New Housing Supply

Debate between Simon Clarke and Bob Seely

Monday 5th June 2023 Commons Chamber

[Mr Clarke]

I think the issue of land banking is something of a straw man in these debates, because I have never seen compelling evidence that it happens. I think the reality is that developers need a predictable land supply in order to have a programme of forward build, and that is what largely accounts for that question.

I do not want to make this a starkly political debate, but I am very conscious that it is often the hon. Lady’s party that is—I am afraid to say it—the worst offender when it comes to campaigning cynically against the development that we need. I refer colleagues across the House to the Chesham and Amersham by-election a few years ago to see just how detrimental that policy has been to the wider debate. Arguably, it was that election result that led to the disastrous removal of targets, which I think is what is driving tonight’s debate in the first place.

[Bob Seely]

My right hon. Friend talks about the planning system being the problem, not land banking per se. Does he accept the figures from Lichfields, which show that from getting planning permission, it takes eight and a half years for a first house to be built on a large housing estate, and that on average, a 2,000-home housing estate is built out by developers at a rate of 160 homes a year? It takes the best part of two decades to build out a 2,000-home housing estate. Is my right hon. Friend really saying that the development industry is not the problem?

[Mr Clarke]

I think it is much more about the developers seeking to make sure that they can sell the homes that they are building and about their having a supply of land predictably available to allow them to build into the future. Developers are obviously very constrained at the moment by the scarcity of supply.

The consequence of where we find ourselves is that, according to Schroders, the last time house prices were this expensive relative to earnings was 1876, the year that Victoria became Empress of India. That should make us all reflect on what kind of society we have become. Clearly, part of the problem is that we need to control immigration more strictly, and I strongly believe that the numbers announced just before recess were unsustainably high, but this is fundamentally a home-grown problem. Our society does not build the homes that we need to accommodate our existing population, and therefore we need to establish clear targets for housing supply. Doing so is not some kind of Stalinist five-year plan; it is the best way we have yet identified to prevent councils from backsliding on their responsibilities and caving in to what are often small, if noisy, pressure groups. It is my view that the regrettable decision taken by the Prime Minister last year to weaken those targets by removing their legal force was a mistake that has already had far-reaching consequences.

I am prepared to have a sensible debate about how we set our housing targets. We could change our approach and take as our starting point the existing occupied housing stock of an area and apply a rate at which it should be increased in line with the national house building target of 300,000 homes a year. Urban areas would see the highest levels of need, allowing a brownfield-focused policy, and no part of the country would be asked to contribute more than its fair share. This stock-led starting point for a standard method would remove the reliance on discredited housing projections, and it could be nuanced with carve-outs for AONBs, sites of special scientific interest and places with high concentrations of holiday lets or, indeed, where historic drivers of demand, such as university expansion, have ceased to exist.

One thing I would say is that we cannot insist that the green belt should be out of bounds wholly and completely, as the Prime Minister implied recently. The green belt was a 1940s mechanism to prevent urban expansion, pretty crudely drawn on the map. It is not—I repeat, not—a sophisticated environmental protection measure. It is, however, the beneficiary of effective branding. We have to raise awareness that about 11% of our brownfield land lies within the green belt and that 35% of the green belt is intensive agricultural land of minimal environmental significance. The public deserve to know that. Perhaps areas of the green belt that do not have genuine environmental value could be designated as orange or amber belt, capable of being developed in exchange for substitution elsewhere.

There are other things I could talk about. I could talk about the onerous nutrient neutrality rules, which are blocking huge swathes of housing from the Solent up to Darlington.