resort, not our first. Fourthly, it will cut commuting by allowing people to live closer to work, shops and other community hubs from libraries to GP surgeries. The reductions in emissions, and the effects on both our quality of life and the wider environment, will be very significant indeed.

Finally, building up, not out would release huge numbers of new urban house building sites to solve the housing shortage. As the Secretary of State said yesterday in his new White Paper, the only way to make homes more affordable for everybody is to build a lot more of them. Whether we are talking about renting or buying, the basic laws of price and demand mean that the prices will never stabilise, much less fall, unless the supply of housing increases dramatically.