Lord Palmer of Childs Hill
Main Page: Lord Palmer of Childs Hill (Liberal Democrat - Life peer)Housing and Planning Bill
Lord Palmer of Childs Hill Excerpts“Time limits for developing land where planning permission is granted
After section 58 of the Town and Country Planning Act 1990 (granting of planning permission: general), insert—“58A Time limits for developing land“(1) Where planning permission is granted under section 58, the person or persons to whom planning permission is granted must develop the land to which the planning permission relates within a specified period of time, which the Secretary of State must by regulations made by statutory instrument specify.(2) Regulations made under subsection (1) must specify that —(a) development on the land must be commenced before the end of five years from the date on which planning permission was granted, and(b) development on the land must be completed before the end of seven years from the date on which development on the land was commenced.(3) Regulations made under this section may make different provision for different purposes.(4) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.””
Lord Palmer of Childs Hill (LD)
My Lords, the clock moves towards midnight, and we are on the eighth of nine days where probably the only consensus is that there is a need for more housebuilding. The Bill in its various components seeks to achieve that, by starter homes, self-build and many other means. However, in my view there is an underlying problem which Amendment 100ZA seeks to rectify.
The problem is the very slow development of land banks. As noble Lords will know, large residential developers want to build gradually to make it a near certainty that the properties will sell. Thus it appears that the owners of large sites—I really do mean large sites—reckon to build and complete no more than 100 to 150 properties per annum. This might suit the business plans of large developers, the construction industry, the banks and the financiers, and it might suit the manufacturers of building materials who want to provide a steady supply of bricks rather than deal with highs and lows. But surely this does not suit those who wish to buy a property. It is an element that keeps prices high because of a shortage of completions.
My first thought in drafting the amendment is that we should promote the good old Liberal policy of land value tax, which I am glad to note that some noble Lords can remember—a tax on land that is developed and undeveloped. However, the problem is that for the sanctions to be really effective, the tax would need to increase for each year that the site remains undeveloped. The amendment seeks a more gentle approach—although I would far rather go for a land value tax—so that when planning permission is granted for building on a site, work must be started within five years of the grant of permission. Then to avoid devices where minimal work satisfies this requirement, we add that the development must be completed within seven years of the start date. That is planning permission to action within five years and seven years to complete from the start date. I am not stuck with the five or seven years—I had to put two dates in—but there needs to be some restriction in order to get the developers to move on.
The focus needs to be on the minds of the holders of land banks—and there are holders of large land banks—so that they cannot just sit on the land while housing is in short supply. At present if the development is not started within the time of the planning application, as those of us who have served on planning committees will know, the period allowed—three years, five years—goes by and then the developer comes back to the planning committee and applies for it to be renewed. My planning officers in the London Borough of Barnet, where I was for 28 years, would always say, “Well you gave it to them last time, you’ve got to renew it”. There should not be a presumption where a developer has failed to develop land that they should immediately be given an extension of the planning permission. These land banks need to be developed. Dealing with odd, small brownfield sites will have a benefit but the only way really to increase housing stock is to tackle land banks and those holding the land banks. That is the real world and I hope the Minister when she replies will give me some further assurance. I beg to move.
Lord Campbell-Savours
Under the noble Lord’s proposed new Section 58A(2)(b),
“development on the land must be completed before the end of seven years from the date on which development on the land was commenced”.
Does that mean that if you just put up one house on a huge prospective estate you suddenly find you can extend your period by two years? That is what I read from the amendment. I do not think that was the intention behind it, I am sure.
Lord Palmer of Childs Hill
My Lords, the intention is to get the development started within five years and finished within seven years so, as the noble Lord says, if you start one house and do nothing else, you will be caught by the fact that within seven years you have to complete the site. That is the protection against people using devices to partially develop a site.
Lord Campbell-Savours
Then why not simply make it subsection (2)(a) on its own with a seven-year limit?
Lord Palmer of Childs Hill
Developers work by first applying for planning permission. We are saying that once they have the planning permission there has to be a period in which they start the work and then, being reasonable people, there is a period in which they have to complete that development. That was the seven years. It could be 10 years or whatever any of the Ministers want but I believe there has to be a dual requirement rather than the one the noble Lord suggests.
Lord Porter of Spalding
My Lords, the person the planning permission has been granted to might not necessarily be the one developing the site anyway, so to make the original grantee of the planning permission responsible for development is not practical, or probably legal. As has already been said, some sites will be a phased process so rather than a seven-year arbitrary deadline, developers should be working with local authorities to work out the phases of development and the proposed completion time on the basis of the phased development. If you were to grant somebody a site of 2,000 or 2,500 units, you certainly would not want them all being built within seven years. The way it is worded will work against some areas. I can appreciate that people should not be able to build up land banks without having any intention of bringing it forward, speculatively trying to increase profit on the basis of the land value itself, but the way this amendment is worded will have a detrimental impact on the communities where we try to implement it.
Lord Palmer of Childs Hill
My Lords, the actual development has to take place with the original developer—but on the suggestion that the developer might change, which I think the noble Lord made, the planning permission goes with the site. Even if the developer changes, the restrictions or advantages are still there. The person who buys the site gets those benefits and restrictions with it.
Lord Porter of Spalding
I totally agree—the land is where the planning permission sits, but that is not what the noble Lord’s amendment says.
Lord Beecham
No, I am not going to sort it out—but I was going to suggest that one way in which to look at it would be to revoke the permission, so that that developer is no longer sitting on it. Does that not work?
Baroness Williams of Trafford
I am sorry to contradict a lawyer, and I shall probably get slapped down for it, but the planning permission is usually granted for a site and not for a person. I think that that is the point that my noble friend made. So you would not revoke the permission, because the permission is on the site rather than for the person—or you could, but it would run contrary to anything that planning law has ever done, in my memory anyway. But I am sympathetic towards the intent behind the amendment, because it raises the issue of planning permissions given but the building not happening. That is a challenge within the context of the Government trying to deliver 1 million homes by 2020. However, a requirement fixing a timeframe for both commencing and completing the development is a highly dangerous approach. While I appreciate that this measure is aimed at encouraging the build-out of permissions, it would not be prudent to introduce such a measure without the full and proper assessment of the potential consequences. In particular, careful consideration would be needed of the impact on the viability and deliverability of schemes. It is important to acknowledge that putting a standard time limit on when development should be completed might be unrealistic, given that developments come in different shapes and sizes, as my noble friend Lord Porter, said, and each has its own specific set of issues.
A number of factors can delay both starts on site and completion of development, including market conditions, availability of finance, difficulty discharging conditions and the availability of infrastructure and utilities. Imposing a requirement without considering any legitimate reasons for delay would be a highly risky, unreasonable approach that is likely to introduce fear and a reluctance to enter the market in the first place. It may deter development coming forward, given the added constraints and risks. That is not to say that I do not sympathise when these situations arise because, as a former council leader, I know that it is deeply frustrating. We are trying to encourage the build-out of existing stock of planning permissions and taking it very seriously. The department has already announced a number of measures designed to address these various factors that cause delays on site. They include a £1 billion fund to support small and custom builders to deliver 26,000 new homes, and the £2 billion long-term fund to unlock housing development for up to 160,000 homes announced in the spending review.
I hope that I have been able to set out that, although I agree wholeheartedly with the need to encourage build-out, the amendment is probably not the best way in which to deal with it, as other noble Lords have pointed out.
The noble Lord asked about the presumption to approve if a site has previously had permission. A planning application will always be considered on its planning merits at the time of application, so I do not think that that applies. I hope that with those words I have reassured the noble Lord, and he will feel happy to withdraw his amendment.
Lord Palmer of Childs Hill
I thank the Minister for her reply. The facts of the matter are that, on large sites, developers, whoever they are, never—or so I am told by people in the industry—develop more than 100 to 150 per annum. There must be some way forward to encourage those developers to build more. The amendment might not be right as it is—I accept the points about five years and seven years—but it was tabled to try to highlight the issue. I actually wondered about years. There must be some way to make sure that developers do not only develop 100 to 150 units on large sites. The reason they do that is to keep up the price of those units. There must be some way to work with the Government to have some provision in the Bill to facilitate that. It may not be the amendment which is before us, but I will reconsider that for Report. At the moment, I beg leave to withdraw the amendment.
“( ) In section 62A of the Town and Country Planning Act 1990 (when application may be made directly to Secretary of State), in each place where it appears except in subsection (1)(a), for “Secretary of State” substitute “Secretary of State or the Mayor of London”.”
Lord Palmer of Childs Hill
I rise on behalf of the noble Lord, Lord Tope, who is no longer in his place because of the hour at which this amendment is being debated. Amendments 100ZAA and 100ZBB relate to a matter that has come up in previous discussions on this Bill. Clause 139 will allow the Secretary of State to designate a local planning authority for its poor performance in determining applications for categories of development described in the regulations, possibly including non-major development. If a local planning authority is designated, developers may then choose to make an application for development in the poorly performing authority area directly to the Secretary of State.
It is believed that in London the actual consideration should be made by the mayor rather than by the Secretary of State, because the Greater London Authority, as the Minister will know, has significant planning expertise, local knowledge and strong experience of PSI applications, making it a far better place to determine these applications than Whitehall. This change will probably take into account the mayor’s strategic planning role in the capital and the Government’s devolution agenda. So rather like a previous amendment proposed by my noble friend Lord Tope, this amendment is saying that in developments of this nature the person best suited to decide would be the Mayor of London rather than the Secretary of State, which would fit in with the Government’s proposals for devolution and localism. I beg to move.
Lord Beecham
Perhaps the noble Lord could help me. The amendment as drafted refers to the substitution of the Secretary of State or the Mayor of London. I take it he means the Secretary of State elsewhere than in London and the mayor in London, but that is not what the amendment actually says. It seems to pose a choice, even in London, which I do not think is the intention.
Lord Palmer of Childs Hill
There is to be a choice at times. There may be times when it is appropriate for it to be the Secretary of State. This does not completely outlaw the Secretary of State from taking action in this case, but the appropriate person to deal with it in the first instance would be the mayor of the largest city in this country.
Lord Beecham
With respect, that is not what the amendment seems to say. The Minister and I are in rare agreement.
Baroness Williams of Trafford
I think we might be. I will start with Clause 139, which amends Sections 62A and 62B of the Town and Country Planning Act 1990. It allows the Secretary of State to set out in secondary legislation categories of applications that a local planning authority may be designated for, should their performance fall below the specified threshold. This will allow our existing approach to addressing any instances of underperformance, which currently applies only to major development, to be extended to include applications for non-major development. The existing designation approach has proved successful in speeding up decisions on major development since it was first announced in September 2012. By extending our approach to include non-major development, we are ensuring that all applicants can have confidence in the service to be provided.
We will keep under review the categories of applications on which performance will be assessed to ensure that they remain targeted at the most relevant aspects of the planning process. As the existing designation approach has proved, this measure has several benefits. It encourages improvement and gives applicants the choice of a better service in the very few cases of persistent underperformance. This approach has shown its effectiveness in tackling performance on major development, so it is only natural that we should now bring non-major development within its scope.
I now turn to the amendment moved by the noble Lord, Lord Palmer, on behalf of the noble Lord, Lord Tope, regarding applicants for planning permission having the choice to apply directly to the Mayor of London instead of the Secretary of State where a London borough is designated as poorly performing. I agree that it is essential that the Mayor of London plays an important part in strategic decisions affecting the capital, which is why the mayor already has power to call in for his own decision applications of potential strategic importance—for example, where more than 150 dwellings are proposed.
I should highlight that if applications are submitted directly to the Secretary of State by applicants in areas that are designated as underperforming, Section 2A(1B) of the Town and Country Planning Act 1990 already provides for the Mayor of London to have the same call-in powers for applications that are of potential strategic importance. This ensures that the mayor can still take the final decision on applications of importance in London. I reassure noble Lords that we value the important role of the mayor in taking strategic decisions in London, and we are taking steps in this Bill to devolve more planning powers to the mayor. With that reassurance, I hope the noble Lord will withdraw his amendment.