National Planning Policy Framework

Debate between Nick Raynsford and Tristram Hunt

Thursday 26th April 2012 Commons Chamber

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

The ultimate test of the NPPF will be the outcomes it delivers, not the remarks made by people who were so relieved that the latest draft was less bad than its predecessor that they provided those quotes that the Minister enjoyed giving us the other evening.

My hon. Friend the Member for Stoke-on-Trent Central (Tristram Hunt) made the point that we are debating this framework in the week in which the economy has gone back into recession, which in large part reflects the poor state of the construction industry, within which the housing sector is particularly badly affected. I shall come on to that. Two days ago, the Minister of State sought to deny the disastrous state of house building in Britain, which has been seriously aggravated by the uncertainty and confusion that have existed since the Government began to tinker with the planning system in summer 2010.

The Minister claimed that there has been a 25% recovery in housing since the recession. Let us look at those figures. He is right in that there has been a recovery from the depths of the recession. What he needs to bear in mind is the fact that that recovery took place throughout 2009 and in the first six months of 2010.

[Tristram Hunt]

Will my right hon. Friend reflect on Ministers’ approach to information and statistics, given that this week we heard an extraordinary account from the Minister for Housing and Local Government, who thinks that rents in London are falling?

[Mr Raynsford]

My hon. Friend makes a good point. I was going to say that I hoped that the Under-Secretary of State for Communities and Local Government, the hon. Member for Hazel Grove (Andrew Stunell), for whom I have considerable respect, does not go down the same path as his colleague, the Minister for Housing and Local Government, who shows a certain levity with regard to his respect for the truthfulness of statistics.

As I was saying, there was a recovery, and the second quarter of 2010—which, as the Under-Secretary knows rather well, is the period in which there was a change of Government: in the first part of that quarter we were under a Labour Government, in the second part, we were under a Conservative Government, although I do not think that even he would claim that the Conservative Government were responsible for the figures in that quarter—was the high point. The recovery reached a peak of 30,880 units in that quarter. Since then, the housing market has been static or falling. The best output of new starts in any quarter was 26,980 in the third quarter of 2010, going down to just 20,900 starts in the last quarter of 2011—the last quarter for which figures are available.

That, I am afraid, is the record. Since the Government’s changes to planning policy and their disastrous cuts in investment in social housing, we have seen a collapse in confidence and poor output figures for housing. Planning consents—the lead indicators—are equally bad. Figures compiled by Glenigan for the Home Builders Federation show that in calendar year 2011 only 115,000 new homes received planning permission, which is the lowest level since the survey began in 2007. The figures for the end of 2011 are particularly bad—the Home Builders Federation itself highlights the extent to which the number of homes that received consent in the fourth quarter of 2011, 27,000, was down on the third quarter and down on the previous year’s equivalent quarter. The figures are seriously bad.

The Federation of Master Builders reminds us that the figures for new social house building in the first three months of this year are

“the most negative balance since the survey began”,

and work loads in the private new build housing sector are also declining, with 55% of firms indicating work loads smaller than in the fourth quarter of 2011. It is a bleak, bleak picture. The Minister should reflect on that and recognise that the current framework provides no incentive for new house building.

We are seeing in many cases uncertainty in the planning system. My hon. Friend the Member for Sheffield South East (Mr Betts) rightly highlighted the degree to which uncertainty and potential litigation will be a damper on development in the coming months. We also know that a number of councils are quite openly seizing the opportunity to cut back housing consents. Against that background, I have to say to the Minister that his Government will be on record as producing the lowest number of new homes of any Parliament since the 1940s—far, far lower than the figures during the previous Parliament, 2005 to 2010, which included the depths of the recession, when 750,000 new homes were started. The present Government are on course for, at best, 600,000 homes, and the total may well be fewer than that. I urge the Minister to reflect on the consequences of his planning policy.