New Housing Supply

Vicky Ford Excerpts

Monday 5th June 2023 Commons Chamber

[Vicky Ford (Chelmsford) (Con)]

Chelmsford, my constituency, has a vibrant community, excellent schools, low crime rates and a popular city centre, and is an easy commute to London. It is also the home of the legendary Essex Cricket, so it is no wonder that it is a very popular place to live. Since becoming a city in 2012, Chelmsford has grown considerably. In the past five years, about 1,000 new homes have been built every year, and in Chelmsford a new garden community is being built right now. Many right hon. and hon. Members have mentioned that they want to see more new garden cities and communities—if they pop on the train down to Chelmsford, I will take them to see what we are doing.

Many of the new homes that have been built meet the Government’s definition of affordable housing, because when a new development of over 11 homes is built in Chelmsford, the local authority applies an affordable housing obligation of 35%. Furthermore, over the past decade many Chelmsford people have used Government schemes to help them get a foot on the housing ladder. However, despite the many new homes, the fact that many of them meet the Government’s definition of being affordable and the many years of generous support to help people buy their homes, we still have a shortage of housing that people can afford either to buy or to rent.

The pressure on social housing is acute. About 360 families are currently housed in temporary accommodation, which is an all-time high. I spoke about that in this place when I presented my Bill on conversions of office blocks into homes. In Chelmsford, many office blocks are being converted into homes. In the past nine years that we have data for, approval was given for over 1,400 homes to be created by converting office blocks into flats, and we are expecting to see even more of that. Post pandemic, more people are of course working from home and there is less demand for office space, so we expect to see more conversions.

However, there is currently no ability for the local authority to apply an affordable housing obligation when a commercial property is converted into flats. Someone can take an entire office block and convert it entirely into luxury flats without causing one single extra affordable home to be created. My ten-minute rule Bill would enable local authorities to apply an affordable housing obligation to conversions of commercial property to residential use. If we had had that in the past decade in Chelmsford, it could have released 453 more affordable homes—that is more than the number of families who are currently in temporary accommodation because they cannot get social housing. I do hope that my wonderful hon. Friend the Housing Minister is listening this evening, and that she will continue to look favourably at my suggestion.

Another issue that is often raised by my constituents is infrastructure. Many people in Chelmsford tell me that they are not opposed to new homes being built—they know that people need somewhere to live—but that they are getting more and more frustrated at seeing new homes going up and the infrastructure not keeping pace. It has not kept pace with the massive growth in housing in Chelmsford. In Chelmsford, the city council uses the community infrastructure levy, which is much better than the old section 106 approach. It gives more flexibility to how developer contributions are used for infrastructure, which means that both existing residents and residents of a new development can benefit from the new infrastructure.

However, there are some problems with CIL funding. For example, there is no CIL contribution for new houses on previously developed land. As a lover of the green belt, of course I want to prioritise building on brownfield sites. I recognise that some brownfield sites are costly to develop due to previous contamination, and if a levy cost was put on top of the decontamination cost, that might make those sites unprofitable for developers and they would not get developed. However, not all previously developed land is contaminated and brings that cost, yet every single home that is built puts additional pressure on the infrastructure. Let me give an example. If someone builds on a field that used to be a farm, provided there are more than 11 homes, they pay a contribution towards infrastructure, but if they build on what used to be a riding school, they do not. I hope that the Minister, through the work in the Department, will look at closing that anomaly.

[Peter Aldous (Waveney) (Con)]

In many ways, what my right hon. Friend is saying cuts across what I am going to say, which I think is because property values in Chelmsford are much higher than they are in Lowestoft. We are therefore illustrating what my hon. Friend the Member for Carlisle (John Stevenson) said, which is that we actually have lots of different property markets throughout the country. Would she not agree with me that what is right for one place may not necessarily be right for another?

[Vicky Ford]

I absolutely agree that what is right for one place may not be right for another. I would just like to point out that the purpose of all my suggestions is to enable local authorities to make the right decisions for their area. These would not be top-down quotas set by Government; they would not set the proportion of affordable homes to be put on which office block development. That would be the decision of the local authority in line with the local plan. At the moment, however, the local authority does not have that power at all.

A second point about CIL funding is that at the moment it is not sufficient to cover all infrastructure needs, especially when we have larger infrastructure projects due to larger developments. I am extremely grateful to the Government for the quarter of a million pound housing infrastructure fund grant for Chelmsford. As a result of that grant, a new train station is being built. This is the first time a new train station has been built on the Great Eastern main line for over a century. It is the most amazing engineering project, and the grant will also help to deliver our north east bypass. Both of those are crucial to delivering the garden community. However, those two projects alone will not deal with other massive problems we have from traffic jams due to the increased number of people living locally. People from all over Essex are wasting valuable time stuck in Chelmsford’s traffic jams and that is hampering economic growth in large parts of Essex. So I ask DLUHC Ministers urgently to help me get support for the bid, currently with the Treasury team, for funding to upgrade the Army and Navy junction with a package of new sustainable traffic measures. Without that investment, Chelmsford will grind to a halt and will not be able to support the future housing growth.

Finally, there are real concerns about how CIL money is allocated locally. The process is not transparent and decisions about significant amounts of money are made without them coming back to full council members for approval. Cost overruns appear out of control, especially since the Lib Dems took control of the council. They spent £4 million on refurbishing a theatre, which was meant to cost £1 million, and redesigning Tindal Square with fancy pavements at the top of the high street has cost over £4 million, more than double the original budget.

Furthermore, CIL monies are not necessarily being spent by the Lib Dems on people’s priorities. My constituents often tell me about the pressure on NHS GP surgeries. Tens of millions of pounds have been spent in the past four years, but the two projects to help enlarge the capacity of GP surgeries have been massively delayed. We need better planning by local authorities in all the different areas that need infrastructure, including the NHS, to ensure that all sectors of critical infrastructure keep pace with housing growth. If we do not do that, we will lose public support for the new homes.

--- Later in debate ---

[Mr David Davis]

The extraordinary importance of this issue is measured by the sheer number of people here, and not just the quantity but the quality. We have had ministerial experience, local government experience, professional experience and even APPG chair experience. I deliberately chose the subject “delivering new housing supply” so that it was as wide as possible, but it is notable that we have had complete unity on the aim of closing the gap in supply. We have had a massive multiplicity of ideas, all of which are necessary, frankly. If we are to deliver a proper property-owning democracy to the next generation, we have to use everything that we have heard today. I thank everybody for their contributions.

[Vicky Ford]

On a point of order, Madam Deputy Speaker. When I spoke earlier, I should perhaps have referred to my entry in the Register of Members’ Financial Interests, as I am an unpaid member of the board of the legendary Essex Cricket. I hope that Members will forgive me and that the record can be corrected.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the right hon. Lady for her point of order and for giving me notice of it. I know that she genuinely regrets not mentioning that, and I am sure that the House will appreciate the fact that, as soon as she realised, she came to point out that she perhaps should have declared it before.

Question put and agreed to.

Resolved,

That this House has considered the matter of delivering new housing supply.