PARLIAMENTARY DEBATE
National Planning Policy Framework - 5 March 2018 (Commons/Commons Chamber)
Debate Detail
That is why this Government have taken action on all fronts to turn this situation around, and those efforts are starting to bear fruit. We inherited a situation in 2010 in which annual house building had fallen to its lowest level in peacetime. Since then, we have delivered more than 1 million homes, and last year saw an increase in housing supply in England of over 217,000 new homes. That is the biggest increase in annual housing supply in all but one of the past 30 years, with planning permissions on a high and set to boost these numbers even further.
We have helped hundreds of thousands of people on to the housing ladder through Help to Buy. We are working to encourage landlords to offer longer tenancies and promoting more homes for rent on a family-friendly basis, with three-year tenancies in our build-to-rent schemes. We are cracking down on rogue landlords and the abuse of leaseholds, and we are taking steps to make renting fairer and to tackle homelessness through earlier intervention. We have launched a new, more assertive national housing agency, Homes England. We have launched an independent review, led by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin), into the gap between planning permissions granted and homes actually built. We are putting billions into the affordable homes programme, and we are delivering essential infrastructure through the new housing infrastructure fund.
We know, however, that there is still a lot more to do to deliver 300,000 homes a year in England by the middle of the next decade. Of course, planning is an important part of that journey, and today we are taking the crucial next steps with the launch of consultations on the revised national planning policy framework and on the reform of developer contributions. These are measures that set out a bold, comprehensive approach for building more homes, more quickly, in the places where people actually want to live—homes that are high quality and well designed that people are proud to live in and proud to live next door to and that are at the heart of strong, thriving communities. There will be much clearer expectations on local authorities and developers to deliver their commitment to unlock land, fulfil planning permissions, provide essential infrastructure, and turn those dreams of a decent, secure, affordable home into reality.
The revised NPPF implements around 80 reforms that we announced last year and retains an emphasis on development that is both sustainable and locally led, but it also involves a number of significant changes. For the first time, all local authorities will be expected to assess housing need using the same methodology—that is a big improvement on the current situation in which different councils calculate housing need in different ways, wasting time and taxpayers’ money. A standardised approach will establish a level playing field and give us a much clearer, more transparent understanding of the challenge we face. But perhaps one of the biggest shifts is a change in culture towards a focus on outcomes achieved—the number of homes delivered in an area—rather than on processes such as planning permissions. As it becomes easier to make plans more streamlined and strategic, this culture change will encourage local authorities to work together to meet their communities’ needs.
We are also confirming the important protections of neighbourhood plans—plans that are produced by local communities—which we introduced in December 2016 to guard against speculative applications. And we are going further, beyond the reforms we previously consulted on. We are giving local authorities the tools to make the most of existing developed land, with an even stronger drive for increasing density, particularly in areas where housing need is high. We will support those councils that wish to build upwards, but not at the expense of quality—high design standards that communities are happy to embrace will remain a priority.
The reforms also include more flexibility to develop brownfield land in the green belt to meet affordable housing need with no harm to the openness of the green belt. Even the mention of the words “green belt” may cause some concern, but let me assure right hon. and hon. Members that this is about building homes on sites that have previously been developed, not about compromising in any way existing protections that govern the green belt. Our green spaces are precious and deserve our protection, which is why the Government are also delivering today on our manifesto commitment to give stronger protection to ancient woodland, which demonstrates that we do not have to choose between improving the environment and delivering the homes we need—we can do both.
We are raising the bar across the board. We are protecting our natural world and making local authorities more ambitious and accountable so that places such as London no longer deliver far fewer homes than they need. In areas such as the capital, where demand and affordability are going in different directions, it is especially important that there should be less talk and more action—action that is more strategic and more realistic about housing need, with stronger leadership to bring people together across sectors and boundaries.
That said, the issue is not all about local government. Developers must also step up to help us to continue to close the gap between planning permissions granted and homes built. In doing so, it is vital that developers know what contributions they are expected to make towards affordable housing and essential infrastructure, and that local authorities can hold them to account. However, we all know of instances of developers making such promises but later claiming that they cannot afford them. In truth, the current complex and uncertain system of developer contributions makes it too easy for them to do just that, and it puts off new entrants to the market. That is not good enough, which is why we propose major reforms to developer contributions.
As part of our reforms, areas will be able to agree a five-year land supply position for a year, reducing the need for costly planning appeals involving speculative applications. I also recognise that swift and fair decisions are important at appeal, so I will shortly announce an end-to-end review of the planning appeal inquiries process with the aim of seeing what needs to be done to halve the time for an inquiry to conclude, while ensuring that the process remains fair.
There are other areas where we are considering pushing boundaries to really boost housing supply, including a new permitted development right for building upwards to provide new homes, and by finding more effective ways of supporting farmers to diversify and support the rural economy. The strong focus throughout is on making sure that we are exploring all avenues to meet everyone’s housing needs. That could mean implementing an exception site policy to help more people on to the housing ladder; giving older people a better choice of accommodation; promoting build to rent; or encouraging local policies for affordable homes that cater for essential workers such as our nurses and police.
By giving everyone—whether they are renting or buying, in the social or private sector—a stake in our housing market, we give everyone a stake in our society. That is why I encourage right hon. and hon. Members, and anyone who wants to see today’s generation enjoy the same opportunities as their parents, to get involved and contribute to the consultations that we have announced today. They will run until 10 May, and I look forward to announcing the implementation of the national planning policy framework in the summer.
I am confident that the bold and ambitious measures that we are proposing will have a huge impact not just on the number of homes built but, ultimately, on people’s prospects and our prospects as a country. They will ensure that local authorities or developers can no longer be in any doubt about where they stand, what is expected of them and what they must do to help to fix our broken housing market and deliver the homes that the people of this country need and deserve. I commend this statement to the House.
Today, once again, we have seen the Government bringing forward proposals that tinker with the planning system in yet another vain attempt to look as though they are doing something about the housing and infrastructure crisis that the country is facing, which is largely of their making. Let us be clear about the scale of the problem. Many communities up and down the country do not have the homes that they need. Since 2010, the number of rough sleepers in England has nearly trebled from 1,700 to almost 5,000 last year. The number of households living in temporary accommodation has also risen almost continuously since 2010, with the latest stats showing that there are 79,000 households in temporary accommodation, including 121,000 children. For many areas, wages-to-mortgage differentials are as high as one to 10, leaving those on or below average wages unable to afford to buy a house of their own—that is happening under a Tory Government.
New house building rates have, for many years, been only half of what we need, and nowhere near the 300,000 homes needed to keep pace with demand. Planning needs to deliver not only new homes, but new communities. Planning should be about designing places in which people want to live and work where there are environmental and leisure amenities, and where quality of life is high on the agenda, but the Government are failing at that, too.
As the Local Government Association has pointed out, planning departments have borne the brunt of cuts to local government, leaving many hugely under-resourced to meet the everyday tasks of assessing planning applications, building control and place-based policy- making. This results in poor planning and a lack of engagement with the communities that are most affected by planning decisions. As the Conservative chair of the LGA, Lord Porter, has said, the problem is not about planning and planning permissions. In the past year, councils and their communities granted nearly twice as many planning permissions as the number of new homes that were completed. More than 423,000 homes with planning permission are still waiting to be built. The truth is that councils are approving nine in 10 planning applications, which shows that the planning system is not a barrier to building, so the Government’s proposal of stripping councils of their right to decide where development takes place is not only unhelpful, but misguided.
The increase in permitted development, as set out in today’s proposals, takes the community voice out of planning altogether, so that the general view of people is that planning is something that is done to them, not something that they have any say in whatsoever. By contrast, Labour wants to empower communities, putting them at the heart of decision making, with neighbourhood plans central to a new streamlined system of plan making. What we need is a radical approach to deliver 21st century communities, and that is what Labour would do. We would invest in a new generation of garden cities and new towns, putting local councils in the driving seat of spearheading new settlements, unlike the Conservative party, which has talked warm words about new towns and garden cities for many years but, despite more than seven years in office, has barely produced enough homes for a new street, never mind a new town. The Secretary of State has said that
“along that corridor, there is an opportunity to build at least four or five garden towns and villages.”
What does he mean by “along that corridor”? How long will it take for us to see the start of a new settlement, never mind it being built?
Labour will look at the Government’s proposals in detail, but we know that we need something much bolder than what we have seen today. I am talking about real policies to address land banking, as set out in our Lyons report almost a decade ago, with incentives for timely delivery and sanctions on developers whose build-out rate is too slow. We need a reformed planning system that puts communities and brownfield first and does not bypass local people with more and more permitted development and a lack of involvement in policy making.
We also need a robust policy platform that addresses not just the quantity of new homes, but their quality, and that delivers the infrastructure they need to work as sustainable and inclusive communities. An investment programme in local authority housing is needed, so that good-quality housing can once again be provided for working people, not at the Government’s inflated “affordable” rents, but at social rents that people can afford. We will make viability assessments transparent, so that developers cannot avoid their obligations to deliver affordable housing and other community benefits.
We have a vision of a built environment for the future, not a set of outdated measures that have so spectacularly failed to deliver in the past. If the Secretary of State really wants to spearhead a housing revolution, he will need to do much better than this.
From 1997 to 2010, the average house price rose from three and a half times average earnings to seven times such earnings. That is Labour’s legacy. Labour, more than anyone else, has created that crisis of unaffordability. When the shadow Secretary of State was Housing Minister, house building fell to its lowest level in our peacetime history since the 1920s, and social housing fell by 421,000 units. We will not take any lectures from the Opposition about how to deal with a housing crisis that they helped to create. Their policies are about rent controls and the requisition of private property. They have no ideas.
The hon. Lady is right that there is an issue with resources in planning departments, but she is also wrong, because we have already dealt with that issue. Perhaps she did not notice that local authorities are able to increase their planning fees by at least 20% as long as that money is put back into their planning departments. That measure has been welcomed not just by local authorities, but throughout the industry.
The hon. Lady says that the planning process is not part of the problem, but she has clearly not been listening to what the problem is. She has not been out there talking to local authorities and developers, or finding out what communities actually think. If she had, she would know that local authorities in England are together planning for 169,000 houses a year, which is nowhere near the number that we need. We need a change in the formula, so that we get the right number of homes in the right places.
The hon. Lady talked about the importance of giving communities a greater say. That is great, because this is the first time that I have heard that she is supporting our neighbourhood planning process—thank you very much. She also talked about garden cities, towns and villages, and she was right, so I thank her again for supporting our policy, as that is exactly what we are proposing up and down the country. Lastly, she mentioned that brownfield land must be the priority. Again, that is our policy—thank you very much for your support.
Scrapping the right to buy has allowed the Scottish Government to improve our council housing stock. Over the past five years, more council houses for social rent have been delivered across 32 local authority areas in Scotland than across 326 local authority areas in England. Will the Secretary of State, rather than extending the right to buy, further reducing housing supply, follow Scotland’s lead and abolish it?
The PM has complained about people being unable to buy houses. Does the Secretary of State regret the fact that his Government’s Housing and Planning Act 2016 downgraded the term “affordable housing” no longer to take account of what people can afford?
“If we want more houses, we have to build them, not plan them”,
and that the Ministry of Housing, Communities and Local Government needs to “push back against” the Treasury,
“or the nonsense will go on and nothing will change”?
If he does agree, why has he allowed affordable housing funding from his Ministry to be handed back to the Treasury, rather than spent on critically needed affordable homes?
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