Housing, Planning and the Green Belt

Laurence Robertson Excerpts

Tuesday 6th February 2018 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

I beg to move,

That this House has considered housing, planning and the green belt.

I thank the Backbench Business Committee for allocating time for this debate and the Minister for attending. He is a new Minister, so I absolve him of all blame, and I wish him well in his new role. I look forward to working with him constructively on the issues that I am about to raise. I also thank the 33 hon. Members who supported me in obtaining this debate. It demonstrates how much interest there is in the subject.

I have chosen three topics for debate: housing, planning and the green belt. I have long had an interest in these areas—protecting the countryside was one of my motivations for entering Parliament in the first place—but my interest and concern have been heightened by my constituency experiences, so although this debate is not about my area entirely, I will seek to offer examples from Tewkesbury to illustrate my points. I know that other hon. Members will feel free to do similarly.

As with most things in life, we must always seek to find a balance. In this instance, we must ensure that everyone has a decent home to live in, while also recognising that we are not the owners but merely the custodians of the countryside, who have a duty to pass it on intact so that future generations can enjoy all that it has to afford in the same way as past generations. I fear, however, that we are in danger of failing to achieve that balance.

Let me begin with housing. This Government, like previous Governments, have committed themselves to building more houses to address the so-called housing crisis, and, as reflected in the name of the most recent housing White Paper, to fix the “broken housing market”. I want to challenge, or at least put in context, the Government’s characterisation of this crisis. I also want to ask whether it is accepted that what is happening in London, and possibly in the wider south-east, is somewhat different from what is happening in many other parts of the country.

I am concerned about what seems to be a belief that supply is the sole answer to the so-called housing crisis. I believe that there are several factors at play, and I shall say more about that later. I would argue that the issue is not the availability of housing as such, but its affordability. Even with that in mind, however, I am not convinced that increasing supply will substantially drive down costs. I have done some research on the matter. According to evidence given to the Redfern review by Oxford Economics, supply is unlikely to bring house prices down except in the very long term. Even boosting UK housing supply to 310,000 homes per annum brings only a 5% fall in the baseline forecast of house prices.

I think that we need to look beyond the issue of building more houses to what sort of houses we are building. As I will explain later, the planning system is producing four and five-bedroom houses, which are often out of the price range of first-time buyers, when what we need are two-bedroom houses, bungalows for older people and housing that is accessible to people with disabilities.

There is no doubt that housing in London is very expensive, and London has that in common with major cities across the world. Hotels are also expensive in London, as they are in Paris, New York, Tokyo, Hong Kong and many other international cities. However, that is not necessarily because there is a shortage of houses or hotels. It could be said that the UK would be better served not by attracting more and more people to live and work in London, but by spreading the wealth-creating sector and financial opportunities across the country rather than allowing London to act as a magnet. Members should not get me wrong—London is a fantastic city, probably the greatest city in the world, and I want to do nothing to diminish its status—but we should not think that what is happening in London must automatically shape policies across the UK, because sometimes the problems are different.

The Government seem to be describing the housing situation as broken and in crisis on the basis of their analysis of the fall in property ownership among young people, and there has indeed been such a fall. Home ownership among 25 to 34-year-olds has fallen from 59% just over a decade ago to 37% today. Moreover, house building has fallen by 40% since the 1980s. I recognise that there are problems in the housing market, but, again, to reduce them to an issue of supply is an over-simplification.

My analysis suggests that the falls in ownership and house building have in large part been caused by the crash in 2007-08 and the financial fallout from it. Before 2007, we were living in an artificial financial boom. Personal debt was increasing, and some companies were offering applicants mortgages that were worth up to 125% of the value of the houses that they were seeking to buy. Self-certification of income also still existed. All that changed with the crash. Mortgage applicants then had to provide documentary evidence of income, and, while the fall in interest rates should have helped buyers, the affordability of a house was assessed not at the prevailing mortgage rate at the time, but at an assumed rate that would be reached should interest rates be increased.

For example, at the moment the standard mortgage rate is 4.5% and there are many better offers than that available, but applicants are assessed on the basis of whether they could afford to pay their mortgages if rates reached 6% or 6.5%. As was the case 40 years ago, significant deposits are now required by lenders before they will release the mortgage. That has brought about a very significant change.

I am not saying that the Government’s insistence on stronger capital bases for banks is a bad thing; nor is such a requirement a tightening up of lending practice. What I am saying is that it has had a significant impact on the ability of young people to buy their first houses. The fall in ownership, particularly among young people, and the fall in the number of new constructions did not come about because of a change in planning guidance in 2007-08, because there was no such change. These falls came about because of the change in the financial position of banks and building societies. We therefore have to be careful that we do not respond to a change in lending practice with an easing of planning regulation.

We also need to recognise that at the same time as describing the housing market as in crisis and broken, the Government have set up an inquiry into why developers land bank, which is something of a contradictory position. Estimates suggest that 320,000 homes granted planning permission over the past five years have not been built. In my constituency, I have seen developers having to obtain an extension to their planning permission because they have reached the end of the statutory five-year period before starting to build. Developers will not deny themselves the profits that would come from building on land for which they have planning permission without good reason, so perhaps we ought to consider that they might be failing to develop the land because there is not quite the demand for housing in some areas that is assumed.

The determination to build ever more houses has led to some councils being persuaded that they need to build on the green belt to meet what is assumed to be their assessed housing need. That points to a confusion and contradiction in green-belt policy. The Government’s planning guidance states that the green belt should not be developed other than in “exceptional circumstances”, yet it fails to describe what constitutes “exceptional circumstances”. The housing White Paper goes on to say:

“Green Belt boundaries should be amended only in exceptional circumstances when local authorities can demonstrate that they have fully examined all other reasonable options for meeting their identified housing requirements.”

However, crucially for the point I am making, planning guidance also says:

“Unmet housing need…is unlikely to outweigh the harm to the Green Belt and other harm to constitute the ‘very special circumstances’ justifying inappropriate development on a site within the Green Belt.”

Planning guidance is going around in circles, because in effect it says that the green belt should not be built on unless nowhere else can be found to build the houses, but that unmet housing need is unlikely to outweigh harm to the green belt in importance.

This confusion and contradiction in planning guidance, along with the assumption that we have a housing crisis across the whole country, has led to proposals to build around 10,000 houses in my constituency on green-belt land, including 1,000 on land which floods. Indeed, in 2014 the then Prime Minister David Cameron visited my area to look at those very fields that were flooded, as well as the roads and some houses. I can assure the House that he did not visit to look at dry, green fields, yet permission has been granted, on appeal, to build on that very land.

[Dr David Drew (Stroud) (Lab/Co-op)]

I apologise for arriving a little late for this debate; I was talking about the Cotswolds national park, which I know is close to the hon. Gentleman’s heart. He will be aware that, under the Government’s new methodology for housing needs, Tewkesbury is expected to take an additional 21% increase and Stroud a 39% increase. Does he share my concern? I do not know where this methodology has come from or what the implications are, but it will cause a lot more grief in the Stroud and Tewkesbury areas.

--- Later in debate ---

[Mr Robertson]

The hon. Gentleman makes an important point. I am hoping that the housing White Paper, to which I will return in a minute, will attempt to clarify matters. As he will be aware, a lot of planning applications are assessed against the five-year land supply, particularly on appeal, but there is no methodology for calculating that five-year land supply. That is another problem in the planning system that I hope the Government will be able to correct.

[Mr Mark Harper (Forest of Dean) (Con)]

I am grateful to my hon. Friend and constituency neighbour, with whom I share a local authority, for giving way. He is making a good point: this is a regional problem. Figures from the Office for National Statistics on household growth in Gloucestershire show that our local planning authorities are building, or planning to build, enough houses to cope with the population growth. There is a significant problem in London and the south-east, but it is not consistent across the UK. My hon. Friend makes that point very well.

[Mr Robertson]

I am grateful to my right hon. Friend and Gloucestershire neighbour. That is exactly the point that I was seeking to make.

Why are there so many proposals to build houses on the green belt, particularly in my area? In the joint core strategy that is being drawn up by the Tewkesbury, Cheltenham and Gloucester planning authorities, Tewkesbury is looking to cover the unmet need of Cheltenham and Gloucester. However, contrary to planning guidance, the green belt is being compromised to satisfy the undoubted duty to co-operate, and this is creating confusion.

Why is Tewkesbury Borough Council doing this? It is because it feels that it must, and I have some sympathy with its position when I read the details of the planning inspector’s report, which again illustrates anomalies in the planning guidance. The inspector states in her report:

“Taking full account of constraints and the outcomes of cross-border exploration, removal of land from the green belt is needed, so far as is justified, to contribute to housing provision and the five-year supply”.

She goes on to say:

“I find that the adverse impacts of removing land from the green belt would not significantly and demonstrably outweigh the benefits of contributing towards housing and other development needs”.

Here we see clear evidence of the confusion in the planning guidance with regard to protection of the green belt. The inspector is insisting on building on the green belt and on the floodplain to meet housing numbers, yet the planning guidance clearly states that unmet housing need is unlikely to outweigh harm to the green belt in importance. I am aware that local planning authorities have the right to change the designation of the green belt at the plan-making stage, but that is not the point. The point is that there is a contradictionin the planning guidance.

I am aware that the Government have introduced a White Paper to consider the housing crisis and the broken housing market, but having read through it, I do not think that it is likely to address the problems of the market or the inconsistencies, contradictions and confusions in the planning system. Nor do I think that it will restore a sense of democracy to the planning process. Indeed, the wishes of a significant proportion of my constituents have been completely disregarded in the outcome of this process. We often hear the Government referring to the importance of local decision making, but the existence of the Planning Inspectorate makes a mockery of that, and does not help us to provide the houses that we need.

[John Redwood (Wokingham) (Con)]

Does my hon. Friend have the same problem that we have in Wokingham and west Berkshire, where a large number of planning permissions are granted but the builders do not build enough homes? On appeal, extra homes are then granted in places that do not fit in with the local plan or the infrastructure provisions.

[Mr Robertson]

I am not familiar with the situation in my right hon. Friend’s area, but I know that the appeals system does not seem to work to the benefit of local communities.

[Layla Moran (Oxford West and Abingdon) (LD)]

I have listened to the hon. Gentleman’s description of his constituency, and it reminds me of my own, which is hemmed in by green belt and also has floodplains. I entirely agree that there is a lack of democracy in the system. Local residents feel that they have no say over wide patches of changes to their villages and towns, and the local authorities feel compelled to carry out actions against the wishes of their own constituents. I commend the hon. Gentleman for making that point; he is entirely right.

[Mr Robertson]

I am grateful to the hon. Lady for her intervention, and I welcome her support.

Guidance on the provision of affordable housing requires councils to assess the need based on local circumstances, but such housing is not being delivered in practice. The housing White Paper outlines that that the Government intend to amend the policy framework to introduce a clear policy expectation that housing sites deliver a minimum of 10% affordable homes, but that is not sufficient to address the issues that the planning system is failing to sort out, particularly for first-time buyers. As I see it, it will still be producing the wrong types of housing—perhaps large three-bedroom houses, but also four and five-bedroom houses—when many areas, including my own, need affordable two-bedroom houses. Such homes are more likely to be within the price range of younger people, thereby addressing the problem that the Government identified in the first place: a fall in ownership among young people.

[John Grogan (Keighley) (Lab)]

In support of the hon. Gentleman’s argument, does he think it significant that the Campaign to Protect Rural England estimates that just over 10% of all the houses built on the green belt since 2009 are actually affordable?

[Mr Robertson]

I was not aware of that figure, so I thank the hon. Gentleman for that helpful intervention.

I was speaking about home ownership among young people, but the provision of two-bedroom houses would also help older people who are perhaps looking to downsize after retirement, which would free up larger houses. Yet that is not happening at the moment.

[Wera Hobhouse (Bath) (LD)]

Does the hon. Gentleman agree that one of the biggest problems is that developers can get out of their obligation to build affordable homes by using viability studies? They can submit a planning application, pick the executive homes that they want to build and then, halfway through, they can produce viability studies and say, “Whoops! We cannot afford to build affordable homes.” Will the hon. Gentleman call on his Government to do something about this shambles?

[Mr Robertson]

I thank the hon. Lady for her intervention. The Minister is here and listening to all these points, which I am pleased to say are consistent with my speech. However, I am being glared at by Madam Deputy Speaker because I have spoken for longer than I had intended, so I will wind up my remarks.

I will conclude with the following suggestions. The Government should accept that London’s housing issues are not the same as those facing the rest of the country, that affordability and a change in lending practice is a significant factor in falling ownership levels among young people and that merely increasing the supply of houses will not address that. We need to ensure that more affordable houses are built for both younger and older people. Planning guidance for green-belt land is confused and needs clarifying. Decisions by the Planning Inspectorate often do not reflect Government policy or planning guidance, and its existence is an affront to democracy in itself. The housing White Paper needs revisiting to ensure that we build the right houses in the right places to give the younger generation a real prospect of being homeowners, while also protecting the countryside. Madam Deputy Speaker, thank you for the time today, and I look forward to hearing what other right hon. and hon. Members and the Minister have to say.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Robertson]

I thank the Minister and all the Members who have contributed to this debate; as I anticipated, it was heavily subscribed. Members raised points from their own constituencies, which was perfectly correct. That gave a good flavour to the debate, which has given the Minister a lot of good ideas—and maybe a few headaches as well.

In winding up, I want to pick up where the Minister finished. I entirely agree with him: one of my favourite Margaret Thatcher policies was that on home ownership. She extended home ownership to so many people who previously would not have had the chance to own their own home. I am absolutely with the Minister and the Government in their desire to increase the number and percentage of people who own their own home.

I am pleased that the Minister recognised that housing supply is not the one silver bullet. Indeed there is no silver bullet. I stress that the building of more and more and more houses will not necessarily lead to greater affordability. There is not an easy answer, but we must work even harder to make sure that we achieve what I think all Members want.

I certainly will contribute to the discussions on the planning guidance. I ask for further clarification, however, on the green belt and unmet housing need. As I said earlier, the Government have stated in planning guidance in the past that unmet housing need is unlikely to outweigh harm to the green belt in importance. The Government must be a little clearer on that as we move forward.

[Dominic Raab]

indicated assent.

[Mr Robertson]

I am pleased to see the Minister nodding to my request on that point.

Again, I thank all Members for contributing to this interesting and important debate.

Question put and agreed to.

Resolved,

That this House has considered housing, planning and the green belt.