Planning and Infrastructure Bill (Second sitting)

Debate between Rachel Taylor and Olly Glover

Committee stage
Thursday 24th April 2025 Public Bill Committees

[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.

[Olly Glover]

Q Mr Stevens, you mentioned local plans briefly in one of your previous answers. Do you feel that the draft Bill sufficiently considers the interaction between the proposed spatial development strategies and existing local plan processes? Kate Henderson, it would also be good to hear your views on that.

James Stevens: I have been involved in commenting on, I think, all the last four iterations of the London plan, so I can see that it is a successful model, in that it does a lot of the heavy lifting for local authorities in terms of identifying broad locations of growth, but in particular setting out the housing requirement for all the constituent local authorities. Once that strategic plan is adopted, it becomes part of the legal development plan, and it means that whatever stage the local authority is at with developing its plan, at least the policies, including the policies for the number and distribution of housing set out in that spatial plan, become part of the development plan, so it does assist the Government in ensuring that their new mandatory standard method is embedded within the planning system as quickly as possible.

I have been involved also in all the spatial strategies produced by the mayoral combined authorities to a greater or lesser extent over the last six years. I think the Government’s measures to reform the governance so that with spatial development strategies, the Mayor only needs majority support rather than unanimity is a very important step forward.

Kate Henderson: Returning to a system of strategic spatial planning is really welcome. Trying to work out our housing need based on 300-plus local authorities does not get us up to the sum total of actually doing things comprehensively. In terms of addressing the housing crisis, economic growth and opportunity, nature recovery, landscapes, our utility provision and how we get to work, we need to work on a larger than local scale. The ability to co-ordinate all that infrastructure at a spatial scale where authorities are working together makes a lot of sense.

What is going to be a challenge is how we do this in a comprehensive way when there are huge capacity pressures on local authorities. There are some welcome measures in the Bill around ringfencing planning fees to give some additional capacity there and we support that, but how do you do the strategic planning function, in getting local authorities to have local plans in place and getting strategic plans in place at the same time, while also recognising that we are having local government reorganisation in the forthcoming English devolution Bill?

We would really like the long-term housing strategy, which is due to come forward this summer, to be the overarching framework for at least the next decade for how we transform the housing offer to people in this country. There is a question here about boosting capacity in the system. There is also about where levels of primacy are going to sit when it comes to decision making. There are lots of different things coming forward, so we need to be really clear, if there is a spatial development strategy coming forward and local plans coming forward, about how they will interact, how they will be democratically consulted on and agreed, and where the primacy of decision making is. That is what we expect more detail on in the secondary legislation and consultations to come.

James Stevens: There is a risk, though, that the prospect of a spatial development strategy will slow down local plan making. That is something we are quite anxious about. That is what we saw in Greater Manchester. The promise of a spatial strategy for Greater Manchester meant that for about 10 years, I think nine of the 10 constituent local authorities did not bother producing a local plan, so the Government need to be very clear. It is set out in the explanatory notes to the Bill, but the Government need to be very clear that local plan production must not stop under any circumstance.