Matthew Pennycook
MP for Greenwich and Woolwich · Labour · United Kingdom
“It is a pleasure to serve with you in the Chair, Dame Siobhain. I congratulate the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright) on securing this debate.”
“I will address the right hon. and learned Gentleman’s specific question in due course. Before I do so, I want to put on the record the policy in relation to villages. He can rest assured that I will address the point; if he is unsatisfied, he is more than welcome to intervene again. A number of hon. Members mentioned villages.”
“I will say two things in respect to that, and I will come on to detail how the approach works in relation to decision making very shortly. In general terms, developers can make whatever claims they like about any particular site across the country; it is for the local authority to assess whether, in its view, that site constitutes grey be…”
“and learned Gentleman’s point about what is likely to constitute grey-belt land. Let me directly address his other two specific points. Is this a significant policy? Absolutely, and it has been judged as much by the Office for Budget Responsibility and other external commentators. Is it deliberate? Absolutely. We want, as the right hon.”
“Where authorities may wish to restrict development in villages for other reasons, a range of tools are available, such as conservation areas or normal development management policies. On the right hon.”
“We have to put in place policies that, through the decision-making route, allow homes still to be brought forward in that interregnum, but then we have to push heavily to drive towards universal plan coverage. At that point, the protections are in place.”
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“We are bringing forward measures in fairly short order on build-out and we will turn on the LURA provisions that I have mentioned. On that basis, I ask for the new clauses to be withdrawn. New clause 76, tabled by the shadow Minister, the hon. Member for Hamble Valley, seeks to prevent those who have deliberately undertaken unauthorised development from obtaining planning permission retrospectively. The Government do not condone unauthorised development and are clear that anyone seeking to undertake development should first obtain planning permission where it is required. I therefore very much appreciate the sentiment behind his new clause.”
“On the other hand, and correspondingly, if a permission such as the one he hypothetically mentioned is in place, I think that is testament to why it is so important that we bring forward measures on build-out transparency and have the powers to be able to say to developers, as the Government are saying to all developers, “If you’ve got a consent, then get on and build.” The Government are making a variety of reforms to the planning system, which in any number of ways will provide for a more rules-based system, more certainty and will drive down development costs. We are firming up planning policy guidance and expectations. We are making it clearer and easier for developers to put in an application and we should reduce costs as well. Correspondingly, we can ask for more.”
“The hon. Member tempts me into commenting on hypotheticals. I will instead say the following. There are two things happening here. We have to be aware of the ability for some existing mechanisms—section 73 applications are a good example—to be gamed in terms of viability to drive down the amount of public gain. I am aware of that, and I have been very candid about it.”
“What I can commit to—I feel the glares from my officials on me now—is this. If we have the information, I am more than happy to have a conversation with the shadow Minister to give him a sense of, across the country, how local authorities are using their existing enforcement powers and the extent to which, although I think this will be difficult information for Government to track, local planning authorities and inspectors are relying on unauthorised development as a material consideration. I am thinking, for example, of inspectors allowing things on appeal that are unauthorised. If we have that information, I am more than happy to share it and to have that conversation with the hon. Gentleman.”
“I think some of this will become evident in the fullness of time. There has been an implicit criticism of the Government at several points in Committee that we are entirely reliant on a market-led approach, and are happy with an entirely developer-led, market-led approach. That is not the case. We think that targeted reforms to the planning system are necessary, but we also absolutely believe that reform of our broken house building model is required. I have said on many occasions that we are overly reliant on a speculative development model that produces bad outcomes. Hon. Members across the Committee will see before too long other measures that the Government are bringing forward to both transform and disrupt that market in ways that are beneficial.”
“A final point that I think is pertinent to this debate: I always find the nimby and yimby debate incredibly reductive, but I think that some who oppose development on the basis that they only prioritise social and affordable housing discount the fact that building homes of any tenure in localities assists people trying to access social and affordable rent. It all helps and it need not be one or the other.”
“Well, the market does need to be disrupted, in the particular sense that we need new entrants coming forward, and small and medium-sized enterprises and community led-housing back in the game. The hon. Member for Taunton and Wellington said, and I think he is right, that developers have a business model, particularly volume builders. Some are changing their business model and we would encourage change to those business models, but there is a particular model that relies on very high margins. I know the academic study that the hon. Member for North Herefordshire cited. We must and will reduce our reliance on that. We also must be careful about weighing in on viability in a way that would just stop house building coming forward in lots of cases, because that would ultimately help nobody.”
“That is a good point. To wrap this debate up, I think it is right that the Government seek to take forward planning reform in the way we have, and to streamline the planning process in a way that drops costs on developers where it is appropriate. Equally, we must be robust with developers. We want to put this mechanism in place and ensure that local authorities can negotiate section 106 agreements robustly. Where those agreements are entered into, we expect them to be delivered and we expect sites to be built out. As I say, hon. Members will not have to wait too long to see some of the changes that are not in existing law, but that the Government are bringing forward. On that basis, I hope hon. Members might not press the new clauses.”
“Although I understand the spirit of the new clause, the Government oppose it, as these important matters are already being considered and addressed through existing laws, systems, national planning policy and associated guidance—which are obviously kept under review at all times. On that basis, I hope the hon. Lady will withdraw the new clause.”
“It is the role of the assessment to provide information on the range of sites that are available to meet the local authority’s requirements, but it is for the local development plan, taken through with consultation with the local community—we definitely want more consultation with communities upstream in the local plan development process—to determine which of the sites in a “call for sites” are the most suitable to meet the requirements. While I recognise the intentions behind it, the new clause would ultimately undermine the Government priority for extensive coverage of local plans across England, which is the key mechanism that enables sustainable development and housing delivery to take place.”
“The framework must be given regard to in preparing the development plan, and is a material consideration in planning decisions. The “call for sites” process ensures early engagement with landowners and land promoters to understand the availability and achievability of land identified to deliver sustainable development. The current process ensures consideration of the economic, environmental and social impacts of proposed sites for development, and how those contribute to a more sustainable future. The important part here is that the assessment does not in itself determine whether a site should be allocated for development.”
“National policy includes how to plan for good design, sustainable modes of transport including walking and cycling, an integrated approach to the location of housing, economic uses and the community services and facilities needed. It recognises the importance to health, wellbeing and recreation that open space and green infrastructure provides, and is clear that local plans should seek to meet the identified need and seek opportunities for new provision. It also contains policies on how to achieve healthy, inclusive and safe places, and sets out that the planning system should support the transition to a low-carbon future. The NPPF is also clear that planning policies and decisions should promote an effective use of land in meeting the need for homes.”
“New clause 2, which the hon. Lady has just spoken to, was tabled by my hon. Friend the Member for North East Hertfordshire. The purpose of the planning system is clear: to contribute to the achievement of sustainable development. The UN’s sustainable development goals are important to that. It is because of their importance that they are already addressed via existing planning laws, planning policy, guidance and processes. The objective of contributing to the achievement of sustainable development is being delivered by the existing requirement to prepare local plans under the Planning and Compulsory Purchase Act 2004. The national planning policy framework already contains policy on sustainable development with the presumption in favour of sustainable development at its heart.”
“I say that for the following reason, but with the caveat that we are keeping the matter under review: I do not know what precise list of recommended sites the new towns taskforce will bring forward, and some of those sites may build out in this Parliament, but a great number will either not have started building out in this Parliament or will only just have started. For that reason, I do not think it is reasonable, in many instances, to say that a significant proportion of the LHN we are asking local authorities to meet can be absorbed by a new town that is to come in a future Parliament.”
“In our view, that reflects the scale of house building needed to address the current acute and entrenched housing crisis in this country, which I think we all recognise, and we have heard the statistics. As things stand, there are nearly 30,000 people on my local housing waiting list, and huge numbers are in temporary accommodation. Everywhere I go, I say that this is an acute and entrenched crisis; in many parts of the country, particularly for those of us in urban areas, it is nothing short of an emergency, and we need to take steps to respond to that. The Government have been clear that new towns—this is our preferred approach as we proceed now—will deliver over and above the targets produced by the standard method across the country.”
“I have also already committed to considering further steps to support social and affordable housing as part of our intent to produce a set of national policies for decision making in 2025. It is as part of those changes that further steps will, in many instances, best be taken, including on the content and timing of further updates to guidance. I really do recognise the point behind the new clauses, and we are keeping the matter under review, but for the reasons that I have given, I would ask that the new clauses are not pressed to a vote. I now turn to new clause 49. Our approach to housing targets has been put in place to support our ambition to build 1.5 million new homes over the next five years.”
“As I said, we have not set a target yet, but we are clear, through the NPPF, that local authorities should, in producing their local plan, assess their need for affordable housing and social rented homes, and then plan to meet those needs. That includes establishing the total need for affordable housing and setting out the amount of affordable housing that should be secured on development. Those plans are then obviously independently examined as to whether they are sound. We have also made changes to the NPPF to provide greater flexibility for local authorities to deliver the right tenure mix to suit the particular housing needs in their areas. In addition, we are introducing new measures in the Bill to allow spatial development strategies to specify an amount or distribution of affordable housing to be delivered.”
“We are determined to build more and, through the changes we are making to right to buy, to retain more of our stock, while recognising that long-term tenants should still have a right to buy, where applicable. We do not believe that the new clauses are the right way forward. I think there is a difference—I am more than happy to debate the issue outside the Committee Room, but it is probably too extensive to go into now—between the standard method for calculating assessed housing need in the national planning policy framework, which sets overall assessed housing need numbers, with those being translated into local targets for housing as a whole, and affordable targets.”
“Friend the Member for North East Hertfordshire and the hon. Member for Taunton and Wellington respectively. It is true that the Government have not yet set a social and affordable housing target, but we are clear that we need to significantly increase the number of social and affordable homes built each year. There is a particular focus on that under this Government, because I would argue that we have seen the engineered decline of social rented housing over the previous 14 years. That included not only the significant cuts the coalition Government made to affordable housing grant, but other measures that were introduced. I think, in particular, of the generous right-to-buy discounts introduced by Grant Shapps when he was Housing Minister, which have seen our stock sold off in too large a quantity.”
“I will obey your strictures, Ms Jardine, and avoid a debate on Help to Buy. I welcome hon. Members moving this group of new clauses, but I will be fairly brief. Although they may not want to, I am keen to debate all the other new clauses they have tabled and to make good progress through them. However, I am more than happy to address these new clauses. It will not surprise hon. Members that the Government do not feel able to accept the new clauses, but for good reason. I am happy to discuss why and to set out, where applicable, how our proposals to disrupt—these are not disruptive proposals, just to clarify that for the shadow Minister, the hon. Member for Hamble Valley—the housing system, so that it functions better, play a part in that. I will first address new clauses 3 and 8, tabled by my hon.”
“We are keeping this under review because we recognise that we need the right incentives in place to support proactive local authorities to work with us to bring new towns together. Although we have been clear that the site selection will ultimately be in the national interest, in terms of building these large-scale new communities out quickly and effectively, and ensuring that they are exemplary developments, it will obviously be far easier if local authorities are proactive and constructive.”
“The hon. Gentleman makes a fair point. Local plans are set over a longer time horizon. There is an issue, as he knows, with the number of local plans across the country that are up to date. There are other, corresponding issues about the date at which those local plans that are brought forward begin, and whether they are brought forward at all. Our general position—I will not go any further than that—is that we are keeping this under review. It has been our stated position so far that new towns will deliver over and above the targets produced by the standard method. When a new town might build out will be highly place-dependent; it will depend on the particular circumstances and delivery vehicle. Let us see what sites the new towns taskforce recommends.”
“In the Government response to the NPPF consultation in December, we therefore made clear our intention to explore other options to support small site delivery as part of the upcoming national development management policies. I do not want to tease the Committee again, but details will be forthcoming and will be subject to consultation. Although I appreciate the principle behind new clause 75, I therefore do not believe that it is the best way to support small site delivery. I ask the hon. Member for Hamble Valley not to press it.”
“Via the NPPF, local authorities are already expected to allocate 10% to small sites in local plans unless they can provide a strong explanation why this is not possible. If such an explanation proves wanting, the plan can be found unsound when it is examined by an independent inspector. In line with the thinking behind new clause 75, we consulted on strengthening that requirement by making it wholly mandatory in local plans. That was part of the summer 2024 consultation on the NPPF, but the responses we received were clear that making the target fully mandatory would be resource-intensive, would put significant pressure on local authorities, would be unworkable in many areas and might lead to delays in plan making.”
“Member for Ruislip, Northwood and Pinner not to press it. I fully understand and support the principle behind new clause 75, tabled by the hon. Member for Hamble Valley. The Government fully recognise the benefits that small sites can offer in contributing to house building, diversifying the housing market and supporting faster build-out. We are therefore fully committed to increasing delivery on small sites and supporting our SME developers. This is a real priority for the Government. The statistics show that back in the 1980s SMEs built something like 40% of housing supply; the figure now is less than 10%. That is a large part of the reason that we are not bringing homes forward in the numbers we would want. Council house building is another example.”
“In addition, we are committed to introducing the new plan-making system, which includes the following provision set out in new section 15C(8) of the Planning and Compulsory Purchase Act 2004, as inserted by the Levelling-up and Regeneration Act 2023: “The local plan must take account of an assessment of the amount, and type, of housing that is needed in the local planning authority’s area, including the amount of affordable housing that is needed.” New clause 50 would therefore duplicate national planning policy and legislation that we anticipate will come into effect later this year. It would create new burdens on local planning authorities, with the effect of delaying plan making. It would also undermine the Government’s priority for extensive coverage of local plans across England, reducing much-needed housing supply. I ask the hon.”
“Through this existing policy, local planning authorities are already expected to make an assessment of the number and type of homes that are required and proposed to be built in the authority’s area. I note the comment that several hon. Members have made about older people’s housing. I think it fair to say that the housing and planning system has not kept pace with demographic change, but that is why the Government are exploring the recommendations of the older people’s housing taskforce, for example.”
“We have also published revised guidance to support authorities utilising the standard method. Given the recent consultation exercise on the revised standard method, I do not believe that new clause 48, which seeks further consultation and procedural steps, is the right way forward. I ask the hon. Member for Ruislip, Northwood and Pinner not to press it. I turn to the hon. Member’s new clause 50. National planning policy—specifically paragraph 72 of the NPPF—already expects local planning authorities to prepare strategic housing land availability assessments to provide evidence on land availability within their area. Authorities should then set out, through their local plans, a sufficient supply and mix of sites that can be brought forward over the plan period.”
“In December 2024, we therefore implemented a new standard method for assessing housing needs that aligns with our ambition for 1.5 million new homes over this Parliament and better directs homes to where they are most needed and where housing is least affordable. The standard method is an important tool to ensure that housing is delivered in the right places, which is critical to tackling the chronic shortages facing the country across all areas and all tenures. We consulted extensively on our changes to the standard method. Our public consultation received more than 10,000 responses from a range of relevant parties, including 387 submissions from local authorities. Our response to the consultation sets out the evidence received and how the Government have responded to the points raised.”
“The hon. Gentleman’s position on the matter is very clear. We will keep under review how the taskforce’s recommendations on new towns interact with housing targets. Although I appreciate that the hon. Member for Ruislip, Northwood and Pinner is seeking, understandably, to prevent areas with a new town from taking unmet need from neighbouring areas, his new clause would have the effect of discouraging effective cross-boundary co-operation on a much wider range of matters, which could lead to issues with local plans in those areas. For that reason, I ask him not to press it. I turn to new clause 48. In our manifesto, the Government committed to restoring mandatory housing targets and reversing the supply-negative changes introduced by the previous Government in December 2023.”
“Alongside wider investment across this Parliament, the new programme will help to deliver our commitment to the biggest increase in social and affordable housing in a generation. For that reason, I respectfully ask that none of the new clauses in this very large group are pressed to a vote.”
“On new clause 26, I do not believe that introducing legislation to impose targets and capital funding for the affordable homes programme is the best way to incentivise the market to increase the supply of older people’s housing and later living homes. The Government’s view is that local housing authorities are best placed to bring forward the right amount of new housing for older persons and later living homes in their areas through the planning and care systems, and based on local need. The Government will obviously support them to do that when they set out the full details of a new grant funding programme to succeed the 2021 to 2026 affordable homes programme at the spending review on 11 June.”
“We will of course consider how we can continue to make progress on delivering sufficient housing for older people, as we develop our long-term housing strategy, which we will publish later this year. I recognise that that will have benefits not only in meeting housing need for older people, but further down the housing chain, by unlocking homes that are inappropriate for older people. Those people may wish to move if they have a better offer and if challenges such as those mentioned by the shadow Minister, the hon. Member for Hamble Valley, such as the excessive service charges on some older people’s residential housing, are dealt with.”
“Supporting guidance also makes it clear that an understanding of how the ageing population affects housing needs should be considered from the early stages of plan making through to decision making. Furthermore, clause 47 contains provision for spatial development strategies to take account of that factor. It provides that SDSs “may specify or describe…an amount or distribution of affordable housing or any other kind of housing” if the provision of that housing is considered “to be of strategic importance to the strategy area.” One can well imagine how, in particular sub-regions of the country with high proportions of older people, SDSs may want to take particular account of that factor.”
“I turn to new clauses 92 and 26. I share the commitment of the hon. Member for Taunton and Wellington to enhancing provision and choice for older people in the housing market. I agree that the need to provide sufficient housing to meet older people’s specific needs is critical. We must ensure that the housing market is moving with demographic change. I also recognise that well-designed, suitable housing can improve the quality of life, health and wellbeing of older people, as well as supporting wider Government objectives. That is why the revised national planning policy framework already makes it clear that local authorities producing a local plan should, as I have said before, assess the size, types and tenure of housing for different groups in their communities, including older people, and reflect that in their planning policies.”
“It is worth referring to the NPPF consultation in the summer and the Government response. We think that there was good reason not to make the 10% allocation mandatory. Local authorities, in particular, told us that they had concerns in that regard. There are many other things we could do. Without using this as a defence, in fairly short order the shadow Minister will see some of the measures that we want to introduce to support SME house builders. Access to land is a concern, and access to finance is another issue, as is the cumulative burden of regulation on SME house builders, which, for obvious reasons, are less able to cope with that than large-volume house builders. All of that is part of the answer, but I am sure we will have further debates on the matter once the Government have brought forth new measures in that area.”
“We have not set a target for now; we think it is right that local authorities lead on assessing that need and ensuring that it is reflected in local plans. However, at no point did I say that it is unacceptable—”
“In part, I would like to correct the hon. Lady, because at no point did I say that such targets are unacceptable; I said that we have not, to date, set one. I will give her an idea of some of the reasons. The hon. Member for Broxbourne will remember discussion of this in my evidence to the Housing, Communities and Local Government Committee: there are factors that bear on the delivery of social and affordable housing that sit outside the control of a local authority area. For example, while a lot of social and affordable housing comes through section 106 agreements, large amounts come through grant funding from Government, and we cannot impose an arbitrary target without other measures, which the Government are bringing forward, being in place.”
“I would genuinely like to understand the hon. Lady’s thinking in this area. Does she think that it is the role of Government to prescribe, for every local planning authority in England, the precise mixes of tenure and affordable housing, and, for example, the number of older people’s homes they bring forward? It would be helpful to have clarity on where the line is drawn.”
“Member for Taunton and Wellington that very fruitful conversations continue with the hon. Member for Cheltenham. I recognise the leadership he has shown in bringing his private Member’s Bill, which has drawn more attention to the issue. For those reasons, and in view of our firm commitment to bring forward those future standards, I hope the hon. Member for Taunton and Wellington might withdraw his new clause.”
“It is our responsibility to make sure that solar provision is included in the new standards in a way that is ambitious, but technically achievable. We are working through the details to get that right. It is also our responsibility to provide industry with sufficient time to prepare to ensure that any transition to new standards is as smooth as possible. The time spent carefully engaging with industry on the future homes standard makes me confident that a smooth transition to higher standards is entirely possible. Therefore, I can assure hon. Members that the Government remain committed to improving the energy efficiency of new homes and increasing solar panel deployment. Without seeking to tease hon. Members, who will not have to wait too long for further information in this area, we are doing that. I reassure the hon.”
“The Government agree that reducing carbon emissions from new homes is a vital part of our ambition to reach net zero by 2050, and increasing solar power in the country must play an important role in that transition. However, as the hon. Member for Taunton and Wellington said when he referenced the debate on the private Member’s Bill that we had a few months back, it is already the Government’s intention to amend building regulations later this year and set more ambitious energy efficiency and carbon emission requirements for new homes. The future homes and building standards will set our homes on a path that moves away from relying on volatile fossil fuels. We are conducting further technical stakeholder engagement on solar energy following feedback from the future homes and building standards consultation.”
“I thank the hon. Member for Taunton and Wellington for tabling the new clause, and other hon. Members for speaking to it. They are all right to highlight the damage caused by the scrapping of the zero carbon homes standard back in 2015. It is worth recalling that that was widely criticised at the time, not only by environmentalists, but by house builders that had geared up to be ready to make the change. It is particularly regrettable, not least to me—I know that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen, will feel the same—to confront the collective costs of the retrofit that is now required because those standards were not in place.”
“The arrangements will include setting out an agreed body that will adopt the SuDS once the development is completed and take on the maintenance of this infrastructure.”
“Member for Didcot and Wantage just set out, to introduce a new requirement for developers to undertake a review of the drainage performance of a development five years after being built and to take action when it is needed to improve the development’s drainage performance. As part of the planning application process, developers will need to set out plans for the long-term management of a site, including for drainage infrastructure. That will be agreed as part of the planning permission for the use of the planning conditions or section 106 agreements, and can include arrangements for agreed bodies to take on the management of drainage infrastructure. When a developer proposes to use SuDS as part of a development, it is clear in planning practice guidance that the proposal should include arrangements for their long-term maintenance.”
“We want to improve the take-up of SuDS, but the means of achieving that are under active consideration. I understand why in all these debates hon. Members wish to push the Government because they feel an urgency to use this legislation to enact every change to the planning system that they want to see. However, I say to the hon. Members for Taunton and Wellington and for North Herefordshire that a final decision on this particular matter will be made in the coming months. I hope that on that basis they will feel able to withdraw their amendments. I turn to new clause 89. It seeks, as the hon.”
“The framework now also makes clear that SuDS provided as part of proposals for major developments should have maintenance arrangements in place to ensure an acceptable standard of operation for the lifetime of the development. The Government also provide planning guidance on sustainable drainage, which supports policies contained within the NPPF. Some time has passed since the Flood and Water Management Act 2010 came into force, and it is important that we consider the most efficient and effective way of securing its objectives in the current circumstances. More specifically, better delivery of SuDS may be achieved by continuing to improve the delivery of the current policy-based approach, rather than commencing schedule 3 to the Flood and Water Management Act 2010. I believe that the underlying ambition is shared.”
“I thank the hon. Members for proposing these amendments. Once again, the Government very much sympathise with their objectives. I personally found the recent Westminster Hall debate extremely useful in clarifying my thinking on this matter and the wider issue of water infrastructure. The Government are strongly committed to requiring sustainable drainage systems in new development. The hon. Member for North Herefordshire cites 15 years—we have had 10 months, and within that time we have already taken steps to improve the delivery of SuDS through the planning system. The revised national planning policy framework, published in December, expanded the requirement to provide SuDS to all development with drainage implications.”
“We can all agree that the design and use of the built and natural environment are major determinants of health and wellbeing. That is why this important matter is addressed in the planning system through both policy and guidance such as the NPPF and PPG, which includes the national design guide and the national model design code. The hon. Lady said that the Government have made the NPPF all about economic growth. No, we are very clear that we made changes to ensure that the NPPF is pro-growth, but the NPPF makes it clear that the purpose of the planning system is to contribute to the achievement of sustainable development, with a fundamental part of this being to support strong, vibrant and healthy communities.”
“What that should mean in practice is set out through the policies in the framework, and through the policies in the development plan for each area. Planning law requires that applications for planning permission be determined in accordance with the development plan in question, unless material considerations indicate otherwise. The NPPF is one of those material considerations and must also be taken into account in preparing the development plan. Furthermore, there are already well established mechanisms in place to enable communities to engage with planning processes and shape the development that takes place in their area. This includes through statutory consultation, which local planning authorities are required to undertake, as the hon. Lady will be aware, for both plan making and when determining planning applications.”