I beg to move,
That leave be given to bring in a Bill to define affordable housing in relation to household incomes; to amend the law relating to land valuation and compensation; and for connected purposes.
Our post-war planning system is a framework for managing change in our towns and cities and ensuring that new development meets the needs of local communities, for brokering and mitigating the gap between individual private interests and collective community needs, and for redistributing the scarce resource of land. Local plans safeguard land for particular purposes, including housing, employment, education, and community uses. Our heritage protection regime and national parks protect the buildings and landscapes that communities value. Planning policies seek to ensure that affordable housing is delivered and that across many dimensions of design, from building height to energy performance standards, new buildings take due account of their surrounding community and wider environment. Despite that, our planning system, deregulated and modified in recent years, too often fails to deliver against either the promises it makes or the real and pressing needs of local communities.
In a wider political environment characterised by a lack of trust in politics, our planning system is part of the problem. Every time a new housing scheme is delivered in which even the “affordable” homes are far out of reach of local people in housing need, every time a new building starts to look shabby after just a short time and every time planning permission is granted but nothing happens on the site for years, trust is eroded a little more. It is time to restore a vision of planning as the key to meeting the needs of local communities while also safeguarding their interests for future generations, and it is time for planning to step up and play its full part in helping to restore trust in democratic processes.
We need an agenda for reform, and I want to set out today two reforms—of the definition of affordable housing and of the rules around land values and viability—that could make an immediate difference. My Bill, which is supported by Shelter and the Town and Country Planning Association, seeks to reform our planning system to deliver the fair outcomes communities desperately need and to accelerate the delivery of genuinely affordable social housing.
The housing crisis is the single biggest practical issue facing communities across the whole country. The critical challenge for our planning system is to deliver the genuinely affordable social homes that are urgently needed in so many places, but there are some major problems that limit the effectiveness of our planning system and work in favour of landowners against the interests of communities.
Too many of the current mechanisms designed to deliver fair outcomes from the planning and development process essentially amount to shutting the door after the horse has bolted. Local planning authorities are required to negotiate affordable housing contributions with a definition of “affordable” that has no relationship to income, and the price of land, which is a key determinant of how many affordable homes are considered “viable”, can be hugely inflated by landowner expectations of a right to “hope value”—future speculative value based on planning permissions which the landowner does not own and has not realised, and which are not confirmed in law.