Levelling-up and Regeneration Bill

Tim Farron Excerpts

Report stage
Tuesday 13th December 2022 Commons Chamber

[Lucy Frazer]

I am happy to discuss that issue further with my right hon. Friend. As I mentioned, we are very concerned about build-out to increase the number of homes, and I know that the Secretary of State feels strongly about quality.

The second set of measures that we are introducing by way of amendments relates to infrastructure, because put simply, we cannot have houses without services to support them. Through the Bill, we will replace the existing system with an infrastructure levy—a non-negotiable liability for the developer based on the value of the development. Our plan is to implement the levy in stages so that we can adapt it according to the latest data and the latest evidence.

Thirdly, we are protecting the environment. On top of our environmental assessment reforms, new clauses 77 to 79 will support the Government’s efforts to protect and enhance our natural environment. We are creating an obligation on water companies to go further to address nutrient pollution and clean up our rivers. That will unlock thousands of new homes, complemented by new wetland and woodland areas, improving people’s access to green space and delivering new habitats for nature. I am grateful to the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow), for her support and to the Secretary of State for Environment, Food and Rural Affairs for working with us so closely to achieve these ends.

Fourthly, we recognise that some areas—Devon and Cornwall, for example—have particular problems with short-term lets, which, while attractive as a tourist industry, mean that large parts of an area have limited long-term residents, creating a real problem for local services. I am grateful to a number of colleagues for highlighting and campaigning on that. I thank my hon. Friends the Members for North Devon, for Cities of London and Westminster (Nickie Aiken), for Totnes (Anthony Mangnall), for Truro and Falmouth (Cherilyn Mackrory), for North Cornwall (Scott Mann) and for St Austell and Newquay (Steve Double) as well as others for the work that they have done. As a result of the points that they have raised, we intend to deliver a new registration scheme for short-term lets, starting with a further consultation on the exact design of the scheme, which will launch before the summer recess.

We will go even further by also consulting on a change to the Town and Country Planning (Use Classes) Order 1987 to enable local areas to better control changes of use to short-term lets, if they wish. Furthermore, the consultation on changes to use classes and the introduction of national permitted development rights to enable change of use where there is no local issue will be launched early next year.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am very grateful to the Minister for taking an intervention and for the time she gave me last week to discuss this matter. Can she clarify whether it is now the Government’s intention to make short-term lets a separate category of planning use following the consultation? If so, when would that come in? Will she also ensure that planning departments have the resources to enforce that?

[Lucy Frazer]

I am grateful to the hon. Gentleman for speaking on this issue and indeed other issues on this topic. We are committing to consulting on the issue. We propose to consult early in the new year. Following that consultation, we hope to bring in some legislation, if that is the result of the consultation. There is a very tight timetable both for that and the registration scheme, and the registration scheme will be coming through in autumn.

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[Chris Grayling]

I rise to talk specifically about new clauses 3 and 5, but first I should make a point on the broader housing issue. My constituency is the smallest borough in my county, and it is the most densely populated part of my county. It was never realistic for the centrally designed targets to apply to an area where we were being asked to increase the housing stock by about 25% to 30%. I praise Ministers for reaching what I believe to be a sensible compromise.

I am very much in favour of new homes in my constituency—I have argued for a number of new developments, and I continue to do so—but house building cannot be simply unrestricted. It cannot be at the level that a formula requires; we must apply common sense. My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and my hon. Friend the Member for Isle of Wight (Bob Seely), in negotiation with the Secretary of State, have come up with a sensible way forward that will deliver extra housing—I passionately believe that we have to have extra homes in my constituency—but in a sustainable way. We must remember that the national planning policy framework requires us to strike the right balance between three things: building new houses, looking after the local economy and looking after the local environment. I believe that what we have on the table now will deliver that.

I turn to the new clauses. On solar power, I have a simple message for Ministers. I cannot understand why we have not reached a point where it is mandatory to put solar panels on the roof of every new building in this country. Although I do not think new clause 3 will take us through the Division Lobbies tonight, I strongly urge Ministers to work across Government to deliver that. When I was Secretary of State for Transport, I argued that the Department for Levelling Up, Housing and Communities should insert a requirement for a charging point in every house with off-street parking. I still believe that, but there is really no reason at all not to have solar panels on the roof of every property, whether or not it has parking space. It should be a central part of our future strategy, and I strongly urge Ministers to adopt it.

New clause 5, which I have personally pushed forward, is what I describe as “the hedgehog amendment”—I speak as the parliamentary species champion for the hedgehog—but it is much broader than that. It is about saying that it is simply wrong for a developer to be able to acquire a site and clear it without doing a proper holistic survey of the ecology on that site. It is absolutely vital that, as we are a Government who believe in strengthening biodiversity safeguards in this country, there should be tight rules for developers. They are obliged to do surveys for the presence of bats and newts, but there are a whole range of other vulnerable species that do not fall under that requirement. I want to see very clear legal rules that say, “You buy a site, you survey what is there. If you identify vulnerable species on the site, you have a duty of care to those vulnerable species to relocate them and provide alternative habitats.”

The Government have done good things on biodiversity net gain, but I want to see a situation where a vulnerable species on a site is not likely to be cleared away by a bulldozer. That does happen—there was an horrendous case in the west country recently. About 20 hedgehogs were killed by the reckless clearance of a site. We have all seen it in our constituencies. Developers do it to create the sense of, “Well, it’s a wasted site anyway. We cannot use it again, so you should give us consent to build houses on it.” My new clause provides a way to ensure that does not happen.

I want to pay tribute to the Minister. We have had some very constructive dialogue on this issue and I know she is pretty sympathetic to the aims I have put forward. What I ask of her today—I think she may have a clear sense of how we can go forward—is, in her closing remarks, to set a direction for the Government that will provide the actual protections I am seeking, which will reinforce the work we have already done to protect biodiversity and ensure the particular ability of developers to come in and clear a site is absolutely precluded in law. I wait with interest to hear what the Minister says in winding up. I praise her for what she has done so far on housing and on many other aspects to the Bill. I hope she will also be able to deal with this aspect, the biodiversity issue, in her remarks and as we go forward.

[Tim Farron]

There are a number of amendments in my name, but given the time we have I will focus on housing, including existing stock and new stock. Let me start by talking about new stock.

New clause 44 and amendment 22, in my name, would give local authorities, particularly in national parks and areas of outstanding natural beauty such as my own in Cumbria, the power to enforce 100% affordability in new developments. I am fed up of developments in my community where we have to build, say, 100 houses to get 30 affordables. That is 70 homes that are fundamentally a waste of bricks. We are building homes for demand, but not for need. We have thousands of people on the council house waiting list. Homes will, of course, fly off the shelves for handsome prices in a place like Cumbria, but they are houses we do not need. They do not add to our infrastructure and in many ways they undermine it by becoming more holiday lets or second homes. Give us that power, as local communities.

[Sir John Hayes]

I am extremely grateful to the hon. Gentleman. I want to be absolutely clear that home ownership does all kinds of things for building personal pride and communal satisfaction. I imagine he owns his own home. Does he want more people to own their own home, or does he want more people to rent?

[Tim Farron]

I want more people to be able to have a home in the first place. In defending people’s right to have a second home, which we will come on to in a moment, we must remember that people’s right to a first home is even more important. The millions of people who have no home at all to call their own, and are desperately waiting on long waiting lists, are up against many people who have more than one home. That is an injustice that needs to be addressed. This particular set of amendments would give local authorities in communities such as Cumbria the ability to say to developers, “You may build here, but what you build must be sustainable, affordable and available for local people so there is a workforce and a local community.”

I want to move on to existing stock, and in particular to the comments made by the Minister earlier. My new clause 121 would make sure there is a separate planning category for short-term lets. That matters: because of the Government’s failure to scrap section 21 evictions, as they promised to do, over the past two years the long-term rented sector has collapsed. That has led to the expulsion of thousands of people from my community. There has been a 32% rise in holiday lets in just one year, and that is in the Lake district where there were already a huge number of them. Those houses are coming from local people evicted so their landlord can go to a short-term let, normally Airbnb, and therefore cash in, and there are no other places for those people to go and live so their kids are uprooted from the local school, and they have to give up their jobs and move many miles away, robbing our communities of life and of a workforce.

[Duncan Baker (North Norfolk) (Con)]

The hon. Gentleman and I share similar constituency issues: in North Norfolk I have huge numbers of second homes and holiday properties, too. I know he has tabled his own amendments, but the Government have a very sensible amendment as well; does he not agree that we should back their amendment to start addressing the issue of people being turfed out of their homes because a landlord can earn five, six or seven times more by changing from a monthly let to a weekly holiday rental with not as much security? The right thing to do is to back the Government and try and help on this matter.

[Tim Farron]

I recently had a conversation with the Minister and am absolutely of the view that while Government amendment 119 does not go as far as mine, it is a step in the right direction. There is a sense of locking the stable door while the horses are well over the horizon—that is my great fear—but I will not seek to press my amendment to a Division, because I am going to trust the Government to do what they say they are going to do: to make sure there is a consultation and that they look at having new separate categories of planning use for short-term lets.

That matters in our communities where the workforce has been decimated because of the collapse of the long-term private rented sector into Airbnb. As a result, 63% of hospitality and tourism businesses in Cumbria are working below capacity; they are not meeting the demand that is there because there simply is not a workforce. We have over 30% of the beds in our hospitals in Cumbria blocked because there are not enough social care workers as there is nowhere for them to live, resulting in a gluing-up impact on our health service. There is an urgent need to take action, therefore. It should have been taken two years ago: the Government should have abolished section 21 evictions, as they promised, but it is better to do something now than not do it at all, so I am happy to accept Government amendment 119 and will not press mine. We will wait and see, and hold the Government to account to make sure they keep the promise they made.

We in the lakes and dales are proud to be a place that welcomes visitors and are proud of the fact that people choose to have holidays with us, and indeed have second homes. We must be very careful not to demonise people who we are delighted to welcome to come and visit us, but, as I alluded to earlier, if it is sometimes a battle between defending someone’s right to have a second home and defending families’ right to have a first, we must be on the side of the latter. We must be on the side of people in local communities who are squeezed out because of this. Some 20 million people visit the lakes every year, and we are proud that the tourism industry generates £3.5 billion in revenue for our local economy. We do not want to push people away, but we do want to secure the communities that underpin that economy.

That is why I will seek, with your permission, Mr Deputy Speaker, to move new clause 120 in my name, because the Government are not choosing to do anything adequate about second home ownership in this Bill. Over the last two years, 80% of all house sales in my communities have been into the second home market—people who buy a home and do not live in it. For instance, 50% of properties in Coniston are empty as second homes, as are 83% of properties in Elterwater. The impact on those communities and dozens of others around Cumbria is that we get lost communities. Without a full-time permanent population of sufficient size, communities lose their school, their pub, their bus service, their GP service, their post office, and the life of those communities. It is astonishing that despite being offered many opportunities in the Bill Committee and today the Government have not tackled this blight on our rural communities.

I plead with Conservative MPs, and particularly those in rural communities, to do the right thing by those communities and stand up for them by giving Cumbria and other parts of the country that are affected by second home ownership the right to control their housing stock. Give us that control and allow us to preserve the communities of the lakes, the dales and the rest of rural Britain. Please back new clause 120.

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[Lucy Frazer]

I will take interventions at the end if I have time.

As with any other developments, Members of Parliament and members of the public will be able to request that a DLUHC Minister call in a specific scheme if they wish, and their views will be given appropriate weight.

I turn to the important matter of short-term lets. I particularly praise, as I did at the outset, the work of my hon. Friends the Members for Cities of London and Westminster (Nickie Aiken) and for St Ives (Derek Thomas). My hon. Friend the Member for Totnes (Anthony Mangnall) made an excellent point, because this is not the first time that we have taken action on these issues. We are already taking action: we introduced higher rates of stamp duty land tax for those purchasing additional properties in 2016, and a new SDLT surcharge for UK non-residents in 2021. Through this Bill, we are giving councils the power to introduce a discretionary council tax premium of up to 100% on second homes, and we will allow them to introduce an empty homes council tax premium of up to 100% after 12 months. We need to build more homes, increase supply and increase affordable housing in various areas. I am very pleased to have worked with the hon. Member for Westmorland and Lonsdale (Tim Farron), and we are taking welcome steps.

[Tim Farron]

rose—

[Lucy Frazer]

I am going to press on, because so many Members have raised points for me to respond to, and I would like to ensure that I cover them all.

My hon. Friend the Member for Carlisle (John Stevenson) and my right hon. Friend the Member for Epsom and Ewell mentioned the work that we need to do on solar panels. My hon. Friend the Member for Carlisle said that his campaigning had been to no avail. I want to reassure him that that is absolutely not the case. The work that he has done—whether in the Westminster Hall debate, or by writing extensively—has meant that the Government have taken significant steps in this area. From 2025, the future homes standard will ensure that new homes produce at least 75% less CO₂ emissions than those built to the 2013 standards. This represents a considerable improvement in energy efficiency standards for new homes. We have introduced an uplift in standards, which came into force in June, and the uplift already requires new homes to be built in such a way that they produce 30% less CO₂ emissions than those built to the previous standards.

The performance standards in the uplift have been set in such a way as to ensure that the vast majority of developers will either need to put solar panels on new homes or use other low-carbon technology such as heat pumps. So my hon. Friend’s work has not been in vain, and I am happy to continue to engage with him on this important area.

My hon. Friend the Member for St Ives raised with me helicopters in his constituency, and has tabled an amendment on the issue. I am pleased to have discussed this matter with him. As the amendment would apply nationally, requiring notification and approval for all applicants and local planning authorities, we consider that this would be onerous and disproportionate. There is the possibility of making an article 4 direction. I appreciate that his local authority has not taken that course, but I am happy to arrange a meeting between my officials and the local planning authority to discuss the matter further.

I have already mentioned the considerable work that my hon. Friend the Member for South Norfolk (Mr Bacon) has done on custom build and self-build. The Government strongly believe that self-build and custom-build housing can play a crucial role as part of a wider package of measures to boost home ownership and diversify the housing market, as well as helping to deliver the homes that people want. We will look to see whether we can further tighten up any legislation, taking on board his thoughts and comments.

An amendment was tabled in relation to childcare. I disagree with the hon. Member for Walthamstow (Stella Creasy), who said that the Government were not on the side of those who support childcare. The Government introduced tax-free childcare of up to 30 hours because we believe that it is right that those who have children can go to work and support their children. I would like to clarify what has been said—my hon. Friend the Member for Stroud (Siobhan Baillie) understood what I was saying from the Dispatch Box. The position is that childcare facilities—that is buildings—including those that are not attached to schools, are included within the meaning of “infrastructure” and can therefore be funded through the levy. In addition, the Bill already includes a power to regulate to allow for the funding of services such as childcare. It is in proposed new section 204N(5), in paragraph 1 of schedule 11.

My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) asked about section 103 contributions and where they continue to apply, of course nothing has changed. The Government are keen to ensure that we support childcare services, and this Bill does that.