Housing and Planning Bill (Sixth sitting)

Teresa Pearce Excerpts

Tuesday 24th November 2015 Public Bill Committees

[The Chair]

We will start with the question that clause 6 stand part of the Bill. Members will be aware that we did not debate that at our previous sitting. Since then, the Opposition have tabled an amendment to remove the clause from the Bill, and although it is not selectable, the subject can be debated.

Clause 6

Compliance directions

Question proposed, That the clause stand part of the Bill.

[Teresa Pearce (Erith and Thamesmead) (Lab)]

It is a pleasure to serve under your chairmanship again, Sir Alan.

The Opposition propose that clause 6 does not stand part of the Bill, for reasons I will outline. Committee members will recall that, the last time we met, we had an interesting discussion, ably led by my hon. Friend the Member for Dulwich and West Norwood, as to why we should remove the clause to make the Bill more palatable.

My hon. Friend made a number of excellent suggestions for amending the Bill. She highlighted the fact that there are many strong arguments, which have been put forward by a number of bodies, as to why there should be local input into decisions about the number of starter homes that are necessary. She mentioned that there is a dramatic variation in housing needs across the country—something shown time and again by various witnesses from local authorities, which had diverse local requirements.

My hon. Friend mentioned the fact that the Secretary of State could distort a local housing market if too many starter homes were put up too quickly. She cited the Home Builders Federation evidence, which observed:

“There is potential for market distortion if the numbers of Starter Homes that ministers are targeting to be built actually come onto the market. The effect is likely to be highly localised and could impact upon the saleability of units on new sites”.

That highly localised effect on the housing market shows again the importance of local consideration of planning and building.

The mix of tenures was also raised. There should be a mix of homes, and that should be determined by what is necessary. That should be done at the discretion of local authorities, which are best suited to appraise local needs.

Although the Minister said in our previous sitting that the Secretary of State would have to give reasons for issuing a compliance directive, we are not sure that there are sufficient safeguards to protect local decision making. Moreover, we do not feel that that is a sufficient safeguard to protect councils from being judged as failing when non-delivery could be outside their control. Councils must work in and for the best interests of local people. They will be the ones that are judged as not having met local need, when in fact matters could be outside their control. As the National Housing Federation points out, local authorities must have

“freedom to plan to meet objectively assessed local housing need in their area, as required by the National Planning Policy Framework. This should include the ability to plan for Starter Homes, shared ownership and rented housing…based on the evidence in their Strategic Housing Market Area Assessment. This would ensure that Starter Homes are built, but that the balance between Starter Homes and other forms of affordable housing would vary according to what best meets the needs of local people”.

That view was echoed by the Local Government Association, which stated:

“Councils need the powers and flexibility to shape the supply of genuinely affordable homes to meet needs of different people in their area, in line with their local plan and the National Planning Policy Framework”.

In the face of repeated expert advice that clearly puts a strong emphasis on the significance of localism and responding to local need, why are the Government moving forward with a clause that undermines those things? The Minister gave us reassurances about the need for clause 6 to remain, but they were not strong enough. That is why we now propose that it does not stand part of the Bill, so that local authorities can determine the mix of tenures and the different forms of affordable housing that are necessary for their areas.

The clause is problematic not only because it takes decision making from local authorities, but because there is a lack of clarity in terms of determining how compliance directives will be necessary. The clause would allow the Secretary of State to issue a compliance directive to local planning departments if they do not adequately carry out their functions in relation to starter homes, but it does not clearly demonstrate how that adequacy will be judged or even what it means. Does it relate to a certain number of starter homes based on population, on those who have registered an interest in the scheme or the area, or on the median incomes of an area and house prices to reflect how many could feasibly afford a starter home? We simply do not know and the ambiguity leaves the decision entirely in the hands of the Secretary of the State, with no formal guidance.

The concern about the lack of clear monitoring rules and guidelines is only made worse by subsection (1)(b), which appears to give the Secretary of State personal powers to issue a compliance directive when he does not like the policies in a local plan. It is extraordinary that the Government are taking away from local decision makers in such a way, apparently basing things entirely on the Secretary of State’s decision.

The explanatory notes make things no clearer:

“If a local authority is failing to comply with its starter homes duties and has a policy contained in a local development document which is incompatible with these duties then the Secretary of State may make a compliance direction directing that the incompatible policy should not be taken into account when certain planning decisions are taken.”

There is no real, tangible explanation of what that vague “incompatible” means.

What is the point of having a local plan based on local needs if in reality the Secretary of State may override it? The clause has the potential to be incredibly damaging to localism and any devolved planning powers. The assurances of the Minister have not been enough to convince us that local decision making has been safeguarded. For those reasons, we are moving that the clause does not stand part of the Bill.