Housing: New Homes

Lord Kennedy of Southwark Excerpts

Tuesday 11th February 2020 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I draw the attention of the House to my registered interest as a vice-president of the Local Government Association. What are the Government going to do about the crisis of planning permissions being granted but not a brick being laid? At the last check, there were well over 250,000 applications with nothing happening on those sites. If you have land and have received planning permission to build homes, but you do not take action, surely the Government should do something. If nothing has happened in 12 months, surely the Government should find somebody to build houses on these big sites.

[Baroness Berridge]

The noble Lord is correct that, once planning permission is granted—which can take about two years—it is in everyone’s interests, including the developer and the local community, that the site is built on. Last year, we saw more than 375,000 grants of planning permission. The noble Lord is aware that in 2018 Sir Oliver Letwin was asked to review whether there was a hold-up of what is called the build-out rate. His main conclusion was about the absorption rate of bringing large numbers of units into the local market. He recommended that we diversify the type of units on each site, so they can be put on the market in smaller groups, appeal more widely and not affect the market price.