Local Housing Need Assessment Reform

Luke Myer Excerpts

Tuesday 13th May 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

Thank you for that clear direction, Mrs Hobhouse; it is very helpful.

I congratulate the hon. Member for Horsham (John Milne) on securing this important debate and on his leadership. He clearly articulated his concerns on the revised standard method for assessing local housing need. He set us off on a good course: this has been a very strategic debate, which is not always the case with debates about housing. I have a disclaimer that I and colleagues in the Department always read out at this point about our inability to comment on individual matters or individual local plans, but colleagues have not tempted us in that direction. That is very important, and it set the tone for an excellent debate. I will cover many of the points that the hon. Member and others made in the course of the conversation.

The debate has been relatively non-partisan. I think the shadow Secretary of State slightly missed the memo, but I like him as much as he likes me, and I know he does not mean it and that his instinct is always to work constructively. I have no doubt that he and his colleagues will want to do so. At this very minute, colleagues from all parties are upstairs discussing in great detail the Planning and Infrastructure Bill, which will provide us with a vehicle for many important changes. Clearly, there will be lots of debates to come on very important amendments.

Multiple members have said that we are in the middle of a really acute housing crisis. I get out of bed every day, as do my colleagues, because 160,000 children live in temporary accommodation. As mentioned by the spokesperson for the Liberal Democrats, the hon. Member for Newton Abbot (Martin Wrigley), that is the tip of the iceberg of the multiple millions who are under-housed and, as my hon. Friend the Member for Bolton South and Walkden (Yasmin Qureshi) said, their housing and under-housing has profound impacts on their opportunities and life chances. That has been in the spirit of this debate. We made that signature commitment at the election to build 1.5 million new homes over this Parliament exactly for those people, because they need decent housing to build decent lives and decent communities.

Home ownership is out of reach for too many. Too few homes have been built, and too few are genuinely affordable. The hon. Member for Strangford (Jim Shannon) talked about the bank of mum and dad—that ever-present and indeed growing feature that now seems inevitable for people of my generation or those who are perhaps are a bit younger, but was not a feature of my mother’s generation. That is such an important issue of social justice. We must build more homes, and they must be in places where people want to live and work. The planning system has to underpin that, but as the hon. Member for Horsham said, the history of that is chequered. Indeed, as the hon. Member for St Ives (Andrew George) said, we have all had our stake in that. I certainly approach this in the spirit of humility. We want to get this right.

I will now turn to the work of the previous Government. We must have a method that is clear and transparent. The right hon. Member for East Hampshire (Damian Hinds) talked about what it looks like in detail. At least it is there in detail for people to say, “I don’t like this element of it. I think this is weighted wrongly”. It is clear, it is transparent, it is there, and it produces the numbers. That is the basis for plan-making. I do not want to make a political point out of this, because the right hon. Gentleman is proud of the previous Government’s record on housing, but we have had a little test of the alternative in the final year of the last Parliament, and there was a sense that targets were out the window. I do not think that was a very effective decision, and the impact on housing starts is a matter of public record.

I do not think we have heard much of an argument for not having a method at all, but without one, the situation tends towards stasis. That is why last December, following consultation, we implemented a revised method that is aligned with our ambition of a million and a half new homes over this Parliament. There is one point that I cannot agree with the hon. Member for Horsham about, although I appreciate that it may well be a separate debate: I do not think we can decouple the national target and the local target. If the local target does not meet the national target or the national target does not tally with the local target, there will be disconnect and frustration.

This target and this method point us towards 370,000 homes. The formula incorporates a baseline of local housing stock and is adjusted upwards to reflect affordability pressures. Areas where unaffordability is most acute see the largest adjustment. We think that supply is an issue here alongside demand—I disagree slightly with a couple of colleagues on that point. However, I think it is really important for those watching to hear this stated from the Front Bench: this method does not exist in a vacuum. It is the underpinning of the development of local plans, which have been and will be the cornerstone of our planning system. The plans take into account all the development needs of a local area, including affordable housing.

I appreciate the point made by the hon. Member for Chichester (Jess Brown-Fuller) about the challenges facing her local authority in ensuring that its plan holds, but the fact that it has that 30% target is a sign that local authorities can put on record the nature of housing that they want in their communities. Notwithstanding the point made by the hon. Member for St Ives, if it is an arm wrestle with developers, it has that guiding document at least to halt it, because we know that the alternative is a lack of planning that exposes communities. They make up the bedrock, and we want all communities to have one. York is always a prime example—I am overjoyed that York has got to that point after more than six decades. That community is better protected in terms of development, and it will also deliver more effective development. It is a win for all.

I cannot concede the point made by the hon. Member for Horsham that councillors do not know enough; I think that they do. There is a point about local authority resourcing and planning, and we made that commitment at the previous Budget. We want councillors to have the skills to feel empowered, but crucially, as the hon. Gentleman said, local communities also need to feel empowered. I cannot agree that housing and development is not an election issue; I think that it is. The 1.5 million homes target was very much a feature of what we said at the general election. I want to empower local authorities and people to have their say on plans, because they are a bedrock. If they want development that is sustainable, of the right type and in the right place, perhaps on brownfield sites, the local plan is the route to that. It means engaging with it in a way that goes beyond the questions of, “Should there be development? Is our development target too high?” We need to get to, “Where is it going to happen? What type does it need to be?” That is, I believe, the way to deliver the development that they want.

A number of colleagues, including the hon. Member for West Dorset (Edward Morello), have mentioned local circumstances. Indeed, last week, he and I were talking about West Dorset in the context of having the right parking in the right places. Things like that are facilitators and enablers of place. The standard method is a starting point to inform the preparation of local plans. Once local need has been assessed, authorities can establish the number of new homes that are to be provided in the area. That takes into account evidence showing what land is available and any constraints on development—for example, those relating to national landscapes, areas at risk of flooding and other relevant matters.

That approach recognises that some areas—as, I think, the right hon. Member for East Hampshire said—will not be able to deliver the figure provided by the standard method. If they can justify that fully in their local plan during examination by an independent inspector, they can make that case. However, of course, they must only adopt a plan that is legally compliant and sound. It must be consistent with national policy, supported by evidence, and we want the views of local people to be taken into account.

A point was also made about brownfield sites. We want local authorities to make sure that they maximise those sites, and I think local authorities want to do that too. We also want them to be sensible about where they review green-belt land. I think there are different types of land within the green belt. The right hon. Member for East Hampshire characterised it as a Trojan horse; that is not our intent. Who is best placed to make that assessment? It is, of course, the local authorities, by leaning into it. The right hon. Gentleman made an interesting point, as did the hon. Member for Thirsk and Malton, about whether it is a question of urban versus rural. I do not think that that is the case. Hon. Members will see in our approach to growth in city regions the importance of those regions to the economy; they are places where people want to live, or where people cannot currently access housing.

As the Minister for town centres, I can say that we are enthusiastic in the Department about communities taking control of their town centres, notwithstanding challenges about permitting development. In future, town centres will not be purely retail; the mix will be retail, leisure and, of course, there will also be a need for accommodation. That mix should be locally owned. In his opening speech, the hon. Member for Horsham mentioned new towns. It will not be a case of: is it urban, rural or new town? It is going to be everywhere; the mix will be a bit of everything. Similarly, it will involve big builders and SMEs. The hon. Member for Thirsk and Malton shares my enthusiasm for getting SMEs building. It is going to be the entire mix.

I am conscious of time, but I want to address the points made by the hon. Member for West Dorset and the hon. Member for Strangford (Jim Shannon) about water and local housing. Of course, water is important. National policy is clear that housing must have water infrastructure. There are clear expectations that local authorities should work with each other and the infrastructure providers to ensure that housing has that infrastructure. I think that, in general, they are doing that and ensuring that the water supply is sustainable. The companies have a statutory duty to provide new water and sewerage connections. I appreciate that the subject needs to be seen in the round, but that goes back to the need to have an effective, comprehensive local plan, which local authorities can use as their guiding document. They can then say to the water companies, “We do not want you to look at 50 houses at a time; we want you to see it in the round.” That is the sort of leadership that we want.

There are larger issues that colleagues have raised frequently. I would be stretching the scope of this debate if I talked about the behaviour of those who manage water, but we could have a whole new debate on it. Of course, there is an independent review ongoing on the regulation of the water sector for the UK and Welsh Governments. I assure the hon. Member for Strangford, as I often do, that we are very active in talking to the Northern Ireland Executive on a variety of issues, particularly on building safety. I always talk to my counterparts in Scotland, Wales and Northern Ireland about their approaches.

On strategic planning, this is a chance to have a higher level but still localised view of the best sites, working and collaborating with local planning authorities. That is an exciting innovation. My hon. Friend the Member for Harlow (Chris Vince) asked how that will butt up against local government reorganisation. Of course, those partners will be part of that, but there will still be a local planning authority so that people can submit their views on a local plan.

My hon. Friend the Member for Harlow, the hon. Members for Chichester and for Horsham and my hon. Friend the Member for Bolton South and Walkden (Yasmin Qureshi) talked about affordable and social housing. There can be no doubt about the commitment of this Government and the Deputy Prime Minister to social housing, genuinely affordable homes and homes for social rent. We have already put our money where our mouth is by committing £800 million in-year for the affordable homes programme, and a further £2 billion injection at the 2025 spring statement. Alongside that, there are new flexibilities for councils and housing associations within the AHP and in how they use right to buy.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

I commend the Government on their work to change the local connection rules to ensure that veterans can access social housing. In our region, the local authority has come in off the back of that and given veterans the highest priority banding for social housing. Will the Minister take a moment to commend our local council for that reform, which comes off the back of the work that the Government are doing?

[Alex Norris]

That excellent innovation by the local authority reflects one of the needs that the public want to see met.

In my final minute, I want to address the point that the hon. Member for Thirsk and Malton made about the Building Safety Regulator. It is right that we have a regulatory framework in place; we have seen the consequence of not having one. It has to protect people but also enable building. There is a moral imperative to ensuring that people are safe in their homes, but also to ensuring that people have homes. The BSR is a relatively new regulator—it has only been in place for a couple of years—and obviously the Building Safety Act 2022 is a relatively new part of the scene.

We are working very closely with the BSR to ensure that its operational processes are as effective as possible. Where that is a challenge, we have made more money available. I speak with the industry about that in great detail, as I am sure the hon. Member for Thirsk and Malton does, so he will know the conversations that we are having. I totally accept that we need to ensure that the BSR is working effectively, because it is a really important part of having a safe system.

I reiterate our determination to build the homes that the country needs. Through the standard method, we have the right tool to get to 1.5 million homes. In that context, local people will have the leadership they need to deliver what that looks like locally.