Planning and Infrastructure Bill (Twelfth sitting)

Paul Holmes Excerpts

Committee stage
Tuesday 20th May 2025 Public Bill Committees

[Ellie Chowns]

New clause 1 was tabled by the hon. Member for North East Hertfordshire (Chris Hinchliff), and I remind colleagues that I am the Member for North Herefordshire—always a cause for confusion. I will also speak to six other new clauses, three of which are intended to dissuade developers from engaging in land banking, and three to ensure that affordable housing targets are met.

New clause 1 would give the planning authority the power to decline future planning applications from a developer that had failed to use, or at least to make sufficient progress on, planning permission that they had already been given. This is designed to stop the practice whereby developers purchase land, get planning permission on it and do nothing with it. I think we all agree, on both sides of the Committee, that we need to expedite the building of affordable housing, so this is a proportionate and clear measure to support that. It relates to new clause 55, which was tabled by the hon. Member for Taunton and Wellington. If such land is not built on, the land should transfer to the local authority, so that it can get on with doing the job instead.

New clause 61, which was also tabled by the hon. Member for North East Hertfordshire, suggests extending business rates for developers that do not build. Each new clause is designed to prevent the practice of land banking, to encourage developers to get on and build when they have been given planning permission.

[Paul Holmes (Hamble Valley) (Con)]

I completely understand why the new clause has been tabled, and we support the premise behind it, but can I ask the hon. Lady for clarification? She may not know, and that is perfectly acceptable. Say an application went in for a nursing home, but the business went bust before the initial build out was delivered. If the developer wanted to change the application to allow it to build a block of flats, how would the new clause prevent that from happening? It is a genuine question, and I do not know what the answer is.

[Ellie Chowns]

I thank the hon. Gentleman for his genuine question. He highlights a case that arguably represents complexities that the Government employ lots of lawyers to fix. I do not think it would prevent a new clause such as this from progressing. The intention is to prevent land banking, and if lawyers need to tweak the language a little bit, so be it.

I will move on briefly to new clauses 15, 25 and 60, which are all about ensuring that affordable housing is actually built. New clause 60 would set a lower bound on the amount of affordable housing that was due to be constructed. New clauses 15 and 25 are intended to ensure that the affordable housing commitments that developers make in their initial applications are not subsequently chipped away at or eroded by arguments about viability.

Fundamentally, if there are issues around viability, the Government and local authorities should prioritise the building of affordable housing, not the safeguarding of developer profits. The new clauses are therefore intended to ensure that when developers commit during the planning process to building affordable houses, they stick to those commitments. I commend the new clauses to the Committee, and I look forward to the Minister’s response.

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[Paul Holmes]

It is a pleasure, as ever, to serve under your chairmanship, Ms Jardine. I would like to speak to new clause 76, which is in my name.

This new clause seeks to probe the Minister’s thoughts about the success of local authorities in tackling and challenging the unauthorised development that has gone on. As he will know, the last Government made intentional unauthorised development a material consideration, meaning that planning permission could be refused, and there is a presumption that it should be refused, when development has taken place without consent.

I think it is safe to say that we do not think—many of us see this in our constituencies—that that is being enforced uniformly. The shadow Secretary of State, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), has an open case at the moment, and I am sure all of us, as elected MPs, have had such cases in the past. There is also an issue with unauthorised encampments. The new clause goes a step further by saying that if development has taken place without authorisation, the planning authority should not grant consent. This is a probing amendment because such provisions already exist, but there are many examples across the country of enforcement not taking place.

New clause 76 requires that no planning permission is to be granted in cases of intentional unauthorised development. It would provide a power to the local planning authority not to grant consent for development

“where there has been intentional unauthorised development in respect of the land or properties which are to be subject to that development.”

It gives further detail about the meaning of “intentional unauthorised development”, which

“(a) includes any development of land undertaken in advance of obtaining planning permission”,

but

“(b) does not include any unintentional, minor or trivial works undertaken without having obtained the relevant permission.”

We have put in paragraph (b) to take account of householders who have undertaken small modifications—for instance, small extensions, walls or garden sheds—that in certain circumstances would need planning permission. We do not want to persecute or make the law come down hard on those who have made a genuine mistake. This is about larger unauthorised development. The reason for tabling the new clause is that we think the Bill should go further in restricting unauthorised development, and that we want local planning authorities to be able to enforce the powers they have through the legislative changes made by the last Government.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

Does my hon. Friend agree that, particularly in the context of our earlier debate about hope value, it is important that this issue is addressed? For law-abiding citizens, nothing is more frustrating than someone carrying out an unauthorised development, potentially on a site in the green belt, as we have seen on a number of occasions, and then being able to regularise that by obtaining retrospective planning permission, when, had they applied lawfully to begin with, it would have been refused. That is an injustice in the planning system that needs to be addressed.

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[Paul Holmes]

My hon. Friend is right; I think that we have all seen that happen as Members of Parliament. It makes a mockery of the planning system when people—they know exactly what they are doing—retrospectively apply for permission and still reap the benefits. There was an example of this in my old constituency that involved removing trees that had tree preservation orders, in order to build on some land. Doing so destroyed that area of land, and it went completely against what should have happened. When the developer went to the local authority, it retrospectively granted planning permission, and the local villagers were outraged.

My hon. Friend is right: the new clause is meant to tackle those who know how to play the system. However, if someone has made unintentional changes to a house that could be covered under permitted development rights, but may go slightly beyond them, we would give local planning authorities the jurisdiction and authority to use their own minds in such cases.

I hope that the Minister understands why we are trying to probe him to see whether he can strengthen the Bill in relation to unauthorised development. He may have to write to me after the Committee—I am sorry to the officials for asking for another letter—about whether the last Government’s measures to give local authorities that power has worked and, if not, how we could work together to ensure that unauthorised development is stopped. We do not want to stop developments, but we think that there needs to be fairness in the planning system. People, who may not be well off, who want to make a planning application for their own home often find it a difficult experience when, just down the road, people are doing it willy-nilly whenever they want to. I look forward to clarification from the Minister. If he needs to write to me, that is absolutely fine.

[Rachel Taylor (North Warwickshire and Bedworth) (Lab)]

It is a pleasure to serve under your chairship again, Ms Jardine. I rise to speak first to new clause 1, which seems to me, as someone who has worked closely with developers, ill thought out. It does not address the need to build more social and affordable homes.

Permissions that are granted, particularly on brownfield sites, often contain any number of conditions that are extremely difficult for developers to achieve—discharging conditions around environmental remediation and, for example, looking after bats or newts, which are common where I practise. There is also a lack of local authority staff competent to deal with section 106 agreements. Permissions are often granted to developers before they own the land, and there may be suitable tax reasons why people do not wish to sell the land until the following tax year. It is easy for those things to stretch over way more than three years, and sometimes up to five years. I am in favour of building more social homes, but the new clause would not achieve that objective. It also does not take into account the massive shortage of workers in the construction sector, the skills that we need or the shortage of materials, which has become even more acute in the past couple of years.

I also want to talk about new clause 76. The hon. Member for Hamble Valley has entertained us for most of the day with minor matters, but his new clause would have an effect that he has perhaps not thought about. The majority of unauthorised planning that I saw in my practice was carried out by farmers who were not able to make enough money from farming their land, so very often diversified their large warehouse-type structures and started using them for small businesses—perhaps renting them out to local engineering firms and so on. After a period of 10 years, somebody would complain in the local village and they would then apply for an authorised use certificate, and nine times out of 10, it would be granted.

The impact of new clause 76—that unauthorised change of use—would prevent those people from developing new homes on their site or opening up more opportunities for new businesses. It needs more thought and attention, because the very people who would be impacted are those who the Opposition say that they stand up for. Very often, they will be farmers who are looking to diversify their property.

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[Matthew Pennycook]

The hon. Member tempts me into commenting on hypotheticals. I will instead say the following. There are two things happening here. We have to be aware of the ability for some existing mechanisms—section 73 applications are a good example—to be gamed in terms of viability to drive down the amount of public gain. I am aware of that, and I have been very candid about it. On the other hand, and correspondingly, if a permission such as the one he hypothetically mentioned is in place, I think that is testament to why it is so important that we bring forward measures on build-out transparency and have the powers to be able to say to developers, as the Government are saying to all developers, “If you’ve got a consent, then get on and build.”

The Government are making a variety of reforms to the planning system, which in any number of ways will provide for a more rules-based system, more certainty and will drive down development costs. We are firming up planning policy guidance and expectations. We are making it clearer and easier for developers to put in an application and we should reduce costs as well. Correspondingly, we can ask for more. We are bringing forward measures in fairly short order on build-out and we will turn on the LURA provisions that I have mentioned. On that basis, I ask for the new clauses to be withdrawn.

New clause 76, tabled by the shadow Minister, the hon. Member for Hamble Valley, seeks to prevent those who have deliberately undertaken unauthorised development from obtaining planning permission retrospectively. The Government do not condone unauthorised development and are clear that anyone seeking to undertake development should first obtain planning permission where it is required. I therefore very much appreciate the sentiment behind his new clause. I recall debating with a shadow Secretary of State this particular matter in relation to Gypsy and Traveller camps, and I appreciate that across the House there is concern about the use of unauthorised developments.

However, the Government’s view is that there may be circumstances—I am happy to set this out in writing to the shadow Minister—in which unauthorised development, even if it is intentional, may be acceptable in planning terms or may be made so by the imposition of planning conditions. I say that only to make the point that we believe that there is a need for some pragmatism here and that such developments should be considered by the local planning authority. It is already the case that intentional unauthorised development, as he said, is a material consideration. It must be weighed in the balance when determining planning applications and appeals. That approach retains local decision making.

The Government obviously keep this matter under review. I am more than happy to have a conversation with the shadow Minister about the Government’s view as to whether the enforcement powers available to local planning authorities—they have a wide range of powers, with strong penalties for non-compliance—are being used, and if not, why not. I am also more than happy to share with him our understanding of how local planning authorities and inspectors are treating unauthorised development as a material consideration, as they are now required to do. I hope that, on that basis, I have provided him with some reassurance.

[Paul Holmes]

I appreciate the Minister’s being so open and genuinely—I wouldn’t say I didn’t believe him before—promising to go away and look at this issue. We would like to take him up on that; we will not press our new clause today, but there are conversations to be had further down the line on this topic. Will he just confirm whether his Department holds any statistics on how many unauthorised developments we are talking about? Is there is a reporting structure for local authorities, which may be held by the Planning Inspectorate? We would like to know how his Department is monitoring the number of unauthorised developments that are using the powers that were given to local authorities, if that makes sense.

[Matthew Pennycook]

What I can commit to—I feel the glares from my officials on me now—is this. If we have the information, I am more than happy to have a conversation with the shadow Minister to give him a sense of, across the country, how local authorities are using their existing enforcement powers and the extent to which, although I think this will be difficult information for Government to track, local planning authorities and inspectors are relying on unauthorised development as a material consideration. I am thinking, for example, of inspectors allowing things on appeal that are unauthorised. If we have that information, I am more than happy to share it and to have that conversation with the hon. Gentleman.

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[Matthew Pennycook]

I think some of this will become evident in the fullness of time. There has been an implicit criticism of the Government at several points in Committee that we are entirely reliant on a market-led approach, and are happy with an entirely developer-led, market-led approach. That is not the case. We think that targeted reforms to the planning system are necessary, but we also absolutely believe that reform of our broken house building model is required. I have said on many occasions that we are overly reliant on a speculative development model that produces bad outcomes. Hon. Members across the Committee will see before too long other measures that the Government are bringing forward to both transform and disrupt that market in ways that are beneficial.

[Paul Holmes]

Disrupt!

[Matthew Pennycook]

Well, the market does need to be disrupted, in the particular sense that we need new entrants coming forward, and small and medium-sized enterprises and community led-housing back in the game.

The hon. Member for Taunton and Wellington said, and I think he is right, that developers have a business model, particularly volume builders. Some are changing their business model and we would encourage change to those business models, but there is a particular model that relies on very high margins. I know the academic study that the hon. Member for North Herefordshire cited. We must and will reduce our reliance on that. We also must be careful about weighing in on viability in a way that would just stop house building coming forward in lots of cases, because that would ultimately help nobody.

A final point that I think is pertinent to this debate: I always find the nimby and yimby debate incredibly reductive, but I think that some who oppose development on the basis that they only prioritise social and affordable housing discount the fact that building homes of any tenure in localities assists people trying to access social and affordable rent. It all helps and it need not be one or the other.

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[Ellie Chowns]

It continues to be a pleasure to serve under your chairship, Ms Jardine. The new clause was tabled by the hon. Member for North East Hertfordshire, and I give the Minister notice that I am particularly keen on it. It would require any national or local housing plan to include and justify quotas for the provision of affordable and social housing.

To me, the new clause seems like a no-brainer, and a measure that we should already have, given that we have such a huge housing crisis, have had no coherent Government housing strategy over the last decade or more, and have no serious goal to end homelessness or deal with the social housing waiting list or affordability issues. I recognise that the Government are making some efforts in the legislation they are introducing. I am particularly excited by the Minister’s promise of disruptive measures to tackle some of the remaining problems in the housing market.

We absolutely have to build more homes for social rent. In the 10 years between 2014-15 and 2023-24, England built 2.2 million homes. Would anybody like to guess what percentage of them were for social rent? Only 3% of them were for social rent, which is the only tenure that is genuinely affordable to those on the lowest incomes. I recently saw stats about the changes in planning permissions in the last six months: 6% of the permissions granted in that time have been for social rented homes. It is nowhere near enough. We desperately need more homes for social rent.

[Paul Holmes]

I understand and agree that we need to build more social rented homes, but does the hon. Lady not agree that the figures she gave could be perceived as being slightly simplistic, because they do not take into account the regional variations in where housing lists and social homes are most needed? I accept that social rent made up 3% of the total, and permissions recently increased to 6%, but in areas such as Southampton, London, Basingstoke or big urban centres, the proportion will be dramatically higher.

[Ellie Chowns]

I would be more than happy to go through spreadsheets with the hon. Member, because I like a nice spreadsheet. Although the figures might be slightly higher in London, I do not think anybody would argue that there is therefore sufficient affordable housing in London, or anywhere close to sufficient.

[Paul Holmes]

I agree.

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[Olly Glover]

I rise to speak to new clauses 8, 26 and 92, just to introduce briefly what they do. New clause 8 is about coming up with a more sophisticated definition of what “affordable housing” is, taking into account local needs and circumstances, while new clauses 92 and 26 are about quotas, funding and the assessment of the housing needs of an ageing and older population.

I shall keep my remarks on new clause 8 concise, because the hon. Member for North Herefordshire has made many of the points that I would otherwise have made. I agree with her that there seems to be a bit of cognitive dissonance going on when those on the Government Benches express scepticism about the ability of targets for affordable and social housing to deliver progress, yet are adamant that targets for housing overall will do that. Perhaps the Minister will address that point in his remarks.

The key issue in terms of new clauses 26 and 92 is that the current definition of “affordable housing” is not considered affordable by many organisations. That particularly applies to people of an older age on a low income, who are still subject to many aspects of housing costs. It is not just me who thinks that the current definition of “affordable” is nothing of the sort. Shelter agrees, calling it

“unaffordable for those on average incomes”.

Similarly, Crisis and the Joseph Rowntree Foundation have argued for affordability to be linked to local incomes, not market rates, and the Town and Country Planning Association also recommends local flexibility, stating in its housing guides that the 80% rule does not work in areas of high market distortion. Even the Labour-run Greater London Authority operates its own model, with the Mayor, Sadiq Khan, introducing a new category of “genuinely affordable” rent, which includes social rent, London living rent and shared-ownership schemes, as a way of creating a better benchmark.

As mentioned previously in this Bill Committee, house prices in constituencies such as mine still reflect a distorted market in which housing remains inordinately expensive despite enormous housing growth. Residents would certainly benefit from local authorities’ having the power to set what is meant by affordable housing, taking into account local circumstances on issues such as wages.

We also need to be more detailed and thoughtful about how we go about the issue of our ageing population. This is not just about the older old in care homes and similar facilities; it is also about people becoming old. For example, 40% of homeowners and 60% of renters aged 70 will have moved into their homes since the age of 50. Those homes may suit them when they move in, but they may not suit them as they age and will need to be adaptable. That is something that local authorities and all of us need to consider a lot more.

Equally, 50% of renters aged between 45 and 64 have no savings, and many will struggle to afford their rent in retirement. The Pensions Policy Institute estimates that if current trends continue, the cost of housing benefit for older renters will increase by 40%, or an additional £2 billion per annum.

Thinking more carefully about how we provide for an ageing population, as these new clauses propose, would benefit not just those who are affected by the cost of housing, but the public finances, given the ever-increasing housing benefit bill that we will face if we do not take serious action and change our approach. I look forward to the Minister’s comments.

[Paul Holmes]

I rise to speak to new clauses 48, 49, 50 and 75, most of which are in the name of my hon. Friend the Member for Ruislip, Northwood and Pinner—I do not know whether he intends to intervene or to speak after me, but he is more than welcome to do so, because he drafted the new clauses and can do them a lot more justice then I can.

These wide-ranging provisions would help strengthen the legislation. We tabled new clause 48 because we want to review the method for assessing local housing need. The current method does not adequately account for the type of home being built. For example, a family home can accommodate more people than a one-bedroom flat, and it should count for more because it goes further towards meeting a local area’s housing need. Under the current methodology, we often end up with the wrong stock being built and with people being displaced or having to move away from long-standing connections in their local area.

New clause 48 states:

“The Secretary of State must, within six months of the passing of this Act, review the standard method for assessing local housing need…A review under this section must consider…how the method for assessing local housing need should consider different types of property”—

as we have indicated, that should be based on demographics and local housing lists—

“basing calculations on price per square metre rather than price per unit…In conducting a review under this section, the Secretary of State must consult…local councils; and…any other parties the Secretary of State considers appropriate.”

[David Simmonds]

My hon. Friend is making an excellent and eloquent speech—far more excellent and eloquent than my contribution will be. Does he agree that one of the big concerns the Bill needs to address is the sense among some constituents that new housing development is not built for them or their community? We need to make sure that this debate is about homes, and that means we need greater subtlety and nuance in housing plans and the targets we set. It is not simply about delivering units—the dark towers we see in parts of central London, whose units are not available to or occupied by the local community—but about having a housing supply that reflects the needs of a particular place.

[Paul Holmes]

My hon. Friend is absolutely correct. Who can say the Conservative party is divided when we have a bromance like this? My hon. Friend and I agree with each other all the time. He says that my speech is better than his, which is untrue, but he makes a serious point. The whole point of the Bill, and of our being here, is to ensure that housing is deliverable and accountable, and that it adapts to the will and the needs of local people. We are in Parliament and we stand for election predominantly to make our areas better and to leave the world in a better place, with people feeling better.

In my constituency, we have many four-bed and five-bed family homes. We also have a huge housing waiting list. Those homes cost £250,000 each. Of course, I aspire to being able to afford a house like that myself one day, but we need to ensure that the right housing is being built for people in Eastleigh and Fareham town centres. Often, they are displaced down the road to Southampton and Portsmouth, or to other areas of the country with which they have no connection. That is simply not fair. We tabled the new clause to see, first, whether the Minister agrees with it—I suspect he will do more resisting—and secondly, whether he will try to ascertain how we genuinely improve the method for assessing local housing need.

We had a brief debate about whether housing targets were warranted and whether people think they are good or bad. The Minister knows my position: I think they have been set for a particular reason, but that was a debate on a different clause. We want new towns to contribute towards meeting housing targets. As the Minister knows, new towns do not currently do that and are not included among those that can meet housing needs in local plans. New clause 49, which my hon. Friend the Member for Ruislip, Northwood and Pinner tabled, would change that to include new towns, for several reasons.

First, that would give certainty to constituents that once a local plan had been developed and proposals had gone forward for consultation, they would not be surprised by the Government’s suddenly announcing a new town. The Government are prone to doing that at the moment—I say that neutrally. When that happens, an area seems to have to take much more housing because the new town does not, on paper, contribute to the targets. I believe that, because new towns do not contribute to those targets, they suffer in terms of their services and infrastructure. The new clause would help with fairness in the system and with housing targets and planning. It is not nimbyism—I agree with the Minister that the terms yimby and nimby are reductive. To provide clarity for the consumer, as well as stability for local areas, the Government should make new towns contribute to housing targets.

The Minister should view new clause 50 as productive. If he is worth his mettle, he will see that. Its purpose is to require local authorities to have a housing plan for their areas to inform their local plans. The housing plans would cover types of home, demographics and first-time buyer homes. Subsection (2) of the new clause provides that the local housing plan

“must outline the number and type of homes…(a) required, and…(b) proposed to be built…in the authority’s area.”

That would strengthen local authorities’ and local people’s ability to have a say about what they want to be built for them in their areas.

Yesterday, my hon. Friend the Member for Ruislip, Northwood and Pinner and I had an interesting meeting with several house builders. The Government should embrace and look to expand retirement villages in local plans. People are getting older, and many older people prefer to stay at home, but the system is slightly broken in terms of service charges and the leasehold model. That is not working.

[David Simmonds]

I am grateful to my hon. Friend for giving way during a speech that is as eloquent as it is stylish. He makes a serious point. One change in the UK housing market is the collapse in the provision of small developers; something like 93% of homes are now built by very large housing providers. Particularly in pursuit of developing some of the smaller sites, in which the Minister has expressed a clear interest, we need to bring those types of development to market at scale. That is what new clause 75 seeks to do, and I hope that the Minister will—in a speech that will no doubt be equally eloquent and stylish as that of the shadow Minister—set out his thinking to ensure that that happens, so that the Bill does not become purely a charter for large developers while the huge number of smaller sites, which could deliver so much additional housing, are left undeveloped.

[Paul Holmes]

My hon. Friend raises a good point; in fact, we have tabled some amendments on targets regarding small and medium-sized enterprises. He is right that we must ensure that development is not just carried out by the usual large-scale developers; we must bring vibrancy into the sector and, more importantly, allow local authorities to make those decisions.

On retirement villages, the system does not work, but new clause 50 would allow local authorities to have the authority to focus on the demographics and first-time buyers. It would ensure that SME builders are allowed to be designated by the local authority to build those houses.

It is shameful that, for the first time in a long time, housing policy in this country does not have any incentives for first-time buyers. This point relates to the new clause, Ms Jardine. For the first time, we do not have incentives such as stamp duty relief or Help to Buy, so I hope that the Minister’s disruptive and radical solutions, which he teasingly announced, will include incentivisation. That would allow local authorities to say, “We have a lot of young people who should be entitled to be on the housing ladder; we want to put some first-time incentives into our local plans.”

[John Grady (Glasgow East) (Lab)]

On assistance for first-time buyers, is the lifetime ISA not still in operation?

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[Paul Holmes]

Yes, the lifetime ISA is still in operation—the last Government brought it in—but it does not deliver the real numbers that we need, as the Help to Buy and stamp duty relief systems did. We brought those in, but they have been reversed.

[Luke Murphy (Basingstoke) (Lab)]

Will the hon. Gentleman give way?

[Paul Holmes]

Not yet. Those have been reversed by a lot of the things that this Government have done. For the first time, the sector does not have any incentivisation.

[Matthew Pennycook]

My hon. Friend has a quote.

[Paul Holmes]

If he has a quote, then I am not giving way. I say to the hon. Member for Glasgow East that the local housing plans that we are proposing must also include social housing. Local authorities need to put forward a proper housing mix.

[Luke Murphy]

I thank the hon. Member for giving way, and apologise to the rest of the Committee—I do not have a quote. Under its new leadership, his party is reflecting on the policies of the previous 14 years, so given that he is making an argument about first-time buyers and SME builders, why did the number of SME builders in the UK catastrophically decline over the past 14 years while the average age of the first-time buyer increased?

[Paul Holmes]

The hon. Gentleman does not have a quote, but his intervention is still misguided. He fails to realise that under the past 14 years of the Conservative Government, 800,000 people bought their first home through schemes such as Help to Buy and the stamp duty relief, and 2 million homes for first-time buyers were built. This Government have not even shown that they have the aspiration to match that, because they have cut a lot of the products that turbocharged first-time buyers’ getting on to the housing ladder.

I gently say to the hon. Gentleman that if he wants to, he can come for an appointment. By the way, we are under new leadership, and we are constantly reviewing our policies. We will be making announcements on the new products we will be bringing to people to fill the void that this Government have simply left for the first-time buyer.

[Ellie Chowns]

The hon. Member has issued a paean to Help to Buy, which at the time it was introduced was identified as a policy that would likely drive up housing prices and do nothing to address the real problems in the housing market. As I have repeatedly emphasised in this Committee, those problems relate particularly to affordable and social rent housing.

I have a quote for the hon. Member. A report published by the House of Lords Built Environment Committee in 2022 concluded that the

“Help to Buy scheme…inflates prices by more than its subsidy value”

and does

“not provide good value for money, which would be better spent on increasing housing supply.”

It pointed out that it cost the taxpayer £29 billion—more than £29 billion—over a decade, and that cash should have been used, as I have said, to replenish England’s falling stock of social housing.

The London School of Economics has found that Help to Buy boosted house prices in London by 8%—just that policy boosted house prices in London by 8%— and it boosted developers’ revenues by 57%. Does the hon. Member recognise that it is not a panacea for the problems in the housing market that we face, and that investing in social rent housing should be our priority?

[The Chair]

Order. Before we go on, could we keep to these new clauses, please, because we are getting a little off-track?

[Paul Holmes]

I will heed your advice, Ms Jardine, and bring this back to new clause 50.

The hon. Member for North Herefordshire said there should be more social homes, but that comes under the remit of local authorities to set in their housing plan. In response to what she said about Help to Buy versus social homes being a panacea, I gently say to her that I never at any stage said that Help to Buy was a panacea. I said it was part of the mix in which we could help people, if they so wished, to get on to the housing ladder for the first time.

[Ellie Chowns]

At the cost of social housing.

[Paul Holmes]

I have not finished my point, if the hon. Lady would let me do so. I feel like the Minister last week.

I am saying that Help to Buy was part of a wider mix. The hon. Lady is absolutely right that we need to focus on building more social housing, but I have a fundamental political disagreement with her, which is that social housing is not a panacea either. There are people who want to buy and there are people who want to be helped to buy, and that is why I say that, under this Government, the incentivisation for first-time buyers in the context of that argument has been abandoned, and that happened when we left office.

[Ellie Chowns]

My point is brief: given that the Government have a limited amount of money available, should it not be spent on the things that are most effective in tackling the reality of the housing crisis? It is clear that Help to Buy was not that.

[Paul Holmes]

I agree with the hon. Lady that the Government should be focusing on social housing. However, to be fair to them, they have announced a huge amount of money for it, as we discussed in the Westminster Hall debate six or seven weeks ago. I cannot remember the figure, but it was a great figure for building social housing. They have gone further than the last Government did on social housing, and I said in that Westminster Hall debate that I welcomed the Minister’s and the Deputy Prime Minister’s commitment to building that affordable and social housing, but we need a housing mix that also allows for first-time buyers. That is the argument I originally made, and I do not think many people in the House or out there would disagree that we need such a mix.

Briefly, new clause 75 relates to small site allocations in local plans. Currently, local planning authorities are expected to allocate 10% to small sites in local plans, unless they can provide a strong explanation why that is not possible. The Government have recognised the strength of feeling that small site policy generally is not working for both planning authorities and small and medium-sized developers, and they are strengthening the wording in the Bill. However, this new clause is designed to reverse that, and to up the percentage of small sites that should be accessible to SME developers, as my hon. Friend the Member for Ruislip, Northwood and Pinner outlined in his intervention. I think the Minister should be able to agree to it.

We discussed this morning how SME developers could be enabled to build more homes. There would be a requirement for 20% of housing to be on small sites, and:

“The Secretary of State must, within six months of the passing of this Act, issue or update guidance for local planning authorities regarding the identification of sites for housing development…The guidance must outline a requirement for at least 20% of an authority’s housing requirement to be accommodated on sites no larger than one hectare.”

I hope that also shows many Members across the House that we believe in a solid and varied housing mix, built by a solid and varied housing sector. A number of these measures will help deliver just that. I would welcome the Minister’s thoughts.

[The Chair]

Before we go on, let me say that the Minister is under no obligation to discuss Help to Buy in his response.

--- Later in debate ---

[Matthew Pennycook]

The hon. Gentleman’s position on the matter is very clear. We will keep under review how the taskforce’s recommendations on new towns interact with housing targets.

Although I appreciate that the hon. Member for Ruislip, Northwood and Pinner is seeking, understandably, to prevent areas with a new town from taking unmet need from neighbouring areas, his new clause would have the effect of discouraging effective cross-boundary co-operation on a much wider range of matters, which could lead to issues with local plans in those areas. For that reason, I ask him not to press it.

I turn to new clause 48. In our manifesto, the Government committed to restoring mandatory housing targets and reversing the supply-negative changes introduced by the previous Government in December 2023. In December 2024, we therefore implemented a new standard method for assessing housing needs that aligns with our ambition for 1.5 million new homes over this Parliament and better directs homes to where they are most needed and where housing is least affordable. The standard method is an important tool to ensure that housing is delivered in the right places, which is critical to tackling the chronic shortages facing the country across all areas and all tenures.

We consulted extensively on our changes to the standard method. Our public consultation received more than 10,000 responses from a range of relevant parties, including 387 submissions from local authorities. Our response to the consultation sets out the evidence received and how the Government have responded to the points raised. We have also published revised guidance to support authorities utilising the standard method. Given the recent consultation exercise on the revised standard method, I do not believe that new clause 48, which seeks further consultation and procedural steps, is the right way forward. I ask the hon. Member for Ruislip, Northwood and Pinner not to press it.

I turn to the hon. Member’s new clause 50. National planning policy—specifically paragraph 72 of the NPPF—already expects local planning authorities to prepare strategic housing land availability assessments to provide evidence on land availability within their area. Authorities should then set out, through their local plans, a sufficient supply and mix of sites that can be brought forward over the plan period. Through this existing policy, local planning authorities are already expected to make an assessment of the number and type of homes that are required and proposed to be built in the authority’s area. I note the comment that several hon. Members have made about older people’s housing. I think it fair to say that the housing and planning system has not kept pace with demographic change, but that is why the Government are exploring the recommendations of the older people’s housing taskforce, for example.

In addition, we are committed to introducing the new plan-making system, which includes the following provision set out in new section 15C(8) of the Planning and Compulsory Purchase Act 2004, as inserted by the Levelling-up and Regeneration Act 2023:

“The local plan must take account of an assessment of the amount, and type, of housing that is needed in the local planning authority’s area, including the amount of affordable housing that is needed.”

New clause 50 would therefore duplicate national planning policy and legislation that we anticipate will come into effect later this year. It would create new burdens on local planning authorities, with the effect of delaying plan making. It would also undermine the Government’s priority for extensive coverage of local plans across England, reducing much-needed housing supply. I ask the hon. Member for Ruislip, Northwood and Pinner not to press it.

I fully understand and support the principle behind new clause 75, tabled by the hon. Member for Hamble Valley. The Government fully recognise the benefits that small sites can offer in contributing to house building, diversifying the housing market and supporting faster build-out. We are therefore fully committed to increasing delivery on small sites and supporting our SME developers. This is a real priority for the Government. The statistics show that back in the 1980s SMEs built something like 40% of housing supply; the figure now is less than 10%. That is a large part of the reason that we are not bringing homes forward in the numbers we would want. Council house building is another example.

Via the NPPF, local authorities are already expected to allocate 10% to small sites in local plans unless they can provide a strong explanation why this is not possible. If such an explanation proves wanting, the plan can be found unsound when it is examined by an independent inspector. In line with the thinking behind new clause 75, we consulted on strengthening that requirement by making it wholly mandatory in local plans. That was part of the summer 2024 consultation on the NPPF, but the responses we received were clear that making the target fully mandatory would be resource-intensive, would put significant pressure on local authorities, would be unworkable in many areas and might lead to delays in plan making.

In the Government response to the NPPF consultation in December, we therefore made clear our intention to explore other options to support small site delivery as part of the upcoming national development management policies. I do not want to tease the Committee again, but details will be forthcoming and will be subject to consultation. Although I appreciate the principle behind new clause 75, I therefore do not believe that it is the best way to support small site delivery. I ask the hon. Member for Hamble Valley not to press it.

[Paul Holmes]

I am a pragmatist, so if the Minister says that he will make announcements in due course to strengthen what he already has a track record of doing, which is what the new clause seeks, we will welcome that. I must press him slightly, however. I grant that he has only been in his position for 10 months, but if the 10% is already in the NPPF and has not made any real change, and if he is reluctant to make legislative changes to enforce it, what other measures can he introduce to increase the number of houses that SME builders can build?

[Matthew Pennycook]

It is worth referring to the NPPF consultation in the summer and the Government response. We think that there was good reason not to make the 10% allocation mandatory. Local authorities, in particular, told us that they had concerns in that regard. There are many other things we could do. Without using this as a defence, in fairly short order the shadow Minister will see some of the measures that we want to introduce to support SME house builders. Access to land is a concern, and access to finance is another issue, as is the cumulative burden of regulation on SME house builders, which, for obvious reasons, are less able to cope with that than large-volume house builders. All of that is part of the answer, but I am sure we will have further debates on the matter once the Government have brought forth new measures in that area.

I turn to new clauses 92 and 26. I share the commitment of the hon. Member for Taunton and Wellington to enhancing provision and choice for older people in the housing market. I agree that the need to provide sufficient housing to meet older people’s specific needs is critical. We must ensure that the housing market is moving with demographic change. I also recognise that well-designed, suitable housing can improve the quality of life, health and wellbeing of older people, as well as supporting wider Government objectives.

That is why the revised national planning policy framework already makes it clear that local authorities producing a local plan should, as I have said before, assess the size, types and tenure of housing for different groups in their communities, including older people, and reflect that in their planning policies. Supporting guidance also makes it clear that an understanding of how the ageing population affects housing needs should be considered from the early stages of plan making through to decision making.

Furthermore, clause 47 contains provision for spatial development strategies to take account of that factor. It provides that SDSs

“may specify or describe…an amount or distribution of affordable housing or any other kind of housing”

if the provision of that housing is considered

“to be of strategic importance to the strategy area.”

One can well imagine how, in particular sub-regions of the country with high proportions of older people, SDSs may want to take particular account of that factor.

We will of course consider how we can continue to make progress on delivering sufficient housing for older people, as we develop our long-term housing strategy, which we will publish later this year. I recognise that that will have benefits not only in meeting housing need for older people, but further down the housing chain, by unlocking homes that are inappropriate for older people. Those people may wish to move if they have a better offer and if challenges such as those mentioned by the shadow Minister, the hon. Member for Hamble Valley, such as the excessive service charges on some older people’s residential housing, are dealt with.

On new clause 26, I do not believe that introducing legislation to impose targets and capital funding for the affordable homes programme is the best way to incentivise the market to increase the supply of older people’s housing and later living homes. The Government’s view is that local housing authorities are best placed to bring forward the right amount of new housing for older persons and later living homes in their areas through the planning and care systems, and based on local need. The Government will obviously support them to do that when they set out the full details of a new grant funding programme to succeed the 2021 to 2026 affordable homes programme at the spending review on 11 June. Alongside wider investment across this Parliament, the new programme will help to deliver our commitment to the biggest increase in social and affordable housing in a generation. For that reason, I respectfully ask that none of the new clauses in this very large group are pressed to a vote.

--- Later in debate ---

[David Simmonds]

Further to that point of order, Ms Jardine, I accept that it was a discussion between me, as the Opposition Whip, and the Labour Whip yesterday, which is the usual channel through which times are agreed. That being the case, and in her absence, I will not move the adjournment, in order to enable the Committee to proceed. However, I respect that hon. Members may have to leave—including me, because I have built my diary around that agreement and I have childcare responsibilities.

[Paul Holmes]

Further to that point of order, Ms Jardine—I do not wish to waste any more of the Committee’s time—for my part, I am content for the Committee to sit until 5 pm to ensure that business gets through. However, given my own diary, I would take a dim view if the Government should seek to continue beyond 5 pm.

[The Chair]

To clarify, the Committee sits until the Government moves the adjournment, so it is entirely up to the Government as to what they wish to do.

--- Later in debate ---

[Gideon Amos]

It is a pleasure to speak to new clause 7, which would require schedule 3 of the Flood and Water Management Act 2010 to be commenced. My Liberal Democrat colleagues have pressed on this matter repeatedly over recent months and years, including in Westminster Hall. The schedule, which was never commenced, would require sustainable drainage systems—SuDS—to be provided in all but the most exceptional cases. It would establish a proper authority for regulations to ensure they are properly designed and maintained. It is not right that because of inadequate regulation and safeguards, the burden of poorly constructed drainage systems should fall on individuals who have saved for years to get their first home. Without proper enforcement of sustainable drainage, there is a real risk that the drive to increase housing numbers will exacerbate the current problems with drainage and flooding.

After the 2007 floods, Sir Michael Pitt recommended the introduction of the provision. It was duly passed as part of the 2010 Act, but it was never commenced. By 2014, the Government had consulted on the necessary guidance and were on track for commencement before the end of 2015. In 2015, the consultation came to an end, the work came to an end and it was not commenced. The policy approach taken by the then Conservative Government was that we would deal with sustainable drainage through policy, and policy would be sufficient. A little later on, in their 2023 review of the implementation of schedule 3 to the Flood and Water Management Act 2010, they set out that a previous review had concluded that

“non-statutory technical standards for sustainable drainage systems should be made statutory: as the ambiguity makes the role of the planning authority very difficult. The review also found that in general there were no specific checking regimes in place to ensure that SuDS had been constructed as agreed, leaving concerns about unsatisfactory standards of design and construction, and of difficulties of ensuring proper maintenance once the developer has left the site.”

If only that schedule had been brought into effect, a great deal of flooding of people’s homes would have been avoided.

In the past, we have had a body of law to control our sewage and drainage system, originally from the Public Health Act 1936, which dealt with any kind of drain that is

“communicating with a public sewer”,

in the words of the Act. But SuDS are a new way of doing things, and they do not have the same body of regulation. There is therefore no longer any reason why schedule 3 should not be commenced as soon as possible, if not immediately. It should not take another flood to make that happen.

It is time to implement the recommendations of the 2008 review, the Government’s consultation response in 2014, the 2023 Department for Environment, Food and Rural Affairs review that I quoted, and schedule 3 of the Flood and Water Management Act 2010 before our constituents find themselves forced into communicating with a public sewer in their homes and gardens in a way that is all too close and personal.

[Paul Holmes]

I commend the hon. Member for Taunton and Wellington on tabling the new clause. It is very similar to new clause 34, which is in the name of my hon. Friend the Member for Mid Bedfordshire (Blake Stephenson). My hon. Friend’s goes slightly further, in that it would ensure

“minimum expected standards for ongoing maintenance”,

but we welcome the sentiment, and we understand why the hon. Gentleman and the Liberal Democrats have tabled the new clause.

This is an issue that many of us have faced. The hon. Gentleman and I both attended a Westminster Hall debate about problems with drainage in new developments. I said then that in our constituencies, several of us could point to new developments in which planning officers and constituents had no confidence, even though the planning authority had acted entirely appropriately within the guidelines. I think particularly of Botley parish council in my constituency and Boorley Green, where development is going on along the River Hamble and further up into Winchester Street. Schedule 3 of the Flood and Water Management Act 2010 was supposed to help with the expected standards.

With many new developments, a lot of the water companies are not sufficiently accountable to the people they serve. Local authorities are slightly constrained by the planning system from making the changes that they could make to help the long-standing flooding problems, if schedule 3 was brought in.

I welcome the new clause, and it will have our support. We will work with the hon. Gentleman on Report to strengthen the new clause. I do not mean that there is anything wrong with it, but I would like it to be combined with new clause 33 and the standards on ongoing maintenance. I hope the hon. Gentleman takes that as a helpful suggestion, and we look forward to supporting his new clause.

[Ellie Chowns]

I rise to speak in support of new clause 7. I have spoken about flooding in the main Chamber at least five times. Constituents have come to see me in my surgeries to tell me that they have been flooded out of their new homes only six months after they were built, because of a lack of appropriate drainage. As climate change brings us greater extremes and severity of weather, we know that frequent flooding will become even more of a problem, so it is imperative that any new building is flood resilient.

I draw the Committee’s attention to my new clauses 85 and 86, which I will move if we have time tomorrow or on Thursday. They are also designed to prevent building on flood plains, and to ensure that flood resilience measures are in place for all new buildings. It is quite extraordinary that 15 years after SuDS were provided for in the Flood and Water Management Act 2010, they have still not been brought in. I add my voice to those of my Lib Dem and Conservative colleagues urging the Government to support the new clause, and to ensure that all new building is genuinely flood resilient and does not contribute to further problems downstream for other areas, housing or infrastructure.