Housing and Planning Bill Debate

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Lord Beecham

Main Page: Lord Beecham (Labour - Life peer)
Wednesday 23rd March 2016

(8 years, 7 months ago)

Lords Chamber
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Lord True Portrait Lord True (Con)
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My Lords, I apologise to the House, and in particular to the noble Lord, Lord Dubs, with whom I have had the pleasure of discussing the issue, for arriving slightly late. I was actually delayed on the District line; I hope that it was not by some underground development in South Kensington, where we were held.

I was at one point tempted to sign the noble Lord’s amendment because, like my noble friend, I think that he is very much on to something. Before my noble friend on the Front Bench was a Minister, and over several years, there have been talks between local authorities, particularly in London, and the department. There have been various efforts—my noble friend Lord Selsdon was trying to get something moving for a time—to propel a response from the Government. Time and again, we are told that Article 4 directions are the answer. We spoke a little about Article 4 directions last night. I marvel to see my noble friend here on the Front Bench after her efforts after midnight last night. Article 4 directions are not the whole answer here. It is the strong view of local authority leaders in London, across party, that there needs to be a statutory response here. The fact is that in many cases one is dealing with extremely wealthy people who will stop at nothing to push through. It is nothing to them to spend thousands of hours and tens and hundreds and millions of pounds in pushing these things. Frankly, communities need defence here and I think some statutory response is needed at the end of the day. I look forward to hearing what my noble friend has to say and I congratulate the noble Lord, Lord Dubs, on and thank him for bringing this issue before Parliament.

Lord Beecham Portrait Lord Beecham (Lab)
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My Lords, I endorse what the noble Lord said about my noble friend, who managed to survive yesterday’s long sitting. He hoped to get on before midnight, but unfortunately that was not possible, or perhaps fortunately because otherwise we might have been there until 2 am instead of something like a quarter to one. My noble friend has devoted a lot of time and energy to what is clearly a pressing issue.

There seems to have been an outbreak of megalomania in certain circles in London, in particular. From a distance, one is not as involved with the process, but every so often, just reading the Standard, one hears of case after case of absurd would-be developments. I have friends living in north London where similar idiotic adaptations are made to buildings. We warmly support the amendments and I hope the Government will acknowledge the real problem here and agree to deal with it. While they are doing that, could they protect the block of flats in Balham where I have a flat from the underground workings for Crossrail, which is likely to cause certain problems to me and to lots of other people?

Baroness Williams of Trafford Portrait The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
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My Lords, I join the noble Lord opposite in congratulating the noble Lord, Lord Dubs, on his tenacity last night; not leaving until, I think, gone midnight. My heart sank when I realised that he would not get on to have his say.

The noble Lord was one of the first people I met when I came into this House and we share a common interest. I have great sympathy for anyone who suffers some of the things he talks about. We have discussed the Death Star basement in this House, and the collapsing mansion, so I am not in any way denying that these issues exist and I thank the noble Lord for bringing them to the House’s attention. But of course I am going to disappoint him because I am going to tell him that the powers that he has described already exist. In fact, in some cases they are being implemented.

Local authorities are already able to prepare codes of practice for subterranean works in their area, and many prepare area-specific guidance to help owners ensure that they carry out the works legally and safely with a minimum impact on neighbours. As this amendment replicates powers that already exist, it is unnecessary to include it in the Bill.

I turn to Amendment 101BC. Local planning authorities are able to bring forward specific local plan policies limiting the scope of basement development if they consider that such developments are a particular issue in their area. In such cases, any planning application should then be determined in accordance with that policy. Basement development is not an issue in most local authorities, although I accept what the noble Lord said—that it is coming to an authority near him. But we know that local authorities in areas which are particularly affected by basement developments, such as Kensington and Chelsea and Westminster, are already in the process of introducing appropriate local plan policies to mitigate the impacts of such developments.

We have looked at a graph of how the trend appears to be going. What we are seeing now—to put it in context—is the hangover from previous permissions that are nevertheless causing distress in the area. I would be very interested to see how things look in, say, six months to a year from now. The amendment is therefore not necessary for the same reasons that I have explained for Amendment 101BB.

With regard to Amendment 101BD, the Party Wall etc. Act provides legal protections to owners of adjoining properties, but it is not in place to protect owners beyond next door, as there is unlikely to be damage to properties beyond the current distances set out in the Act. Similarly, introducing a new offence, as this amendment proposes, would not provide any greater protection to adjoining owners. In any case, there is no evidence of significant numbers of cases where notices required under the Act are not being given in respect of subterranean developments.

In addition, the amendment before us would introduce a new liability that goes beyond those currently imposed under the Limitation Act 1980. It would be difficult to justify singling out subterranean development over other forms of development for this enhanced liability. The Party Wall etc. Act applies to most subterranean development work and already provides for security for expenses to be covered by the award between the parties. Therefore, Amendment 101BE is also not necessary.

The noble Lord made the point that noise is not usually dealt with in planning permission. However, local authorities can consider local impacts, including noise pollution, when granting planning permission. The NPPF deals with noise, stating that, where relevant, it should be considered by the local authority in its planning decision. The noble Lord made the point that the GPDO allows basement development, but it is for individual local planning authorities to determine if development is within the scope of national permitted development rights.

The noble Lord also made the point that the Article 4 process is too burdensome and bureaucratic, and so local authorities are unlikely to follow that approach. It can take six to 12 months, but it is not particularly burdensome or bureaucratic—if I had eyes in the back of my head, I would probably see my noble friend behind me shaking his head—although I accept that this is a particular problem in particular parts of the country.

I turn now to Amendments 101BF, 101BG and 101BH. As I have already set out in response to the noble Lord’s previous, related amendments, and as I have just said, basement developments are not an issue in all local authority areas. Existing powers are in place which enable local authorities to adopt an appropriate local approach to mitigate the impacts of such developments where necessary. Similarly, existing legislation protects adjoining property owners from the potential impact of such developments. I therefore ask the noble Lord to withdraw his amendment.

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Lord Shipley Portrait Lord Shipley (LD)
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My Lords, my name is attached to Amendments 101C and 101D. I can be brief because we discussed the issues from which these two amendments derive during our consideration of the housing elements of the Bill earlier in Committee. Amendment 101C makes it clear that the Bill should be about all tenures of housing, not just owner-occupation. Amendment 101D would leave out lines 6 and 7, which give the Secretary of State the power to define affordable housing however he wants to define it. That power is a problem and those words should be removed from the Bill. I hope the Minister will concur.

We discussed in some detail the definitions of affordable housing and affordability. I am concerned that the Government muddle the two terms. We have a statement right at the beginning of the Bill that starter homes are to be defined as affordable homes, but for many people they are not affordable at all. Given all the evidence we have had from organisations such as Shelter, it seems to me wrong to use terms that cannot be justified. It seems even more wrong to give the Secretary of State the power to redefine terms which are already wrong. “Affordable” and “affordability” have clear dictionary definitions, and whichever dictionary the Minister cares to consult in the Library, the definitions are always the same: they relate to people having the resources to pay the bills. Given that many people cannot pay the cost of a starter home, it is wrong to define a starter home as affordable.

I hope the Minister will be able to respond, but these amendments will probably be brought back on Report in a form that joins them to other concerns about the nature of affordability.

Lord Beecham Portrait Lord Beecham
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I take the noble Lord’s point, and I think many of us would agree that the Government’s notion of affordability is far removed from that of most other people, but the thrust of the amendment is surely right. What alternative is in the noble Lord’s mind to ensure that there is a definition that he, I and many others would regard as being related more to the circumstances and means of those who wish to occupy these properties?

Lord Shipley Portrait Lord Shipley
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My Lords, I agree with the noble Lord. We discussed this at a much earlier stage in Committee, in the context of the fact that affordability ought to be defined in relation to people’s incomes and median incomes, and that is the point with which I entirely concur.

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Lord Beecham Portrait Lord Beecham
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My Lords, I have a good deal of sympathy with the remarks of the noble Lord, Lord True, about that provision. I entirely endorse what my noble friend Lady Royall and others have said about Amendment 102B.

Frankly, I am puzzled by Amendment 101D. I had an exchange before with the noble Lord, Lord Shipley, about this, but it still does not seem to make much sense. If one is concerned about the definition of affordability—and I think many of us are concerned about what is currently described as affordable— then to take out from the Bill a provision that as it currently stands would allow the Secretary of State to modify the definition would be puzzling. If the amendment had suggested that, for example, the Secretary of State should by regulation determine what is affordable in relation to household income, for example, that would have been a more positive way of dealing with the issue. At the moment, there is no apparent connection between affordability as it is currently treated by the Government and what ordinary people would understand as being affordable—that is to say, within their means.

Lord Shipley Portrait Lord Shipley
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Perhaps I can explain what the issue is, although I thought I had done so previously. The amendment relates to the planning part of the Bill. At the very beginning there was a debate, and amendments that I think the noble Lord himself moved, about the definition of affordability. We had a long discussion about that. The context of the amendment that the noble Lord is criticising simply relates to whether the Secretary of State should have the power to define a word that is clearly expressed in any dictionary that the Secretary of State may wish to consult. On “affordable” and “affordability”, the Government are muddling their terms, and I believe that that is happening deliberately to make it appear as though housing is affordable when it is not. The Government define the words “affordable” and affordability” differently, but in the dictionary they are the same thing. They relate to the ability of people to pay. All I said when I spoke to the amendment was that I thought we had to go back to amend the Bill at the beginning of its housing element so that the definition of “affordability” was better stated, but then not to allow a Secretary of State to make a change by regulation to the meaning of a word that had a clear meaning in the Oxford English Dictionary.

Lord Beecham Portrait Lord Beecham
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My Lords, I do not want to prolong this dialogue, but surely it would be better to tie the Secretary of State down to making regulations related to, for example, an indexed figure in connection with household income. That would be a more sensible way to do it than simply taking out the clause.

Lord Shipley Portrait Lord Shipley
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To avoid any doubt, I am very happy to do that, as I said 15 or 20 minutes ago. The question is whether the Secretary of State, having defined what “affordable” and “affordability” are, should then be allowed by regulation to alter them, which I think he or she should not be.

Lord Beecham Portrait Lord Beecham
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The point would be to circumscribe the Secretary of State’s ability to regulate it by linking it to an index. However, we are not voting on that amendment and I will not take matters any further.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, the Government are committed to increasing housing supply. More homes are now started every year than at any time since 2007. The total stock of housing in England is now almost 800,000 higher than it was in 2009. In the spending review we announced investment of £8 billion to deliver 400,000 affordable housing starts by 2020-21. This includes £4.1 billion for 135,000 shared ownership homes, £1.6 billion to deliver 100,000 affordable homes for rent and £2.3 billion towards delivering our starter homes manifesto commitment.

In order to further support housing delivery, we need measures to avoid Section 106 planning obligations preventing or delaying new homes being built. Clause 142 inserts new Schedule 9A into the Town and County Planning Act 1990. The new schedule sets out a dispute resolution process to speed up Section 106 negotiations in order to help housing starts to proceed more quickly. Dispute resolution will be available on a broad range of cases, including where affordable housing is in dispute or particular infrastructure is needed to make development acceptable in planning terms. However, as with any effective dispute resolution process, we anticipate that it would be used only as a last resort. The speeding up of Section 106 negotiations is part of a wider package of measures that the Government are introducing to make the planning system simpler and more streamlined. We anticipate that its existence will encourage all parties to work constructively together and agree planning obligations earlier in the planning process.

We are also working with stakeholders to understand the particular issues caused by negotiating affordable housing provision. So far, we know that problems include the time and expense of viability negotiations, the lack of clarity over affordable housing requirements and the difficulty of getting housing associations to take only one or two units on a site. These effects can be felt more acutely by smaller developers, which are more likely to focus on building on small sites. We are consulting on some of the detail of the process and we will bring forward regulations in due course. Clause 143 allows us to address some of these issues by providing a power for the Secretary of State to make regulations relating to the enforcement of planning obligations for affordable housing. The clause provides flexibility depending on the size, scale or nature of the site or of the proposed development so that we can target regulations appropriately.

The right reverend Prelate the Bishop of St Albans asked when we were going to consult on the powers. We are already engaging with key partners to identify those measures that would best support the delivery of new housing, and we will consult on our proposals in due course. Restrictions or conditions will be introduced through affirmative regulation, so Members of both Houses will have a chance to scrutinise any measures that we introduce. That means we can bring about a more consistent approach to how Section 106 agreements can be used in relation to affordable housing provision. It will reduce a key element of uncertainty for developers and, in doing so, support housebuilding.

The noble Lords, Lord Young and Lord Best, and the noble Baroness, Lady Royall, asked how we anticipate using the power in Clause 143(2)—would it be used to restrict right to buy, and what about the rural aspect? The broad power proposed allows for a distinction to be made depending on the size and nature of the proposed development, such as rural sites, where restrictions may not be appropriate, and the distinction in relation to the types of affordable housing that may be restricted. This is intended to focus any restrictions where they would have the most likely benefits in encouraging housing development more broadly, rather than, as the noble Lord says, restricting it. For example, we could use this power to address the particular problems faced on small sites, as I have said, and we are working with stakeholders to identify how we can best use the power to address the issues and support the delivery of new houses. I should also say that the restriction provision would not apply to existing Section 106 agreements.

The noble Lord, Lord Taylor of Goss Moor, is concerned about the Government not supporting rural areas. As I say, this provision gives us the flexibility to target our regulations in a way that would best benefit overall housing delivery. For example, as I said, restrictions or conditions could apply differently depending on the type of sites, such as rural areas.

Amendment 101BGB limits the use of Section 106 dispute resolution, to be introduced through this clause, to affordable housing disputes only. It is not necessary for Amendment 101BGB to be introduced to implement this change. Schedule 13 of the Bill allows the scope of dispute resolution to be restricted through regulations, which could include limiting dispute resolution to cases involving affordable housing. We are presently seeking views on the scope of dispute resolution through our planning technical consultation, but dispute resolution would be a very useful tool for resolving disputes on applications without affordable housing as well as on those with.

Moving on to Amendments 101C and 101D, I do not think that they are necessary to address the concerns of the noble Lord, Lord Shipley, because they would hinder our ability to address the issues that local planning authorities and developers tell us are caused by negotiating affordable housing obligations. This clause allows the Secretary of State to restrict the use of Section 106 planning obligations for affordable housing. The clause, therefore, goes on to define what is meant by affordable housing in this context.

The definition of affordable housing included in this clause focuses on housing that meets a particular need: for example, people whose needs are not adequately served by the commercial housing market. It also specifically includes starter homes, which are defined in Chapter 1 of the Bill. It does not restrict provision to meet the needs of any specific tenures. Indeed, we consider that the definition is broad enough to encompass all forms of tenure. Restricting the use of planning obligations for affordable housing across all tenures would not support the objective of addressing the specific issues caused by negotiations on particular types of site.

The clause also provides the Secretary of State with the power to amend the definition of affordable housing through regulations. Removing the power would affect the Government’s ability to take account of new forms of affordable housing provision that are being developed. This would limit the effectiveness of how Government can use this clause to support housing development. The power to amend the definition of affordable housing under this clause is subject to the affirmative resolution procedure and noble Lords will have the opportunity to scrutinise any amendment of the definition.

Amendment 102B, in the names of the noble Baronesses, Lady Royall and Lady Parminter, inserts a new clause that would enable the Secretary of State to empower local planning authorities to require affordable housing contributions, in cash or kind, from small-scale developments and in rural areas. However, I do not think that it is necessary. Local authorities can set affordable housing policies in their local plans, which will take account of local housing need. Section 106 agreements can then be used to secure affordable housing delivery. They can also be used to agree financial contributions in lieu of on-site affordable housing contributions. Indeed, there is evidence of local planning authorities making very good use of this, including seeking contributions from small-scale developments and in rural areas.

The use of this power will allow us to bring about a more consistent approach to how Section 106 agreements can be used in relation to affordable housing provision. This could include conditions on how planning obligations are sought for affordable housing on particular types of sites. Such conditions could help address the problems that affordable housing negotiations can cause for particular types of sites, such as those identified in this amendment.

I will finish by saying that the Government will consult on the approach to any restrictions or conditions brought forward. Measures implementing this power will be set out in regulations. These, including any amendments to the definition of affordable housing, will be subject to the affirmative resolution procedure and noble Lords will have ample opportunity to scrutinise any amendment to the definition. I hope that, with those words, the noble Lord will feel happy to withdraw his amendment.

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Moved by
102A: After Clause 143, insert the following new Clause—
“Planning obligations for student housing
Upon commencement of this Part, the Secretary of State must incorporate planning for student accommodation into the National Planning Policy Framework so that it is planned for and included in local and neighbourhood plans and taken into consideration in planning decisions where appropriate.”
Lord Beecham Portrait Lord Beecham
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My Lords, this amendment in my name and that of my noble friend Lord Kennedy deals with an issue which is close to home for the Minister, whose daughter—she told me the other day—lives in a student house just opposite friends of mine in a residential part of Newcastle. It is a fact that in Newcastle and many other cities there are very large numbers of students. In Newcastle, I believe that the two universities have between them some 45,000 students. Some of them of course will be local and others will not necessarily be living in the city. Nevertheless, substantial areas of the city are now given over to rented-out student accommodation, which not infrequently is jammed full of students living in not particularly attractive conditions and also somewhat changes the character of the area. Increasingly, we find areas virtually totally dominated by students. Recently I had the misfortune to canvass not far from where the Minister’s daughter lives, and I encountered house after house occupied by students, many of whom, I am sorry to say, expressed the intention of voting Conservative, because on the whole Newcastle attracts large numbers of better-off students. They are not quite mature enough to realise that they are taking the wrong course politically, although they may come to realise that in due course.

However, what we are now seeing in the city—and, I suspect, elsewhere—is rather different and in some ways rather better: large purpose-built places for students to live in, not in residential streets but in purpose-built complexes. That is a good thing in a way because, one hopes, it will free up family-sized accommodation and perhaps bring back more permanent occupation of residential areas, which is desirable. On the other hand, sometimes these buildings are thrown up in close proximity to residential areas and the behaviour of those in the residential blocks is not always appealing to the local community. However, perhaps that is another issue that needs to be looked at.

Amendment 102A simply raises the issue and seeks to get the Secretary of State involved in ensuring that the National Planning Forum takes an interest in what is a growing concern in many areas. The amendment would ensure that it offered some guidance and, in collaboration with local authorities and indeed with universities and student bodies, sought a way of balancing the needs of universities and their population with the local population. On the whole, this works tolerably well. In the area where the noble Baroness’s daughter lives—not necessarily in the same street, although there have been some difficulties there—things are not always satisfactory. There is a good deal of late-night carousing and the like, which some noble Lords may be young enough to recall from their earlier days but is not at all appealing to local communities.

This is a matter that has not really played much of a part so far in national policy formulation, and I hope the amendment will begin a process through which it can be properly developed. I beg to move.

Lord Palmer of Childs Hill Portrait Lord Palmer of Childs Hill (LD)
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My Lords, I shall speak to Amendment 102C. With the emphasis on affordable housing, there is a danger that the infrastructure and support to make developments into communities will be sidelined. Many people have talked about what constitutes affordable housing. A £450,000 home after discount in London may be a good buy but you have to be able to afford the deposit and the mortgage payments. Putting aside my concerns about what constitutes affordable housing, this amendment makes the assumption that we can have a building bonanza but we need to ensure—this is my reason for tabling the amendment—that the funds are not diverted from libraries, schools, community culture, public transport and indeed the multiplicity of activities that make a community. This has historically been effected by Section 106 planning gain money, to which many noble Lords have referred, but the position has been further complicated by the new community infrastructure levy, which no one seems to have mentioned. This levy, which has not been welcomed by some local authorities, can be imposed by local authorities on new developments in their area.

The levy is said to be designed to be fairer, faster and more transparent than the well-tried Section 106 system of agreeing planning obligations between local councils and developers—that is what it says. I therefore ask the Minister, when responding to this amendment, to report on how she sees the community infrastructure levy and/or the Section 106 planning gain funds being protected and enhanced. Can she reassure the Committee that the other provisions in this complicated and convoluted Bill will not militate against the local services that maintain housing developments as communities and not purely, as my old favourite Pete Seeger said in 1963, little boxes of different colours which are all made out of ticky-tacky and all look just the same?

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Lord True Portrait Lord True
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Briefly, I welcome what my noble friend and others have said about student accommodation. It is not easy. We have expanding universities and noble Lords are right to say that there is usually strong opposition from local people when they hear “student housing”. However, a friend of my daughter’s is still at university and is rather more concerned that her local launderette might be turned into a house.

Lord Beecham Portrait Lord Beecham
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I thank the noble Baroness for her remarks. I hope that the matter can be taken forward. I beg leave to withdraw the amendment.

Amendment 102A withdrawn.