Richard Bacon
Main Page: Richard Bacon (Conservative - South Norfolk)Housing and Planning Bill (Sixth sitting)
Richard Bacon Excerpts
Mr Thomas
I beg to move amendment 88, in clause 8, page 5, line 1, at end insert—
“or
community-led housing schemes as defined at Schedule [New Schedule 1: community-led housing schemes]”
It is a pleasure to serve under your chairmanship, Sir Alan. Given your huge experience, you will know the disadvantage that Back-Bench Opposition Members are at in comparison with the massed ranks of the Government with all their civil servants behind them. In saying that, I hope you will protect me from any bullying by Government Members.
In moving amendment 88, I probe whether the definitions in clause 8 are sufficiently tightly drafted to allow the full range of would-be self-builders and custom house builders to benefit, while not creating loopholes for bigger beasts of the housing market to exploit.
It is interesting that the Conservative party, which is so committed to the free market, should be so actively seeking to meddle with the free market in the clause by creating almost a mini-market within the overall housing market. However, it would be a digression to go down that route.
To give the Committee a flavour of my interest in the clause and to amplify my concern, it might be worth imagining a situation where every member of the Committee lives in the same planning authority area—say Harrow, which is probably the best planning authority in the country and certainly the best place to live, with some very high-quality political representation, especially in the western part of the planning authority area. Let us assume we all live in the same planning authority area and have done so for a number of years. We are all living in houses that we do not see as suitable for our needs going forward and so want to be part of building a better home for each of us. We all get along famously, so we decide to work together and support each other’s efforts to get a better home.
If we were to build our homes under the self-build route, they would clearly, by their very nature, be somewhat different. I am a new man at the moment—I appreciate that is a controversial concept and my partner is not necessarily a supporter of it. As a new man, I do not need anywhere to watch the television. I simply do not have the time any longer to do that, because of childcare arrangements.
My property would be, by definition, very different from those of other Committee members who are not new men or do not have childcare responsibilities. The Minister looks like a man who would want a hot tub in his self-build property. Again, his would be a very different property from those that the rest of us want. The hon. Member for South Norfolk is the very definition of the type of Member who would want to create a mini-castle. Certainly, he would want a wide, sweeping drive to accommodate all his cars.
Mr Richard Bacon (South Norfolk) (Con)
It is a great pleasure to serve under your chairmanship, Sir Alan. Although my mother used to worry when, as a small child, I expressed the desire to live in a castle, I do not want my self-build to be a castle, but I do want it to contain a library based on the one in Eastnor castle in Herefordshire, which I recommend that the hon. Gentleman visits.
Mr Thomas
I am grateful to the hon. Gentleman for that kind intervention. I will come to the subject of libraries shortly.
I think I have demonstrated that, if we were to go down the self-build route, each of us would build a different type of property. Nevertheless, we might need to work together to achieve that. We might need the help of my hon. Friend the Member for Leicestershire-ish way, I believe—[Interruption.] I am sorry, I mean my hon. Friend the Member for Bootle. [Interruption.] I am a London MP—bear with me. We might need the help of my hon. Friend, with all his council experience, to approach the local planning authority. He knows how planning authorities work, so he could register our collective self-interest. That is one small way in which we could work together, although we would nevertheless build the properties ourselves.
If we were to go down the custom build route, we might again need my hon. Friend to register our interests with the planning authority. My hon. Friend the Member for Dulwich and West Norwood, who is not in her place, has experience of the planning system and would be useful in helping us to find custom house builders. Again, Government and Opposition Members would probably require different types of custom house builder. I gently suggest that Opposition Members would need larger libraries, because we are much more committed to evidence-based policy. The hon. Member for South Norfolk probably does not need such a big library. That is one difference in the type of specialist custom house builders that we might want.
Given the harmonious relationships that have developed in this Committee under your chairmanship, Sir Alan, we could all come together to form a housing co-operative—let us call it the Toffs and Oiks Housing Co-operative—to build a new series of properties in which to live. However, would that qualify under clause 8? Could we register an interest with the local planning authority to build homes?
Why might we go down the housing co-operative route, as opposed to the traditional self-build route or the traditional custom build route? It might be easier to raise finance if we were acting collectively and sharing risk. That might make us more attractive to a potential financier. We might build the houses ourselves or contract them out and design how the properties look, but it would be hard to describe that as traditional self-build or traditional custom build. I seek to probe the Minister about whether a housing co-operative would qualify under the terms of the Bill. Indeed, many rightly acknowledge that the self-build and custom build parts of the housing development market are niche areas. The Government and, indeed, the Opposition, rightly want to see that part of the housing market becoming less niche and more mainstream. Again, the housing co-operative movement—which shares many parts of the definition that one might use to describe a self-build or custom build property—is regarded as quite niche. It may be covered by the definitions in clause 8, but at the moment it is not clear.
The Chair
Before I call Mr Bacon, let me tell Members that we have the opportunity of going further down this route towards Valhalla, as the hon. Member for Harrow West has pointed out, but I indicated to the hon. Member for Easington a bit earlier that he could take his jacket off, and it was remiss of me not to have made the same announcement to all Members. If they wish to do so, they may.
Mr Bacon
Thank you for that advice, Sir Alan. I feel that on such an important subject I ought to be wearing a dinner jacket, like Lord Reith reading the news.
It was a pleasure to listen to the hon. Member for Harrow West—albeit at such length that the pleasure was alloyed—but I do not think his amendment is necessary. The Bill provides for “associations of individuals”, so the question one has to ask is: what would a court say about a housing co-operative in such a case? Would a court deem a housing co-operative to be an association of individuals? I think it would.
Mr Thomas
Perhaps I should have gone on a little longer and drawn the hon. Gentleman’s attention to clause 8(2) which, referencing his own Private Member’s Bill, talks about omitting,
“bodies corporate that exercise functions on behalf of associations of individuals”.
That is one of the things that initially triggered my concern that housing co-operatives or community-led housing might, inadvertently perhaps, be affected by the definition in proposed new subsection (A1).
Mr Bacon
I would certainly not want to omit housing co-operatives inadvertently. I will listen with interest to what the Minister says about that, but it seems unlikely that they would not be regarded as associations of individuals.
May I say how important housing co-operatives can be? The hon. Gentleman rightly pointed to activities on the continent, such as at Almere in the Netherlands and in Berlin. As the founder of the all-party parliamentary group on self-build, custom and community housebuilding and place-making, I strongly support community activity to increase the number of dwellings, because the system as a whole has failed for 50 years. Volume house builders as a whole have failed to cause supply to rise to meet demand, as have too many of our housing associations, because while some are nimble and innovative, some are bloated. An official recently said to me that trying to contact a person in a large housing association was like sticking a knitting needle into blubber: it went on and on and he could not get a response of any kind.
Mr Thomas
I find myself in agreement with the hon. Gentleman. I have experience of a housing association that is incredibly difficult to get hold of and is not treating some of my constituents as well as it should. He supports co-operatives as one part of the self-build and custom house building world, so does he want the Minister to be clear that they will be covered under the terms of the definition?
Mr Bacon
Yes, I do. In Berlin, people have come together, often led by an architect who has identified the site, people and finance, and worked in co-operation with the local authority, very much in a community-driven way, to produce housing co-operatives that people join. By becoming a member, they are entitled to a dwelling. As the co-operative grows, they can move to a different dwelling that is the right size for them—as they get older or become members of larger families—and they can continue to do that throughout their lives. I therefore support the idea of housing co-operatives.
I will correct the hon. Gentleman on one thing, though. To take the example of Housing People Building Communities in Liverpool, which I visited recently, he described owners as active, albeit collective. Of course it is possible to have co-operative action by communities that results in individual ownership, and that is what has happened in Liverpool. I support the idea of housing co-operatives being covered by the Bill. The difference I have with him is that I think they already are.
Brandon Lewis
As I said on Thursday, I always think it best to start by outlining what we agree on before moving to what we perhaps do not agree on. I agree with the opening comments of the hon. Member for Harrow West. I am sure we agree that he believes that he is the best representation that Harrow could have. I say gently that I hope that his other opening remarks were meant with some tongue in cheek, because otherwise Conservative Members will have found them pretty offensive.
I am sure that all members of the Committee will have spent many hours during mornings, evenings and weekends working through issues behind the Bill to ensure that what we are presenting will be transformational in how we make housing supply and increase home ownership. If the hon. Gentleman looks back at Thursday’s Hansard report—I appreciate that he was not with us on Thursday, as he obviously had other commitments—he will find that amendments were withdrawn and ideas were taken on board from both sides of the Committee in that proper tradition of working together where we can agree in the best interests of all. In that spirit, I hope to give him and my hon. Friend the Member for South Norfolk some words of comfort and reassurance about what the clause seeks to do.
The Government very much support community-led housing schemes, and the hon. Gentleman was right to outline the importance of co-operatives and those schemes. His amendment would add housing built by community-led housing groups for the good of the community to the clause. However, the individuals who first live in such properties would not necessarily have an input in their design, and I argue that that is not self-build or custom house building, nor should it be considered as such.
Where a group of people want to build or commission their own homes next to each other to enable them to live as a community, legislation already allows for that, as my hon. Friend rightly identified. Indeed, supporting such people in the way we see elsewhere around the world, and in Europe in particular, is the reason why “associations of individuals” is included in the definition, as he rightly pointed out. I categorically assure him that groups of people coming together in whatever format—whether loosely and informally or in a more formal organisation—to develop a genuine self or custom build property into whose design and build they have an input is intended to be included in the definition.
Brandon Lewis
Obviously our words in the House are widely read by people far and wide, and I am sure they will pick up on that. In any communications that we send out following Royal Assent, I will very happily make it clear that any group of people coming together, if they are genuinely looking at custom building and self-building and having an input into the design, where the owner and occupier will have been part of the process, would qualify as custom build and self-build.
I would go a bit further in qualifying that. Traditional community-led housing schemes can include members who are not interested in self-build community house building and therefore would not benefit from joining the register. In those cases, I do not see why individuals within community groups who are interested in self-build and custom house building cannot join together, as individuals or a group, or, if they wish for land close to each other, as an association of individuals, as the qualification outlines.
The overriding rationale of self-build and custom house building is that the person who lives in the finished property has a choice over the design of that property. My hon. Friend the Member for South Norfolk spoke powerfully about this on Second Reading. As he outlined, this is also about moving the housing market. Even where a developer is involved, it is about moving into building property that is focused on the customer’s needs, with the customer being involved in that outline, rather than the traditional build method that we have seen previously in this country.
Mr Bacon
Because I was speaking to the amendment of the hon. Member for Harrow West, I did not deal directly with the point the Minister is now making, about the effect of clause 8(1) on the definition of “wholly or mainly” in proposed new section 1(A2) of the 2015 Act. I would be happy to have your guidance, Sir Alan, on whether now is the appropriate time to intervene on the Minister on this point, or whether I should do so in the clause 8 stand part debate. I have a query for the Minister, although I do not wish to amend anything.
The Chair
There probably will be a stand part debate on this clause, so you could talk about it then.
Brandon Lewis
We do not expect local authorities or developers to make a loss on land, services or on sales for custom building. It is right that the costs incurred for serviced plots should be borne by the custom builders.
Mr Bacon
I wish the hon. Member for Greenwich and Woolwich were wrong, and that there were no protection and nothing in the Bill, and that the overriding duty of local authorities, with no exemptions, were to provide serviced plots at scale, because that would make the biggest difference. In fact, does the Minister agree that the protection sought by the hon. Gentleman is already in clause 10, “Exemption from duty”? There are circumstances—I will ask the Minister about this later—in which the Secretary of State may direct that the local authority is not subject to the duty to provide development permission.
Brandon Lewis
My hon. Friend is absolutely right, which is why I hope the hon. Member for Greenwich and Woolwich withdraws his amendment.
Matthew Pennycook
I have to disagree with the hon. Member for South Norfolk. Clause 10 is about exemption from the duty as a whole, not from the duty to service particular plots of land. He is making a different point. That said, although we might return to the subject, given some of the Minister’s assurances, at this point I am happy to beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr Bacon
I will not detain the Committee for too long. Given that the clause is the first in chapter 2 on “Self-build and custom housebuilding”, I want to say how much I welcome the Government taking further the provisions of the Self-build and Custom Housebuilding Act 2015, which was my private Member’s Bill, to establish the right to build and to make it a practical reality that serviced plots are delivered at scale, so that we have in this country what has been a great lack: the building of houses as if customers mattered. In most markets supply rises to meet demand. The reason it does not do so in the housing space is that customers are not at the centre, as the hon. Member for Greenwich and Woolwich has said. Historically, customers have not been at the centre as they need to be.
I want to make one other important point about the role of SMEs, which the Minister mentioned in speaking to the previous amendment. Up and down the country many builders merchants provide timber, plumbing and electrical supplies, and other building materials. The purchase of such supplies locally for a house, whether self-built or built to commission by a local builder, does a great deal to put money into a local economy. The Minister probably knows Brett Amphlett of the Builders Merchants Federation, who helped with my Adjournment debate and my private Member’s Bill, and nor would I be surprised if the Minister had visited a builders merchant to find out the good work that such businesses do to promote local sales to keep money in the local economy.
We need a revolution in the way in which housing is done in this country. We have to create a situation in which the supply of houses rises properly to meet demand. A key part of that will be serviced plots at scale, which is why I agreed with the Minister’s earlier comments.
Mr Thomas
It is always great to have a fellow revolutionary in Committee. Perhaps the hon. Gentleman should drift over to the Opposition Benches, at least for this part of our proceedings. I agree that self-build and custom house building could be part of a housing revolution, but surely in order for that to happen there has to be much greater access to finance to enable self-build and custom house builders to develop. Does he not agree that the decision by the Chancellor of the Exchequer to impose a levy on building societies to take some of their capital away potentially makes it harder for them to make finance available to self-build and custom house builders? Will he be a revolutionary on that as well?
Mr Bacon
The reason I am not on the Opposition side is that they are not revolutionary enough in this space. When I think about the Labour and Co-operative parties I wonder what could have happened in the past 50 years if the Co-operative party had done to housing what John Lewis has done to retail. I am afraid there has been a lot of talk but not enough action over those 50 years.
Mr Bacon
Since the debate is only on stand part, I shall make just one other point—about the nature of the protection in the new subsection (A2) that clause 8 would insert into section 1 of 2015 Act. Under that subsection, the definition of “self-build and custom housebuilding”
“does not include the building of a house on a plot acquired from a person who builds the house wholly or mainly to plans or specifications decided or offered by that person.”
That is sound. The Minister referred to it in commenting on an earlier amendment. It should prevent gaming of the system by those who want to present their product as if it is a custom house-building product without allowing the customer to specify and determine properly what gets built. Custom house building is not about allowing the customer to choose from a small number of pre-baked designs. It is about the customer deciding and specifying what gets built.
The clause is sound and sufficient. By the way, I sought and obtained the support of the Federation of Master Builders for my private Member’s Bill, but could not even get a meeting with the Home Builders Federation. The fact that the Home Builders Federation thinks that the clause goes too far is sufficient reassurance for me that it is good enough as it stands. None the less, I should welcome the Minister’s reassurance.
The Chair
I apologise to the Minister, because I should really have called him to speak first, before the hon. Members for South Norfolk and for Harrow West, informative though their speeches were.
Brandon Lewis
I would not for a moment presume to speak before my hon. Friend the Member for South Norfolk on matters of self-build and custom building. His speech on Second Reading showed the House his passion, knowledge and expertise, not least in the pioneering work that he has done to drive an agenda culminating in his private Member’s Bill.
I was honoured and proud to be a small part of that, as the Minister supporting the Bill in Committee. I have a vague memory that we might even have been in this very room—if I remember correctly, we even finished with mince pies. It was a great experience, with cross-party support, and a good example of the House moving things forward. It is important to drive the agenda to bring about big change.
My hon. Friend made a good point in his closing remarks. The clause would for the first time create a clear definition of self-build and custom house building. The creation of a legal definition will enable us to prevent the gaming of the system for which there is arguably potential. We can agree on my hon. Friend’s core point about the customer deciding and specifying what gets built—they should not simply have a say in a standard template.
I have spoken before about the difference between custom building and walking on to a building site to speak to the developer about buying on plot 5, and being told, “As you have got in early you can choose the colour of the kitchen and maybe the carpet colour in the bedrooms.” That is not self-build or custom building, in which the customer is a part of the design process.
My hon. Friend is also right that the measure helps us to do something—although as the hon. Member for Harrow West pointed out, we are playing just one part—for small builders, particularly on access to finance, including through the builders finance fund and by working with mortgage lenders. He made a fair point about making lending accessible to people who want to enter the field. That is why I stressed the point about people who want to work with small, local societies that have a key part to play, where there are niche opportunities and expertise. That helps small and medium-sized businesses.
If my hon. Friend’s work does anything, it will drive and grow the market, and the larger it gets the more attractive it will become to lenders generally, which is a good and helpful thing. Other parts of the Bill will potentially help with access to finance as well, particularly when we think about planning in principle, which we will get to later on. All these things come together to be part of the work we do to help small and medium-sized builders.
Brandon Lewis
My hon. Friend makes a very good point. I think it does. We will issue guidance that makes it very clear to local authorities and ensures the proposals are driven forward to deliver exactly what we want, which is a clear identifiable ability to get access to land. That is good for small and medium-sized builders. That kind of development will be perfectly suited to a small and medium-sized business. The hon. Gentleman is quite right: I have visited the Builders Merchant Federation’s members and we have benefited from seeing the work they do to support their local communities. Local builders are good for everybody. They drive jobs locally and they tend to build high-quality homes because their reputation relies on it. They build at a good pace, in contrast to the building rate of the larger developers. That is good for all.
Self-build and custom house building includes homes built by people themselves and homes built on behalf of individuals, where professionals are commissioned to do the work by the eventual owner-occupier. The common theme is that the individuals have significant input and choice over their finished home and intend to live in it as their main and sole property.
The second part of the definition is to exclude the sale of off-plan homes, where the developer agrees to minor changes to the property but where the finished home is wholly or mainly the original specification, into which the buyer had no input. That tends to fit the description of most new build properties around the country. However, the definition of self and custom house building includes where someone has bought a shell of a building because they will have significant input into the final internal layout and specification.
Turning to other Members’ points, clause 8 provides the definition of a serviced plot of land. That is land that has access to a public highway and connections for electricity, water and waste, or can be provided with those things in specified circumstances or within a specified period. The clause provides for regulations to amend the definition of “serviced plot of land” by adding further services to the list—I am sure many Members will be thinking about broadband. That allows services such as broadband to be included in the future as and when required.
The Chair
Mr Bacon, I apologise: I should have called you last time, but your svelte figure deceived me.
Mr Bacon
Sir Alan, I have lost so much weight, but have a lot more to go. I am afraid I do not agree that the amendment is helpful. I know we are short of time and I would not have spoken were it not for the phrase “to meet housing need”.
Three years ago I was at a conference at the QEII Centre with local authorities and people from the National Self Build Association. Several local authority leaders of different political parties were asking questions. One of them, a Conservative from a wealthy area in the south-east, was very excited because he had already managed to deliver housing, including the cost of the land, for £140,000 to £150,000 per unit. Another local authority leader, whose party I will leave you to guess, Sir Alan, but he was not a Conservative, sat there with hands folded and said he would have nothing to do with it. I chatted to him afterwards and asked why not. He said, “Because it will not help me meet housing need.”
The reason I got into this area and wrote the Self-build and Custom Housebuilding Act 2015 is because I am sick and tired of people in local authorities saying they know more about housing need than the people who need housing. That is why it has to change. With respect, I do not think the amendment helps that process. When I want advice on how revolutionary I am, I will certainly not go to the hon. Member for Harrow West. None the less, I give way.
Mr Thomas
I thought we had established consensus but now the hon. Gentleman seeks to spoil the positive atmosphere that was developing between us. People in my constituency come to see me about housing issues. I am sure they are supportive of self-build and custom house build, but they also want the local authority, housing associations or private developers to be able to provide decent homes.
The amendment does not seek to exclude self-build or custom house building; my hon. Friend the Member for Greenwich and Woolwich simply seeks to make a range of other tenures available. I counsel the hon. Member for South Norfolk that one failing of revolutionaries in the past has been blinkeredness. I hope the hon. Gentleman will not fall for that weakness on this occasion.
Mr Bacon
What the hon. Gentleman calls blinkeredness, I call focus, and this very good clause would be cluttered up by the amendment. What annoys me is this. We have heard a lot in the Bill and oral evidence about the need for housing need to be taken into account, but there is nothing to stop a local authority that wishes to do so from helping the formation, establishment and growth of a housing co-operative. If local authorities are concerned to protect housing in perpetuity, they can do so by that route, in a way that is exempt from the Bill. There is nothing to stop them doing that.
I have learned two particular things, among several, while studying this area—one about land and one about finance. There is no shortage of land; there is a shortage of accessible land. There is no shortage of finance; there is a shortage of financeable propositions. If local authorities, in conjunction with their local people, were to come forward with good strong business cases for grounding and growing housing co-operatives there would be no shortage of financiers willing to come forward to help finance those propositions. The problem is there has been a shortage—
Brandon Lewis
The amendment is aimed at ensuring that authorities give suitable development permission to housing across all tenures, not just custom build. We heard earlier what that does for a military veteran who is not interested in custom build. I would say a couple of things to that military veteran.
First, they should think about self-build and custom build under these new provisions. I visited a company called Beattie Passive in the constituency of my hon. Friend the Member for South Norfolk, which can develop and help somebody like that learn how to build their own home and deliver it for about £30,000, making it a very affordable proposition.
We come back to the debate we had, in part, on Thursday. Members should read this part of the Bill not as the entire solution to what we want to do to get house building back to where it should be after we inherited an awful legacy, but as part of the work we are doing. The Bill is part of the work and this clause is just part of that. In the same way, starter homes are part of the solution, as is custom build. It builds on the fact that we have exceeded our target for affordable house building over the past four or five years and we are now in the process of the new scheme to deliver 275,000 affordable homes. That is the fastest rate in more than two decades and, of course, in terms of council housing we, as a Conservative-led Government, have a strong record of delivering more in five years than the previous Labour Government did in 13. I am extremely keen that we continue to press ahead with further reforms to the planning system to drive up housing supply.
Through the national planning policy framework and the Localism Act we have put local plans at the heart of the system. Such plans set out a vision and a framework for the future development of the area, including where to locate new housing to meet the needs of the community, but we must be realistic about what can be achieved and when. That applies to the provision of infrastructure, and when sites might come forward for development. Linking this action to the earlier comments, I clarify for hon. Members on both sides of the Committee that we recognise that this is a new burden and, as such, money will be set aside. The process for this and the work of local authorities, not least in the 11 vanguard areas, is not complete, so I will not give specific numbers today, but I assure hon. Members that it will be sufficient to ensure that local authorities are not disadvantaged by the introduction of this policy.
Matthew Pennycook
I simply quoted the figures on how much housing need there is and how much is currently being built and completed, which, as the Minister well knows, falls far short. The hon. Member for South Norfolk raised a very interesting point. He said that powers are already available to local authorities to meet the need for self-build and custom build housing, and that there is the land and the finance.
Mr Bacon
I was not actually talking about self-build and custom build. For the record, I was saying that local authorities which wish to help in the initiation, establishment, grounding, founding and growing of a housing co-operative can do so. There is nothing in law to prevent them from doing that. That is what I was talking about.
Matthew Pennycook
The hon. Gentleman makes my point for me. There is nothing to prevent local authorities from doing this, and yet they are not. That is why the Government feel that there is a need for a stronger duty as part of the Bill. The point I sought to make in the amendment is that this also applies to lots of other tenures and types of housing where there is unmet need, and there could be benefits to promoting that type of housing through other measures. I do not think that this is an area on which we shall agree, and we shall no doubt come back to this. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Thomas
Sir Alan, I have sought a stand part debate to raise the issue of the price of land. It may seem odd, having been broadly in support of clauses 8 and 9, to suggest that we need a debate on the merits of clause 9, but I worry that, on the basis of evidence that the Opposition presented to the Lyons review, the cost of land may be a significant deterrent for many would-be self and custom house builders, and that granting permission in principle may inadvertently drive up the cost of land. That is the issue I want to persuade the Minister to mull over. In its evidence to the Lyons review, the National Custom and Self Build Association said that the cost of acquiring land was the most significant barrier to more self and custom house building, and that 50% of would-be self and custom house builders had a budget of £200,000 or less with which to fund both the construction of their home and site acquisition.
Part of my reason for being interested in whether there had been a vanguard authority in London was the huge cost of land there relative to many other parts of the UK. There may be less scope for self-builders to believe that they could build in London than in the Stokes or the Bicesters, to which the Minister referred. Thinking about the cost of land in Harrow, I struggle to believe that many self-builders could build property for under £200,000 if they have also had to acquire the land.
We know that when planning permission is given for a site, it usually drives up its value and my concern is that if permission in principle is given, even on a plot that has been designated for self-building in future, it would drive up the cost of that land and limit the number of would-be self-builders or custom house builders who might want to build on it. Surely none of us wants to see the number of would-be self-builders restricted, or for them to have to look at areas of the country other than Harrow.
This morning, we have had a pretty good debate about the benefits of self and custom building and there seems to be broad consensus on both sides of the House, and particularly in the Committee, for expansion of such building. The danger is that we have been talking about the emperor’s new clothes, and that lack of finance and professional support—I am thinking of housing co-operatives—might detract from people’s ability to crack on with building their own home or getting involved with a custom house builder. My worry is that the National Custom and Self Build Association is right in saying that the cost of land will continue to be the most significant deterrent to going forward. Are we in danger of creating an additional hurdle to the cost of acquiring land by supporting the granting of permission in principle and therefore, albeit inadvertently, driving up still further the cost of acquiring land?
I worry that we missed an opportunity in clause 8 to make clause 9 even better in terms of housing co-operatives. Our earlier debate made it clear that some would-be housing co-operatives could benefit from clauses 8 and 9. Again, I encourage the Minister to think a little further about the benefits of housing co-operatives, and about what more the Department can do to encourage local authorities to look with enthusiasm at the potential of housing co-operatives to address some of the housing need in their area.
With that in mind, I return to a point that the hon. Member for South Norfolk made almost as an aside. He said that, given the exemption from right to buy, housing co-operatives could flourish as a result of the Bill. Many co-operatives are worried about other parts of the Bill, including the reduction in rental income and what that will mean for their finance and ability to expand further, and the additional administrative costs that might be generated by pay to stay. Will the Minister comment on the impact of those aspects of the Bill on housing co-operatives? That would be helpful. I hope he will focus on whether he thinks that the granting of permission in principle for self-build housing plots will inadvertently drive up the cost of land and therefore make it even more difficult for would-be self-builders and custom house builders.
Mr Bacon
I have one concern about clause 9; I hope the Minister will be able to reassure me. Clause 9(1) will insert new section 2A into the Self-build and Custom Housebuilding Act 2015. Proposed new section 2A(6)(c) says that,
“development permission is ‘suitable’ if it is permission in respect of development that could”—
could—
“include self-build and custom housebuilding.”
I recognise that having a specific percentage in the measure would be unhelpful and impractical, because local circumstances vary so much, but it could have been drafted to say that development permission was suitable if it was permission in respect of development that included self-build and custom house building. That would be practical. I would like to hear the Minister’s thoughts on that. Perhaps he will take the matter away and consider whether we might tweak the clause at a later stage.
Brandon Lewis
I will touch on the comments of the hon. Member for Harrow West before coming to the core of the point on clause 9. We will discuss some of the issues that the hon. Gentleman raised later in our proceedings; he tempted me to touch on points that are not covered by the Bill at all, but I will not test your patience by doing so, Sir Alan. I reiterate my earlier general comments about co-operatives. They have an important part to play as part of the housing mix, but that is separate from the issue of custom house building. If co-operatives are doing self and custom house building the measures will apply to them and, I hope, will be beneficial for them.
On the comments made by my hon. Friend the Member for South Norfolk, the Bill aims to get more permissioned serviced land into the system and ready for development. Although local authorities cannot force landowners to market their plots exclusively to those on the register, guidance will encourage them to keep those on the register aware of any land suitable for self and custom house building that has been permissioned. We do not want to do anything that would hinder land becoming available for much-needed housing more generally; putting planning restrictions on land about the type of housing that may be built on that land could do that. Instead, the clause creates opportunities for those interested in self and custom house building.
I have sympathy for my hon. Friend’s point, however. I know that he is driving towards making sure that the land is put forward. I have met representatives from the National Custom and Self Build Association in the past few weeks to discuss some of the issues. I think we are getting the balance right, but I am sympathetic to his point and will look at it again.
The Self-build and Custom Housebuilding Act 2015, which my hon. Friend championed through Parliament, requires relevant authorities to hold a register of individuals who want to acquire a plot of land to build their own home in an authority’s area, and to have regard to that register when carrying out their housing, planning, regeneration and land disposal functions. Clause 9 inserts new section 2A into the Act; that will require authorities to give development permissions suitable for self and custom house building to enough serviced plots of land to at least match the demand on their register. Regulations will detail how long relevant authorities have to permission sufficient land.
The number of people who join the register in each base period will dictate the number of permissions required. The first base period starts on the day on which local authorities are required to open their register and will end the day before this clause comes into force. Subsequent base periods will run for a period of 12 months beginning immediately from the end of the previous base period. Requiring relevant authorities to permission sufficient serviced plots of land to match demand in their area will make it easier for prospective self-build and custom house builders to find suitable land. It will promote an increase in housing supply generally and provide much-needed work for smaller house builders, who were hardest-hit by the recession and for whom the recovery has been slower. That will go some way, we hope, to deal with the issue of supply and demand raised by the hon. Member for Harrow West—