Housing and Planning Bill Debate

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Tuesday 3rd May 2016

(8 years ago)

Commons Chamber
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Brandon Lewis Portrait The Minister for Housing and Planning (Brandon Lewis)
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I beg to move, That this House disagrees with Lords amendment 1.

Lindsay Hoyle Portrait Mr Deputy Speaker
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With this it will be convenient to discuss the following:

Government amendments (a) to (c) in lieu of Lords amendment 1.

Lords amendment 9, and Government motion to disagree.

Lords amendment 10, and Government motion to disagree.

Government amendment (a) in lieu of Lords amendments 9 and 10.

Lords amendment 37, and Government motion to disagree.

Lords amendment 184, and amendment (a) thereto.

Lords amendment 47, and Government motion to disagree.

Lords amendment 54, and Government motion to disagree.

Lords amendment 55, and Government motion to disagree.

Lords amendment 57, and Government motion to disagree.

Lords amendment 58, and Government motion to disagree.

Lords amendments 2 to 8, 11 to 36, 38 to 46, 48 to 53, 56, 59 to 96, 182, 183, 185 to 188, 190, 191 and 195 to 239.

Brandon Lewis Portrait Brandon Lewis
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I am glad to be back at the Dispatch Box and returning to the Housing and Planning Bill this afternoon. We are now in the final month of the first year of this Parliament: a Parliament that has seen a majority Conservative Government returned to the House—a Government with a clear mandate to deliver the largest programme of house building for a generation.

It is immensely fitting to be here this afternoon having come from Mr Speaker’s own garden, where construction people have been showing the importance of house building across our country and of bringing in more skills to deliver the homes that we are determined to build. We want to place home ownership within the reach of thousands of people who never dreamed that they could achieve it, and we want to ensure that, in doing so, we make the best use of our social housing so that it continues to support those most in need.

The Bill before us today is a slightly different beast from the one we passed to the other place earlier this year. Today we will discuss rather more than the five or six amendments we traditionally see come from the other House. The vast majority of these I will ask this House to accept.

Debates in both Houses have been productive and resulted in improvements to the Bill. I want to be clear from the start. I have heard many, mainly on the Opposition Benches, say that we should have waited before debating the Bill. That would have meant the Government’s having to sit idly by, ticking forms and double checking that what the public elected us to do was what they actually wanted. We are debating the Bill early in this Parliament so that it can take effect as soon as possible and we can get those new homes built for those who aspire to have them.

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Dawn Butler Portrait Dawn Butler (Brent Central) (Lab)
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Will the Minister please clarify what “higher-value properties” means? How much?

Brandon Lewis Portrait Brandon Lewis
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I will deal with that in a few moments, when I come to higher-value assets and other aspects before us.

We have increased the protection we give to our rural areas, recognising the unique value of our countryside and the particular challenge of providing affordable homes there. I trust, therefore, that there is much on which we can agree with the other place.

John Redwood Portrait John Redwood (Wokingham) (Con)
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Does the Minister agree that the idea of more affordable homes for sale is extremely popular? I am getting requests. People want to get on with it, however, so will he say how long the process might now take?

Brandon Lewis Portrait Brandon Lewis
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I hope it will not take us too long, that the other House will accept our points today and that the Opposition might come on board and vote with us to make sure we deliver affordable homes for people to buy—

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Brandon Lewis Portrait Brandon Lewis
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I will finish answering the last intervention, and then I will come to the Chairman of the Communities and Local Government Select Committee.

My right hon. Friend the Member for Wokingham (John Redwood) is right. Whether through Twitter or email, I am hearing from a lot of people wanting to know when we will be able to deliver for the 86% of the population who want the chance to own a home of their own. It is absolutely right that we make affordable homes about affordable ownership as well as affordable rent.

Clive Betts Portrait Mr Betts
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The Select Committee pushed the Minister on his impact and financial assessment of the full costs and implications of his policies around the sale of higher-value council homes; on whether those would deliver the replacement of housing association properties; and on all the remedial work on brownfield sites. When will that analysis be produced? I see that the other day the Public Accounts Committee made exactly the same criticism as the Select Committee: there is no information for us to go on.

Brandon Lewis Portrait Brandon Lewis
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It was rather surprising to see the PAC reviewing a policy that has not gone through the House yet and which will deliver more home ownership to more people across the country, whether through the extension of right to buy, which will benefit 1.3 million people, or the intervention on starter homes.

Brandon Lewis Portrait Brandon Lewis
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I give way to the Chairman of the PAC.

Meg Hillier Portrait Meg Hillier
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The Minister cited the PAC report published last Friday. Just to be clear, the Committee does look at issues in advance of their becoming law, to make sure that taxpayers’ money is protected in the process. He makes great play of providing more affordable homes for sale, but it is not clear how he will fund it or that there will be a like-for-like replacement of the homes he is forcing boroughs such as mine to sell in order to pay for them. Will he promise now to protect long-term social housing for the people in London who can afford nothing else, certainly not a starter home?

Brandon Lewis Portrait Brandon Lewis
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In terms of making good use of our social housing stock, I am sure that the hon. Lady will support us in the votes later today, if there are any, on high-income social tenants. If she is that interested in delivering more housing in this country, however, I am surprised that this is the first time she has engaged directly with the Bill. The hon. Member for Sheffield South East (Mr Betts), who mentioned the PAC report, asked about the data behind the policy. As I outlined at the end of last week, there are 16 million pieces of data impacting on this policy.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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The Minister has made a lot of “affordable”. Can he define it? Is it right that an affordable starter home in London will be round about £450,000?

Brandon Lewis Portrait Brandon Lewis
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The right hon. Gentleman might like to go back to look at the evidence given to the Committee that scrutinised the Bill or at the Bill itself. The £450,000 is a cap. He needs to look at the average price a first-time buyer pays for a home in this country, which is £181,000. If we then include a 20% discount and allow the purchase with a deposit of just 5%, that really changes affordability. I hope the right hon. Gentleman will support the chance for more Londoners to get on the housing ladder, while understanding equally that this is not the only thing we are doing to promote affordable home ownership. There is a £4.7 billion scheme out there now for shared ownership, which also plays an important part, particularly in places such as London.

Meg Hillier Portrait Meg Hillier
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I am grateful to the Minister for giving way so that I can clarify both the role of the Public Accounts Committee and my role as Chair of it. We had a forensic investigation by the National Audit Office. We set out to be helpful to the taxpayer and to the Government in implementing their policy, ensuring affordability. We set out the key questions that needed answering before such a policy could be delivered. If I may say so, this Minister is being very cavalier in sweeping aside the findings of our report, which were well-measured, cross-party and unanimous.

Brandon Lewis Portrait Brandon Lewis
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I have huge respect for the hon. Lady, but I was not sweeping anything aside at all. What I am more focused on—I make no apologies for it—is ensuring that we counter the cavalier attitude of the Labour party, which wants to do down people who want the chance to have a home of their own that they can afford to buy. We are determined to deliver our manifesto promise on that.

None Portrait Several hon. Members rose—
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Brandon Lewis Portrait Brandon Lewis
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Let me make a bit more progress; I shall give way again later.

There is much on which we can agree with the other place here today, but let me be clear that, as we have just touched on, there are some areas where we cannot. We are determined to deliver for Britain on our election promises. The manifesto on which this Government were elected set out a very clear statement of intent about a viable extension of the right to buy, paid for by the sale of higher-value housing, and about 200,000 starter homes by the end of this Parliament.

Jake Berry Portrait Jake Berry (Rossendale and Darwen) (Con)
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My constituents in Rossendale and Darwen look at many of the arguments of Labour Members and say that they are completely London focused. What we in Lancashire want are starter homes that people can buy at a discount and an extension of other affordable housing schemes. Will the Minister take the opportunity to agree with everyone who lives in Lancashire and says, “Let’s get on with it. We want to buy a home; we want to live in an affordable home. Let’s not just talk about London”?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend makes a very good point. As I travel around the country, I find that people are frustrated and want us to get on with the policies that they elected us to deliver. That is because they see that Labour Members are trying to stall them through political posturing at pretty much every opportunity.

Let me also say, however, that some are understandably focused on London, where there is real pressure. We have my hon. Friend the Member for Richmond Park (Zac Goldsmith) to thank because we worked with him to ensure that for every home sold in London, at least two homes will be built, driving a direct increase in housing supply.

Chris Philp Portrait Chris Philp (Croydon South) (Con)
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I must say to the Minister, with all due respect to my hon. Friend the Member for Rossendale and Darwen (Jake Berry), that starter homes will work in many London boroughs, too. In my borough of Croydon, the average starter home will cost £190,000. With a help-to-buy mortgage, a £10,000 deposit is necessary and a couple, each earning £22,500, can afford to buy. In Croydon, as I say, it will work.

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend highlights how this policy is about delivering for people on the ground. While Labour Members want to pontificate, we are going to stay focused on delivering homes for people across our country and here in the capital city of London.

Karen Buck Portrait Ms Karen Buck (Westminster North) (Lab)
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We need a policy to fit all parts of the country, including London. In inner London, however, starter homes will come in at £450,000. We have to speak the language of priorities. Is the Minister really telling us that a home that requires an income of £77,000 a year—more than an MP’s salary—is genuinely the best priority for public funds?

Brandon Lewis Portrait Brandon Lewis
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I am tempted to use the inimitable phrase, “I refer the hon. Lady to the comments I made a few moments ago.” As I said earlier, if she looks at the evidence, she will find that the price a first-time buyer pays is actually quite different. I mentioned my hon. Friend the Member for Richmond Park; thanks to him, homes are already well below that price. The figure the hon. Lady mentioned is a cap; it is not the price at which these properties will be set—and I expect to see them much lower.

None Portrait Several hon. Members rose—
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Brandon Lewis Portrait Brandon Lewis
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Let me make some more progress on starter homes.

Amendment 1 requires on resale of the starter home the repayment of the 20% starter discount, reduced by 1% for each year of occupation for a period of 20 years. The average first-time buyer, we should bear in mind, spends just under seven years in their home—in fact, the average in the whole country is only about seven years. Asking someone to spend 20 years in a home, which they may have bought at the age of 30, and not to benefit from the discount that we promised until they are 50, simply does not stack up.

We want to ensure that starter homes are sold to people who are genuinely committed to living in an area, and not to people who simply want to secure a financial uplift by selling on quickly. However, we also want to support mobility. A balance must be struck. I propose that we disagree with Lords amendment 1, and substitute for it amendments (a), (b) and (c), which provide a power to implement a tapered approach to resale. The longer someone lives in a property, the more value that person will gain.

Our amendments provide for the Secretary of State to make regulations on the length of the taper period, and on the details of how the taper will operate. That will enable us to ensure that it is effective and delivers for people in the real world. The amendments set out two potential models for its operation. For example, when a starter home is sold, the first-time buyer must, if there is discount to be returned, pay a proportion of that discount to a specified party. That is the broad approach suggested in the other place, and I can see the logic of it. A body such as the Homes and Communities Agency could then use those funds to build more affordable homes.

As part of our consultation on starter homes regulations, we are seeking the views of developers, lenders and local authorities on how the taper would operate. We strongly believe that we should settle the matter through engagement with the sector, rather than placing the detail of restrictions in legislation. I am confident that that is the best way for us to meet our manifesto commitment on starter homes.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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Will the taper be regional, or will it be a “one size fits all” for the whole United Kingdom? As has already been pointed out, property prices vary considerably, and it is important to ensure that the people who benefit are those who will actually live in the properties.

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend has made a good point. That is one reason why the strictures of legislation do not work in this context, and why it is important that we complete the consultation—which runs until 18 May in order to receive all the feedback and deal with this matter in regulations. As the discount is proportional, the difference in values will be dealt with by the way in which the percentages will work.

Gareth Thomas Portrait Mr Gareth Thomas (Harrow West) (Lab/Co-op)
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The Minister will recall that at the end of last year, in Committee, there were a number of exchanges about housing co-operatives. As a result of changes in the Bill, housing co-ops that own properties are largely exempt from many of its provisions, whereas those that manage properties on behalf of local authorities will still be badly hit by many of the provisions. Potentially, housing co-op properties will be among the 100,000-plus properties currently owned by councils that are likely to be lost as a result of the Bill.

Might the Minister be willing to make a commitment, before the Bill returns to the other place, to look again at the specific impact on co-ops that manage properties on behalf of councils?

Brandon Lewis Portrait Brandon Lewis
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I shall say a little about the provision concerned in a moment, but we will be very clear about the fact that a new home will be built for every home sold.

Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
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How much consultation has the Minister had about the impact of the Bill with the voluntary sector on the one hand and local authorities on the other? He knows as well as I do that his Department will have conducted an impact assessment of costs and viability.

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Brandon Lewis Portrait Brandon Lewis
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We have worked across the sector, and it is clear that our starter home proposals are very popular. As Conservative Members have pointed out today, those in many areas are keen for us to get on with delivering more properties affordable to people who want to buy their own homes. There has been no such product in this country before.

Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab)
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The Minister speaks of affordability. Is he aware that the average deposit paid on properties in London is now £91,000?

Brandon Lewis Portrait Brandon Lewis
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That is why we have extended and changed the arrangements. We now have the London Help to Buy scheme and we have starter homes coming in with a 20% discount. Shared ownership is also an important product, and we are determined to deliver 135,000 more shared ownership homes. The prospectus went out just a couple of weeks ago and the plan is to spend £4.7 billion in that area. Even in London, the deposit for such properties is closer to £4,000, which completely changes the affordability for people wanting to get into ownership.

Dawn Butler Portrait Dawn Butler
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One of the Lords amendments refers to the principle behind the Khan amendment, which is that when a unit of social housing is sold, another must be built in the local area in which the sale took place. Does the Minister agree with that?

Brandon Lewis Portrait Brandon Lewis
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I shall deal with the hon. Lady’s question on high-value assets in just a few moments; I just want to finish dealing with starter homes.

Thanks to my hon. Friend the Member for Richmond Park, the pledge to deliver two homes for every home sold is now on the face of the Bill. As I said earlier, our manifesto was very clear, and this House was very clear when it voted by a majority of 91 to give the Bill a Second Reading. We will deliver the number of starter homes that we promised.

James Cartlidge Portrait James Cartlidge (South Suffolk) (Con)
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On the question of affordability and starter homes, the hon. Member for Hornsey and Wood Green (Catherine West) mentioned the average deposit in London. However, a very big cash cost for any first-time buyer—or indeed any buyer—is stamp duty. Can the Minister confirm that the stamp duty payable on a starter home would apply to the discounted price and would therefore also be 20% lower?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend makes a very good point. The stamp duty will apply to the price paid for the property, so it will apply to that reduced price. That will provide a further benefit for people buying a new home.

We are absolutely determined to deliver the number of starter homes that we promised, in order to help first-time buyers, who were the worst-hit part of the homebuying sector in Labour’s great recession. However, in passing Lords amendments 8 and 9, the other place is seeking to stop us. This House should not stand for that. Those amendments would remove from the Bill the power to set a national starter homes requirement on housing sites. The other place has proposed to replace that power with a locally set requirement that would be effective only when local authorities had completed studies of local housing need and viability.

Scott Mann Portrait Scott Mann (North Cornwall) (Con)
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We hear a lot from local authorities about trying to secure rental properties, but we in this country have a right to own our own home and this Government are delivering that through this Bill. [Interruption.]

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend makes a very good point, regardless of the comments from the right hon. Member for Tottenham (Mr Lammy). My hon. Friend highlights why the Bill is so important. We cannot and should not have to wait for 336 different planning authorities to undertake local need and viability assessments before action on starter homes can be taken. These amendments would hit the very people we are trying hardest to help. First-time buyers would see their chance of home ownership kicked firmly into the long grass yet again by these proposals. That might be what Labour wants, but it is not what we want.

Clive Betts Portrait Mr Betts
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I am trying to understand what the Minister actually does want. I am trying to work out whether starter homes will be built in addition to other homes that would have been built, or instead of them. The Select Committee unanimously agreed the following words:

“Starter Homes should not be built at the expense of other forms of tenure; where the need exists, it is vital that homes for affordable rent are built to reflect local needs.”

Will the Minister tell us whether the Bill as he would like it to be worded would make starter homes the priority and effectively push out and displace affordable homes for rent as part of the section 106 agreements?

Brandon Lewis Portrait Brandon Lewis
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I must point out to the Chairman of the Select Committee that we have been clear from the beginning that we need to see a shift in this country. We have had the farcical situation in which we in this place talk about affordable homes but refer only to homes that people can rent. We know that 86% of our population want to buy their own home, and it is therefore absolutely right that affordable homes should include those that are available to buy. We make no apologies for creating a new product and for turbocharging that new product to ensure that we get 200,000 such homes built over the course of this Parliament. We already have many hundreds of thousands of homes in the rental sector across this country, and we now need to give first-time buyers a chance. To be blunt, that is exactly what we put on the tin in the general election manifesto. We will deliver on our mandate to deliver starter homes.

Clive Betts Portrait Mr Betts
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Will the Minister give way?

Brandon Lewis Portrait Brandon Lewis
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I am just going to complete this point. We will deliver on the mandate to deliver 200,000 starter homes, ensuring that we deliver homes for first-time buyers at a discount of at least 20% on the local market price.

We have also recognised in discussions in the other place that small sites in rural areas, known as rural exception sites, may require additional discretion on starter homes. Those details should be on the face of the Bill. We have listened to concerns that a compulsory requirement would disrupt the supply of rural exception sites. My noble Friend Baroness Williams of Trafford committed to bring back an amendment to give councils local discretion on rural exception sites. I am pleased to be able to honour that commitment in amendment (a) in lieu of amendments 9 and 10.

When I talk to developers and local authorities around sites around the country, they tell me that one benefit of starter homes is that more affordable housing may be delivered because developers will be allowed to deliver more. I have spoken to a number of developers who have said that the difference that starter homes would make is the ability to deliver 5% or even 10% more affordable housing in some developments in their areas.

There was a lot of discussion, both here and in the other place, about our plans to deliver the ground- breaking voluntary right-to-buy agreement through the sale of higher-value housing. It was another manifesto commitment passed from this House to the other place, and it is another change that we are discussing today. Amendments 37 and 184 would mean a considerable delay in receiving payments from local authorities, and therefore in delivering our manifesto commitment to extend the right to buy to housing association tenants. We remain convinced that the determination is the most appropriate way of setting out the information about the payment a local authority will be expected to make to the Secretary of State in respect of its higher-value housing. The key elements that will determine how much an authority will be expected to pay are set out on the face of the Bill. That includes the housing to be taken into account and the definition of vacancy.

The Government have listened carefully to the arguments made by hon. Members when the Bill was last debated and the contributions of all those in the other place. We have amended the Bill to ensure that local authorities are not disproportionately affected by the plans. The definition of higher value and the types of properties to be excluded will be set out in regulations and therefore subject to further parliamentary scrutiny.

I want to be clear with the House once again. In the other place, the Opposition were clear that they did not press the clauses enabling the voluntary right to buy to a vote and acknowledged our mandate for funding it. However, amendments 37 and 184 would seriously hamper our ability to implement it and so should be returned straightaway. The same applies to amendment 47, which is extremely restrictive and would prevent the Government from considering whether local authorities can actually deliver the required housing. We want to ensure that the Government can enter into agreements with local authorities about their local needs. By focusing solely on social housing, the amendment would prevent the agreement process from recognising that flexibility will be needed to respond to the country’s diverse housing needs—we have already heard from hon. Friends about the different needs in different places this afternoon—and that other types of housing may better meet local housing need.

I find it difficult to listen to those who accuse us of not being localist while tabling amendments that would mandate an old-fashioned, top-down approach. We want to ensure that we give local authorities with particular housing needs the opportunity to reach bespoke agreements on the delivery of different types of new homes.

Clive Betts Portrait Mr Betts
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I am still as confused as I was at the beginning of the debate and at the Select Committee hearings. The Minister has just made an entirely reasonable point. I thoroughly agree that it should be for local authorities to determine the composition of homes to be built as part of section 106 agreements in their areas. How does that square with a policy of giving priority to starter homes and building 200,000 of them irrespective of the consequences for the building of other sorts of housing?

Brandon Lewis Portrait Brandon Lewis
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I am actually talking about what will happen with the sale of higher-value properties, which is slightly different. We want to ensure that we give local authorities with particular housing needs the opportunity to reach bespoke agreements with the Government about the delivery of different types of new homes in their areas. If local authorities can demonstrate, for example, a clear need for new affordable homes, they should be able to make a case for such an agreement, subject to value-for-money considerations and evidence of a strong track record on housing delivery. That is important for areas that I have visited, such as Bath and Oxford. I met leaders in Cambridge and they want the flexibility to negotiate with Government and the Secretary of State to get the right deals for their area.

Victoria Borwick Portrait Victoria Borwick (Kensington) (Con)
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I welcome the fact that there will be more flexibility on higher-value homes, particularly for outliers and where prices are particularly high or particularly low in an area. I am delighted that the Minister has taken cognisance of the needs of various people in various different areas so that local need is met.

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend makes a good point about the importance of having this flexibility. In London, local authorities from across the parties have asked for the ability to work together to deliver on this front. We need new homes to be built in this country, and the amendment would limit the Government’s ability, and that of local authorities working with us, to ensure that the right mix of housing is delivered as quickly and efficiently as possible.

Ben Howlett Portrait Ben Howlett (Bath) (Con)
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My hon. Friend is being incredibly generous with his time. As he will know from his visit to Bath a couple of weeks ago, we do not have high-value assets, but housing costs are high in the area. Given the earlier announcement about the shift from high-value assets to higher-value assets, which will not be applicable in Bath, how can our authority combine with other authorities to bid for additional funds following the Budget announcement?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend makes a good point. When I visited him and met constituents, developers and the local authority, I saw a really good example of an area that wants to deliver the right type of housing locally by understanding its local needs. Whether that involves working with the Government to bid for some of the £4.7 billion in the shared ownership fund or the £1.2 billion for starter homes on brownfield sites—

David Lammy Portrait Mr Lammy
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Will the Minister give way?

Brandon Lewis Portrait Brandon Lewis
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I will just answer the previous intervention before I take one from the right hon. Gentleman.

Local authorities could also work with authorities around the income from higher-value homes that they may be able to use to deliver elsewhere. It is important to get that flexibility and to understand that different authorities of different parties want it.

I now turn to amendments 54, 55, 57 and 58, all of which I disagree with. Amendment 54 would make our policy to implement fairer social rents voluntary. It is, as my noble Friend Baroness Williams said in the other place, a blatant denial of the primacy of this House. Local authorities can already operate the policy on a voluntary basis, but we are not aware that any have done so. To put it simply, it is a wrecking amendment and this House should treat it as such.

The policy must also apply consistently, as it would not be right for tenants in certain areas to face possible rent increases while tenants in a neighbouring area do not. The amendment completely undermines the Government’s aim of putting in place a consistent approach and of using the funds raised to reduce the national deficit, which we inherited from the Labour party. It would substantially reduce the revenue that the policy would generate.

Karen Buck Portrait Ms Buck
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Will the Minister give way?

Brandon Lewis Portrait Brandon Lewis
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I am happy to give way. Perhaps the hon. Lady is going to apologise for the debt and deficit that her party left.

Karen Buck Portrait Ms Buck
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I draw the Minister’s attention to the fact that Westminster City Council, which, as usual, is in the vanguard of such things, announced in 2012 that it was extremely keen to introduce a version of pay to stay and to charge its higher-earning tenants additional rent. However, it has never done so because it has never found a way to introduce such a scheme that was not ridiculously bureaucratic and costly and that acted as a severe disincentive to work.

Brandon Lewis Portrait Brandon Lewis
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The hon. Lady will be interested to hear what I have to say in a few minutes about how the policy will work in practice to ensure not only consistency, but that it always pays to work.

We have brought forward a package of amendments and statements of intent to ensure that the policy is fair and that it does not damage the incentive to find work and keep in work. In addition, we have committed to allow local authorities to retain reasonable administration costs, and my officials are working with the sector to establish an approach to implementation that would minimise costs.

Amendment 55 would set the amount of the taper at 10% on the face of the Bill. Our view is that a 10% taper is simply too low. Our preference is for a taper set at 20% or an extra 20p in rent for every pound earned above the income threshold. That would mean, for example, that a household earning over the £31,000 threshold would contribute just a few pounds a week in additional rent. The level recognises the importance of protecting work incentives, but it is a fairer contribution. It is important that we retain the flexibility to set out the detail of the taper in secondary legislation. We want to keep the position under review, and putting details on the face of the Bill would prevent us from doing so. We have confirmed that the regulations will be subject to the affirmative procedure, which I am sure will be welcomed by the House, so there will be another chance to debate the regulations before they come into force.

Amendment 57 would set higher income thresholds, which totally undermines the principle that social tenants on higher incomes should start to contribute a fairer level of rent once they earn more than £31,000—or £40,000 in London. We have listened to concerns about the policy and taken a number of steps as a result. There will be an automatic exemption for any household in receipt of housing benefit and universal credit. The definition of “household” will not include income from non-dependent children, such as an 18-year-old who is starting his first job. Certain state benefits such as tax credits, disability living allowance and personal independence payments will not count towards the calculation of income, and the income thresholds will be supported by a taper, which will ensure that households towards the start of the proposed income thresholds see their rent rise by only a few pounds each week.

Chloe Smith Portrait Chloe Smith (Norwich North) (Con)
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I welcome the safeguards that my hon. Friend is setting out. Many Labour Members often argue that the rich should pay more, so is it not rather puzzling that in this case they seem to oppose that idea?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend and neighbour makes an interesting point, and people reading Hansard will want to draw their own conclusions about what it means. We are clear: it is right that social tenants on higher incomes contribute more in rent where they can afford to do so, but we are also mindful that the policy should protect work incentives.

Meg Hillier Portrait Meg Hillier
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I take great offence at the suggestion that two people—two pensioners, for example—on a fixed income of £40,000 a year in my constituency would be considered rich, or that they would have any other housing option. Those of a certain age on a fixed income cannot rent privately because the rent would be more than £1,500, and a lot more for a two-bedroom flat. They cannot buy, because the average property price is £682,000, and they would not qualify for a starter home, even if they wanted something of that size. Does the Minister acknowledge that it is invidious to attack those people who do not have a great deal of money?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I do not think that that recognises the policy at all. The policy means that as people earn more, they will pay a few pounds a week more. I do not think that is unreasonable, and it ensures that we make the best possible use of our social housing stock.

Lyn Brown Portrait Lyn Brown (West Ham) (Lab)
- Hansard - - - Excerpts

It is difficult to know where to start. The Minister talks about people paying an extra few pounds more, but that is nonsense. This is a tax on aspiration, and the idea that a family in London that earns £40,000 a year is rich is baloney. It costs an awful lot to live in this wonderful capital city of ours—something that the Minister is failing to grasp.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

If the hon. Lady reads the Bill and the amendment, she will appreciate that we do not suggest that people over that income should not stay in their home, or that they should move to private rented accommodation; we are saying that as people earn more money, they should contribute a little more into the system. That is reasonable, and it ensures that we make the best use of those properties for the people who need them most. The package we have announced ensures a policy that protects work incentives. On that basis, I cannot support amendment 57, or amendment 58, which raises the income thresholds by the consumer prices index, and I hope that the House will agree.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

The Communities and Local Government Committee took evidence from housing associations when the Government were planning to introduce this scheme for them, and we heard clear evidence that it would cost them more to administer the scheme than they would get in returns from extra rent. Will the Government present a clear analysis of the administration costs of this scheme, particularly for people on variable incomes whose income, and therefore rent, goes up and down each week? We would need enormous amounts of administration to go with this scheme.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

The hon. Gentleman is missing the point. This is about fairness across the system. People in London—and cities in other parts of the country—who are in the private rented sector and earn these salaries, or higher and lower, are wondering about those in housing associations who earn more than £40,000. Examples have already been given in the House of Secretaries of State on salaries of £125,000, or union leaders on salaries of more than £100,000, who lived in social rented housing. Tens of thousands of people are earning more than £40,000 or £50,000 a year and are benefiting from social rents, which is simply not fair to those who do not have those salaries or opportunities.

Bob Blackman Portrait Bob Blackman
- Hansard - - - Excerpts

Will my hon. Friend tell the House what the reality of social housing for rent in London and beyond is for people who are homeless to start with? There is a huge queue of people waiting for a socially rented property, and it is totally unacceptable for people who are on relatively high salaries to occupy those properties when there is such huge demand.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

My hon. Friend places in keen focus one of the problems of the housing deficit that the Government inherited in 2010. Under the right hon. Member for Wentworth and Dearne (John Healey), not only did we see the lowest level of housebuilding since about 1923, but in 13 years the Labour party built fewer social homes through their councils than we have built in the past four or five years. There is a huge amount to do to drive up the amount of housing so that there are more opportunities for people to have homes across all tenures, whether shared ownership, private rental or with affordable rent. We must ensure that more people have the chance to get on and achieve the aspiration held by 86% of the public, which is to buy a home of their own.

The House will be glad to hear that I will not speak to every Government amendment—you might also be pleased about that, Mr Deputy Speaker. Many of those amendments are minor and technical, and much as we might all enjoy it if I spoke to them all, some colleagues would not thank me because we might still be here by Prorogation. Each amendment makes the Bill work better for those who implement these policies on the ground, and they have been tabled because the Government have listened to the debate and taken action as a result. We have strengthened people’s ability to own their own home and get Britain building again—improving on the 25% increase in building over the last year—and I hope that the House will agree to those changes made in the other place.

I also want to send a strong message that this Government will not slow the pace of housebuilding—we will increase it. We will not take away people’s dream of home ownership—we will inspire it, and we will deliver our manifesto commitments. When the hon. Member for City of Durham (Dr Blackman-Woods) responds to this debate, I hope that Labour Members will ask themselves why they stand against our mandate to boost home ownership and supply—something that the people of this country want and expect. While Labour blusters with political posturing after the abysmal housing mess that it left, we remain focused on building homes across our country and across all tenures. We will increase housing supply and home ownership. That is what we promised, and that is what we will deliver.

Roberta Blackman-Woods Portrait Dr Roberta Blackman-Woods (City of Durham) (Lab)
- Hansard - - - Excerpts

I thank their lordships for their amazing work on this Bill. Thirteen defeats and a string of concessions means that some of the sharpest edges have been knocked off a very bad Bill, but it remains an extraordinary and extreme piece of proposed legislation. Concern is being voiced by housing experts, charities, house builders, mortgage lenders, and Conservatives across a range of council leaders, MPs and peers. Doubts about the Bill matter, but even more important are the deeper doubts—on all fronts and with good reason—about whether the Conservative party is competent to fix our housing crisis.

Since 2010, home ownership has fallen, homelessness and rough sleeping have doubled, private rents have soared, housing benefit costs have ballooned, and during the last Parliament, fewer new homes were built than under any peacetime Government since the 1920s. This Bill does little to tackle the overall housing shortage or produce more housing across all tenures, including housing to rent as well as buy. With the exception of provisions on rogue landlords, it does nothing to improve the private rented sector on which so many people now rely.

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Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I draw colleagues’ attention to my entry in the Register of Members’ Financial Interests.

Let me start by responding to a point made by the hon. Member for City of Durham (Dr Blackman-Woods). She referred to the Government’s house building record; let me tell the House that it is a fine one. In the last year of the previous Labour Government, only 125,000 units were started. Last year, that figure had increased to 165,000 units, so this Government have a record they can be proud of when it comes to building new homes.

The hon. Lady and the Chair of the Select Committee, the hon. Member for Sheffield South East (Mr Betts), also talked about the need to increase supply more generally, and we on this side of the House wholeheartedly agree with that. There is much in the Bill with which their lordships have thankfully chosen not to disagree that will increase supply, including local development orders, the requirement to have local plans in place by 2017 and the work of the London Land Commission. There is a huge amount in the Bill that will increase supply, which Opposition Members have asked for.

I want to say a word in support of starter homes. We know that 86% of the citizens of this country aspire to own their own home, and starter homes will help them to do that. By owning their own home, they will benefit economically as house values go up and they pay down their mortgages, and social benefits will accrue as well. We have heard a lot from Opposition Members about the importance of settled and rooted communities. What better way is there of having a settled and well-established community than by ensuring that it is a community of people who own their own homes?

Opposition Members also talked about affordability, speaking about the ceiling of £450,000 in London and £250,000 outside the capital. That is a ceiling; it is a maximum. My borough, the London Borough of Croydon, is the largest borough by population. The average starter home there will cost £190,000. That means that, with Help to Buy, a deposit of £10,000 will secure a home, and a couple earning £22,500 each will be able to afford to service the mortgage on it. In the London Borough of Croydon, starter homes will work.

On the point about increasing the supply of council houses, I must respectfully point out that in the past five years of a Conservative Government, we have built more than were built in 13 years under Labour. I would further point out that under the rules governing the disposal of high-value council houses, one such house will replace every one that is sold outside London, and it will be two for one in London. These measures will actually increase the supply of council housing across London as a whole, so they should be welcomed.

The problem with the amendment relating to the 20 years’ discount is that if someone wants to move from their starter home, they will need to realise its full market value in order to move up the property ladder to their second and then their third home. I believe that we might see regulations that would allow for a sliding scale, perhaps between five and 10 years. Given that the average length of time spent in a property is about seven years, that would make sense.

On the amendment about local authorities being able to circumvent starter home provisions, I must point out that our proposals were part of a national manifesto commitment that was approved by the electorate at the general election, so it is quite right that they should now be implemented nationally. Local issues will be fully accounted for via the 20% discount on the open market value, which will reflect local housing need.

There is more that I could say, but I am sure that we all want to hear from the Minister. I support the Government’s position on the amendments and look forward to supporting them in the Lobby.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

With the leave of the House, I shall respond to the debate. I thank all Members who have spoken about such a wide variety of subjects.

I want to make a short speech to outline some important issues. Conservative Members feel strongly that we want to return the Bill to the other place with the clear message that we want more homes to be built, not fewer; more homeowners, not fewer; and progress on increasing our housing supply. Let me put this in context by quoting from our manifesto, which resulted in our being given a mandate at the general election. It stated:

“The chance to own your own home should be available to everyone who works hard…We will…build more homes that people can afford, including 200,000 new Starter Homes…for first-time buyers under the age of 40…We will give more people the chance to own their own home by extending the Right to Buy to tenants of Housing Associations…We will fund the replacement of properties sold under the extended Right to Buy by requiring local authorities to manage their housing assets more efficiently, with the most expensive properties sold off and replaced as they fall vacant.”

That is a direct quote from our election manifesto, and it is a promise to the people of Great Britain that we intend to keep. We also feel strongly that the Houses of Parliament should respect our mandate.

Let us also consider this in the context of the work we have been doing, which the Bill will take further—[Interruption.] The number of new homes delivered in the past year was not as low as it was under the shadow Minister, the right hon. Member for Wentworth and Dearne (John Healey)—he did not find this debate important enough to speak in, other than from a sedentary position—when it was just 88,000. The number of new homes delivered last year was up by 25% on the previous year, thanks to the work that we have done, and 181,000 new homes were built. Housing construction orders have doubled since 2009 and registrations are at their highest level since 2007. In fact, new housing registrations have increased in England more than three times as much as in Labour-run Wales. That gives us a clue about what Labour is doing for housing, and we as a Government are determined to go further.

When the House was asked to give the Bill a Second Reading, it delivered one of the largest majorities in this Session. That is why we believe it is important that we see more progress on delivering on the contract that we now have with the British people, who want more homes that they can afford to buy, as well as an overall increase in supply. The House once again has an opportunity to demonstrate its commitment to helping those who work hard to achieve their dream of home ownership. We are a Government of aspiration and opportunity, and we are getting Britain building again.

We are also a Government who will get our social housing working as efficiently and effectively as possible, not only so that more people can own their own home, but to increase the affordable housing supply overall. We will ensure that one new home is built for every high-value property sold outside London and, thanks to my hon. Friend the Member for Richmond Park (Zac Goldsmith), two will be built for every such home sold in London. That represents real delivery from someone who wants to represent London, with a plan to deliver more homes for London, but we have not seen that from Opposition Members. There is now a guarantee that one affordable home will replace every one sold outside London, and two in London.

We are delivering on our promises and we will continue to deliver on our contract with every person in this country that results from the mandate that they gave us. They gave us a mandate to deliver fair social rents through our first Conservative Budget in 19 years. They also gave us a mandate to deliver the ground-breaking Bill that we are discussing today. I am proud to be here today to enable us to go further with a Bill that will deliver more homes for our country.

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Lindsay Hoyle Portrait Mr Deputy Speaker
- Hansard - - - Excerpts

As a man who has been here longer than most, you will know that that is not for the Chair to interpret.

After Clause 128

Neighbourhood right of appeal

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I beg to move, That this House disagrees with Lords amendment 97.

Lindsay Hoyle Portrait Mr Deputy Speaker
- Hansard - - - Excerpts

With this it will be convenient to consider the following:

Government amendment (a) in lieu of Lords amendment 97.

Lords amendment 100.

Lords amendment 108, and Government motion to disagree.

Lords amendment 109, and Government motion to disagree.

Lords amendment 110, and Government motion to disagree.

Lords amendment 98, 99 and 101 to 107.

Lords amendment 111, and Government amendment (a) thereto.

Lords amendments 112 to 181, 189, 192 to 194 and 240 to 282.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I will try to be brief, but I want to go through a few key areas in this group of amendments. If we are to build more houses, we need to make it as simple as we can to do so, while supporting the key principles of local determination and empowerment. If we are to build new homes so that families and communities can grow, those communities need to be happy that they have a say and a voice. The more red tape there is and the more spanners there are in the system, the more the system grinds to a creaking halt, and we end up in the mess that we are trying to fix—the mess that we inherited.

As we have made clear, decisions on planning applications must be made in accordance with the development plan, unless material considerations indicate otherwise. A neighbourhood plan brought into legal force is part of the development plan and must be the starting point for authorities’ decisions on applications. I want to be very clear that neighbourhood plans have weight in law. I am exceptionally proud of neighbourhood planning, as, I expect, is every Member of this House who has seen their community take the lead in deciding the future development of their area—deciding where new homes and businesses should go, what they should look like and what local infrastructure is needed.

Putting planning power in the hands of local people involves the whole community, from plan drafting to referendum stages. Local support for house building in such areas has doubled, and opposition has halved. I have spoken to people who are excited about the prospect of new homes, schools for their children as they grow older and the opportunity to have their say about how their towns and villages should grow.

Neighbourhood plans are clear evidence of our belief that decisions about community life should be taken by those communities. We can and should trust communities to make those decisions. We do only half our job if neighbourhood plans are there, but in name only. If people have exercised their right to be heard about where new homes should go, and if a group has put time and effort into doing so, I believe it is only right that the local planning authority should take notice, although I am not inclined to support Lords amendment 97 as the best way to achieve that. I am sympathetic to it—of course I am—but even in a limited form, a neighbourhood right of appeal could affect housing supply and reduce confidence in the system.

Neighbourhood plans have weight in law, and I want to make sure that we keep the spirit of the amendment and maintain that confidence. There is no stronger position for a community to hold than to have an up-to-date neighbourhood plan in place. I believe that communities should have the reassurance that, after they have taken the time and effort to get involved, there will be additional safeguards in place to ensure that they are listened to.

Antoinette Sandbach Portrait Antoinette Sandbach (Eddisbury) (Con)
- Hansard - - - Excerpts

The Minister will be aware that in a number of areas where neighbourhood plans have been adopted, those plans are repeatedly challenged by developers making planning applications against them. Does the Minister agree that we need to look at that and tighten up the safeguards around neighbourhood planning?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

My hon. Friend makes a very good point. She is absolutely right that there have been examples of developers having a go at getting a planning application. That is why it is important that we are very clear that where a neighbourhood plan outlines where housing should be, it should be respected by the local authority. As I said in response to a very similar point, it should also be respected by planning inspectors and by us in the Government.

That is why amendment (a), which I propose to return to the other place in lieu of Lords amendment 97, will ensure that neighbourhood plans are fully taken into account. It will introduce into the Town and Country Planning Act 1990 a requirement for local planning authorities to identify, in their reports to planning committees, how the neighbourhood plan was taken into account in making a recommendation to grant planning permission. They will also be required to identify in the report any points of conflict between their recommendation and the neighbourhood plan. This will ensure absolute transparency in the decision-making process and that the balance of considerations is made clear.

Anne Marie Morris Portrait Anne Marie Morris (Newton Abbot) (Con)
- Hansard - - - Excerpts

The Minister makes an extremely good point. I am pleased that he is introducing such a new clause. However, my concern is that it does not really go far enough. The only redress is to call in the decision, which means that it will not be made by the community, which the Minister has said we should trust. I am very pleased that he is going as far as he is, but if he believes in trusting the community, the original Lords amendment is a much better way to go.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I know that my hon. Friend has campaigned hard and has made her case strongly in the House. However, if a neighbourhood plan is in place, we must trust our elected representatives, who are locally accountable through the local authority, to make the right decisions for their area—ultimately, they are accountable to their area—and to make sure that their decisions are in line with the neighbourhood plan. We intend to make sure that that process is entirely transparent. I should also make it very clear to the House that when we looked at what is happening at the moment, we found that decisions made by local authorities are in line with neighbourhood plans.

Scott Mann Portrait Scott Mann
- Hansard - - - Excerpts

I am grateful to the Minister for giving way because I know he is pressed for time. My issue is not with the local community, but with the planning inspector. May I, in the very strongest terms, ask the Minister to put a rocket up the planning inspectors in order to support local democracy? When neighbourhood plans are voted through in a referendum, they should be respected.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

My hon. Friend makes a very good point. I can assure him that I have very recently written to the chief executive of the Planning Inspectorate, and I know that that letter is very clearly in the front of the mind, on the database and under the nose of all planning inspectors, so they are clear that we believe neighbourhood plans should be respected. The amendment (a) that we have tabled will take that even further, but I will continue to work with colleagues to look at how we can go further to ensure that neighbourhood plans get the robust support and programme that they need in the period ahead.

Kit Malthouse Portrait Kit Malthouse (North West Hampshire) (Con)
- Hansard - - - Excerpts

The Minister is making a powerful point. Last week, he very kindly made that point to three of my constituents from Overton, Whitchurch and Oakley, all of which have neighbourhood plans in place. Does he agree that although greater protection for neighbourhood plans would be very welcome, one of the key building blocks is the five-year land supply? What consideration is he giving to allowing councils greater power to protect their five-year land supply from challenges from developers, so that that can cascade down into greater certainty for neighbourhood plans?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

My hon. Friend makes a very good point about the importance of making sure that five-year land supplies are in place, that we are delivering the housing we need and that developers get the message loud and clear that neighbourhood plans will be respected by local authorities, the Planning Inspectorate and the Government.

William Wragg Portrait William Wragg (Hazel Grove) (Con)
- Hansard - - - Excerpts

Notwithstanding the very welcome amendment (a) in lieu of Lords amendment 97, can the Minister give the House any indication that he is prepared to countenance alternative future measures that might go some way to meeting the Lords amendment?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

My hon. Friend has joined colleagues in making it clear that they want us to look at how we can go further to make sure that neighbourhood plans have precedence and that everybody is very clear about central Government’s view that neighbourhood plans should guide planning. I will reflect on that and work with colleagues in the period ahead. We are determined to make sure that the message is that neighbourhood plans are the way for communities to come together, that the time they spend together will be valuable in giving them control and power over planning and that that will have weight in law. I am very happy to continue to do that.

Martin Vickers Portrait Martin Vickers (Cleethorpes) (Con)
- Hansard - - - Excerpts

The Minister is making a good case for neighbourhood plans, although I am personally more sympathetic to the amendment, as he well knows from the ten-minute rule Bill I proposed on the subject last year. Does he accept that communities find it difficult to get the resources together to produce a neighbourhood plan and will he consider what additional help might be forthcoming?

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Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I am happy to outline that there is additional help out there. We give money to local areas to do their neighbourhood plans, and to local authorities to support them in that work. We will continue to do that. I am always looking at more ways not just of promoting plans but of making sure that communities have the support that they need, from a wide network, including templates and other work.

We are tight on time, so I will move on. As I said earlier, the Government have listened. Permission in principle is a good example. Thanks to Lords amendment 100 the Bill now states explicitly that permission in principle can be granted only for housing-led development. We are happy to accept that amendment.

We are somewhat unconvinced, however, by amendment 108. It would increase the construction costs for home builders by an average of more than £3,000 on a semi-detached home, and place a regulatory burden of around £200 million a year on the industry. That will have an impact on all home builders—not just the big companies, but the small and medium-sized companies that we are looking to drive and help grow across England. We cannot accept the amendment. It would tip the balance, driving some small home builders out of the industry altogether and making housing development unviable in some areas. We already build some of the most energy-efficient homes in the world as a result of the tough building regulation standards we set in the last Parliament. In fact, there has been a 30% improvement on the standards before 2010, reducing energy bills by around £200 annually.

Tom Brake Portrait Tom Brake
- Hansard - - - Excerpts

Has the Minister attempted to calculate what homeowners would save each year in energy costs if the Government were to go for the enhanced standard?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

The right hon. Gentleman might want to reflect on the point I have just made about how we have reduced energy bills with that 30% improvement. We must balance that with the fact that a £3,000 increase in the cost of building a semi-detached home will lead to at least that increase—potentially even more—in the cost of buying one. That will not help home builders, and could slow down house building and make it harder for small businesses to come into the sector.

Rebecca Pow Portrait Rebecca Pow (Taunton Deane) (Con)
- Hansard - - - Excerpts

Will the Minister assure us that he has given due consideration to our climate change commitments, as energy efficiency in homes really contributes to those?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

My hon. Friend makes a very good point. That is why we are so proud of the work that we have done on energy-efficient homes since 2010, raising those standards. But we have to be very clear on certain policy ideas. For example, the reason why we have said no to the reintroduction of zero-carbon homes has been well summed up by the Federation of Master Builders, which represents many of the small builders that we all want to see more of. It said that that policy

“threatened to perpetuate the housing crisis.”

This House should return any amendment that would do that.

Likewise, there are serious and fundamental reasons why amendment 110 is unworkable. I know many of us appreciate how important this issue is, so I will go through why for a few moments. Flood risk is an incredibly important issue, and I fully understand, sympathise with and share the strength of feeling on it. The Government are committed to ensuring that development is safe from flooding, and the delivery of sustainable drainage systems is part of our planning policy, which was strengthened just over one year ago.

Our planning policy and guidance are clear that local councils must consider strict tests that protect people and property from flooding, and that development should not be allowed where those tests are not met. Our approach to avoiding flood risk applies to all sources of flooding, including from surface water and from overloaded sewers and drainage systems, and it sets clear expectations for the use of sustainable drainage.

Rebecca Harris Portrait Rebecca Harris
- Hansard - - - Excerpts

I very much welcome what the Minister is saying. He will be aware of the problems we have had in Castle Point with surface water drainage, so I am grateful for his guidance to planning authorities. Does he agree that not incorporating Lords amendment 110 will mean that superb companies such as Anglian Water will struggle to deal not just with historical problems but with potential future problems, which could place a heavy burden on bill payers?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I appreciate my hon. Friend’s point; indeed, I appreciate the intention behind Lords amendment 110. The Government are doing some work on this, and are reviewing how the new policy is working.

Rebecca Pow Portrait Rebecca Pow
- Hansard - - - Excerpts

Will the Minister give way?

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I will make a little progress, but I will take more interventions later.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
- Hansard - - - Excerpts

Order. Members want to get in, but they will not get in if they keep intervening. They have to choose which they want to do, and I will choose the ones who are not intervening.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

Lords amendment 110 seeks to remove an automatic right to connect to the public sewer for surface water, unless a sustainable drainage system forms part of a development and is constructed in accordance with non-statutory technical standards and the planning permission. However, the proposed new clause, as currently drafted, is unnecessary and unworkable. First, it makes the right to connect conditional on complying with the terms of a planning permission that may not actually provide for such a drainage system. That might be because it is not viable or because there are on-site constraints.

Secondly, the new clause presumes that a process exists that determines whether or not a development is permitted to connect to the public sewer, where there is none. Thirdly, making the right to connect conditional on planning permission leaves open a number of issues, including what happens when connections are needed and where there is currently no requirement for planning permission to be obtained at all. That might include situations where water sewerage companies are exercising their statutory obligations to drain an area effectively.

Finally, the new clause, which would increase red tape and barriers to development, has no transitional arrangements and industry, especially smaller house builders, will struggle to respond without time to prepare, leading to delays in house building.

Anne Marie Morris Portrait Anne Marie Morris
- Hansard - - - Excerpts

The Minister is being generous in giving way. I understand his concerns about the current proposal, but he assumes that the authorities will determine that the drainage and infrastructure in place are adequate. I have a number of examples where, in my view and that of the community, that is not the case. If there was a way of appealing those decisions if they are not robust, to say that the draining infrastructure was not appropriate, I would feel much happier with what he is saying.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

I appreciate my hon. Friend’s point, but I say again that one of the problems with the proposed new clause is that, as currently drafted, there would sometimes be an issue where there is actually no requirement for planning permission to be obtained in the first place.

Rebecca Pow Portrait Rebecca Pow
- Hansard - - - Excerpts

I thank the Minister for giving way. I was going to save this point and make a short speech, but I will make my point now. In my constituency of Taunton Deane flooding is a massive issue, and of course the incorporation of SUDS—sustainable drainage systems—would help with wider catchment management, which in future we are all going to have to address, so would it not be sensible to think about doing it now? I do understand his concerns about discouraging house building, because I know that we have to build all these houses.

Brandon Lewis Portrait Brandon Lewis
- Hansard - -

My hon. Friend make a very good point, as have other colleagues across the Chamber this evening. I am very sympathetic to the points they have raised, which is why we are looking through this review to see how the current system is working, bearing in mind that it came in only a year ago and that it will be reporting back.

There is a theme emerging. I am proposing that this House should disagree with amendments that would increase burdens on house builders, would be unworkable for those building new homes and, like those in the previous group of amendments, would effectively slow the pace at which they can deliver them. That is also why the Government disagree with Lords amendment 109, which seeks to prevent the Secretary of State from using a power in relation to small sites and also in rural areas.

I want to make it clear that we are happy to work with the other place and to address the issues it raises about rural areas through regulations. Regulations will make clear those rural areas where restrictions will not apply. Working with the other place will also allow us to consider how other rural areas can seek exclusion from any restrictions.

Finally, I have read the Hansard reports of the proceedings in the other place, and on many occasions I stood at the Bar to watch them myself. I have missed standing here over the past few weeks talking about the Bill. As you know, Mr Deputy Speaker, we could talk much longer about the Bill, but I will not be tempted to do so this evening. [Interruption.] The hon. Member for Sheffield South East (Mr Betts) tempts me to speak further. I hope that this House will accept my earlier argument. The motions that stand in the name of my right hon. Friend the Secretary of State to agree with the other place mean that homes will be delivered faster as a result, the planning system will run smoother and the way we manage and deliver housing will be faster and fairer.

Roberta Blackman-Woods Portrait Dr Blackman-Woods
- Hansard - - - Excerpts

The first thing I want to say about the planning section of the Bill is that it is a pity that it has not had more resonance in the public realm, because it is bringing about far-reaching changes to the planning system that many local communities should be concerned about. Two issues that I will highlight are the extensive use of permission in principle on brownfield sites and the contracting out of planning services to private providers. Both risk drastically reducing the say that local communities have over what is built in their area and are a further nail in the coffin of the Government’s localist credentials.

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Anne Marie Morris Portrait Anne Marie Morris
- Hansard - - - Excerpts

Thank you, Mr Speaker. I will keep my comments brief.

As the Minister knows, I have campaigned for a community right of appeal for many years, and it is now time to consider that issue seriously as there is more and more support for it across the House. The Minister said that the original right of appeal was introduced to redress the balance in favour of the landowner, who was effectively having his freedom taken away. I suggest that the time has come to redress the balance in favour of communities that, in the words of many, are now having development thrust upon them. I hope that the Minister will consider this issue, as it is perfectly possible to introduce a community right of appeal. That is not the same thing as a third-party right of appeal, and I am sure that he could come up with something that would work and not stop the building programme.

In defending his position, the Minister said that the community has a voice through the local authority. I understand where he is coming from, but electing a local authority once every four years is not the same as giving local communities a voice in planning decisions that affect them. It is now time to look seriously at giving the community a real sense of democratic responsibility and accountability. The Minister relies on the local authority to be the arbiter, but in many cases—certainly in my constituency—the local authority is conflicted, and an obligation to write a report will not solve the problem. One of the biggest issues—the Minister knows this, because I have spoken regularly to him about it—concerns infrastructure decisions, because at the moment there is no right of redress if the local authority gets something wrong. That is one of the most significant issues on my desk today.

I understand why the Minister wants to reject the proposal on SUDS, but in my south-west constituency, flooding has been a chronic issue. This is about proper funding as well as planning, and about ensuring that those who make infrastructure decisions understand the issues and are held to account. I cannot think of anybody better to do that than the community.

Brandon Lewis Portrait Brandon Lewis
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The debate has summed up just how important the planning system is to many of those who write to us, or who come to see us in our surgeries every week. My hon. Friends have spoken passionately and clearly about the importance of empowering local communities, and all those in my Department who have responsibility for planning understand how deeply a decision about where a new development should go affects those who live or work nearby.

Good planning is about more than just buildings. It is more than just maps, numbers, assessments and forms, and more than calculations about housing need and the ability of our vibrant high streets to deliver local growth. Good planning is about people, and we have heard good things said by good people this evening. Good planning is about seeing past documents and planning applications, and being able to judge the impact of the changing nature of our places on the families and communities that grow up there.

That is why, as my hon. Friends have rightly outlined, neighbourhood planning is so important. It is the future of a community being agreed and designed by that community, and such work must be respected. It is about local people deciding where their children will live when they grow up and leave home. It is about local decisions that affect the future of our schools and our shops. That is why it is so effective and empowering—the ultimate localism. Local support for house building has doubled in the past four years, while opposition to local house building has more than halved. We have empowered more than 1,800 communities to start the process of neighbourhood planning, which we introduced in 2012, and nearly 10 million people in 72% of local authorities are now represented. On average, 89% of people voted yes in their neighbourhood plan referendum.

We are seeing that engagement with the planning system leads to undeniably positive results, which is why I am so passionate about getting right our reforms and our delivery of neighbourhood planning. It is reassuring to hear so many colleagues making their case so passionately to ensure that the voice of their local community is heard and properly represented in the planning system, as that is exactly what neighbourhood planning is about. There is no point in building expectation into the planning system if we then slow it down with red tape and extra bureaucracy. There is no point in getting local authorities to engage properly with local communities if we then prevent building with other red tape and regulations. That is why we have made our points in the debate about drainage and energy-efficiency. It is important that we get this right, that we do the work to get this right, and that we listen to what colleagues have said to make sure that we do just that in the period ahead. We are here to deliver the housing that our country needs.