Levelling-up and Regeneration Bill

Debate between Richard Bacon and John Penrose

Report stage
Tuesday 13th December 2022 Commons Chamber

[John Penrose (Weston-super-Mare) (Con)]

There is much to like and admire in this Bill. Mention has already been made of street votes, and I want to put on the record my thanks to the Government for including them, as that has been a personal crusade of mine and many others outside the House. I am delighted that street votes are firmly and squarely in the Bill.

I am also delighted to see design codes. We have heard about the importance of beauty and of local democracy, local input and local vernacular styles; design codes are an essential way of delivering that and it is very welcome to see them in the Bill.

I also echo the comments of a number of colleagues about what had been new clause 21, which I also signed, and which the Government have responded to positively in dealing with the tyranny of housing targets. The result is to everybody’s credit and very welcome.

However, there is a “but” at the end of that sentence, and it is to do with the concern that a number of Members, including the former Secretary of State, my right hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke), mentioned about supply: our ability to build enough homes in future. Successive Governments of all political stripes have failed to deliver nearly enough homes over decades in this country, and I worry that this Bill fails to fix that fundamental underlying issue of inadequate supply. Street votes will help, but they will not be enough on their own, which is why I tabled new clause 88, and my thanks to the colleagues who have signed it already or spoken in support of it in this debate.

New clause 88 seeks to deal with the problem of under-supply by saying that anybody who owns a home in a town, city or urban area can redevelop it as of right, provided they follow the local design code, which the local council will by then have passed. That will lead to a dramatic increase in the amount of supply. On average, our towns and cities are about two storeys tall, so if the local design code effectively allows a townhouse revolution, which is what most of them will be, that will double the amount of home space available in our towns and cities in one go.

[Mr Richard Bacon]

Does my hon. Friend agree that it is interesting that some of the most beautiful places in the world—Edinburgh, Cornish fishing villages, Paris or Berlin, where I lived—the normal height is four, five or perhaps six storeys without in any way over-dominating the scene?

[John Penrose]

My hon. Friend is absolutely right and that means we end up with gentle densification and beauty in the local style, creating spaces where people really want to live.

We will end up with a huge increase of supply from this townhouse revolution that I have described, and we will also end up with a bump-up in the value of existing homes, because we are creating brownfield sites and every existing home ends up with a small increase in value because of the hope value created. It is greener, because we are allowing people to live nearer where they work, protecting green fields and, as we heard earlier, using brownfield sites. It creates the beauty we have all been looking for. Most importantly, it retains local decision-making sovereignty. I therefore hope the Government will pick this up, take it forward and examine it carefully. It is in the spirit of street votes, but it is street votes on steroids, and I therefore commend it to the Minister and Government.

[Mr Richard Bacon]

It is a great pleasure to speak in this debate under your chairmanship, Mr Deputy Speaker, even though you have restricted everyone to three minutes —I understand, of course, that you had no choice in the matter. I am also grateful to my hon. Friend the Member for Weston-super-Mare (John Penrose). When I was discussing with him what to do about this problem, obviously I had crafted an immense amount of prose, but he said, “We will remove every alternate page and then deal with what is left,” which is sort of what I have done. I am also grateful to him for drawing new clause 88 to my attention, because I have seen much of the gentle densification he refers to in different cities on the continent. I have visited the Netherlands many times in my campaign for more custom and self-build, and he is right that it does work.

[John Penrose]

Does my hon. Friend agree that his proposals for a greater amount of custom and self-build will be another way of increasing supply, contributing to solving the problem I mentioned in my remarks just now?

[Mr Bacon]

Yes, I do. That is what I have seen in the Netherlands and we should have it here too.

Housing and Homes

Debate between Richard Bacon and John Penrose

Tuesday 15th May 2018 Commons Chamber

[John Penrose]

The hon. Gentleman leads me to my next point.

The current situation is the wrong way around. It should not be easier to buy land, do nothing, aim to get planning permission and then flip for a profit than it is to build houses. From a moral and an economic standpoint, design and construction should be the things that add value to land, not hope or speculation. Planning permission is a huge and value-creating decision. The decision is taken by each local community, so they should see some of the value that is created. We need a tax on the speculators’ profits, paid straight to local councils on the day that planning permission is given or changed, in order to fund the local services that turn dormitories into communities.

[Mr Bacon]

It is great to hear a radical speech. I hope that those on the Government Front Bench are listening carefully. Will my hon. Friend come to the next Right to Build expo, which is run by the Right to Build Task Force, and speak about lowering the barriers to entry so that more new players can come in? For example, governors of high schools or NHS trusts wanting to use housing as a recruitment and retention device should be able to get involved in this space.

[John Penrose]

I would be delighted to accept my hon. Friend’s invitation.

Fortunately we do not need a new tax, which the hon. Member for Stroud (Dr Drew) mentioned, to achieve this value acquisition. Here’s one we prepared earlier—the community infrastructure levy. The levy nearly does what we need and could easily be tweaked so that it does what we need by making it simpler and broader with fewer exemptions. It would be simpler, faster, cheaper and more predictable for developers, planners and landowners alike. Best of all, the revised community infrastructure levy would completely replace the hideously overcomplicated section 106 agreements, with all their uncertainty, unpredictability and lawyer-friendly viability assessments.

Finally, in order to get developers building faster, councils should be able to charge business rates and council tax starting from the day that planning permission is granted, rather than when developers finally get round to start building. We could give big developers a few months’ grace to get their crews on site, but then the meter would start running. They would have a huge incentive to build and sell promptly, rather than to take their time.

Equally important, the same forces would apply to the hedge funds that own derelict brownfield land in town and city centres. These sites already have old, unused permissions, so the clock would start ticking immediately. Just think of the enormous shot in the arm—the jolt of adrenaline—that we would give to urban regeneration projects everywhere, right across the country, if the owners could no longer sit on them for years waiting for something to turn up.

As the Government’s housing White Paper says, the only way to make homes more affordable to rent or buy is to build a whole lot more of them. I agree. There is no time to waste, otherwise house prices will continue to spiral and we will lock another generation out of the dream of a place of their own.