Town and Country Planning (Fees for Applications, Deemed Applications, Requests and Site Visits) (England) (Amendment) Regulations 2020

Lord Greenhalgh Excerpts

Wednesday 29th July 2020 Lords Chamber

Moved by

[Lord Greenhalgh]

That the draft Regulations laid before the House on 6 July be approved.

Relevant document: 23rd Report from the Secondary Legislation Scrutiny Committee

[The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)]

My Lords, the regulations we are considering today were laid in draft before this House on 6 July. If approved and made, they will introduce a fee for applications for prior approval for a new category of permitted development right for the construction of new dwelling houses. This new category of permitted development is delivered across a package of new measures recently made and laid, which I set out below.

The Town and Country Planning (Permitted Development and Miscellaneous Amendments) (England) (Coronavirus) Regulations 2020 introduce a new permitted development right, which allows for the construction of new dwelling houses on detached, purpose-built blocks of flats, by allowing an upward extension. These regulations were laid on 24 June and come into force on 1 August.

Additionally, and since these regulations being considered today were considered in the other place on 21 July, we laid the Town and Country Planning (General Permitted Development) (England) (Amendment) (No. 2) Order 2020. These regulations introduce new permitted development rights for the construction of up to two additional storeys on freestanding and terraced buildings in certain commercial uses and a mix of uses, including with an element of housing to create new homes.

Although not relevant to the fee introduced by these regulations being considered today, existing homes, whether detached, semi-detached or in a terrace, will also be able to extend upwards to create new homes or additional living space. On 21 July, we also laid the Town and Country Planning (General Permitted Development) (England) (Amendment) (No. 3) Order 2020. These regulations introduced a new permitted development right for the demolition of redundant and vacant commercial and residential buildings and their replacement with housing. Both of the regulations laid on 21 July will come into force on 31 August.

All these permitted development rights would not require an application for planning permission but would be subject instead to obtaining prior approval from the local planning authority. This allows for a more streamlined planning process while maintaining local consideration of key planning matters. With the exception of the upward extension of existing homes, all these prior approval applications for the new permitted development rights for new dwelling houses would attract the fee introduced by these regulations being considered today.

Given that the prior approval process in relation to these development rights is for the construction of new dwelling houses, rather than other more minor development, the matters for consideration, consultation and scrutiny by local authorities are greater than for other existing permitted development prior approval applications, but less than what would have otherwise been required on a full planning application. This has resource implications for local authorities; it is therefore right that a higher fee should be paid compared with other prior approval applications, but less than for a full planning application.

I turn to the details of the regulations that apply to this fee. The regulations introduce a new fee for a new category of permitted development rights—the construction of new dwelling houses. The fee is £334 per dwelling house for development proposals of 50 or fewer new dwelling houses, and for development proposals of more than 50 new dwelling houses, £16,525, plus an additional £100 for each dwelling house in excess of 50, subject to a maximum fee of £300,000. The £334 fee represents a modest midway point between the £206 fee for an application for prior approval for the change of use of a building to residential and the fee for a full planning application of £462 per new dwelling house.

We consulted on the introduction of the fee for this new permitted development right in October 2018 —Planning Reform: Supporting the High Street and Increasing the Delivery of New Homes. Responses to this consultation recognised that the changes proposed would require significant local planning authority resources and should therefore be subject to an appropriate fee. If there is no application fee, the cost would have to be funded by the taxpayer.

Planning application fees are crucial for a well-resourced, effective and efficient planning system. They provide local planning authorities with much-needed income to consider planning applications, which in turn provide new homes and deliver economic growth for our country. This will be fundamental to our recovery following the pandemic. In July 2018, we raised planning application fees by 20%—the first uplift since 2012. This has increased income for the planning system and has enabled local planning authorities to improve their performance.

We have announced ambitious reform of the planning system to deliver key transport and infrastructure projects and build more homes. This would include new approaches for local authorities to meet the costs of their planning service and deliver improved performance. The draft regulations we are debating today underline our commitment to ensuring that local authorities have adequate resources to deliver a high-quality planning service. I commend this instrument to the House.

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[Lord Greenhalgh]

My Lords, we have had an interesting and wide-ranging debate on these regulations. I thank noble Lords for their contributions.

We have discussed an essential amendment to the 2012 fees regulations to introduce a new prior approval fee for a new category of permitted development rights for the construction of new homes. This permitted development right supports our ambition to get Britain building again, as the noble Lord, Lord Bhatia, mentioned, and to deliver more homes, support our construction industry and help the economy to bounce back.

The fee introduced by these regulations reflects the level of assessment required for this type of prior approval for permitted development. This will ensure that local authorities have the resources to consider such applications and deliver a high-quality planning service. I reiterate that the £334 fee was chosen as a mid-point between the £206 change of use fee and the £462 full planning application fee. We believe that it is the right fee level.

Many noble Lords, including the noble Lords, Lord Greaves and Lord German, the noble Baroness, Lady Randerson, and my noble friend Lord Bourne mentioned the importance of having a well-resourced and effective planning department. I am grateful for the points made by noble Lords. I want to respond to as many of them as I can. The noble Baronesses, Lady Randerson and Lady Pinnock, and the noble Lord, Lord Greaves, mentioned the impact on communities being disregarded. As I did yesterday in this House, I reiterate that local communities are able to comment on prior approval applications under the consultation requirements set out in the 2015 general permitted development order. In relation to matters for prior approval, the local authority is required to consider any representations made to it as a result of any consultation when making its decision on whether to grant prior approval, so there is a degree of consultation with communities despite the prior approval approach.

A number of noble Lords, including my noble friend Lord Bourne and the noble Lord, Lord Thurlow, mentioned the impact on leaseholders. This issue was raised in the other place by Sir Peter Bottomley, who was concerned about the impact of new permitted development rights on leaseholders’ ability to exercise their legal right to enhance their leasehold interests by buying the freehold. This is because, when purchasing the freehold, one of the valuation components is something called a hope value or development value. It is indeed true that some leaseholders may be affected by any increase in the value of those blocks of flats but it is certainly not the windfall described by some noble Lords today. It is not a windfall for freeholders but it may affect the valuation.

My noble friends Lord Holmes of Richmond and Lord Bourne of Aberystwyth, and the noble Lords, Lord German and Lord Thurlow, all raise concerns about quality of homes. All homes built under permitted development rights are required to meet building regulations. In addition, such developments must conform with any conditions required by the prior approval. For space standards, it is a priority that we see new homes brought forward. We think developers are best placed to assess the type and size of homes best suited to the local market. Regulations cover what we deem as the right space standard, but we have intervened so that under these rights you cannot build anything without adequate natural light in all habitable rooms.

For fire and building safety requirements, all homes built under permitted development rights are required to meet building regulations that make it clear that combustible cladding such as the ACM mentioned by the noble Lord, Lord German, needs to be remediated. I hope this will be as quickly as possible. At this point, well over 333 of the 457 buildings have started or completed remediation. I hope that his building follows shortly. My department—the MHCLG—will write a letter to all building control bodies, making clear all the building safety and fire safety requirements when new storeys are added. Fire safety and building safety are of paramount importance.

The noble Baronesses, Lady Randerson and Lady Bakewell, raised concerns about the inability of local communities to shape their local areas and local plans. These rights make effective use of existing buildings and boost density. As the noble Lord, Lord Mann, raised, we are looking to build up rather than build outwards. We aim to avoid building on greenfield land and make maximum use of brownfield sites. This is gentle densification. It will respect the appearance of existing streetscape while ensuring the amenity of neighbours is considered through the prior approval considerations.

Planning fees are an important source of income of a well-resourced, effective, efficient planning system that underpins housing delivery and economic growth. I firmly believe that these regulations will support local authorities to have the capacity to consider new applications and play their part in building the new homes that our country needs. I commend these regulations to the House.