Draft Self-build and Custom Housebuilding (Time for compliance and fees) Regulations 2016

Debate between Richard Bacon and Lord Barwell

Monday 17th October 2016 General Committees

[Gavin Barwell]

We have not made such an assessment yet. I am happy to write to the hon. Gentleman and to the Committee with some thoughts on that. I take his point; we will look into the matter and see how many people are involved. The point reflects the reality that there are a small number of local authorities in this country that are very heavily constrained in terms of their land supply. Clearly, there might be the opportunity for them to look at options beyond their authority boundaries in some cases. I am aware that some councils do that in terms of support via affordable housing.

I turn to the last two issues that the hon. Member for City of Durham raised. All three Members who have spoken in the Committee raised the issue of fees. We should recognise that there are competing pressures here. On the one hand, Members rightly worry about local authorities and the financial pressures they are under, and want to be assured that they are going to receive the level of financial support necessary to carry out these duties. On the other hand, my hon. Friends are also concerned that fees should not be set at levels that are going to prove prohibitive and stop the policy from working.

I want to come back to the specific point that the hon. Member for City of Durham made about new burdens, which she questioned me about. We recognise that this is a new burden and will be funded as such. The Government’s view is that over time, once local authorities have developed their processes and procedures and a pipeline of land has been identified, the cost of meeting the new duty will be recovered through the sale at market value of the plots that are envisaged, and also through the fee process. Clearly, there will be some upfront costs setting the process up before the process of sales begins. We recognise that is a new burden and will be funding accordingly.

The final point made by several hon. Members was about the overall level of resourcing of local authority planning departments. In terms of the conversations I have had in the first three months of this job, this is one of the rare issues where there seems to be a consensus. Those involved in local government, but also those in the development industry applying for planning permission, all say to me that we need to get more resources into our planning departments.

[Mr Bacon]

Before the Minister sits down, as I fear he was about to do, may I invite him to return specifically to the subject of fees? If a local authority can remove a very large broken fridge-freezer from my house for £11 and take it away on a truck—as it has done—it seems that the cost of keeping my name on a list should not be that high. There is huge autonomy at the moment for local authorities within these draft regulations. Although there are some very benign and encouraging attitudes from some local authorities, it is perfectly possible that some other, less enlightened local authorities will seek to use this fee structure as a way of punishing and restricting the activities of people who wish to get a plot of land and build their own house, or have someone build a house to their design. Will he undertake to keep a very close eye on this and, if necessary, to take further action?

[Gavin Barwell]

My hon. Friend has stolen the final remark I was going to make; that is exactly the undertaking I was going to give. Certainly there seems to be very broad support for this idea across this Committee today, so I hope that local authorities will show a similar level of enthusiasm. This is something that the Government will keep under review. Clearly, we would want to take action if we felt authorities were setting fees at levels that were not cost-recovery but were designed to dampen demand in their area.

Let me end by trying to address the point about the resourcing of local authority planning departments. The Government have consulted on this issue and are looking at whether there is a case for a general increase in fees and whether there should be some kind of greater degree of flexibility, so that if a local authority wanted to offer a premium service, in terms of speed, to those people who were prepared to pay a premium fee, or some other kind of service development, there should be some flexibility to allow that. We have got the results of that consultation, and the hon. Member for City of Durham will probably not be surprised to hear me say that if she awaits the White Paper she will get an answer on that issue. I hope I have given a clear impression that we have a lot of sympathy with the concerns that have been raised. This is one of those rare issues in my role as Housing Minister where people on all sides of the housing sector are speaking to me with one voice.

Having done my best to address the comments that were made, I will end by saying that it is good to hear strong support from both sides of the Committee for the principle of what the Government are trying to do. I pay tribute, again, to the work that my hon. Friend the Member for South Norfolk has done. These regulations, along with the negative statutory instrument that goes with them, and those that we have already enacted in relation to the 2015 Act that my hon. Friend took through, are a big part of our policy to double our ambition in this area.

In closing, I should also mention in part the other two crucial issues: ensuring that those people who want to build custom and self-build properties can get access to finance, which is something the home builders fund will help with, and the discussions we are having with the lenders to ensure that people can acquire mortgages on these kinds of properties. Those three considerations together—making sure there is enough small service plots, making sure people can get mortgages and making sure those who want to develop these properties can get finance—are the key to unlocking this issue.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Self-build and Custom Housebuilding (Time for Compliance and Fees) Regulations 2016.