Housing: Brownfield Land

Lord Greaves Excerpts

Thursday 5th February 2015 Lords Chamber

Asked by

[Lord Greaves]

To ask Her Majesty’s Government what steps they are taking to promote housing development on brownfield land, rather than greenfield sites.

[Lord Greaves (LD)]

In asking the Question standing in my name, I remind the House of my local government interests.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Lord Ahmad of Wimbledon) (Con)]

My Lords, we have given high priority to development on brownfield land and the Government have introduced a package of measures to accelerate the redevelopment of such land, including £400 million of loans to support 30 new housing zones. We also expect local authorities to put in place local development orders granting planning permission for new homes on over 90% of suitable brownfield sites by 2020.

[Lord Greaves]

My Lords, the proposals for the new housing zones are welcome but in areas such as mine in east Lancashire, private developers simply cannot recoup the cost of the land and of building the houses in their profits from the sales of houses in areas where house prices are very low by national standards. In these circumstances, do the Government understand that loans are no use at all because they cannot be recouped, and that what is required is direct gap funding of the difference between the cost to the developers of producing the houses and what they can get for the sale or rent of those houses?

[Lord Ahmad of Wimbledon]

My noble friend makes a valid point about the need to encourage housing development. In that regard, I can also point him to the estate regeneration fund, currently standing at £150 million, to revitalise housing estates. But we are seeing take-up of the housing zones initiative. Indeed, in London, for example, it has been matched by the mayor by a further £200 million.