Housing, Planning and the Green Belt

Toby Perkins Excerpts

Tuesday 6th February 2018 Commons Chamber

[Toby Perkins (Chesterfield) (Lab)]

I congratulate the hon. Member for Tewkesbury (Mr Robertson) on securing this debate. The contributions have been excellent. I often meet constituents who bemoan the quality of our debates. I always tell them, “Don’t bother watching on Wednesday lunch time. Switch on the BBC Parliament channel on a Thursday or Tuesday afternoon and you’ll get an entirely different impression.”

What has been interesting is how many of the issues that have been raised on both sides of the House have parallels. Listening to the hon. Member for Grantham and Stamford (Nick Boles) and the right hon. Member for Arundel and South Downs (Nick Herbert), I was struck by how statist their solutions appear, which I strongly encourage. I remember two or three years ago when my right hon. Friend the Member for Doncaster North (Edward Miliband) first mooted the idea of seizing land off developers who are not getting on with building. It was seen as positively communist. It appears that, all the way from Doncaster to Grantham, the centre ground of politics really is shifting. I encourage much of that.

It is important to recognise that Governments can free space for the private sector to develop, but the rules of the game are the rules of the game at the moment. Given those rules, it is useless for us to come to this place and complain that developers do not build houses from which they cannot make a profit. We need to understand that. If we rely entirely on the private sector, we will get houses built and developed in areas where those houses will be profitable. London authorities will build houses at an amazing rate, but nothing like the same numbers will be built in towns in the north, where there has not been the same sort of investment in infrastructure and where a variety of other things have not been done. We will not see anything like the same numbers built and we will not get them built on brownfield sites.

In Chesterfield in 2005-06, a housing development was being built on the old Bryan Donkin site. The developer went bust about a third of the way through the development. That huge brownfield site remained unbuilt for the next seven or eight years. Therefore, there is no point our coming to this place to bemoan the fact that developers, which are companies that are ultimately there to make a profit, are not building on sites on which they will not make a profit.

What has been lacking from this debate is the sense that housing and planning are just one part of this whole thing. We need to talk about skills because, if there are not enough trained people in the construction industry to get more sites built, there will be an impact on the cost of labour, which will have an impact on the number of houses that are built.

Transport is incredibly important. The north has huge potential, but we need to improve the transport infrastructure. When 10 times more is spent on transport infrastructure in London than on transport infrastructure in other parts of the country, it is unsurprising that everyone wants to move into London, where they can move about easily, and not into areas where they cannot move around so easily.

There has been a lot of talk about the green belt and that is sometimes misleading. Whenever I fly over Britain during the day while travelling overseas, I look down and see that Britain is a green and pleasant land—I fly over field after field before coming to a town or city. If we are to build these houses, the public sector needs to have a role because the public sector can build even in times when building is not profitable.

I would like to see the Government address the issue of right to buy. I am not against right to buy, but unless councils can borrow and know that they can build new houses without the prospect of having to sell them at a discount three years later, local authorities will not build those houses. Local authorities have a role to play in this and I would like the Government to recognise that.

I would like this debate to recognise the importance of transport and local infrastructure. We have heard about the objections in many areas to developments, but often when people are objecting they are concerned about the impact on schools, roads and local health services. Infrastructure needs to be a part of all this discussion, as do skills; we need a much wider debate.

In the final minute available, while touching on the planning issue, I also wish to discuss the issue of Traveller sites. In Chesterfield, we have a local plan, which is currently under consultation. The council has identified two sites for Travellers already in Chesterfield, but it has been told it needs to identify two more. There is a huge amount of public concern about that. Four sites in my constituency—in Grangewood, Newbold and Inkersall—have been consulted on and I know there are two such sites in the constituency of the hon. Member for North East Derbyshire (Lee Rowley). The pressure that is going on councils is unfair. There is also pressure on constituents, who are, for understandable reasons—I would be concerned for exactly the same reasons—very concerned about this. If we are going to see local authorities put in control of their areas, we do not need to see them forced to have such sites, as is currently happening in Chesterfield.

--- Later in debate ---

[Mr Harper]

That proposal sounds sensible. I am not familiar with the detail, but given what my hon. Friend sets out, it sounds like the local authority is focusing on demand. We will need significantly more of that if we are to meet demand in London.

My hon. Friend the Member for Tewkesbury put his finger on it when he spoke about housing demand. Clearly, compared with the situation when I was younger, we are much tougher with the loans that people can take out. When we look at what happened to the financial system after the banks made unwise lending decisions, such practice is probably very sensible, but it does make it more difficult for younger people to purchase houses. I welcome what the Government have done on the finance side of the argument, and two things are particularly welcome. The Help to Buy equity loan scheme is helping a significant number of young people who can afford a mortgage to be able to finance their deposit. It is not true to say, as some people do, that that only deals with the demand side of the equation, because it is of course only used for buying new houses. If we look at how house builders operate, we see that they build houses as they sell them. If we make it possible for a first-time buyer to purchase a home through the Help to Buy equity loan scheme, the house builder will then build more houses on that estate, as I have seen clearly in my constituency. Such practice helps on the demand side, which in turn generates housing supply.

I also welcome the introduction of the lifetime individual savings account, which enables younger people to save for a pension or a home, but I have one policy suggestion for the Minister. I am very supportive of our auto-enrolment policy to ensure that everybody saves for a pension, so will he consider whether we could apply auto-enrolment to lifetime ISAs? A young person going into the labour market would then find that their savings and their employer’s contributions would go into a lifetime ISA—at least that would be an option—so that the money could be used to fund either a pension or a home. If someone is a homeowner when they retire, they will not need such a significant pension, because they will not be paying rent on the home that they own. I think that that sensible proposal might make younger people keener to save for a deposit, because they would find it more affordable, so I urge the Minister to consider the suggestion.

I am grateful that the Government have said so much recently about the northern powerhouse. Given the location of my constituency and that of my hon. Friend the Member for Tewkesbury, I also welcome what the Secretary of State for Wales did with the Severn growth summit to encourage the development of what we might call a western powerhouse to create another centre of gravity for developing economic growth in Wales and the west country. It seems to me that one of the real problems is that we will not deal with the housing crisis simply by building more homes. London, for example, has high levels of immigration—23% of Londoners are non-UK born residents, and 156,000 migrants moved to London in 2016. Having listened to colleagues’ concerns about excessive house building in London, I argue that we cannot build our way out of the problem. A longer- term solution is to generate progress in the northern powerhouse—in transport infrastructure and development in that part of the country—and then generate development in what I might call the western powerhouse in the west of the country and Wales. We could also look at things such as the Cambridge-Milton Keynes-Oxford growth corridor, so that we actually see economic development spread more equitably across the United Kingdom. That would mean that rather than feeling the pressure to move to London, or to get a job or create a new business there, young people in many parts of the country would feel able to stay in their home towns and cities, or indeed to move to Manchester and the great cities of the north. That will happen if we create a powerhouse that is globally competitive, as London is.

[Toby Perkins]

I am much happier with where the right hon. Gentleman is finishing his speech than I was with his position six or seven minutes ago. It seems that London has doubled in size during my lifetime, but the major cities of the north have hardly changed. If the message that the Government get today is that we need continually to expand the size of London, I agree entirely that we will not build our way out of this problem, as we will just continue to feed that demand. The solution has to be investment in infrastructure and skills all around the country, not just focused on London.

[Mr Harper]

I am glad that I have cheered up the hon. Gentleman as my remarks have developed, and I hope that I have had that effect on at least one or two other colleagues. He is right that that is the answer. There is a regional housing problem in the United Kingdom. House prices in London and its surrounding areas are massively out of kilter with the rest of the country, and we can deal with some of that by building houses. We do need to increase the density of house building in London, so I welcomed what the Government said yesterday about building upwards, and having slightly increased housing densities and slightly higher rise properties—not massive, but perhaps with more storeys than a traditional two-storey property—but we also need to spread economic growth across the country.

People with housing challenges who live in London should be as supportive of investment in the northern powerhouse and other parts of the country—and in creating a great, globally competitive city in the north—as people who live in the north. Such investment would result in us sharing economic growth more equitably across the country. That is how we deal with the housing challenges that we face more fairly and equitably, and it would also help the whole country’s economic growth and make us more globally competitive.