Housing and Planning Bill

Viscount Younger of Leckie Excerpts

Wednesday 4th May 2016 Lords Chamber

Moved by

[Viscount Younger of Leckie]

That this House do not insist on its Amendment 108, to which the Commons have disagreed for their Reason 108A.

108: After Clause 143, insert the following new Clause—
“Carbon compliance standard for new homes
(1) The Secretary of State must within one year of the passing of this Act make regulations under section 1(1) of the Building Act 1984 (power to make building regulations) for the purpose of ensuring that all new homes in England built from 1 April 2018 achieve the carbon compliance standard.
(2) For the purpose of subsection (1), “carbon compliance standard” means an improvement on the target carbon dioxide emission rate, as set out in the Building Regulations 2006, of—
(a) 60% in the case of detached houses;
(b) 56% in the case of attached houses; and
(c) 44% in the case of flats.”

108A: Because it could slow down or prevent the development of new homes.

[Viscount Younger of Leckie (Con)]

My Lords, it should be noted that there was very strong support in the other place to reject Amendment 108, with a vote of 286 in favour of rejection, compared to 163 against.

Amendment 108 raises an important issue about the energy performance of new homes but I repeat what we have said previously in the House on this matter: new homes built to the current standards are already very energy efficient. The standards were strengthened by 30% over the last Parliament and it is recognised that these changes have pushed the fabric energy performance of homes to the point where further increases may result in only marginal energy-efficiency returns.

However, the Government do not want to rest on their laurels. We recognise that costs and industry’s understanding of energy measures improve over time. The Government recognise the feeling of this House that the energy standards for new homes should be improved where this is feasible and cost effective. The cost effectiveness of any changes is integral to this debate and to the electorate, who agreed with our manifesto commitment to meet our climate change commitments,

“as cost-effectively as possible”.

We need to understand what is cost effective and feasible for a minimum mandatory standard that will apply to all new homes in England, no matter how viable an area is for development, and to all sizes of homebuilder. We need evidence to do this.

The Government have said throughout the passage of the Bill that we will be reviewing the energy-performance standards for new homes in the coming months. Some noble Lords have said that a review is not needed because the work has already been done on the standard on which this House voted. But the carbon compliance levels proposed in the Lords amendment date back to work undertaken by the Zero Carbon Hub in 2010-11. Things have moved on in the industry since then. It is right that we look again at what makes sense for the industry.

Although the industry was involved in the work done in 2010-11, the coalition Government did not adopt the standard formally and there was no formal consultation, no draft legislation and no impact assessment produced on the standard, as your Lordships would rightly expect when new building regulations are brought forward. Furthermore, the Zero Carbon Hub’s work did not cover all types of development, particularly high-rise flats. If noble Lords look across the river they will note how much of new housing development is in high-rise blocks. The Zero Carbon Hub recognised that more work was needed to develop levels appropriate for this kind of development.

Consider the impact of prescribing a standard without up-to-date analysis or consultation with those who have to implement it. If we get it wrong, potentially we bring new development to a stop. That is a heavy burden of responsibility on this House. I beg to move.

Motion K1 (as an amendment to Motion K)

Moved by

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[Viscount Younger of Leckie]

My Lords, this House can rightly press the Government to strengthen energy standards where it is possible and cost-effective to do so. I note the well-intentioned comments of the noble Baroness, Lady Parminter, and the noble Lords, Lord Kennedy and Lord Krebs, but it is right that we first do a full and comprehensive review of the evidence. That is our firm intention. Simply imposing standards without such a review risks making homes unviable in some parts of the country and raising construction costs to a point where they may simply be unaffordable for small homebuilders. The Federation of Master Builders, which represents 13,000 small and medium-sized builders, said last week in response to Amendment 108 that the Lords is showing,

“a reckless lack of realism and concern for consequences of heavy-handed regulation”.

Let us show the Federation of Master Builders that this House is not reckless and that any future changes to standards will be based on a full review of evidence and be cost-effective.

I would like to pick up on a point made by the noble Baroness, Lady Parminter, about the cumulative cost—that is, the £3,000 figure per household. The cost of meeting the level proposed for a semi-detached home is around £3,000, as has been said, but if that is scaled up for all home types over a year—flats are less costly but detached homes cost more—it would result in a cumulative cost of around £200 million per annum to the homebuilding industry. That reinforces our argument for a full review and with that in mind, I hope that the noble Baroness will withdraw her Motion.

[Lord Kennedy of Southwark]

The noble Viscount has relied on the Federation of Master Builders now for every debate on this issue. Before he sits down, could he remind us, as I cannot remember, of the number of organisations that, to the contrary, think these measures are very welcome?

[Viscount Younger of Leckie]

I deliberately use the Federation of Master Builders because it is prominent in the industry. I could quote other organisations and would be very happy to provide the noble Lord with a list of them. There is certainly a mood to ensure that there is not this chilling effect, particularly on small builders. We need to build more houses.

[Lord Kennedy of Southwark]

I would be interested to see a list of those other organisations. Up to now, all I have heard from such organisations is that they support these measures. The noble Viscount has relied from day one on the Federation of Master Builders and nothing else.

[Viscount Younger of Leckie]

As I say, I am very happy indeed to write to the noble Lord with a full and further list.

[Baroness Parminter]

I thank noble Lords who have participated in this debate and echo the comments of the noble Lord, Lord Kennedy, who summed it up incredibly well by saying that the Government’s arguments were not compelling. We have debated this at length in the Chamber, and I am not going to go through the arguments again today, but I just want to raise two points.

First, the Federation of Master Builders was one of witnesses before the House of Lords National Policy for the Built Environment Committee. The federation said that it considered regulation a lesser issue in building new homes; the issue was access to finance and the cost of land. Although I hear that Mr Berry wishes to describe this House as being full of people who are “reckless” and show a “lack of realism”, that was not the evidence that he gave to a House of Lords Select Committee in October last year.

Secondly, we do not have to listen just to housebuilders. Of course we have to do that, which is why we sought to show at length in Committee that our amendment would not affect the viability of the houses we desperately need; but we have to listen also to the voices of home owners who will save money on their energy bills through this amendment, and to future generations, who need us now to start getting serious about tackling our greenhouse gas emissions. On that basis, I most assuredly wish to test the opinion of the House.

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Moved by

[Viscount Younger of Leckie]

That this House do not insist on its Amendment 109, to which the Commons have disagreed for their Reason 109A, and do propose Amendment 109B in lieu—

109: After Clause 143, insert the following new Clause—
“Affordable housing contributions in small scale development
(1) Local planning authorities may require sites falling within subsection (2) to make an affordable housing contribution, in cash or kind, determined by the requirements of the housing market of that area.
(2) Authorities may require contributions from—
(a) developments of 10 units or less, and developments which have a maximum combined gross floorspace of no more than 1000sqm (gross internal area), and
(b) developments in a rural area or an area where—
(i) planning permission for the site was granted wholly or partly on the basis of a policy for the provision of housing on rural exception sites;
(ii) the site is in a national park or an area with equal protection to that of a national park; or
(iii) the site is in an area designated under section 82 of the Countryside and Rights of Way Act 2000 (designation of areas) as an area of outstanding natural beauty.
(3) In subsection (2) a rural area is defined as—
(a) any settlement with a population of fewer than 3,000 people at the most recent national census, or
(b) any settlement with a population of between 3,000 and 10,000 people at the most recent national census, and designated as a rural area by the Secretary of State following representations from the relevant local authority.”

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Moved by

[Viscount Younger of Leckie]

That this House do not insist on its Amendment 110, to which the Commons have disagreed for their Reason 110A.

110: After Clause 143, insert the following new Clause—
“Sustainable drainage systems
(1) The Water Industry Act 1991 is amended as follows.
(2) After section 106(1B) (right to communicate with public sewers) insert— “
(1C) The right under subsection (1) is subject to section 106AB.”
(3) After section 106A insert—
“106AB Sustainable drainage systems
(1) A person may only exercise the right under section 106(1) in respect of surface water if the relevant drainage system is designed and constructed according to—
(a) the non-statutory technical standards for sustainable drainage systems or any replacement standards as may be published by the Minister from time to time; and
(b) the planning permission or development consent order for the development drained by the drainage system in question.
(2) In this section “drainage system” has the same meaning as in paragraph 1 of Schedule 3 to the Flood and Water Management Act 2010.””

110A: Because the Lords Amendment is unnecessary and impractical.

[Viscount Younger of Leckie]

My Lords, the Commons has insisted that this amendment be rejected with a strong majority. It is unworkable and would lead to uncertainty and delay in delivering our manifesto commitment to build more homes.

Flood risk is a very important issue, and I understand the strength of feeling on this matter in the House. Following the devastation of last winter’s floods, we are all keen to ensure that development is safe from flooding and does not increase flood risk. Just one year ago, the Government demonstrated our commitment to ensuring that development is safe from flooding when we strengthened planning policy on sustainable drainage. We have made clear our intention to review the impact of this policy once it has had time to bed in.

Although I understand the good intentions behind the proposed new clause, it does not recognise that there are cases when a development may not provide sustainable drainage for very good reasons. This may be because it is not practical for some forms of development, including mineral sites or where site constraints mean that a suitable sustainable drainage system cannot be provided. Sustainable drainage simply may not be appropriate on a small site with high groundwater or contaminated soil.

I am also concerned that, by making the right to connect conditional on planning permission, we will need to introduce more bureaucracy, complexity and cost into the process to allow for situations where connections are in fact needed or where there is currently no requirement for planning permission to be obtained. This may include situations where water and sewerage companies are exercising their statutory obligations effectively to drain an area.

Another critical defect of the clause is that it does not provide for a process to enable a developer to demonstrate that conditions have been met. This detail needs to be carefully thought through to ensure that the measure is workable and has the intended impact.

Finally, this will be important to many who are looking to government to support industry to provide the homes that communities need. There are no transitional arrangements. What happens to those developments that have planning permission but no right to connect? The measure has the potential to stall development, including in those areas that are not in fact at risk of flooding at all.

As the amendment expands current policy to small developments, which are not currently covered by this policy, small builders, who are only now starting to recover from the economic crash, are likely to be especially hard hit. These are the same small builders on whom we are relying to deliver above and beyond what the larger housebuilders can deliver. I beg to move.

Motion M1 (as an amendment to Motion M)

Moved by

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[Lord Kennedy of Southwark]

My Lords, as we have heard, the amendment would ensure that new homes are built with sustainable drainage systems, helping to protect home owners against flooding, helping communities and delivering wider environmental benefits. This issue has been discussed as we have gone through the Bill both in Committee and on Report, and it is disappointing that the Government are again rejecting the amendment. There is no problem with monitoring where were are with SUDS—whether they are included and why they are not included, the issue around developing a site and why costs might mean that you cannot do it. We need a lot more information here, and I do not understand why the Government do not want to do this. The measures are low cost and would deliver flood-resilient homes, which is something that we all want to support. We have all seen the heart-breaking scenes of people’s homes being flooded. Why would you want to build homes that are at risk of flooding? It is really very strange.

The Minister talked about cost and bureaucracy and said, “Let’s wait and see”. I am afraid that that does not stack up. As the noble Baroness, Lady Parminter, said, all the water companies have supported this, but there are also other bodies. Essex County Council is fully in support of it, and I think that that is a Tory-controlled authority—it is certainly not Labour controlled. Hampshire County Council is fully in support of it, and it is certainly not Labour controlled; I think it is Conservative controlled. There are many other bodies; everyone is saying that this is something that we should do, so I do not understand why the Government are still resisting it. I hope the Minister will look at this more favourably and change his mind.

[Viscount Younger of Leckie]

My Lords, this has been a very interesting and short debate, and I shall be brief. I hope that noble Lords will accept that, while we join them in supporting the use of sustainable drainage, there are flaws that make the proposed new clause simply unworkable, and a potentially serious impediment to the delivery of new homes. As the noble Lord, Lord Krebs, said, we have heard the arguments at some length during the Bill, and I can only reiterate our position that we will review the impacts of the current planning policy on sustainable drainage. That is a definite reassurance.

On the point that the noble Lord, Lord Krebs, raised on why by building now we might be storing up problems for later, when determining planning applications, local planning authorities are expected to ensure that flood risk is not increased elsewhere. In areas at risk of flooding, they should ensure that priority is given to the use of sustainable drainage systems. There is also an expectation that sustainable drainage systems will be provided in all new major developments, unless demonstrated to be inappropriate. A site-specific flood risk assessment is required for planning applications for a development likely to be affected by local sources of flooding, and should look at all forms of flood risk, including from surface water. The developer is responsible for providing effective drainage already to serve the development and agreeing it with the local planning authority. I hope that, with the continuing reassurance about looking very closely at the issue in our review, noble Lords will reject the amendment.

[Baroness Parminter]

My Lords, I thank the noble Lord, Lord Kennedy, the noble Earl, Lord Lytton, and the noble Lord, Lord Krebs, for joining me in support of the amendment. I have not heard anything from the Minister to counter the weight of evidence in this Chamber and beyond, which says that the present situation with regard to delivering sustainable urban drainage is not working. When the Government introduced the presumption in planning over a year ago, that is what they wanted to do—encourage sustainable urban drainage. They had that intention, but it is not working, and that is the evidence. I remind the House that small developments are currently excluded from the provisions. Our amendment states that all developments should be subject to them. In rural areas, small developments often affect people in terms of flooding.

We have moved a long way on this amendment. This is not the first amendment that those of us who feel strongly about sustainable urban drainage have brought to this House. We have narrowed our amendment as a sign of good will to the Government. We want the same thing. We want more homes, but we need them to be flood resilient and to deliver amenity benefits to communities. On that basis, I wish to test the opinion of the House.