Levelling-up and Regeneration Bill

Lord Bradley Excerpts

Committee stage
Tuesday 18th April 2023 Lords Chamber

We need to make sure that those who are desperate to get their foot on the first rung of the property ladder are not exploited by believing that leasehold means that they now own and control their homes. At the very least, any new-build homes that offer leasehold, rather than shared freehold or commonhold, must be honestly reflected and labelled in government data. They should not be counted as home ownership or cited as proof of fulfilling levelling-up targets. So, until leasehold is abolished, let us call it for what it is—and it is not home ownership.

[Lord Bradley (Lab)]

My Lords, I will speak to my Amendment 219A, which has been attached, rather inelegantly, to this group. I fully support the amendment on housing for older people so eloquently moved by the noble Lord, Lord Best. I declare my interests in the register, particularly as chair of council at the University of Salford.

My amendment is straightforward, but the issue is important. However, I will be brief. The amendment seeks to add a requirement that, in the development of local plans, the housing needs of students are taken into account by fully consulting local higher education providers and housing and planning authorities in that process.

We are all aware that there is a significant undersupply of student accommodation across the country—this has been widely reported in the media throughout this academic year. It is a particularly acute problem in our cities, including Manchester, where I live—but there are also reports from Durham, Bristol, Glasgow, Brighton, Nottingham, London and many more. The student accommodation charity, Unipol, reports that UK student housing is reaching a “crisis point” as bad as in the 1970s. Just before Christmas, Property Reporter said that the student rental market is reaching “breaking point”. Furthermore, purpose-built student accommodation specialists Cushman & Wakefield report that new-build schemes are failing to keep pace with demand, at the same time as supply is being lost from the private rented sector, with many landlords switching from student accommodation to rental for professionals because of a more compelling business case, lower management requirements and more consistent demand.

As a consequence, we know that students are forced into accommodation they cannot afford; are forced to live far away from the university they are attending, with consequential higher travel costs; or are choosing unsuitable, or even unsafe, accommodation. This has a detrimental impact on the health and well-being of students, as well as significantly undermining the overall student experience. The situation has clearly been exacerbated by the current cost of living crisis.

The Government have made their position clear. In response to a Written Question in the other place, Robert Halfon, Minister of State for Education, said:

“Neither the Department for Education nor the Department for Levelling up, Housing and Communities have made … an assessment”


of student housing. He went on:

“It is for local areas, through their Local Plans, and in response to local needs and concerns, to determine the level of student accommodation required in their area. Universities and private accommodation providers are autonomous. The department plays no direct role in the provision of student residential accommodation, whether the accommodation is managed by universities or private sector organisations.”


That is absolutely clear, and we must therefore consider local solutions to the problem.

If we look across the country, we see examples of good practice, such as in Nottingham, where the city’s student living strategy explicitly involves collaboration between the universities and the local council to ensure that Nottingham realises the many socioeconomic benefits that students bring, without putting pressure on the local housing stock. But such collaborations can be more difficult in places such as Greater Manchester, where you have many higher education providers and 10 district planning and housing authorities trying to co-ordinate the demand and supply of accommodation of many thousands of students.

The student union in Salford, ably led by its president, Festus Robert, and working closely with student unions across Greater Manchester, have been in discussions with the Mayor of Greater Manchester to try to address this problem. However, this complication could be overcome through this amendment. It will introduce a statutory requirement at the local level, with the development of local plans, to ensure the collaboration of all interested parties—principally, universities and local authorities—to take into account the housing needs of the students when they are developing their local plans.

This important issue must be tackled, and I hope that my amendment will ensure that it is. I also hope that the agnosticism of certain noble Lords will be overcome by my argument. It clearly chimes with the purpose of the Bill and, more broadly, with the devolution agenda. In that spirit, I hope that the Government will support it today.

[The Earl of Lytton (CB)]

My Lords, I will speak to this group of amendments, doing so as a property professional. For very many years, the development process, housebuilding and the construction process have not been far from my daily life—at any rate until a few years ago, when I ceased to do that sort of thing on a day in, day out basis throughout the week.

I will start with the point raised by the noble Lord, Lord Lansley, in his superb explanation of the matter. I will throw some light on that, because, whether you have targets or whether you make an allocation at local level, none of these of themselves build a single unit of residential accommodation. There is a stage in between that is occupied by a commercial cohort of developers and housebuilders. I have worked for a few—although not recently—so I have no intrinsic bias against developers and housebuilders. They are, after all, the delivery system whereby the government targets will be met and, ultimately, one assumes, the affordability and availability of housing for those who need it and wish to occupy it will be delivered. However, they control the build-out rate—the more so if they control large strategic sites.

So far as I have a current interest, it is one that occupies an area within a local authority within which I reside and involves sites that are not many miles from where I live. To give one example, there is a site 6.5 miles from where I live, next to a major town, with consent for 2,700 homes. The consent was granted some years ago. Material commencement within the normal three-year period was made to construct the access. So far, the school—which I am told is fully occupied —and about two dozen houses have been built, but not much else. So, although it may fall short of what I might call the Letwin definition of land banking, it is an expandable pipeline of balance sheet assets that is not about delivery as such, but rather about managing profit and income streams.

It is very easy to make that material start and preserve your consent more or less in perpetuity. There has been some recent case law where that has wobbled a bit, but I will not go into that.