Housing and Planning Bill Debate

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Lord Kennedy of Southwark

Main Page: Lord Kennedy of Southwark (Labour - Life peer)
Wednesday 4th May 2016

(7 years, 12 months ago)

Lords Chamber
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Baroness Warwick of Undercliffe Portrait Baroness Warwick of Undercliffe (Lab)
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My Lords, I speak in support of government Amendment 10A, which safeguards the provision of affordable homes on rural exception sites, as well as Amendment 10B in the name of the noble Lord, Lord Kerslake, which would add to it. I declare an interest as chair of the National Housing Federation, which represents England’s 1,000 housing associations. As many noble Lords will be aware, housing associations work with local authorities across the country to deliver the homes and services needed by each local community.

The Government have a manifesto commitment to deliver 200,000 starter homes by 2020, which will help many people on to the housing ladder. They have also shown a welcome commitment to shared ownership. However, as the Bill allows developers to deliver starter homes as part of their Section 106 obligations, this puts the supply of all other forms of affordable homes at risk. I welcome the Government’s Amendment 10A, as it allows local authorities to protect rural exception sites, making sure that the housing delivered will be affordable in perpetuity for the local community. It recognises the value that rural exception sites bring to our rural villages.

Unfortunately, however, the rejection of Lords Amendment 9 by the other place puts the much needed delivery of all forms of sub-market rent at risk by undermining local authorities’ power to plan to meet objectively assessed local housing need, as they are required to do by the National Planning Policy Framework. Local authorities should have the freedom to plan for the different tenures that people living in their area might need. In many cases, these will include starter homes, but local people may also need affordable or social rented homes, or homes for shared ownership.

I understand that the Government are not willing to grant this flexibility given their focus on delivering starter homes. Although I stand by my position that local authorities should retain the freedom to plan for all local housing need, I voice my support for Amendment 10B in the name of the noble Lord, Lord Kerslake, which would enable starter homes to be built while giving local authorities flexibility to deliver other forms of low-cost home ownership products to meet the needs in their area. This would include shared ownership —an affordable way for those on low incomes to own their own home which was originally pioneered by housing associations.

Local authorities know best the housing needs of the people in their areas. They are in the best position to determine the right mix of homes in their areas. This amendment is an elegant way to enable the Government to meet their manifesto commitment to boost home ownership, while giving local authorities some flexibility to serve their communities by planning sensibly for the homes that meet those communities’ needs.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab)
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My Lords, as this is my first contribution today to consideration of the Commons reasons and amendments to the Housing and Planning Bill, I draw noble Lords’ attention to my declaration of interests and further declare that I am an elected councillor in the London Borough of Lewisham. Generally, it is disappointing that we are back here today following the rejection by the other place yesterday of a number of amendments proposed by your Lordships’ House. There has been some movement in the Government’s position on the taper but they have not gone as far as we would have liked, and I think the noble Lord, Lord Best, got this one right. Nevertheless, we are pleased that there has been some movement. Recycling a proportion of the discount through a taper if the property is sold is a much better way of delivering this policy and I am pleased that the Government have accepted that.

On Motions B and B1, proposed by the noble Baroness, Lady Williams of Trafford, and the noble Lord, Lord Kerslake, respectively, the latter amendment gives local authorities the ability to demonstrate the case for delivering other forms of low-cost home ownership to the Secretary of State along with their general duty to deliver starter homes. That is all the amendment does: it gives the local authority the ability to demonstrate the case. If that is not done to the Secretary of State’s satisfaction, approval will not be given. I cannot see why the Government want to resist that. Again, it is disappointing that the other place has not accepted Amendment 109 proposed by my noble friend Lady Royall of Blaisdon, but there has been some movement, which is to be welcomed. Like my noble friend, I will be looking carefully at what emerges from future discussions, and we will press the Government further in that regard.

Baroness Williams of Trafford Portrait Baroness Williams of Trafford
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My Lords, I thank all noble Lords who have spoken to this group of amendments. I welcome the debate on the starter homes amendments and rural issues; I hope it has been productive. I am trying telepathically to understand what the Minister in the other place meant last night by “proportionate” discount. As I understand it, as the discount is a percentage rather than a cash sum, it is proportionate to the total cost rather than fixed, which is probably fairer. That is my understanding of what he meant.

On Amendment 10B, proposed by the noble Lord, Lord Kerslake, I understand why it seems attractive to allow local authorities to meet their starter homes requirement with other products. However, in reality, the requirement for starter homes would become something entirely different. This change to the requirement would again undermine the Government’s ability to meet our manifesto commitment to 200,000 starter homes. We have been very clear on why we want a requirement for starter homes. This is a new product, designed to address a specific gap in the market for young, first-time buyers, as we have discussed on many occasions during the passage of the Bill. Starter homes will give young people the chance of full home ownership, allowing them to move onwards and upwards over time. We have a clear manifesto mandate to deliver this product, and that is why we are legislating for starter homes alone.

The starter home requirement will be straightforward and developers will understand it from the outset. It does not remove councils’ ability to deliver other affordable housing and home ownership products alongside starter homes, and we fully expect them to do so. Nor does it remove their local plan policy. The Government believe that shared ownership and other affordable home ownership products have an important role to play as part of a diverse and thriving housing market. They will help those who aspire to home ownership but cannot afford outright discounted purchase.

The spending review has committed £8 billion to deliver a further 400,000 new affordable housing starts. We have published a prospectus that invites housing associations and other providers such as developers to bid for £4.1 billion to deliver 135,000 shared ownership homes and £200 million to deliver 10,000 rent-to-buy homes. However, our legislation focuses on starter homes to ensure that it has the necessary attention to secure delivery.

I have listened carefully to the debate, and I hope that the amendments I have set out mean that there is no need to divide your Lordships’ House. With these reassurances, I ask that the amendment to the Motion be withdrawn.

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Baroness Parminter Portrait Baroness Parminter (LD)
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My Lords, we all believe that neighbourhood plans deliver more homes. However, it is not just a belief; it is also the evidence that the Government accept. We heard them accept it in both Committee and on Report. Therefore, we wish to do all we can to encourage more neighbourhood plans to be produced in order to deliver the housing that we all know we need.

Our central contention is that we do not believe that local communities will go to the trouble of putting forward neighbourhood plans if they know that a local planning authority can drive a coach and horses through everything they have submitted by reaching a decision that conflicts with what is in the neighbourhood plan. The appeal that we propose in this amendment is extremely limited and would apply only to parish councils and neighbourhood forums. It addresses the issues that Members have rightly raised on this and previous Bills about the scope for a limited right of appeal to allow vexatious complainants to come forward. As I say, this measure is purely for parish councils and neighbourhood forums.

We have listened to what noble Lords said on Report. Eagle-eyed noble Lords will have noticed that this is an even more limited appeal than that for which we argued on Report. At that stage, we argued that it should be open to local councils and parish councils which were concerned about a policy in an emerging plan as well as a made plan. This amendment addresses purely a proposal which is contrary to a neighbourhood plan.

The government amendment does nothing more than what good planning officers should be doing anyway. Noble Lords who are local councillors will know that planning officers are already doing this. The measure does not address one of our fundamental concerns—namely, if a local planning authority opposes, and turns down, an application which is contrary to a neighbourhood plan, it cannot be called in. The Minister said that a call-in process applies, but it does not apply if a local council accepts a proposal which is contrary to a neighbourhood plan, so, effectively, under the government amendment, councils can just ignore it anyway.

As I say, we are proposing an extremely limited appeal. It had the support of the House of Lords Select Committee on the built environment and civic society groups. In addition, a considerable number of Conservative Members supported it last night in the other place. One went so far as to ask the Minister in the Commons to give further weight to neighbourhood plans. That is what this limited right of appeal would do. I beg to move.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, it is remiss of the Government not to accept the amendment agreed by your Lordships’ House in respect of a neighbourhood right of appeal. The noble Baroness, Lady Parminter, has tabled a revised amendment which would restrict the right of appeal in certain circumstances only in those areas where there is an approved neighbourhood plan. As she said, this is a much narrower right of appeal than that originally proposed. If she wishes to test the opinion of the House, noble Lords on these Benches will support her. I support neighbourhood planning. This amendment would give a limited right of appeal, as has been outlined.

As I have told your Lordships’ House before, the ward I represent in Lewisham—Crofton Park—is in the process of drawing up a neighbourhood plan. We have not yet obtained full approval for it, so this amendment would not apply to us. However, it would give impetus to our efforts to carry on consulting local people and getting the local community plan approved. Then we can help local people.

The noble Baroness’s amendment would enable communities to be involved locally. The Government should support it. The Government have adopted a rather hokey-cokey approach to localism during the Bill’s passage. When they agree with measures, they trumpet the fact that they are in favour of localism and letting local authorities decide things. However, when they do not like something, they say that local councils cannot obstruct the will of central government, which needs to decide these matters. The Government have no consistency—it is in; it is out; it is in; it is out. That shows no respect for localism, local people or local communities and is no way to formulate policy. It makes a mockery of the Government’s own Localism Act, which was passed only a few years ago.

We heard the myth from the noble Baroness, Lady Evans, about local planning authorities holding up housebuilding. I tabled a Parliamentary Question on this. On 4 April, I was told by the noble Baroness, Lady Williams of Trafford, that there were permissions for 658,000 homes to be built in England that had been either not started or not completed. These are approved homes. Therefore, I do not think that local planning authorities are holding these things up. We need to get these homes built; the permissions are there.

Lord Rooker Portrait Lord Rooker (Lab)
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I intend the following as a purely positive question because I have not read anything about this. However, I noted something the noble Baroness said when she moved the amendment. It is a technical question. Is this a precedent for third party rights of appeal? I am not clear whether third party rights of appeal in planning exist. I seductively proposed them when I was a Minister but subsequently had to oppose them at the Dispatch Box because I was yet to be convinced about them. In other words, is this a thin end of the wedge for third party rights of appeal or do they already exist in other parts of the planning system? It is a perfectly reasonable question; I am just looking for the information.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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As I understand it, this gives a right to the local parish council or neighbourhood forum to be involved in these things.

Lord Rooker Portrait Lord Rooker
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The point I was making is that it is a third party right of appeal. It is a fairly fundamental principle that I do not think exists—but it may do, I may be wrong. That is why I am asking.

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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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Before the noble Baroness sits down, she originally implied that local authorities and planning committees were holding up all the development. The Parliamentary Answer of 4 April stated that hundreds of thousands of planning permissions have already been agreed and approved but the houses are not being built. That is the problem. It is not local authorities or planning committees which are doing this.

Baroness Parminter Portrait Baroness Parminter
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My Lords, I stand by my assertion that the Government’s amendment offers nothing beyond that which good local planning authorities are already doing. It does not address the issue; even if they are doing it, councillors can then go on to make a decision that overturns the policy of a neighbourhood plan or forum and that the call-in cannot be used by that local group, because there cannot be a call-in if a local council approves a policy that is contrary to a local plan. Equally—this is really important for rural areas—call-ins do not apply for housing developments of less than 10 homes. Given that so many neighbourhood groups and parish councils are putting together their neighbourhood plans in rural areas, we need something that gives them a sense of certainty over their plans.

I accept what the noble Baroness, Lady Evans, said—this could be interpreted as a limited third party right of appeal. But it is not for individuals; it is only for neighbourhood councils and parish councils, which have to go through a process of getting their plan to go through a public referendum and then be approved by a council before they can have their plans approved. Secondly, the limited right is only if they then get a two-thirds majority of the parish council or neighbourhood forum to agree to proceed with an appeal. It is a very limited right that I have asked for. We have moved some way; I am sorry to say that I do not think the Government have moved far enough and I wish to test the opinion of the House.

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Lord Krebs Portrait Lord Krebs (CB)
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My Lords, I support the amendment of the noble Baroness, Lady Parminter. As she has said, it is meant to be helpful in the context of our legally binding commitment to reduce our greenhouse gas emissions. The important thing to remember is that the new houses which are to be built now will be around for a long time—probably 100 years or more. It is inevitable that over time, we will need to tighten our greenhouse gas emission standards and move towards a zero-carbon homes standard. If, in building them, we do not meeting that standard today, they will have to be retrofitted in future. It is all very well to say, as the noble Viscount did, that we will undertake a review, but in the time it takes to carry out that review, many homes will be built. We will be storing up trouble with the homes we build while carrying out yet another review.

In the other place, it was noted that this requirement would “slow down or prevent” the building of new homes. Let us look at the counterfactual: let us say that we do not implement this amendment and go ahead rapidly with building new homes, but that those new homes are not fit for purpose in the future. Surely, that cannot be a good principle. If we are to build new homes now, we should think about their long-term implications for both greenhouse gas emissions and, as the noble Baroness, Lady Parminter, said, the energy bills of those who will live in them. Finally, we have the chance now to legislate to make greenhouse gas savings through this measure, and if we do not, the country will have to make them elsewhere. In the debates in Committee or Report, nobody has said, “Okay, we’re not going to make the savings here—but here’s where we are going to offer up savings elsewhere in the country”.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, Motion K1, in the name of the noble Baroness, Lady Parminter, is very welcome and if she wishes to test the opinion of the House, noble Lords on these Benches will support her. The issues raised in this amendment were of course debated in Committee and on Report. As we have heard many times, we are in the midst of a housing crisis. Not to build homes to a high standard that meets the challenges of which we are all aware, when that could be done at a minimal cost, just seems wrong. I do not understand the Government’s position at all. Theirs is a short-sighted policy through which they are cutting corners where they can.

The zero-carbon homes standard is important in delivering on our climate change commitments. As we heard in the previous debate, the cost of the building standards to achieve this and drive down energy bills could be £1,900 or even less. I do not understand why the Government do not want to move on this. All that will do is to leave people with higher fuel bills and the costs of retrofitting properties. That should not be necessary, and not taking action today would be wrong.

The Government’s “step too far” defence is just not compelling. They have not made a convincing case as to why this is not the desirable thing to do. It is puzzling that the Government do not want to build homes that are as energy-efficient as possible. As I have said before, on matters of public policy the Government should be striving to get the best possible outcome. If we do not agree to this amendment, in practice, people will pay a greater proportion of their income when moving to a new home than they need to. That would affect those on the lowest incomes—the poorest people—and nor would it be possible for the Government to reduce our carbon emissions.

Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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My Lords, this House can rightly press the Government to strengthen energy standards where it is possible and cost-effective to do so. I note the well-intentioned comments of the noble Baroness, Lady Parminter, and the noble Lords, Lord Kennedy and Lord Krebs, but it is right that we first do a full and comprehensive review of the evidence. That is our firm intention. Simply imposing standards without such a review risks making homes unviable in some parts of the country and raising construction costs to a point where they may simply be unaffordable for small homebuilders. The Federation of Master Builders, which represents 13,000 small and medium-sized builders, said last week in response to Amendment 108 that the Lords is showing,

“a reckless lack of realism and concern for consequences of heavy-handed regulation”.

Let us show the Federation of Master Builders that this House is not reckless and that any future changes to standards will be based on a full review of evidence and be cost-effective.

I would like to pick up on a point made by the noble Baroness, Lady Parminter, about the cumulative cost—that is, the £3,000 figure per household. The cost of meeting the level proposed for a semi-detached home is around £3,000, as has been said, but if that is scaled up for all home types over a year—flats are less costly but detached homes cost more—it would result in a cumulative cost of around £200 million per annum to the homebuilding industry. That reinforces our argument for a full review and with that in mind, I hope that the noble Baroness will withdraw her Motion.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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The noble Viscount has relied on the Federation of Master Builders now for every debate on this issue. Before he sits down, could he remind us, as I cannot remember, of the number of organisations that, to the contrary, think these measures are very welcome?

Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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I deliberately use the Federation of Master Builders because it is prominent in the industry. I could quote other organisations and would be very happy to provide the noble Lord with a list of them. There is certainly a mood to ensure that there is not this chilling effect, particularly on small builders. We need to build more houses.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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I would be interested to see a list of those other organisations. Up to now, all I have heard from such organisations is that they support these measures. The noble Viscount has relied from day one on the Federation of Master Builders and nothing else.

Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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As I say, I am very happy indeed to write to the noble Lord with a full and further list.

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Earl of Lytton Portrait The Earl of Lytton (CB)
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My Lords, I have not spoken in this part of these deliberations. I draw your Lordships’ attention to my interests as a practising chartered surveyor and a vice-president of the Local Government Association. More particularly, in the course of my professional work, I have had to deal with the design and application of such things as sustainable drainage systems, whether that might be full sustainability—full SUDS—or whether it be an attenuation, which I might call SUDS-lite. Let us not make too much of that particular distinction.

I recall that, not too long ago, I had reason to pay a visit to the Building Research Establishment at Watford. One thing that came out of that visit was a discussion on sustainable urban drainage systems—and one of the remarkable things about it is how little land is actually needed to achieve an acceptable system. So it does not seem to me to be quite as the Minister said. He raised the objection that this was heavy-handed and would in some way prejudice smaller sites, where things were more constrained. But I refer your Lordships to the non-statutory technical standards, as may be published by the Minister from time to time. It seems to me that that gives the Minister the tools to make different rules for different circumstances, as the situation may arise. With the greatest respect to him, I am not sure that I follow his line of argument.

We need to remove the issue of surcharging water that has to be dealt with by the statutory undertaker. Whether that be surface water that is channelling down some pipe because of a cloudburst or whether it be a combined system, whereby surface water is getting into foul water, which then has to be dealt with in dilute but vast quantities at a sewage treatment works, it is part and parcel of the same problem of volume and disposal. We need to be aware that it is not always in the interests of the sewage undertakers to delimit what goes into their pipes, because of course that gives rise to the justification for large capital works to increase and expand it. I do not think that we should be following that; there are grounds for attenuating these things on or near a site to deal with surface water run-off. Quite apart from the issue of localised flooding and run-off, the whole process of attenuation should and could have been part of standard building regulation practice for at least the last 20 years, and I am really surprised that there is substantial resistance to it. If the noble Baroness decides to divide the House, I am afraid that I shall be voting with her.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, as we have heard, the amendment would ensure that new homes are built with sustainable drainage systems, helping to protect home owners against flooding, helping communities and delivering wider environmental benefits. This issue has been discussed as we have gone through the Bill both in Committee and on Report, and it is disappointing that the Government are again rejecting the amendment. There is no problem with monitoring where were are with SUDS—whether they are included and why they are not included, the issue around developing a site and why costs might mean that you cannot do it. We need a lot more information here, and I do not understand why the Government do not want to do this. The measures are low cost and would deliver flood-resilient homes, which is something that we all want to support. We have all seen the heart-breaking scenes of people’s homes being flooded. Why would you want to build homes that are at risk of flooding? It is really very strange.

The Minister talked about cost and bureaucracy and said, “Let’s wait and see”. I am afraid that that does not stack up. As the noble Baroness, Lady Parminter, said, all the water companies have supported this, but there are also other bodies. Essex County Council is fully in support of it, and I think that that is a Tory-controlled authority—it is certainly not Labour controlled. Hampshire County Council is fully in support of it, and it is certainly not Labour controlled; I think it is Conservative controlled. There are many other bodies; everyone is saying that this is something that we should do, so I do not understand why the Government are still resisting it. I hope the Minister will look at this more favourably and change his mind.

Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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My Lords, this has been a very interesting and short debate, and I shall be brief. I hope that noble Lords will accept that, while we join them in supporting the use of sustainable drainage, there are flaws that make the proposed new clause simply unworkable, and a potentially serious impediment to the delivery of new homes. As the noble Lord, Lord Krebs, said, we have heard the arguments at some length during the Bill, and I can only reiterate our position that we will review the impacts of the current planning policy on sustainable drainage. That is a definite reassurance.

On the point that the noble Lord, Lord Krebs, raised on why by building now we might be storing up problems for later, when determining planning applications, local planning authorities are expected to ensure that flood risk is not increased elsewhere. In areas at risk of flooding, they should ensure that priority is given to the use of sustainable drainage systems. There is also an expectation that sustainable drainage systems will be provided in all new major developments, unless demonstrated to be inappropriate. A site-specific flood risk assessment is required for planning applications for a development likely to be affected by local sources of flooding, and should look at all forms of flood risk, including from surface water. The developer is responsible for providing effective drainage already to serve the development and agreeing it with the local planning authority. I hope that, with the continuing reassurance about looking very closely at the issue in our review, noble Lords will reject the amendment.