Oral answers Lords) on 1) Housing: New Homes and 2) Housing: Social Homes for Rent - Feb 11

Asked by

Baroness Neville-Rolfe

To ask Her Majesty’s Government how they intend to further their aims of (1) building 300,000 new homes each year for the next five years, and (2) making the planning system simpler.

Baroness Berridge (Con)

My Lords, we have delivered more than 1.5 million new homes since 2010, with last year seeing over 241,000 net additions—the highest level delivered for over 30 years—but there is much more to do. We will review everything from planning reforms to housing zones, backed with more than £44 billion of support, over five years. To make the planning process simpler, we will publish a planning White Paper in due course. These actions, taken together, will see us deliver 300,000 homes yearly by the mid-2020s.

Baroness Neville-Rolfe (Con)

My noble friend’s Answer confirms that increasing the availability of housing is a complicated matter with many facets, two of which I probed. It is vital to look forward, to have a clear strategy and to deliver on it, and not to twist and turn. Does the Minister agree that policy on building and planning needs to go with the grain of economics and take proper account of incentives to the private sector, including to smaller builders? Does she also agree that one important factor on which UK Governments will be judged is their success in meeting voters’ aspirations to own their own home?

Baroness Berridge

My noble friend is correct that economics and the prompting that the Government can give this sector are important. That is why local authorities must now have a five-year land supply as part of their reporting requirements. Within that, they have to identify small and medium-sized sites, because we have recently seen a decline in the number of small and medium-sized enterprises. We need to encourage those businesses and make funding available to them, because they are so important, particularly in training the next generation of the workforce and apprenticeships.

Lord Kennedy of Southwark (Lab Co-op)

My Lords, I draw the attention of the House to my registered interest as a vice-president of the Local Government Association. What are the Government going to do about the crisis of planning permissions being granted but not a brick being laid? At the last check, there were well over 250,000 applications with nothing happening on those sites. If you have land and have received planning permission to build homes, but you do not take action, surely the Government should do something. If nothing has happened in 12 months, surely the Government should find somebody to build houses on these big sites.

Baroness Berridge

The noble Lord is correct that, once planning permission is granted—which can take about two years—it is in everyone’s interests, including the developer and the local community, that the site is built on. Last year, we saw more than 375,000 grants of planning permission. The noble Lord is aware that in 2018 Sir Oliver Letwin was asked to review whether there was a hold-up of what is called the build-out rate. His main conclusion was about the absorption rate of bringing large numbers of units into the local market. He recommended that we diversify the type of units on each site, so they can be put on the market in smaller groups, appeal more widely and not affect the market price.

Lord Krebs (CB)

My Lords, the Minister will be aware that many new houses are being built in flood-risk areas. Between 2001 and 2014, 250,000 new homes were built in such areas and currently the number being built in them is increasing year on year. Many of these houses are being built against Environment Agency advice. Although some are protected by hard flood defences, does the noble Baroness agree that two measures should be crucial to all new building developments; namely, the installation of sustainable urban drainage systems and, secondly, the removal of the automatic right to connect to often overloaded Victorian drains?

Baroness Berridge

The noble Lord is correct to raise this issue, given the effects of the recent storm. Many communities are today living with the effects of flooding in their properties. However, it would be unrealistic to ban all development in flood-risk areas because around 10% of England and parts of London are viewed as being at high risk. These decisions need to be taken locally and carefully, and the Environment Agency is one of the statutory bodies that needs to be consulted on planning.

Baroness Thornhill (LD)

My Lords, one of the tools the Government are using is the housing delivery test. I believe it is designed to put even more pressure on councils to deliver even more development and I can see where the Government are coming from. However, the regime is forcing councils in already built up and congested urban areas to accept applications for large tower blocks ranging from 20 storeys to, in Croydon for example, 65 storeys in height. Do the Government accept that these developments are very unpopular with the public and do they recognise that these concerns are justified? Such buildings will impact on the townscape and the built environment, and certainly on quality of life. The jury is still out on the quality of family life on the 61st floor of a major tower block.

Baroness Berridge

The noble Baroness raises an important issue that will be part of the planning White Paper: how do we involve communities in the planning process and is guidance to consult before a planning application sufficient, or should there be consultation before that? The housing delivery test mentioned by the noble Baroness is one of the tools the Government are using to hold local authorities to account for the part they play in delivering the number of houses needed in their local communities—and they are best placed to know that. The good news is that in 2018, two-thirds of local authorities had indeed delivered to the correct threshold under the housing delivery test, but we have promised to review it after 18 months, which I believe will be in August of this year.

Lord Baker of Dorking (Con)

My Lords, does my noble friend recall that the last time a Conservative Government built 300,000 houses a year was under Harold Macmillan, when Ernie Marples built them for him? He found that private housebuilders were not capable of building at that rate because they had to depend on investment by local authorities and housing associations. Would she welcome that in this target?

Baroness Berridge

My noble friend is correct about the rate of housebuilding, but given that we completed 241,000 builds last year, there is evidence that such a figure can be delivered. Housing associations, councils and small and medium-sized enterprises, as well as self-build and custom-build, all need to be part of this, with a particular emphasis on small and medium-sized sites. Some 10% of the land in a plan must be of less than a hectare in size, so we need to use all those means to deliver the 300,000 homes a year that this country needs, because 90% of young people want to own their own home.

Lord Cunningham of Felling (Lab)

My Lords, seven years ago the Government made a commitment, setting a target to build 160,000 public sector houses by 2020. That target has not been met. Given that the Government are, among other things, encouraging public sector bodies—hospitals, schools and local authorities—to surrender what is termed “surplus land” for housebuilding, why have they made such a mess of reaching that target?

Baroness Berridge

My Lords, there is now a longer timeframe for the target of 160,000 homes to be delivered from public sector land use, but 51,000 homes have been delivered under that. It has not been for lack of effort by government departments. There have been complications in releasing some of the land, and some of the land has been repurposed by departments. For instance, the Department for Education has used some land for schools that is then not available for housing. It will take longer, but the Government take seriously their responsibility to meet that target.

Housing: Social Homes for Rent

Asked by

Lord Shipley

To ask Her Majesty’s Government what plans they have to increase the number of social homes for rent.

Lord Shipley (LD)

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and remind the House of my registered interest with the Local Government Association.

Baroness Berridge (Con)

My Lords, this Government’s priority is to boost the housing supply. We remain committed to increasing social housing, with £9 billion in the affordable housing programme delivering around 250,000 new affordable homes, including homes for social rent. We have fully supported local authorities to build by removing the HRA borrowing caps and setting a long-term rent deal, and are committed to renewing the affordable homes programme.

Lord Shipley

My Lords, I thank the Minister for her reply, but I point out that social rented housebuilding has decreased over the last year, and only 6,287 new social rented homes were delivered in England in 2018-19. Despite increases in housebuilding overall, social rent made up only 2.5% of all homes delivered in England in 2018-19. Of the affordable homes delivered, to which the Minister refers, only 11% were for social rent, while 51% were for affordable rent and 37% for intermediate tenures, including shared ownership. Do the Government accept that the housing crisis will never be solved unless more homes for social rent are built?

Baroness Berridge

The Government accept that councils and housing associations need to play their part in building the number of homes we have outlined—there are 4.14 million homes in this country that are housing association or local council owned—and that is why the Government have reintroduced the grant for affordable homes, with a minimum of 12,500 social rent homes within the affordable homes programme. That is in addition to local authorities now having the borrowing cap removed, so that they can build more, particularly on those small and medium-sized sites that I have outlined.

Baroness Greengross (CB)

My Lords, the number of people aged over 65 in the UK—many of whom need and deserve social housing—will rise by over 40%, to more than 16 million, in the next 17 years. The number who have four or more diseases is expected to double by 2035. The fact that two-thirds are unable to invite a wheelchair user into their home is absolutely appalling. The government consultation on mandating accessible and adaptable housing was promised in the autumn, but we are still waiting for it. Will the Minister confirm when that consultation will start? We have now been waiting for eight months since the initial announcement.

Baroness Berridge

I am grateful to the noble Baroness for her question. A specific question I asked of officials was about accessibility for older people and disabled people. However, I may disappoint her by saying that all I can tell her is that we will consult shortly on raising the minimum standards for accessible housing in all new homes. The revised National Planning Policy Framework in July 2018 strengthened policy in this area. It is the responsibility of local authorities, which know the demographics of their area, to include in local plans the amount of housing that they need for older people and adults with learning disabilities.

Lord Young of Cookham (Con)

My Lords, many of the social homes for rent referred to by the noble Lord, Lord Shipley, are built under Section 106 agreements by developers with local authorities. My noble friend will know that, once development has started, quite often the developers, using a so-called viability assessment, then wriggle out of the commitment to build social homes. Is my noble friend aware of this loophole? What action are the Government taking to close it?

Baroness Berridge

Noble Lords have previously raised this issue in debates on this topic. Social housing in this country comes from the budget in the affordable housing programme and the borrowing that local councils can now do, and, yes, under Section 106 agreements. There has been a problem with developers then saying that they are not economically viable. In the plans I have mentioned, there are now requirements that landowners and site purchasers will know the likely costs up front, so they will know the types of affordable housing provision they have to provide and the levels of it. They will know that up front, before they buy the land, so they cannot then come back to the council and say, “Oh, we purchased the land for a different sum of money, and it is now no longer economically viable”. I hope that that will close the loophole.

Baroness Uddin (Non-Afl)

My Lords, I note with some caution the noble Baroness’s confidence about private sector housing. From my knowledge of places such as Tower Hamlets, I know that huge development has not necessarily yielded a social rent market in any meaningful way. What are the Government doing to ensure that her department is working with the housing associations, which have a long, honourable history of creating quality housing for social rent purposes? I declare my interest as on the register.

Baroness Berridge

Both councils and housing associations can bid to the affordable homes programme for that money. Housing associations now have the benefit of a 10-year secure, £2 billion-worth of funding; they have never had that, under any Government. They should be able to plan to deliver the homes that we need. We recognise that, particularly for those at risk of being homeless and for particular families, we need to increase the number of homes available for social rent. We want to see a new generation of council housing, built both by housing associations and by local councils.