Housing: Cornwall and the Isles of Scilly

Matthew Pennycook Excerpts

Monday 9th September 2024 Commons Chamber

[The Minister for Housing and Planning (Matthew Pennycook)]

I congratulate the hon. Member for St Ives (Andrew George) on securing this important debate, and I commend him for the forceful but thoughtful case he made on behalf of his constituents. He has considerable experience and expertise when it comes to housing policy and practice, and I listened with great interest to his views and many of his proposals.

I thank my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham) for her incisive contributions and all those who have added to the debate this evening. There is clearly a fierce clarity of purpose on both sides of the House in respect of meeting housing need across the county, and I assure all hon. Members present that the Government are resolved to do what is necessary to ensure that that can happen.

It would also be remiss of me not to acknowledge my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard). He is not a Cornish MP, but his constituency suffers from many of the challenges that hon. Members have touched on; indeed, he is impacted by the challenges coming from Cornwall. He has been a champion over many years for bold action to tackle the housing crisis across the south-west.

As we have heard, the housing crisis in Cornwall and the Isles of Scilly is acute. Eye-watering house price-to-earnings ratios are putting home ownership out of the reach of most local people; an overheated and shrinking private rented sector is placing a severe strain on local economies as well as families and communities; and social housing waiting lists are growing steadily. I recognise that second homes and short-term lets are not the sole causes of those pressures, but none of them can be properly understood without taking into account the sharp increase in the numbers of second homes and short-term lets in the county over recent years—an issue to which I will return in due course.

In the time available to me—there is more of it than I expected when I drafted this speech—I wanted to provide the hon. Gentleman and other hon. Members representing Cornish seats with an overview of the Government’s thinking in this area, and a sense of how we intend to address the challenges around housing availability in the county, with the caveat that there is a limit to the detail I can provide at this point, given that we are a new Government still considering the best options to achieve our aims.

The causes of England’s housing crisis are multiple, but among the most important is our singular failure as a nation to build enough homes of all tenures. That is why this Government are determined to do what is necessary to get the country building again, including by ensuring that we put in place a planning system geared towards meeting housing need in full. On our proposed reforms to the national planning policy framework, I acknowledge the hon. Gentleman’s concerns about the introduction of mandatory housing targets, and I appreciate that he made a nuanced argument, but I am afraid that I am unconvinced by it. The fact that the distribution of homes in his constituency is creating significant challenges for the communities he represents is not, in my view, an argument against ensuring that sufficiently ambitious targets are in place to boost housing supply. Rather, it is an argument for making sure that local planning authorities have the full set of tools they need to manage those distributional challenges, and to plan for development in line with their targets in a way that meets local need.

[Noah Law (St Austell and Newquay) (Lab)]

Will the Minister give consideration to the hypothesis to which the hon. Member for St Ives (Andrew George) alluded, which was that building the wrong kind of housing in Cornwall can beget demand for the kind of housing that we have so struggled to build—namely, truly affordable and social homes?

[Matthew Pennycook]

I thank my hon. Friend for that point. I acknowledge the pressures and the challenges. We need to give local authorities the tools to shape the type of development undertaken—not only through their local plans—and to get a grip on excessive concentrations of second homes and short-term lets. That is the Government’s intention. On the NPPF and housing targets, it is the Government’s considered view that we need to act to increase supply in all parts of the country, and need to take steps to ensure that the housing market responds to the needs of communities. These are complementary, not conflicting, policy intentions.

[Andrew George]

I entirely endorse the sentiment of what the Minister is trying to do, but this is about practicalities. There are enormous opportunities for unscrupulous developers to use the NPPF as a Trojan horse, so that they can crowbar in significant lottery-like wins on land. If someone can convert an agricultural acre into an open market acre of development land, they do not need to work for a living; they just need to keep shoving in planning applications, and they will make a lot of money. Having some intermediate measure by which we can deliver affordable homes on that land is surely the way forward.

[Matthew Pennycook]

I will touch on rural exception sites, and the land market in particular, but I come back to the point that none of that negates the need for ambitious housing targets, via consents and oversupplying consents, to ensure that we build the number of homes that we need, but I take the hon. Gentleman’s point and will address it directly in short order.

I shall start with land values, because the hon. Gentleman has raised a concern, not only in this place but in other forums, about our proposed changes to national planning policy potentially placing upward pressure on land values, thereby frustrating our objectives. We fully appreciate the risk, which is why we are committed to further strengthening the system of developer contributions and to the reform of compulsory purchase compensation rules. Indeed, just today I brought into force regulations that allow action to be taken on hope value, where required in the public interest, but we will go further in the forthcoming planning and infrastructure Bill.

The hon. Gentleman touched on rural exception sites. The Government very much recognise that people living in rural areas often face challenges finding adequate affordable housing. Ensuring robust support for the necessary housing in rural areas is essential to supporting the broader sustainability of rural communities. The national planning policy framework is already clear that planning policy and decisions should support opportunities to bring forward small sites for affordable housing in rural areas. These rural exception sites should help to meet the housing needs of rural communities, enabling local people, and those with family or employment connections, to live locally and help sustain thriving places.

However, I want to go further in supporting rural affordable housing. In the consultation on the proposed reforms to the NPPF, launched on 13 July, we are actively seeking views on what measures we should consider to better support an increase in affordable housing developments in rural areas, and I very much welcome the hon. Gentleman’s engagement with that. I will take away his point on cross-subsidy and give it further consideration.

I very much recognise the unique situation on the Isles of Scilly, particularly the challenges to the viability of construction. My officials are working closely alongside Homes England to support the council in achieving its housing ambitions, and it is important that this close collaboration continues. I also note the wider challenges on the isles and how housing challenges interact with other pressures faced by residents. In recognition of this, my officials are looking to convene a working group with other Departments to highlight the plurality of issues, and to ensure that the Government can best support island residents.

I appreciate the hon. Gentleman’s interest in community-led housing, including the role of community land trusts, and his professional experience in this area. I recognise the role that community ownership of land and affordable homes can play in delivering the Government’s agenda, although I hope that he will recognise that the support we are able to offer must be considered in the round, alongside the full range of departmental programmes. Again, the Government have set out changes to how we plan for the homes we need as part of the NPPF consultation, which includes proposals designed to strengthen support for community-led housing.

[Anna Gelderd (South East Cornwall) (Lab)]

I thank the hon. Member for St Ives (Andrew George) for securing this important debate. Local residents are being priced out of the constituency I represent, the beautiful South East Cornwall, and we do not have the homes we need. Earlier this summer, an elderly couple from Torpoint, both in their 90s, were forced to live apart for more than four months after an accident at their home left one in hospital. A lack of suitable housing meant they could not live together. Does the Minister agree that we need action on second homes so that local people, such as this couple from Torpoint, can benefit from more of the housing that is being built?

[Matthew Pennycook]

My hon. Friend pre-empts what I was about to say; I was just about to address second homes and short-term lets. I take her point, and I am sorry to hear about the situation in which her constituents from Torpoint find themselves. The Government recognise that this is an area in which more needs to be done.

Both in the constituency of the hon. Member for St Ives and in the county more widely, it is beyond doubt that the prevalence of second homes and short-term lets has constrained the availability of homes for local residents to buy and rent, and that it is having a detrimental impact on local services in many areas. A balance obviously needs to be struck between the benefits that second homes and short-term lets can and do have for local economies and their impact on local people, but many coastal, rural and indeed urban communities are grappling with excessive concentrations of such properties. When I was shadow Minister for Housing and Planning in the last Parliament, I spoke to many colleagues who faced acute pressures in their constituency, and the feedback we are getting from coastal, rural and some urban communities makes it clear that we have not yet got the balance right.

[Caroline Voaden (South Devon) (LD)]

I thank my hon. Friend the Member for St Ives (Andrew George) for raising these difficult issues around housing and second homes in Cornwall and the Isles of Scilly. We have parallel issues in my constituency of South Devon, a little further up the coast. It is apt that we are having this discussion today, after the presentation of Devon Housing Commission’s report at lunchtime, which highlighted many of the issues and just how difficult the situation is in Devon, as in Cornwall. Second homes are hollowing out communities in my constituency. Like the hon. Member for Truro and Falmouth (Jayne Kirkham), I have had a headteacher and the local hospital—

[Madam Deputy Speaker (Judith Cummins)]

Order. I call the Minister.

[Matthew Pennycook]

I thank the hon. Lady and appreciate that she was cut off. As Mr Speaker, Madam Deputy Speaker and the other Deputy Speakers remind us, interventions have to be short, but I am sure we can pick up the conversation outside the Chamber. I recognise the impact on communities of the unique challenges that she mentions, particularly the excessive concentrations of second homes and short-term lets.

The hon. Member for St Ives said that the previous Government introduced a limited number of measures in response to concerns expressed in the previous Parliament. In Opposition, I welcomed those measures, while making it clear that they did not go far enough. That remains my firm view, so although we will progress with measures such as the introduction of a registration scheme for short-term lets in England, and the abolishment of the furnished holiday let tax regime, we are also considering what additional powers we might give local authorities to enable them to better respond to the pressures that they face. I will update the House as soon as I am in a position to.

In conclusion, I thank the hon. Member for St Ives once again for giving the House an opportunity to consider these important matters. I look forward to engaging closely with him and all other Cornish Members, so that together we can ensure first homes for all local people in Cornwall and the Isles of Scilly.

Question put and agreed to.