Five-year Land Supply

Neil O'Brien Excerpts

Wednesday 4th July 2018 Westminster Hall

[Neil O'Brien (Harborough) (Con)]

I congratulate my hon. Friend the Member for South Suffolk (James Cartlidge) on securing this important debate and on his thoughtful speech.

Let me take a step back. Why is it that the centre of Government in the UK has felt the need over successive generations—from the planning by appeal of the 1980s, to the regional spatial strategies of the 1990s, to the five-year land supply—to have some vehicle to ensure that councils come up with local plans and that they deliver housing? Why is it that so many people oppose new housing in our country and so many councils oppose what developers come up with?

I think that there are two underlying reasons why people oppose so much new development. First, we build in the wrong places. Too much development is tacked on to the end of existing villages and towns, without the proper infrastructure—the new roads, parking spaces, GP surgeries and school places—that is necessary to support it. There is a terrible example of that in my own constituency on the Gartree Road, where the local Lib Dem-run council has decided to put in its own local plan a proposal for a large site on a road that is already congested, with the proposed houses being pushed right up against existing residents’ homes, when there is no need for that to be the case.

Secondly, there is no benefit or compensation for existing residents who are affected by new development. On Farndon Fields in my constituency, residents have to put up with construction traffic coming past their new homes, as well as dust and noise from the construction site, and there is no pay-off or compensation of any kind for them for putting up with all that.

How can we remedy these underlying reasons why so many of us oppose new development? The first thing we need to do is capture more of the benefits of development for the community. At the moment, only around a quarter of that huge uplift in value that we see when planning permission is granted is captured by the local community, with the overwhelming majority going to the lucky landowner and the developer. Other countries capture far more value from development for the community, which is then ploughed into decent landscaping, greater separation areas, more green space and better infrastructure for the community.

The second thing we need to do is give councils greater discretion over how they spend the revenues they get from the community infrastructure levy and section 106 agreements. Although we capture more value than we did 10 years ago, once we take out the amount that is spent on social and affordable housing, less money is actually being spent now in real terms than 10 years ago on landscaping, community infrastructure and all the things that benefit existing residents. Therefore, let us give councils more discretion over the way they spend those revenues.

Finally, let us make sure that councils have the powers—be it through compulsory purchase order, or through their ability to buy and control land—to do what local councils in other countries in Europe, the US and Asia already do: provide a lead role in assembling and preparing land for development. That is the norm in most of the rest of the world; the UK is unusual in not having that arrangement. That is why a UK council cannot control the speed with which a developer builds out.

In fact, in the UK the one thing that is not up for negotiation is the price paid to the landowner. Everything else can go hang. The amount of social contributions can be pushed down by the developer, and the speed of build-out can be extended over many, many years in order to keep the price up. The only thing that is fixed in our system is the price paid to the landowner. Let us turn the system around and have a more European-style approach to the matter.

As well as doing all those things, let us have a different approach to the way we go about development. In more rural or suburban areas, such as mine, I would love to see more development happening in stand-alone developments, so that we can provide infrastructure and a whole planned approach to a new community, rather than tacking things on and overloading all of our existing villages and towns. Let us build new communities where we will disturb fewer people.

[Alec Shelbrooke]

On that point, I share my hon. Friend’s view that when there is the demand to build such huge numbers of homes, there should be a stand-alone community. However, the phrase “stand-alone” must mean stand-alone, and not a community that is dumped in a place, such as the Parlington estate in my constituency, which would have a massive effect on the villages around it? Development needs to be stand-alone.

[Neil O'Brien]

My hon. Friend is absolutely right and we are lucky to have with us here today one of the Members for Milton Keynes, because Milton Keynes shows us what proper, planned development can do; it can create nice places that lots of people want to live in.

I would like to see more of the development in this country happening in our cities. Changes such as the development of the modern knowledge-based economy mean that our cities are both where support for new development is highest and where the demand for new development is highest. Let us try to build more in our cities. Let us help inner-city councils build more, by liberalising building up, by giving them devolved powers over public transport, and by giving them the powers to assemble land, in order to unlock fragmented brownfield sites, so that we can actually get more built in our cities. That is how we can have a new approach.

My hon. Friend the Member for South Suffolk is right to raise the issue of the five-year land supply. At the moment we have three tests on local councils: the requirement to have a local plan, the five-year land supply and the new delivery test that will be coming in over the coming year. Effectively, we have a belt and two braces. Of those three tests, the most opaque is the five-year land supply. It is extremely difficult for a council to know whether it has a five-year land supply, and it is extremely easy for developers to game that process and keep councils deliberately below the five-year land supply to stop them getting control over development in their area. It is the weakest of the three existing tests.

I end by agreeing strongly with my hon. Friend the Member for South Suffolk. He said, “It is perfectly reasonable to expect our councils to have a local plan, but how can we impose these tests on them without giving them the tools to control developers, development and where things happen?” The heartbreaking thing in many constituencies is where a council wants to do good development and build a real new community with proper infrastructure and a real heart, or the community has worked for two years to come up with a neighbourhood plan that works for the specific circumstances in that area, and developers come along, game the system and cut off at the knees our local elected representatives and the people who have worked hard to build neighbourhood plans. That is the killer in those situations. There is nothing more corrosive for public support for our current planning system than when we see councils that want to be brave and do good new development have their good plans cut off at the knees by developers gaming the system.