Planning and House Building

Steve Brine Excerpts

Thursday 8th October 2020 Commons Chamber

[Bob Seely]

If the targets are unrealistic, it will cause grief for no purpose, so I thank my hon. Friend for her remark.

In the last three London boroughs that I mentioned—Barnet, Bromley and Hillingdon—alone, the algorithmic process demands a total of 153,938 new properties, or the equivalent of 20 small new towns in three London boroughs. I am sure the Minister and I would agree that we need to increase density to make better use of land, but we need our targets to be achievable.

All this is being done for the absolutely laudable reason of affordability. That is exceptionally important, but the Royal Town Planning Institute says that increases in house building do not necessarily have a discernible impact on price. The why is complex; developer choice, foreign investment purchases, stamp duty and slow wage growth all play a role, but, above all, land banking may show why the liberalisation of permission does not necessarily equal more supply.

[Steve Brine (Winchester) (Con)]

I praise my hon. Friend for the work he has done on this; the Isle of Wight is incredibly lucky to have him as its MP. Will he consider that we have a million permissions unbuilt in England and we have failing councils, such as in Eastleigh borough, which I represent a part of, that still do not have a local plan in place. Should we not be looking there as one of the ways of trying to get to the 300,000—an absolutely right figure and a manifesto commitment—before we start some of the destruction he talks about?

[Bob Seely]

I am just coming to that point. The 10 largest developers control 70% of supply. They withhold land to inflate value; while 80% of residential permissions are granted, half remain unbuilt and 900,000 permissions, as my hon. Friend says, are outstanding. If just 10% of those were finished every year, the Government would be close to or on target. That raises two critical questions. First, is the problem with the system, or with the building firms that are abusing it, maybe because of the foolish laws being put in place? Secondly, do we need to scrap the current system and potentially face the law of unintended consequences, or do we need to reform it?

I think the Minister and I can both agree that the market is failing first-time buyers. The answer is not greenfield sprawl or unachievable targets, but a new generation of community-based, affordable housing, accompanied by creative rent-to-buy schemes accessible to first-time buyers in existing communities, whether in city, suburb or countryside.

--- Later in debate ---

[Damian Hinds (East Hampshire) (Con)]

I want to thank my hon. Friend the Member for Isle of Wight (Bob Seely) for all the work he has done on this and the Backbench Business Committee for granting time to debate this important matter. With dozens of colleagues still wanting to speak, I am going to make just three short points. First, my right hon. Friend the Member for South West Surrey (Jeremy Hunt) made the point that people now accept that we need more homes and that, for affordability, we need to increase the number of homes, including in constituencies such as mine in East Hampshire. However, we need to look not only at the aggregate number but at the mix, and for people on low incomes, focusing on the median price may be largely irrelevant.

My second point is about the algorithm, or, as we used the call them back in the olden days, the formula. With any such exercise, of course it is right to look at the input elements and to consult on whether they are the right ones, but it is also right to look at what happens when we run the numbers to see what the output is. If the outcome of that formula or exercise is to entrench historical patterns of population growth and contraction, in tension with the Government’s correct emphasis on levelling up and in some ways in direct contradiction to that emphasis, we need to look afresh at the formula.

[Steve Brine]

Is not the other problem with the formula or algorithm, or whatever we call it, that it seems to have a tin ear to constituencies such as my right hon. Friend’s and mine, where vast parts of the districts in question are covered by national parks? The algorithm does not seem to consider that.

[Damian Hinds]

My hon. Friend is bang on. That is going to be my third point, which I will come to in a second.