William Cash
Main Page: William Cash (Conservative - Stone)Self-build and Custom Housebuilding Bill
William Cash Excerpts
Sir William Cash (Stone) (Con)
I beg to move amendment 1, page 3, line 3, at end insert—
‘(3) Guidance issued by the Secretary of State to authorities under subsections (1) and (2) shall only be issued after a statutory consultation period of not less than three months.”
I seem to be doing a bit of overtime today, but I do so in the spirit of debate, discussion and dialogue, and to probe some of the matters inherent in this important Bill.
Clause 3 deals with guidance:
“A relevant authority must have regard to any guidance issued by the Secretary of State when exercising any function conferred or imposed by or under section 1 or the Schedule.
An authority mentioned in section 2(2)—”
that is pretty much any kind of local authority one can imagine—
“must have regard to guidance issued by the Secretary of State when exercising the duty imposed by section 2, including guidance about identifying functions affected by the duty.”
My amendment proposes a further provision for clause 3. It is a simple proposal that would require statutory consultation of not less than three months, and the guidance issued by the Secretary of State would be given only after that consultation period. The type of guidance issued by the Secretary of State under section 3 might be broad, as might the range of situations that may need guidance. Vanguard councils are experimenting with registers, willingly and voluntarily, which will be important. In a nutshell, it would be a good idea to consider having a statutory consultation period of not less than three months to accompany those arrangements.
My proposal is very simple and one that needs to be well considered. All I need say in conclusion is that I regard the amendment as an opportunity to discuss and debate the question. I am happy to listen to the arguments other hon. Members put forward.
Mr Richard Bacon (South Norfolk) (Con)
I am grateful for the opportunity to speak to the amendment tabled by my hon. Friend the Member for Stone (Sir William Cash), which would require statutory consultation before guidance was introduced.
When I originally drafted the Bill, I considered whether there should be consultation before the guidance, and whether it should be statutory. It is worth saying to my hon. Friend that the Bill is quite thin and will work satisfactorily only with guidance—he is right to identify that guidance is an important component. My hon. Friend alluded to the reason for that: the range of authorities that are planning authorities is very wide.
The Bill does two things: it requires planning authorities—the Bill calls them “relevant authorities”—to keep a register; and it requires them to have regard to that register when exercising their statutory functions, whether that is planning, housing, the disposal of land or regeneration. The range of authorities that are planning authorities is wide. For example, an inner-London borough is a planning authority, but so is a national park. In a rural area such as South Norfolk, a rural district council, as we called them in the old days, is a district council and therefore a planning authority. It is not possible to imagine a set of rules or guidance that would be applicable equally to an inner-London borough and a national park. What might be reasonable for us to expect of a planning authority in a mixed rural and urban area with plenty of land to show that it had had regard to its register, might be unreasonable for us to expect of a planning authority in a dense inner-London borough that has much greater land availability problems. For different reasons, it might not be reasonable for us to expect the same thing of a planning authority such as a national park. Any guidance would therefore by its nature be varied, depending on the circumstances.
My hon. Friend mentioned the role of the vanguard councils. He is right that they are crucial. With a small pot of money from the Department for Communities and Local Government, they are experimenting and establishing what works best in terms of establishing and operating a register. The vanguard councils are doing voluntarily and willingly what will in due course become a duty for all councils. The idea is that all councils that are faced with the new duty—the duty to operate a register and to have regard to it—can learn from the vanguard councils about the best way to set up and operate a register, and integrate the running of the register with the council’s planning, housing, land disposal and regeneration functions.
It would be wrong to be over-prescriptive and to place new burdens on councils, especially given that the vanguard councils from which much of the learning will come are at an early stage. I have no doubt that in due course as the Bill is implemented, it will be sensible in most cases for the Department to consult local planning authorities of different types, depending on the nature of the guidance it wishes to issue in different cases. It would particularly be worth consulting vanguard councils, which will have valuable experience to share. That is the point of the vanguards.
My hon. Friend’s proposal to turn the consultation process, which I am sure will happen, into a legal obligation with a statutory three-month consultation period would inevitably create more inertia, which is precisely what the Bill aims to cut through. The aim of the Bill is to start to unblock the logjam of housing supply by allowing customers more say over what they want rather than leaving them little choice but to accept what a big developer tells them they want. The underlying philosophical drive behind the Bill is that if we build more houses as if customers matter, we will end up with more houses, which is what the nation so badly needs. The aim is most definitely not to create yet more process and inevitably more delay, which I fear statutory consultation would do.
I understand my hon. Friend’s concerns, but I hope he will agree that statutory consultation is not necessary and consider withdrawing his amendment.
The Minister of State, Department for Communities and Local Government (Brandon Lewis)
I, too, thank my hon. Friend the Member for Stone (Sir William Cash) for taking an interest in the Bill and for working to ensure that the Bill is as strong as it can be. He suggests that there should be a statutory consultation period of three months before any guidance is issued by the Secretary of State. I thank him for raising the important issue of consultation and guidance, and for giving me the chance to explain the Government’s position, which I hope I can.
I know from the experience of our right-to-build vanguards that it is important that any national framework for the register is sufficiently flexible to reflect the considerable differences—my hon. Friend the Member for South Norfolk (Mr Bacon) outlined the differences—in the scope for custom build in different parts of the country. It is important that we seek the views of a wide range of interested parties, particularly when we are establishing the detailed framework, but I am not convinced of the need for a statutory consultation period before the issuing of guidance. I am afraid that the Government cannot support the amendment.
Statutory consultation can have a valuable role, but it is not necessary or desirable for every Government action. When used unvaryingly, it can have a detrimental impact on policy and create significant delays. That is not to underplay my understanding of the point that my hon. Friend the Member for Stone makes—I acknowledge his point.
In many instances, the Secretary of State may issue guidance to local government without being required to consult local government and other partners before doing so. For example, we are not statutorily required to consult on national planning policy guidance. In the case of the Bill, we believe that statutory consultation would only delay the implementation of the custom and self-build register that the Bill seeks to establish. The explicit requirement in the amendment for at least a three-month consultation period seems excessive, especially given that our current consultations on planning policy matters are normally around six to eight weeks, which gives local authorities and others sufficient time to respond.
My hon. Friend’s amendment would also mean that the Government must consult for a considerable period on even minor revisions to the guidance, which would clearly add unnecessary bureaucracy. Arguably, it would increase the burden on local authorities. My hon. Friend wants neither of those things and we strongly want to avoid them.
To deal with what my hon. Friend desires, local authorities have been key influences in the development of the policy, as we have demonstrated through the right-to-build vanguards. My hon. Friend the Member for South Norfolk outlined how important they have been in the development of the policy—I will return to that on Third Reading, which will I hope will happen shortly. We fully intend to maintain this close link with local authorities and other partners in implementing this policy, including in drawing up the guidance.
With those few words of explanation, I hope my hon. Friend feels reassured enough to be able and willing to withdraw his amendment.
Sir William Cash
I have listened with enormous care to what the Minister has said and to the shadow Minister. My intention from the very beginning has been to make sure that the Bill has proper consideration and that it receives all the assistance it needs to get through. I have every confidence that that is exactly what will happen, and I congratulate my hon. Friend the Member for South Norfolk (Mr Bacon) on his proposals. In the circumstances, having listened to the arguments, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Third Reading
Brandon Lewis
I start by endorsing the cross-party harmony and join the hon. Member for West Ham (Lyn Brown) in congratulating my hon. Friend and neighbour the Member for South Norfolk (Mr Bacon) on introducing the Bill. He has carried it through to this stage with his usual passion and individual flair—including mince pies in Committee, which I am still working off on my training bike. It is a testament to my hon. Friend’s passion as well as the necessity for legislation that the Bill has been received so positively across the parties in this House. I am particularly pleased about the cross-party consensus on the Bill’s aims, which will help to give the custom build sector further impetus across the country, and I especially welcome the Opposition’s support.
We had a good debate on Second Reading and in Committee, so I shall not go into too much detail on the Bill’s content. If the House will allow me, I will take a few minutes to explain why the Government support the Bill so strongly and how it will help to take forward our proposals for a new right to build.
The Government are committed to increasing housing supply and helping more people achieve their aspiration of owning a home of their own. When we came into office, the housing market was stalled. In fact, we inherited from the last Labour Government the lowest level of house building since, I think, 1923, which puts things into context. Prospective buyers could not get mortgages, and developers were not building. We have spent the last four and a half years fixing it, and we can see that our efforts are paying off.
I appreciate the comments of the hon. Member for West Ham on the Lyons review and the aspiration for 200,000 homes to be built. I shall come on directly to the number of homes in a few moments, but let me politely point out that this is the third target that Labour has set in the last 12 months. I will be interested to see where the level falls to the next time Labour announces a housing target.
The facts are that we have seen 500,000 new homes built since April 2010 and the number of starts on new homes last year totalled 139,500—up by 15% on the previous year and the highest number since 2007, which should provide some context. The construction industry, furthermore, has been hiring at the fastest rate since 1997. I am sure that my hon. Friends will have seen that the number of first-time buyers is at its highest since 2007, according to a Halifax review published just this week. That is proof that our policies, such as Help to Buy, are working.
We can see light at the end of the tunnel, but there is still more to be done. We want to increase house building rates further and encourage improved standards of design and sustainability. I believe it is through greater diversity in our housing market that this can be achieved. With more competition, more new entrants and more new development, we will increase the speed and, importantly, keep, develop and improve the quality of house building in respect of build, construction and design.
Our volume house builders play a vital role in our housing market, but we know that there is no “one size fits all” model for our market. As the economy and the construction industry recover, we want to see more small and medium-sized builders back in the market. We know how important they are. In addition to their role in increasing the supply of housing, they provide local jobs across the country, as Members will know. They provide a more personalised product and services for local people, and they strengthen the capacity of the house building sector more broadly. They are the reason for the changes in planning terms for small sites, which we announced just before Christmas and they are direct beneficiaries of this Bill.
We are already actively supporting the small and medium build sector. Our support for smaller builders through our £500 million “Get Britain Building” investment fund for smaller builders’ work has already helped to deliver thousands of new homes and to commence work on a further 12,000 sites. We have opened our £525 million builders finance fund to small and medium builders to deliver schemes as small as five homes. Again, that could benefit directly from the Bill and the work behind it.
However, we want to look at more innovative ways of diversifying the market such as the custom build sector, which leads me directly to why we are all here today. I strongly believe that custom and self-build housing can play a central role in securing greater diversity in the housing market and help us to deliver the homes people need. We know we live in a country where there is high demand for custom and self-build. That could be met by the small and medium building industry, as I have outlined.
According to research by the Building Societies Association, one in three people in the UK is open to building their own home, and 1 million people want to build their own home in the next year alone. In fact, according to the website PlotSearch, January is apparently the peak time for subscribers to plot-finding services. It is no surprise that this high level of interest exists; custom build can be cheaper, greener and better designed than conventional market housing.
As I mentioned on Second Reading, a report published by the Lloyds Banking Group in 2013 concluded that self-builders can save between 20% and 25% on the cost of the equivalent home on the open market. According to the National Custom & Self Build Association, a typical three-bedroom home costs just £150,000 to build. It is interesting to think about some of the available options. Just before Christmas, I visited my hon. Friend the Member for South Norfolk in his constituency to visit Beattie Passive, a Norfolk company that showed us how it works. If I recall correctly, it let me have a go at trying to build one of the homes that it can supply. The kit can be supplied for somebody to build their own home at a cost of just £7,500. That makes house building, and custom house building in particular, affordable at a level that people often do not realise is available to them. For many custom and self-builders, the key advantage is the potential for more energy efficiency than can be achieved in typical developments. The Beattie Passive homes are a good example of that. Home owners who can influence the end product tend to have a longer-term interest in their properties, which may result not only in more energy-efficient homes, but, frequently, in better design and increased investment in the community. In fact, custom and self-build residents remain in their homes for about 14 years longer than the average resident.
Despite the advantages of custom building in diversifying the market and producing high-quality, sustainable homes, the market is stymied at present. Custom build currently accounts for only about one in 10 homes in Britain, just over 10,000 a year. That is a far lower proportion than we see in the United States and in other European countries. I think that the state of the market is caused by three main barriers: the limited availability of land, limited access to finance and advice, and the problem of red tape.
Since 2011, the Government have worked with the industry to overcome those barriers and develop the custom building sector. We want to double the output of the sector over a decade, so that well over 20,000 homes a year are built. I have been talking to finance houses—in fact, I did so only this week—about how we can make finance more accessible to those who wish to develop and build their own homes.
We are already encouraging the provision of more land through the planning system. Since 2012 councils have been required, through the national planning policy framework, to assess and plan to deal with the need for housing, including the requirements of those who wish to build their own homes. We have identified 12 Government-owned sites, which have been released for custom and self-build development by the Homes and Communities Agency.
Sir William Cash
The Minister has just mentioned the national planning policy framework. As he knows, today I am due to present a Bill that touches on that issue in a variety of ways, and in a fairly investigative fashion. Does he agree that, whatever instructions may or may not have been given to the Whips in respect of that Bill, it will be possible for us to continue our discussions about the planning and land implications of the NPPF at some future date?
Brandon Lewis
Absolutely. I am always happy to continue any discussion with my hon. Friend, and that certainly applies to discussions about how we can ensure that our planning system is fit not just for today but for tomorrow. My hon. Friend’s intervention gives me another chance to make the point that local authorities who are making plans for housing provision in accordance with the NPPF should concentrate on what housing is appropriate for and required by their areas, and that custom building should form part of that.
Developers have already been selected for six of the 12 Government sites. They include the award-winning Trevenson Park site in Cornwall, which Igloo Regeneration is currently developing. The Park Prewett site in Basingstoke is the largest of the custom building sites in the programme, and will generate 1,250 new and affordable homes. We can see the potential for more custom building in sites such as Ebbsfleet and Bicester. Yesterday I visited Brighton and met representatives of KSD Housing, which has a fantastic “modular build” proposal that could work well in the custom building sector as well. It could provide a very good model for the delivery of, in particular, affordable housing in the future.
I mentioned my visit to the constituency of my hon. Friend the Member for South Norfolk to see the housing built by Beattie Passive. That company has also built homes in my own constituency—council homes. It is great to see, under this Government, the first council homes to be built in Great Yarmouth for a very long time. Beattie Passive is able to work with the custom and self-building industry not just to deliver homes, but to teach people how to build their own homes. It enables them to develop new skills as well as new houses. That is important because, although we all enjoy watching great programmes such as “Grand Designs”, many people do not realise that custom building and self-building can be affordable. It is not necessary to have a lot of money in order to build a home; indeed, it is possible to buy a home-building kit for £7,500. The Bill does a great deal to make people more aware of the options that are available.
We are working to improve access to finance for all who are involved in custom and self-build. Following on from previous funds, earlier this year we launched a £150 million five-year serviced plot investment fund to finance up to 10,000 plots. We are also exploring with lenders how we can increase the number of custom and self-build mortgages. More lenders are already offering self-build loans, and gross lending on self-build is predicted to increase this year to £1.9 billion annually. It is clear from our discussions with lenders that the more that this sector develops, the easier it will be for them to assess it and ensure that mortgage funds are available. They are very interested in the sector.