Housing, Planning and the Green Belt

Mark Harper Excerpts

Tuesday 6th February 2018 Commons Chamber

[Mr Robertson]

The hon. Gentleman makes an important point. I am hoping that the housing White Paper, to which I will return in a minute, will attempt to clarify matters. As he will be aware, a lot of planning applications are assessed against the five-year land supply, particularly on appeal, but there is no methodology for calculating that five-year land supply. That is another problem in the planning system that I hope the Government will be able to correct.

[Mr Mark Harper (Forest of Dean) (Con)]

I am grateful to my hon. Friend and constituency neighbour, with whom I share a local authority, for giving way. He is making a good point: this is a regional problem. Figures from the Office for National Statistics on household growth in Gloucestershire show that our local planning authorities are building, or planning to build, enough houses to cope with the population growth. There is a significant problem in London and the south-east, but it is not consistent across the UK. My hon. Friend makes that point very well.

[Mr Robertson]

I am grateful to my right hon. Friend and Gloucestershire neighbour. That is exactly the point that I was seeking to make.

Why are there so many proposals to build houses on the green belt, particularly in my area? In the joint core strategy that is being drawn up by the Tewkesbury, Cheltenham and Gloucester planning authorities, Tewkesbury is looking to cover the unmet need of Cheltenham and Gloucester. However, contrary to planning guidance, the green belt is being compromised to satisfy the undoubted duty to co-operate, and this is creating confusion.

Why is Tewkesbury Borough Council doing this? It is because it feels that it must, and I have some sympathy with its position when I read the details of the planning inspector’s report, which again illustrates anomalies in the planning guidance. The inspector states in her report:

“Taking full account of constraints and the outcomes of cross-border exploration, removal of land from the green belt is needed, so far as is justified, to contribute to housing provision and the five-year supply”.

She goes on to say:

“I find that the adverse impacts of removing land from the green belt would not significantly and demonstrably outweigh the benefits of contributing towards housing and other development needs”.

Here we see clear evidence of the confusion in the planning guidance with regard to protection of the green belt. The inspector is insisting on building on the green belt and on the floodplain to meet housing numbers, yet the planning guidance clearly states that unmet housing need is unlikely to outweigh harm to the green belt in importance. I am aware that local planning authorities have the right to change the designation of the green belt at the plan-making stage, but that is not the point. The point is that there is a contradictionin the planning guidance.

I am aware that the Government have introduced a White Paper to consider the housing crisis and the broken housing market, but having read through it, I do not think that it is likely to address the problems of the market or the inconsistencies, contradictions and confusions in the planning system. Nor do I think that it will restore a sense of democracy to the planning process. Indeed, the wishes of a significant proportion of my constituents have been completely disregarded in the outcome of this process. We often hear the Government referring to the importance of local decision making, but the existence of the Planning Inspectorate makes a mockery of that, and does not help us to provide the houses that we need.

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[Mr Mark Harper (Forest of Dean) (Con)]

I am grateful for that news, Mr Deputy Speaker, as it means that I can expound my argument a little more fully than I had thought. I congratulate my constituency neighbour, my hon. Friend the Member for Tewkesbury (Mr Robertson), on securing the debate.

In the limited time I have—notwithstanding your generosity, Mr Deputy Speaker—I wish to cover three points. First, I do not think that we have a national housing crisis; we have a serious regional housing problem that is more severe in some parts of the country than others. Secondly, I shall say a little about housing finance, which my hon. Friend the Member for Tewkesbury touched on. Thirdly, I shall say a word or two on an issue to which one or two Members alluded: the need to spread economic growth and development more evenly throughout the country. Doing so would help to deliver housing, including affordable housing, in many parts of the country.

Many Members have commented about the planning system, but I think that it is doing its job properly in many parts of the country by delivering housing in line with the projected population increase. Under the plans that local authorities are putting in place in my area of Gloucestershire, we are projected to build housing in line with the growth in population. There are a number of other regions throughout the country where that is true, but it is not true in London, where we are massively under-building housing compared with the growth in population, as several colleagues have mentioned. There is also significant pressure in the south-east and east. Those are the parts of the country where the projected growth in population is significantly outstripping the housing that is being built, so that is where the Government need to focus their efforts to bring the housing market under control.

My point about population growth is supported by figures on housing affordability, which give us a good idea about whether we are balancing the supply and demand of housing. Unaffordability is not significantly higher in most of the country now than it was before the financial crash, but that is not true in London. In London, the ratio of median house price to median gross residence-based earnings is nearly 13:1, whereas the average for the rest of the country is about 7:1, so London is skewing the national figure and giving a misleading impression.

[Sir Paul Beresford]

I talked about the houses that were being built in Wandsworth, but I should have mentioned that thousands of the homes are specifically for low rent or for purchase at low cost. In fact, the focus is on those people whom my right hon. Friend is so concerned about.

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[Mr Harper]

That proposal sounds sensible. I am not familiar with the detail, but given what my hon. Friend sets out, it sounds like the local authority is focusing on demand. We will need significantly more of that if we are to meet demand in London.

My hon. Friend the Member for Tewkesbury put his finger on it when he spoke about housing demand. Clearly, compared with the situation when I was younger, we are much tougher with the loans that people can take out. When we look at what happened to the financial system after the banks made unwise lending decisions, such practice is probably very sensible, but it does make it more difficult for younger people to purchase houses. I welcome what the Government have done on the finance side of the argument, and two things are particularly welcome. The Help to Buy equity loan scheme is helping a significant number of young people who can afford a mortgage to be able to finance their deposit. It is not true to say, as some people do, that that only deals with the demand side of the equation, because it is of course only used for buying new houses. If we look at how house builders operate, we see that they build houses as they sell them. If we make it possible for a first-time buyer to purchase a home through the Help to Buy equity loan scheme, the house builder will then build more houses on that estate, as I have seen clearly in my constituency. Such practice helps on the demand side, which in turn generates housing supply.

I also welcome the introduction of the lifetime individual savings account, which enables younger people to save for a pension or a home, but I have one policy suggestion for the Minister. I am very supportive of our auto-enrolment policy to ensure that everybody saves for a pension, so will he consider whether we could apply auto-enrolment to lifetime ISAs? A young person going into the labour market would then find that their savings and their employer’s contributions would go into a lifetime ISA—at least that would be an option—so that the money could be used to fund either a pension or a home. If someone is a homeowner when they retire, they will not need such a significant pension, because they will not be paying rent on the home that they own. I think that that sensible proposal might make younger people keener to save for a deposit, because they would find it more affordable, so I urge the Minister to consider the suggestion.

I am grateful that the Government have said so much recently about the northern powerhouse. Given the location of my constituency and that of my hon. Friend the Member for Tewkesbury, I also welcome what the Secretary of State for Wales did with the Severn growth summit to encourage the development of what we might call a western powerhouse to create another centre of gravity for developing economic growth in Wales and the west country. It seems to me that one of the real problems is that we will not deal with the housing crisis simply by building more homes. London, for example, has high levels of immigration—23% of Londoners are non-UK born residents, and 156,000 migrants moved to London in 2016. Having listened to colleagues’ concerns about excessive house building in London, I argue that we cannot build our way out of the problem. A longer- term solution is to generate progress in the northern powerhouse—in transport infrastructure and development in that part of the country—and then generate development in what I might call the western powerhouse in the west of the country and Wales. We could also look at things such as the Cambridge-Milton Keynes-Oxford growth corridor, so that we actually see economic development spread more equitably across the United Kingdom. That would mean that rather than feeling the pressure to move to London, or to get a job or create a new business there, young people in many parts of the country would feel able to stay in their home towns and cities, or indeed to move to Manchester and the great cities of the north. That will happen if we create a powerhouse that is globally competitive, as London is.

[Toby Perkins]

I am much happier with where the right hon. Gentleman is finishing his speech than I was with his position six or seven minutes ago. It seems that London has doubled in size during my lifetime, but the major cities of the north have hardly changed. If the message that the Government get today is that we need continually to expand the size of London, I agree entirely that we will not build our way out of this problem, as we will just continue to feed that demand. The solution has to be investment in infrastructure and skills all around the country, not just focused on London.

[Mr Harper]

I am glad that I have cheered up the hon. Gentleman as my remarks have developed, and I hope that I have had that effect on at least one or two other colleagues. He is right that that is the answer. There is a regional housing problem in the United Kingdom. House prices in London and its surrounding areas are massively out of kilter with the rest of the country, and we can deal with some of that by building houses. We do need to increase the density of house building in London, so I welcomed what the Government said yesterday about building upwards, and having slightly increased housing densities and slightly higher rise properties—not massive, but perhaps with more storeys than a traditional two-storey property—but we also need to spread economic growth across the country.

People with housing challenges who live in London should be as supportive of investment in the northern powerhouse and other parts of the country—and in creating a great, globally competitive city in the north—as people who live in the north. Such investment would result in us sharing economic growth more equitably across the country. That is how we deal with the housing challenges that we face more fairly and equitably, and it would also help the whole country’s economic growth and make us more globally competitive.