Planning and Infrastructure Bill (First sitting)

Debate between Rachel Taylor and Gideon Amos

Committee stage
Thursday 24th April 2025 Public Bill Committees

[Gideon Amos (Taunton and Wellington) (LD)]

I was a planning consultant until the general election, but not any more. I am a chartered town planner member of the Royal Town Planning Institute and a chartered architect member of the Royal Institute of British Architects. I am a vice president of the Town and Country Planning Association, but that is an honorary position, so I have no pecuniary interest.

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

Until the election I was a commercial property solicitor acting for a number of residential and commercial property developers. I was also a North Warwickshire borough councillor until I resigned a couple of months ago.

Planning and Infrastructure Bill (Second sitting)

Debate between Rachel Taylor and Gideon Amos

Committee stage
Thursday 24th April 2025 Public Bill Committees

[Gideon Amos]

Q May I ask a supplementary of James? We hear a lot from the federation about the viability challenge of sites. Without rehearsing the whole system and the pressures on development value, what is the HBF’s approach to resolving that issue so that there are fewer schemes going back to appeal, with 106s renegotiated and affordable housing targets reduced? That is something that we see in all our constituencies.

James Stevens: We think that affordable housing, as part of section 106, is probably one of the most important planning obligations, and our members generally support that, because they know how to build houses. Capturing an element of development gain is a real feeding frenzy, particularly among every public agency. They are all attempting to finance their policy objectives off the back of capturing an element of the developed land value. That can result in very difficult competing claims over viability. I have looked at viability plans supporting lots of spatial strategies and local plans up and down the country, and very often large elements of a local authority area are unviable because they just cannot afford the cumulative claims upon that development value. Greater scrutiny at the examination level, and perhaps a stronger steer from the Government that affordable housing and public contributions to public transport are the foremost claims upon development value, would be a major step forward.

Savills has identified that the viability system—section 106 and the community infrastructure levy—is fairly successful. It is pretty successful at capturing the majority of development value that is out there. The Government could go further by being very clear that these are the requirements in local plans, they are not negotiable and schemes are expected to be policy compliant, but that would need to be underpinned by a more rigorous system of assessing viability of the local plan stage. That would provide the Government with the certainty.

[Rachel Taylor]

Q James, I would like to ask you a question first. We heard a lot on earlier panels about the number of permissions that have been granted but not yet delivered. How do you think your members can be helped by the Bill to deliver those homes? Also, when we talk about affordable housing, how much of that really needs to be socially rented housing to help deliver homes that homeless people need? That second question is more for Kate.

James Stevens: On the first element of that question, we really dispute the notion that house builders just bank land and are not interested in building out. Craig Bennett of the Wildlife Trusts cited a figure on Radio 4, I think, of 1.4 million homes that have granted permission but that have not been built out. We strongly contest that. A lot of those things are not counted as a completion until they are actually completed. A lot of those schemes have to work through very complicated discharge conditions. A lot of those permissions can just be outline planning permissions, and not the detailed planning permissions that you need to be an implementable consent. A lot of those figures are just poor figures that do not reflect the true numbers that have actually been built out.

Lastly on that, this accusation of land banking has often been levelled at the house building industry over the last 20 years. Consistently, independent studies, including one by the Competition and Markets Authority last year, have given us a clean bill of health on that. There is an issue about absorption rates—the ability of a local market to absorb certain sales—but house builders do not make their money from sitting on land. That costs them money. We make money from the sale of homes.

The issue of social housing—I will allow Kate to come in shortly—is very important. The problem is that we have a severe housing crisis. As Kate said, we have many thousands of children in temporary accommodation. Local authorities had to spend something like £2.3 billion last year on temporary accommodation; local authorities would go bankrupt there. Therefore, the tendency is to try to maximise social housing provision—social rented housing. We can understand why local authorities want to do that. However, to follow up on the point I made to Gideon Amos, the problem is that if local authority policies are too prescriptive on the tenure split, that can make it very difficult for house builders to contract with registered providers, to provide registered providers with the type of tenure mix that they need. We need to be a bit more realistic and flexible about that.

The key issue is to get houses built—to focus upon the quantity—in order to alleviate the affordability problems that make people so dependent upon social housing in the first place. But absolutely, social rented housing is very important. We are not trying to say that we do not want to build it.

Kate Henderson: Social housing is needed in every part of the country. What is really important is that we have objectively assessed needs and that those needs are then incorporated in local plans, and that we deliver mixed, sustainable communities that reflect the needs of those areas.

I will just dispute a little bit the point about the London situation and the London plan. London is the only part of the country where we have a strategic development strategy. The reason that we have a crash of supply in London is not because of strategic planning. It is because of a building safety crisis, hugely high inflation, huge land prices, an absolute crisis in temporary accommodation, and huge pressures that have happened across the social housing sector over the last 15 years in terms of cuts and caps to our income.

To get out of the situation in London and in the rest of the country, we need a comprehensive planning system that is based on objectively assessed need; a long-term housing strategy that looks at our existing homes as well as new homes; a rent settlement, including convergence, and funding that addresses building safety as well as new supply. Those are all things that the Government are looking at, which is welcome.

As for bringing forward those spatial development strategies in the rest of the country, it is really important that they have a focus on social and affordable housing, and that that should be mandated within them. The percentages will need to reflect the context of the areas and the need in those areas, so there will need to be a degree of flexibility in accordance with place, but it is vital that that is mandated as part of the remit of those strategies. We welcome their introduction.