Levelling-up and Regeneration Bill

Lord Best Excerpts

Committee stage
Monday 24th April 2023 Lords Chamber

Debate on Amendment 261 resumed.

[Lord Best (CB)]

I think it falls to me to intervene at this point. I will speak to Amendment 269, which concerns the development of larger housing sites. I reiterate declarations of interest: I am vice-president of the Town and Country Planning Association and of the Local Government Association. I thank the CPRE, whose excellent legal advisers devised this amendment. I am delighted to see the good work being done by the CPRE in partnership with Shelter, the TCPA and others, to improve decisions on what and where new development takes place.

Amendment 269 seems a fairly innocuous and technical one, but actually it fundamentally changes the dynamics of new development on larger sites. It seeks to bring into play some of the recommendations from the 2018 review of housebuilding practices by Sir Oliver Letwin, who was working on behalf of the Government. The amendment addresses issues of diversification of housing and infrastructure on larger sites, as advocated by Sir Oliver. Diversification of providers and provision would replace the housebuilders’ model of one developer cramming in the maximum number of homes of the same house type for the same house buyers and selling them at the very slow but profitable buildout speed that the market will absorb. Instead, larger sites, said Sir Oliver, should be subject to a diversity of housing provision, where a number of different developers, including SME builders, housing associations, self-builders and so on, would build a variety of different sorts of housing for families for rent and for sale, perhaps student housing and certainly accommodation for older people, to which we have made reference under other amendments, with green spaces and infrastructure, as well as transport links for walking and cycling and public transport, not just private cars.

Those other providers would work together at the same time, building out the total development at a much faster rate than with single ownership by one volume housebuilder. That approach would diminish the dominance of the oligopoly of volume housebuilders, which have failed to deliver what society needs. Instead, the variety of developers and housing providers would work simultaneously in meeting the needs of the locality. The detail of the diversity of types and tenures of the new housing, including social housing, would be enshrined in the local plan—now the local development plan.

Sir Oliver saw much merit in local development corporations, at arm’s length but wholly owned by the local authority or combined authority. They could acquire sites and parcel them out within a master plan. In cases where the development corporation is unable to reach agreement with the landowner on the site’s value, compulsory purchase may be the only way forward. If so, the terms for the CPO would be set by the same requirements to meet the obligations laid out in the local development plan and national policies. The value of the site is thereby moderated by the necessity of complying with local and national mandates.

Where no development corporation is involved, and, indeed, whether or not a CPO is needed, a similar outcome could be achieved if this diversification and specificity was required for planning permission to be granted for any development of a site of more than 500 homes. In these cases, the value of the land would always be deeply affected by the insistence, built into the system by this amendment, that the local plan and national policies must be adhered to.

This amendment is one of a pair with my Amendment 312A, which we debated earlier in Committee. Both amendments seek to capture land value and enable a real shift in the social benefits that can flow from development of new housing in the UK. Amendment 312A was concerned with land in public ownership, seeking to ensure that it was made available for optimal economic, social and environmental use rather than being sold off to the highest bidder. This amendment is concerned with land in private ownership; again, to enable its development to serve the public good, not simply to achieve the maximum profit for the developer. The amendment will also secure in law clarity on the long-standing arguments around “viability”. It would make it clear that compliance with the requirements of the local plan and national duties is an essential part of the basis for valuing the land. Developers would no longer be able to claim that they are unable to meet the local authority’s demands for affordable housing or other amenities simply because of the price they paid for the site.

In fact, the courts have already made it clear that this argument must prevail. The now famous Parkhurst Road planning case concerning a site in Islington shed light on the legal position last August. The developer argued that because of the price it had to pay for the site, it could not afford to provide the affordable housing sought by the council, but the judge, the honourable Mr Justice Holgate, ruled that this excuse could not stand. Indeed, he took the RICS to task for not providing clearer guidance on such matters.

This amendment is intended to radically improve the development of all larger sites. It seeks to take back control from the housebuilders and developers which propose and build developments that do not make optimal use of land. The amendment would mean that all new developments would at last have to meet the policy objectives contained in local and neighbourhood—if they exist—plans, specifying the social affordable housing requirements and the mix of types and sizes of accommodation, and taking account of national policies. Land values would have to reflect these realities.

I realise that, as with my amendment on publicly owned land, the approach of this amendment is dependent on local authorities having and finalising local plans, but when they do this, when they have those plans, this makes them much more meaningful. The Minister may feel unable to accept my amendments, but perhaps consideration of this way forward, the follow-through of the admirable work of Sir Oliver Letwin, could start us down a path that achieves the same desirable outcome. I commend the amendment.

--- Later in debate ---

[Lord Best (CB)]

I am encouraged by the tone with which these issues are being approached. As regards the placing of penalties upon those who are not getting on with the job by refusing future applications from that firm, I can see some hazards here, not least if the delay is happening in one area and the applications for further schemes are somewhere completely different. Is this new power of withholding permission for new applications because you have been so slow in building out the ones you already have to be transferred from one local authority to another, or is it confined to a local authority acting only with regard to interests within its own boundaries?

[Baroness Scott of Bybrook (Con)]

I believe it is in one local authority, but I will check that. I will let the noble Lord know and make sure that everybody else in the Committee is aware.