PARLIAMENTARY DEBATE
Building Homes - 12 December 2024 (Commons/Commons Chamber)
Debate Detail
This Labour Government were elected five months ago with a mandate to deliver national renewal. Standing on the steps of Downing Street on 5 July, the Prime Minister made it clear that work on that urgent task would begin immediately, and it did. Within our first month in office, we proposed a bold set of reforms to overhaul a planning system that is faltering on all fronts after a decade of piecemeal and inept tinkering by the Conservative party. Today I confirm to the House that we are delivering the change we promised by publishing an updated national planning policy framework, meeting our commitment to do so before the end of the year, and supporting our ambitious plan for change milestone of building 1.5 million new homes in this Parliament.
The case for grasping the nettle of planning reform in order significantly to boost housing supply and unleash economic growth is incontrovertible. England is in the grip of an acute and entrenched housing crisis, and as you, Mr Speaker, and every Member of the House will know, its detrimental consequences are now all pervasive: a generation locked out of home ownership; 1.3 million people languishing on social housing waiting lists; millions of low-income households forced into insecure, unaffordable and far too often substandard private rented housing; and, to our shame as a nation, just shy of 160,000 homeless children living right now in temporary accommodation. Our economy and the public services that our constituents rely on are also suffering, because as well as blighting countless lives, the housing crisis is consuming ever larger amounts of public money in the form of a rapidly rising housing benefit bill. It is also hampering economic growth and productivity by reducing labour mobility and undermining the capacity of our great towns and cities to realise their full economic potential.
The Government are under no illusions about the scale of the task before us or the challenges that must be overcome and the pitfalls avoided if we are to succeed. But we are absolutely determined to tackle this crisis head on. The previous Government, of course, took a different view. Not only did they fail to meet, even once, the target of 300,000 homes a year that they set themselves, but in a forlorn attempt to appease their anti-house building Back Benchers, they consciously and deliberately chose to exacerbate the housing crisis by making changes to national planning policy that have contributed to plummeting housing supply. We know that the changes required to start putting things right will be uncomfortable for some. We know we will face resistance from vested interests. But this Labour Government will not duck the hard choices that must be confronted to tackle the housing crisis, because the alternative is a future in which a decent, safe, secure and affordable home is a privilege enjoyed only by some, rather than being the birthright of all working people.
Let me turn to the changes that we are making to the framework. We received more than 10,000 responses to our consultation, alongside which my officials and I have held extensive engagement with private house builders, affordable housing providers, local authorities and other organisations from the sector. The views shared with us have been invaluable in helping to refine our initial proposals so that we are able to introduce an effective package of reforms.
Before I set out a number of important areas in which we have made changes, let me touch briefly on some of the proposals that we intend to implement unamended. First, we have reversed the anti-supply changes introduced by the last Government almost exactly a year ago. From the abandonment of mandatory housing targets to the softening of land supply and delivery test provisions, the policies that gave local authorities the freedom to plan for less housing than their nominal targets implied are no more. Secondly, we have made explicit the importance of growth supporting development, from labs to data centres, to supply chains and logistics. In the same vein, we have made clear that the default position for renewable energy deployment should be yes. Thirdly, we strongly promoted mixed tenure development, reflecting robust evidence that attests to the fact that such developments build out faster and create diverse communities. Fourthly, we have made a series of changes to bolster affordable housing delivery and enable local authorities to determine the right mix of affordable housing for their communities. That will support our commitment to deliver the biggest increase in social and affordable house building in a generation.
There are four important areas where we have refined our proposals, and I will turn first to housing targets. As we made clear when launching the consultation in July, restoring a mandatory standard method for assessing housing needs is insufficient if the method itself is not up to the job. As the House will know, we proposed a bold change, increasing the total annual national target from 300,000 to 370,000, ending the reliance on decade-old population projections, and removing the arbitrary 35% urban uplift that resulted in a skewed national distribution that was disproportionately focused on London to the detriment of the rest of the country. We fully intend to maintain the level of ambition outlined in July, but we heard through the consultation a clear view that we should do more to target housing growth in those places where affordability pressures are most acute. We have therefore made the method more responsive to demand, redistributing housing targets towards those places where housing is least affordable, while maintaining the overall target envelope.
Next, let me turn to our reforms to the green belt. As the House knows, ours is a brownfield-first approach to development. As a result of a number of targeted changes we are making to the framework, and our proposals for a brownfield passport, we are prioritising and fast-tracking building on previously developed urban land wherever possible, but we know that there are simply not enough sites on brownfield land registers to deliver the volume of homes that the country needs each year, let alone enough that are viable and in the right location.
In the summer, we proposed that local authorities take a sequential approach to releasing land to meet their housing need: brownfield first, followed by low-quality land in the green belt and only then higher-performing land. To identify low-performing sites we proposed a definition of grey-belt land that reflected the fact that there are areas currently designated as green belt that contribute little by way of aesthetic, public access or ecological value. That approach received broad support through the consultation, but a strong desire was expressed to limit the room for subjectivity. We have therefore set out a clearer description of how to assess whether land meets the definition of grey belt, and we will be providing further guidance to local authorities in the new year to support them with green-belt reviews.
At the centre of our green-belt reforms lies our golden rules, which are designed to make sure that where green-belt land is released, the public derives real benefit from development on it, including more affordable housing to meet local need. In the consultation, we proposed a flat 50% affordable housing target, but we recognise that because land values vary across the country, the limited use of viability assessments should be permitted. Through the consultation, we have recognised that that approach risked uncertainty. If flexibility was needed in some parts of the country because land values were lower, the precise amount of affordable housing to be secured would become a protracted site-by-site negotiation. If a local authority did not allow flexibility, there would be a risk that sites were rendered unviable, with the result that no houses, affordable or otherwise, would get built.
Our final policy therefore takes a different approach to managing variation in land values. Rather than a single 50% target, we are introducing a 15 percentage point premium on top of targets set in local plans, up to a maximum of 50%. Because that means the target itself will be responsive to local circumstances, we will be restricting the ability for site-specific viability assessments until such time as we have amended viability guidance in the spring of next year. By prioritising pragmatism over purity, the golden rules we are putting in place today will give communities the confidence that they will be met and will maximise the number of affordable homes delivered across the country.
Another area where we have made changes is to the presumption in favour of sustainable development. The presumption sits at the heart of the national planning policy framework and means that where a local authority has under-delivered or an up-to-date local plan is not in place, the balance of decision making is tilted in favour of approval. We are determined to ensure that where the presumption applies, it will have real teeth. At the same time, we are clear that development consented through it must be consistent with the clear requirements in national policy relating to sustainability, density, design and the provision of affordable homes. The changes we have made deliver on both those fronts.
Finally, in the consultation we sought views on how our changes apply to local authorities at an advanced stage of plan making. Our proposed transitional arrangements aim to strike a balance between maintaining the progress of plans at more advanced stages of preparation, while maximising proactive planning for the homes our communities need. The core of our proposal—that we only hold back a draft plan where there is a significant gap between the current proposed housing requirement and the new housing target—was well supported. However, we are making three changes.
First, we have taken on board concerns that the transitional period was too tight, so we will provide local planning authorities with an extra two months to progress their plans, extending the transitional period from one month to three. Secondly, and again responding to an ask we heard repeatedly from councils, the transitional arrangements will apply where the draft housing requirement in the plan meets at least 80% of local housing need, rather than the numerical 200 homes threshold we originally proposed. In those instances, the plan will not be held back. Thirdly, where plans are adopted under these arrangements, and where there are existing plans based on the old targets due to run for a number of years yet, we want to see the level of ambition raised sooner rather than later. As a result, from 1 July 2026, we will expect authorities with plans adopted under the old standard method to provide an extra year’s worth of homes in their housing pipeline, helping to accelerate the delivery of new homes.
We recognise that we are asking much from many local authorities, and we are determined to support local leaders trying in good faith to deliver homes for their communities. That is why across dedicated local plan funding, the planning capacity and capability support announced at the Budget and income from raised fees, we will be injecting more than £100 million into the system in the coming year.
We are confident that the revised framework that we are introducing today will support significantly higher rates of house building and sustained economic growth. We have listened carefully to the views expressed in the consultation and adjusted several areas of policy accordingly; now it is for others to do their part. Developers must turn supportive words into action, bringing forward new sites and building them out at pace. Local authorities must embrace the challenge of higher targets and push for more and better development in their areas.
We have moved fast. We have not held back. We have not shied away from controversial decisions, or wavered in the face of those who have sought to chip away at our resolve. With focus and determination, we have pushed on to ensure that we are putting in place a planning system geared toward meeting housing need in full and unleashing economic growth. Change will take time as homes are not built overnight and our dire inheritance means that the climb out of the trough we are in will be a steep one, but by implementing this revised framework today, we have taken another decisive step toward a future in which everyone will enjoy a decent, safe, secure and affordable home in which to live.
What we do not welcome is the war on rural England that the Minister is pursuing. Following on from the family farm tax and the withdrawal of the rural services delivery grant, we now see a massive shift to mass house building in rural areas and on green belt. We do not welcome the bulldozing of democratic accountability. We do not welcome the lowering of housing targets for urban areas, including a 20% reduction in London, which is already missing its targets by 50%. We also do not welcome an average doubling—a 100% increase—for predominantly rural areas.
The reality for local residents in areas such as Westmorland, Cumberland, North Yorkshire and the home counties is that they will one day wake up to realise that they will face targets of up to 600% increases. They will call their local councillor to ask them to oppose a specific application and be shocked at the response, which will be, “I am sorry; we no longer have the right to vote against an individual application.” They will be even more shocked if they become aware of what Labour said in opposition. Its Opposition motion on 21 June 2021 called on the previous Government to
“protect the right of communities to object to individual planning applications.”
The Minister is now taking that away.
Local residents will be more shocked again when they become aware that the Minister himself used that right in 2021 to object to an application for 1,500 homes on a brownfield site in his constituency. Indeed, the Secretary of State also used that right to object to a development in her constituency in 2017. Same old Labour: do as I say, not as I do.
The reality is that the Government will fail to deliver on their target. Members need not listen to me; they should listen to the chief executive officer of Homes England, who admitted in a leaked email that it is a two-Parliament objective rather than deliverable in this Parliament. The Centre for Cities and the Office for Budget Responsibility have both said that only 1.1 million homes will be delivered in England in this Parliament, and indeed there will be only 1.3 million homes across the UK, which is lower than we delivered in the last Parliament—another broken promise from Labour. As the Leader of the Opposition said, we will be there for the Minister and the Secretary of State when they fail to deliver on that promise.
This planning framework pushes development to rural areas, concreting over green belt, green fields and over our green and pleasant land, rather than focusing and supporting building in urban areas where we need to build the most. And to what end? Due to the loosening of restrictions on visa requirements such as the salary threshold, and the scrapping of the Rwanda deterrent, the majority of the homes that the Government deliver will be required for people coming into this country rather than for British citizens.
Labour has also consistently failed on affordable homes. Under the London Labour Mayor, new affordable housing in London is down by 88%, yet across England, the Conservative Government delivered more than half a million homes. They have already weakened their requirement for 50% affordable homes on the green belt by allowing the use of viability assessments. That change will mean fewer affordable homes.
The Labour Government have already failed first-time buyers. The Conservative Government doubled the number of those buying every year compared with 2010, by means of the stamp duty discounts, Help to Buy, right to buy and our affordable homes programmes—some of which helped the Secretary of State herself get on the housing ladder. Those have been axed by this socialist Government pulling up the housing ladder. They will build over rural areas while claiming it is grey belt land, but we delivered over 1 million homes in the last Parliament alone. It is vital more than ever that we build in the right places with the right infrastructure, but the Prime Minister has already admitted that he will bulldoze through the concerns of local communities. If the Government really want homes to be built where they are needed, they must think again.
Finally, how many of the Minister’s 1.5 million homes will be affordable? What does he expect will be the split for social rent, affordable rent and affordable homes to purchase, particularly given the use of viability assessments? On planning capacity, will he set out why his resourcing of planning authorities, which we broadly welcome, has risen from £20 million in his manifesto, to £46 million in the Budget, to £100 million today? How is that consistent with the Budget? Why is he deliberately making it more difficult for first-time buyers to buy a home? What percentage of the 1.5 million target does he expect will be needed for immigrant households?
There were so many inaccuracies and misleading statements in that response, and a fundamental misunderstanding of the framework that we have planned, that I am not sure where to start. The assertion that we are waging war on rural England or that we have distributed housing targets predominantly towards rural areas is simply wrong. We are focusing—[Interruption.] The hon. Gentleman might wish to listen to the response and focus on the detail of the framework that we have published. We are focusing growth across our city regions. Housing need across mayoral combined authority areas will increase by over 20% compared with the current standard method. Similarly, on the green belt, it is not the case that we are allowing viability assessments—I was very clear in my statement. We are restricting the use of site-level viability assessments on green belt release until we have refreshed viability planning policy guidance in the new year, at which point we will consider exemptions for previously developed land and large sites.
We prioritise the importance of up-to-date local plans. We inherited a system from the previous Government of less than a third up-to-date local plan coverage. That is unsustainable. We want communities more involved at an early stage, shaping their local plans. That is the best way that they can shape development. The hon. Gentleman mischaracterises our working paper proposals on planning committees; as we discussed at length in the urgent question earlier in the week, we are simply talking about streamlining the planning system to ensure that trained, professional planning officers take the appropriate decisions, and elected members get to focus on the largest and most controversial applications.
I am not going to respond to the taunt about sites in my constituency.
I will briefly answer the hon. Gentleman’s questions. We cannot put a precise number on the proportion of homes under the 1.5 million target that will be affordable for the following reasons. We expect to see many more social and affordable homes come through developer contributions. Our golden rules, which apply to the release of land through the green belt, will ensure that the proportion rises—that 15% premium on local affordable housing rates. As the hon. Gentleman will be aware, affordable provision is partly related to grant funding from Government. We will set out details of future investment in next year’s multi-year spending review, along with what the successor to the affordable homes programme looks like and the precise split between social rented homes and other forms of tenure. We have been very clear that we want to maximise the delivery of social value homes.
Details on planning capacity will be set out in the response to the consultation. The £100 million figure I cited is the amount of support in the round going into local plan support, planning capacity and capability support and other things.
On migration, the hon. Gentleman knows as well as I do that the majority of homes that developers sell in this country are to British nationals; that most parts of the country have local allocation rules and residency requirements that mean that non-British nationals cannot access housing; and that only those who are eligible for no recourse to public funds can do so. He knows those rules. It is scaremongering; it is beneath him. I know that the hon. Gentleman does not really believe that, and that the House does not believe that either.
We need more social housing to get people off our waiting lists. Our councils are at breaking point, with some developers using the viability clause as a way of not delivering on the much-needed affordable homes that they have promised. Communities must be able to trust the planning process. Will the Minister assure the House that local councils will see a significant increase in the affordable homes programme next year to allow them to meet the Government’s housing targets?
Secondly, I want to touch briefly on the land classification outlined in the strategy, which could affect the way in which communities are able to shape local developments. Too often we see a disproportionate impact on high-end developments, which does nothing to help people to get on the housing ladder. Is the Minister confident that the update to the NPPF will ensure that new homes will be based in improved developments with amenities such as schools, GP surgeries and other accessible things, so that local residents can see tangible benefits in the developments coming forward in their area?
On future investment in affordable housing and social rented homes, as I have said, we will set out details in the multi-year spending review next year. We want to prioritise the delivery of social rented homes given the important role they play in addressing the housing crisis, and in resolving the particularly acute end of that crisis in the form of temporary accommodation.
On the NPPF more widely, I can give my hon. Friend those assurances. The targeted changes to the framework we have made today will support the delivery of infra- structure. As I have already said, when it comes to the release of green-belt land, our golden rules will ensure that we get a higher proportion of affordable housing, and also infrastructure and amenities and access to green space through that additional public benefit.
Trust in the planning system, like trust in politics, is not where it should be. As with bypassing planning committees, imposing housing numbers on councils takes decision out of the hands of elected councillors and local people, which is undemocratic. We would reverse that. Trust in planning demands that people know that our most precious green spaces are fully protected. Every authority should have the same level of green belt protection, plus precious green wedges and green spaces in their areas. Rather than Whitehall diktat, plans for new homes should be led by communities and our councils, and those homes should be genuinely affordable to local people. Councils such as Eastleigh have shown that where those new homes come with jobs, schools and public transport, community consent follows. We will not solve the crisis in care, for example, unless we have the homes for older and vulnerable people, supported by the GP surgeries and care services they require.
If any target is to be mandatory, therefore, it should be our country’s need for 150,000 new social homes per year and for low-cost home ownership through options such as rent to buy to give people a real foot on the ladder. That should be funded from capital borrowing, just as Labour Governments and, historically, Liberal Governments funded our stock of council houses in the past, including the use of compulsory purchase, before Conservative Governments sold them off hand over fist until soon there will be almost none left.
Top-down planning diktats risk a surge in speculative greenfield permissions of the kind that the Minister is concerned about, for homes that are out of people’s reach. Instead, let us fund, incentivise and focus on the social and affordable homes that we need: zero-carbon homes that tread lightly on the land, restoring nature and in doing so restoring trust in local people and the councillors whom they elect to take the decisions that most affect them and their communities.
On the charge that we are bypassing local democracy and local communities, I refute that entirely. We are encouraging, in the way that the previous Government did, the adoption of up-to-date local plans that are the best means of shaping development in any particular part of the country. That is where local people and communities can get involved to determine what development looks like and where it goes, but it must be a conversation about what development looks like and where it goes, rather than whether it happens at all. Under the current system, as a result of the NPPF changes in December 2023 and the fact that we have less than a third up-to-date plan coverage, there is too much speculative development outside of plans, which communities are rightly taking issue with.
On social rented homes, as I have said to the hon. Gentleman previously, until he comes up with a less vague way of funding 150,000 social rented homes, we simply cannot take the point seriously. The Liberal Democrats got away with having no housing spending totals in their election manifesto. I applaud the ambition, but we take a more realistic path to boosting social and affordable homes, putting forward only what we know we can deliver within the spending constraints that we face.
Lastly, I absolutely agree with the hon. Gentleman that we need to reform how CPO works. We are taking forward the discretionary power to disapply hope value that the previous Government took through—I commend them for doing that in the Levelling-up and Regeneration Act 2023. We need that power tested, but we need to go further and we intend to do so in the forthcoming planning and infrastructure Bill.
Will the Minister explain in a bit more detail how he will ensure that these homes are of the quality that my constituents deserve, and that the necessary infrastructure, particularly schools, will be built alongside them?
As I have said, we are making targeted changes to the framework to support the delivery of infrastructure provision. The Government also support essential infrastructure, especially in the areas that are most unaffordable, through a range of spending programmes. On infrastructure-led development and quality, supported by our framework changes in the presumption for saleable development, we are determined that there is not a rush to 1.5 million regardless of what the units look like. They must be well designed, quality units, with the infrastructure, amenities and services that communities need in order to thrive.
When areas refuse to engage, we will take appropriate action. Today we are setting a 12-week deadline for local authorities to give us a timetable detailing how they intend to put local plans in place, through various measures relating to the transitional arrangements, and how the new six-year housing land supply will bite. We think we can incentivise authorities to come forward and put those plans in place. Where they do not do so, however, we will not hesitate to use the full range of ministerial intervention powers at our disposal. The last Government introduced deadlines and let them slip repeatedly, but we will not make the same mistakes. We will ensure that up-to-date local plans are put in place so that we end the speculative out-of-plan development that, as I said, communities across the country are rightly taking issue with.
What approach will the Minister take when there are multiple local plans, for example the London plan and the London borough plans? How will the targets be worked out between those different plans?
We place great importance on agricultural land and food production. The national planning policy framework remains clear that where significant development of agricultural land is demonstrated to be necessary, areas of poorer-quality land should be preferred to those of higher quality. Those protections remain in the framework.
Mid Sussex district council has a local plan, and it is well advanced in making its next local plan, which, significantly, has cross-party support from Conservative, Green and Labour councillors. We also have a design guide, and are delivering 1,000 houses a year, including 300 social and affordable homes last year. We are an example of what good planning looks like. We are even purchasing our own temporary accommodation. I invite the Minister to come to Mid Sussex and see for himself what good planning looks like.
I welcome the commitment to overall house building targets—we cannot hit a national target with clear local targets. I welcome in particular the commitment to social housing. Will the Minister confirm that that means social housing, not the affordable housing that the shadow Minister mentioned? There is a big difference there. The viability of brownfield sites is lower and section 106 contributions will be lower, so if we are to concentrate on brownfield sites, will the Minister make the point to the Chancellor that to deliver social housing in the numbers needed, she might have to reconsider the amount of social housing grant that she provides?
My hon. Friend is a champion for the natural world, and I am aware that he is sympathetic to the need to include biodiversity measures in all new builds, such as swift bricks, which are an essential nesting habitat for the survival and recovery of cavity-nesting birds. Will he provide this much-needed boost for a declining population that has sadly been placed on the critically endangered red list? Will he ensure that these simple requirements are not only in the NPPF but are translated into the national development management policies to ensure they have statutory weight?
However, the Minister has announced today that the new target for London is about 11% lower than the old one. In the original round of numbers, Nottingham was down 21%, Birmingham and Leicester were down 31%, and Coventry was down 50%. Can he tell me what the numbers are now for those midlands cities? Are they all still going down, even as the targets for Harborough, Oadby and Wigston are going up?
As we seek to tackle the crisis, we must do things with people, not to them. I gently say to the Minister that communication and engagement will be vital to getting this right. I invite him to confirm from the Dispatch Box, for constituents in Newcastle-under-Lyme, that productive agricultural land will not be the default in his brownfield-first approach to development.
“a local framework for creating beautiful and distinctive places”.
Will he write to every local authority to make it clear that design is a key planning determinant, and is absolutely salient? Will he also write to the Planning Inspectorate to ensure that, when local authorities turn down an application on the basis of poor design, the inspectorate will back them up?
Thanks to the failure of the Conservative party, over 150,000 children will be waking up on Christmas day in temporary accommodation. If that is a record to be proud about, I have absolutely no idea what would make Opposition Members feel any shame. May I get two reassurances from the Minister? First, business needs certainty, so will he assure me that we will not see the chopping and changing we saw from the Conservative party and that we will stick by the policies? Secondly, the issue is not just about the planning rules but about capacity in our local councils, so what will he do to speed up the process of getting more planners into our local councils to add capacity to the system?
On local planning capacity and capability, I made reference in my statement to the £100 million of funding that is being injected into the system, in particular as part of the transitional arrangements to help local authorities that will fall foul of the requirements set out in the new framework today.
“to look at options for the provision of greater choice, quality and security of housing for older people.”
That taskforce recently published its report, with a series of recommendations that we are engaging with. However, we need to give serious consideration as to how the planning system evolves to take into account demographic changes that we know we need to adapt to.
The Minister talks about guaranteeing infrastructure. When I asked the Government about a new east coast main line station to support the 6,500 homes at Alconbury Weald, they fobbed me off with talk of an internal review. How will the NPPF unlock the infrastructure that large developments desperately need?
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.