That this House takes note of the Town and Country Planning (Permitted Development and Miscellaneous Amendments) (England) (Coronavirus) Regulations 2020 (SI 2020/632).
Special attention drawn to the instrument by the Secondary Legislation Scrutiny Committee, 21st Report.
My Lords, I move this Motion because these regulations contain important policy matters that make significant changes in planning law, as outlined in the report from the Secondary Legislation Scrutiny Committee, of which I am a member. These would otherwise not be discussed by this House. Admittedly, we had a debate under the affirmative procedure on the fees regime for these planning law changes, but as Members who participated will know, it was the substance of these regulations that was the principal concern of the House. Before addressing the policy changes themselves, I shall spend a few moments examining the parliamentary process which has led to this debate.
First, these regulations are being brought in under the “Coronavirus” heading: two completely separate matters are addressed by these regulations and only one is related to the coronavirus pandemic. The part of the legislation covering the building of additional storeys is both permanent and totally unrelated to the present pandemic, so it is quite legitimate to ask the Minister to explain why this planning law change is misrepresented as a response to the coronavirus health issue. Secondly, as our previous debate on the fees issue demonstrated, significant policy changes are being proposed through the weakest form of parliamentary scrutiny that exists. This is a perfect example of a major policy change being side-slipped through Parliament, first, under the cover of a response to the coronavirus crisis and, secondly, by the use of the negative procedure.
There are further changes coming down the line in the form of a suite of negative procedure regulations that also make big policy changes to planning law. I find this all the more surprising when the Government are proposing new primary legislation on planning law, which would be the ideal and wholly appropriate vehicle for consideration of these changes and would have had the value of full parliamentary scrutiny, undoubtedly leading to better legislation. As it is, the Government are giving the public a set of hand-me-downs one piece at a time, with no possibility of developing a cohesive policy. Why are the Government doing it this way? I look forward to a full explanation from the Minister.
I turn to the policy intent itself. The permanent change to planning law allows up to two additional storeys to be constructed on existing, purpose-built blocks of flats of three storeys or more built between 1 July 1948 and 5 March 2018, up to a total height of 30 metres. When the Government consulted on these proposals, the majority of responses were opposed. The opposition fell into a number of areas but, broadly, they were the lack of local accountability, the quality of the homes in the new storeys, access issues and the impact on residents and neighbours. Of course, upward development should be possible, but only with the essential proper protections for the existing community. These regulations introduce a new and permanent permitted development right that removes much of the protection for those communities.
My Lords, I have a Motion to Regret the Motion of the noble Lord, Lord German. The regulations before the House today are indicative of the Government’s approach to planning; indeed, they are indicative of the Government themselves. They are another example of incompetence after a summer littered with U-turns. I begin by reminding the House of when these proposals first emerged. It was Thursday 12 March, and the impending crisis of Covid-19 was unfolding. It was on that day that the Chief Medical Officer first raised the risk from “moderate” to “high”. Public Health England announced that it would stop performing contact tracing, as it could not cope with the number of infections. As a result, the FTSE 100 plunged by more than 10%, the biggest drop since 1987.
It was on that day, at a key point—coincidentally, I am sure—during the unfolding crisis that the Communities Secretary informed the Speaker that he would make a Statement in the Commons. Perhaps he would be updating the House on the important role of local government in what had now been declared a pandemic. Perhaps the ministry would support the most vulnerable, who would soon be subject to self-isolation. No, on both counts.
On that day, the Communities Secretary announced that blocks of flats could add an additional two storeys without planning permission. Fast-forward six months, and while the Government should have spent the summer preparing for autumn and winter, they have spent it lurching from crisis to crisis, with not a government resignation in sight. The Secretary of State’s pet project —to transform the skylines of suburbia—is still being pushed through. All the while, the High Court awaits a hearing for claim of judicial review to block the move and local communities and local councils across the country are livid at the prospect. Yet for reasons unknown, this House is today still being asked to consider the implementation of these regulations.
My Lords, I support the instrument to create two new PDRs, which will help businesses reopen following the lifting of certain coronavirus restrictions.
As a former leader of a local authority with a busy planning department, I know how important it is for decisions to be made as quickly and transparently as possible in order to aid a vibrant commercial sector, to create new business opportunities, to deliver those much needed jobs, and to reduce bureaucracy and cost in the planning system.
In the context of the Government’s post-coronavirus economic renewal package, I welcome that the regulations will enable local authorities and developers to speed up agreements for functions to be held on behalf of local authorities or developers for an unlimited number of days to allow development. The regulations are time limited until March 2021 and sit alongside measures to support businesses reopening quickly following the relaxation of previous restrictions. Permitted development rights also have an important role to play. They can provide developers with a greater level of certainty, within specific planning controls and limitation measures, which will incentivise and speed up housing delivery.
As we have heard, the permitted development rights allow for existing purpose-built detached blocks of flats of three storeys or more to extend upwards to create new two-storey self-contained homes, while respecting the nature of the area. In some instances, creating new homes from derelict properties in urban centres can bring multiple benefits. They can help kick-start affordable homes, breathe new life into those areas and enhance the reform of our high streets.
It is important to note that the right requires prior approval in respect of the provision of natural light in all habitable rooms. Local authorities can refuse prior approval applications where there is inadequate natural light.
My Lords, I thank the noble Lord, Lord German, for initiating this debate. I am grateful to the Minister for his time on Monday, together with the noble Baroness, Lady Andrews. I declare my property interests, as set out in the register.
As we have already heard, PDR is a complex subject which is not easily understood. It was conceived to bring back into use otherwise redundant office buildings, thereby reducing blight and increasing the housing stock. To do so quickly, it bypassed the planning process. As with many short cuts, it came at a price—a price which planning officers and their departments could do nothing about.
Reports written over the past two years or so by the RICS, by architects Levitt Bernstein, and by Shelter have illustrated a lot of the problems. In short, the provision of some of the worst housing seen in Britain for decades came through PDR mark 1—if that is the right way to describe it: crushingly small flats lacking adequate daylight, with windows out of position for suitable residential use, designed to squeeze the maximum number of bed-sits into a given floor area, and cramming in as many rent payers as possible with little regard for the quality of life, mental health or general well-being of the people there. The image of a modern Rachman comes to mind. Let us avoid these well-documented mistakes; it is never too late. As we have heard, the forthcoming business and planning legislation is certainly the right place to deal with this.
The rights of leaseholders have also been touched on. I am not going to dwell on these, though I think others will. However, with additional floors added to occupied properties, there will be nuisance, breach of quiet enjoyment, issues of adequacy of lifts and services, and future service charge issues. Many landlords will negotiate with their tenants—they are the responsible ones. Others will not. It is likely to become a minefield of legislation and only a small percentage of tenants will be able to afford it. There is no regulation of landlords, no minimum standards and no best practice of building management. The noble Baroness, Lady Wilcox, mentioned Section 106 agreements. Local authorities do not even get those, though they do have a greater involvement than with PDR mark 1. There is no contribution from developers, notwithstanding the super profits handed to them by government through this arrangement.
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Lord Greaves (LD) [V]
My Lords, I very much support the two eloquent opening speeches from my noble friend Lord German and the noble Baroness, Lady Wilcox of Newport, which set out why this proposal is what, in my vernacular way, I would call silly nonsense.
First, it will not have a major impact on the number of houses built or kick-start the economy; it will simply cause a lot of difficulty and nuisance in a few places. I declare my interest as a member of Pendle Borough Council and of a planning committee. I cannot think of a single property in the whole borough of Pendle to which this would apply, so I am not talking about problems in our area.
The Government do not understand just how much pressure local authorities and planning departments are under at the moment. Covid and the cuts in local government spending have reduced many planning departments to a skeleton of what they used to be. Frankly, the new complicated proposals being introduced, such as this, will in practice not be very different from an ordinary planning application.
The Government say that this is a quick way and will be quicker, but the actual work required to deal with one of these applications will require consultation with residents and with statutory bodies—notably, in the case of districts, the highways authority, which will be the county council—and consideration of design and amenity. Highways design and amenity are just about the most important things people get worked up about when there are medium and relatively small developments of this nature being proposed. That it will somehow be much easier and simpler for planning departments is simply not the case.
The other problem is that it is yet another example of the Government micromanaging planning at a national level when planning is really about local communities and places. It is different everywhere. The idea that you can simply impose national rules like this without consideration of the importance they will have in a particular locality is quite wrong.
My Lords, I am very grateful to the noble Lord, Lord German, for introducing this debate—and for the way he introduced it—and to the Minister for the time he gave some of us on Monday to express our concerns. He will therefore anticipate much of what I will say.
The Minister made it clear in that meeting that the purpose of this instrument is essentially to help the Government meet their housing targets. I completely appreciate that but, as he will know, I do not think this is the way to do it. In fact, I do not think it will help very much; it will make a marginal difference, as we have heard—possibly 800 homes a year, but probably far less. Of course, none of them will be affordable because it is permitted development.
This SI will guarantee uncontrolled profits for developers who are looking around at the scale of building in the centre of London, for example, thinking “I want some of the action” and taking opportunities to do just that. It will also damage the prospects and well- being of residents of existing residential blocks of flats who in different ways will be put at serious risk by this.
The impact statement reflects the imbalance in interests expressed. It reveals the scale of profit potential for developers, which has been estimated by the Leasehold Knowledge Partnership—which is very authoritative—to be between £20 billion and £40 billion. However, it is silent on the costs to the well-being and safety of residents, tenants and leaseholders from these massive interventions to existing buildings. It is also silent on the prospect of huge increases in the cost of enfranchisement, which will follow from the uplift in the value of a freehold. In this case, this policy absolutely cuts against what the Ministry of Justice wants, which is essentially a much simpler, more accessible and cheaper form of enfranchisement.
When launching the policy, the Secretary of State was, like other Ministers, silent on this point too. All he referred to was the opportunity for individual families and homes to add a storey. Yes, the policy is presented as one of gentle densification, but there is nothing gentle about the impact on residents. I must declare an interest as a resident of a block of flats in London which is already threatened with such an upward extension. We have not been consulted; we do not want it; it is unpredictable and problematic in terms of buildability, safety and loss of amenity. We may well be faced with a choice between living in a building site—ceilings coming down and holes in the walls—or evacuating, and there is no compensation for the loss of peaceful enjoyment.
My Lords, I declare my interests as set out in the register. I have enormous sympathy with the comments made so excellently by the noble Lord, Lord German, and others. However, I also have sympathy with the Government’s position on this SI. It is a mixture of temporary and permanent measures, which is a shame if it is badged as a coronavirus measure, which should not cover the permanent angle. Affordable housing should be introduced and increased across the country, but that can be addressed separately.
I share some of the concerns expressed by the Delegated Powers Committee on how neighbourhood concerns will be taken into account, but I am reassured that this must be subject to successful prior approval applications. Those applications must have adequate provision for natural light; they will check to make sure that they are not on hazardous sites and that there is no extra flooding risk; it must be built within three years; and it will pay the community infrastructure levy. There are controls on this via that route.
I understand that there is significant concern, but, like my noble friend Lady Redfern, I think the Government have a point here, particularly on the issue of developers. Big profits for developers are principally stoked by actions of monetary policy, which have deliberately inflated asset prices across the economy as a policy objective for economic growth. Without additional development, how can we address the housing shortage? Of course affordable housing is required, but that will be necessary in addition to any of this. I do not believe it is possible to build the scale of housing that we need to redress the shortfall between supply and demand without some disruption somewhere.
Therefore, I think that these measures deserve our support overall. However, I have one question for my noble friend. If the existing building has a prior planning condition limit on, for example, the number of units or how far it can be extended, could the owner of that building now make a new application to override that historic limitation for permission to extend it under this new SI?
I too thank the Minister for giving his time generously this week in the meeting that has already been mentioned. I certainly appreciated it. I give my wholehearted support to the two opening speeches, which said it all.
The ability to add two storeys to a block of flats is already in place. It is happening in urban centres, it is certainly possible, and it is certainly lucrative, as the noble Baroness, Lady Andrews, outlined. Planning guidance issued over recent years has promoted greater densities, and developers have certainly not missed that trick. The Government believe this might yield 800 new homes a year—a very small contribution to the housing total for such an unpopular policy.
If this is already happening under a full planning permission, what is the Government’s rationale for bringing it into the permitted development regime at all? It is a serious question because, under this updated PDR, most of the responsibilities for the local authority remain the same, including site notices and the length of the consultation period. Planners must also take into account certain aspects set down by government. To residents and the untrained eye, this looks, feels and acts like a planning application, yet it is not. Residents will not appreciate the difference.
What are the differences and why have the Government made them so? There is a lower planning fee, there are no internal space standards and no contribution to affordable housing. However, the most significant difference is that for a prior approval, what councils can and cannot consider is very tightly defined in statute. Government decides it knows best. That is in contrast to planning applications, where councillors and communities have their input about their place, in that full planning applications are determined in accordance with the council’s own development plan and with its locally adopted policies.
In short, under this PDR, the council has the same responsibilities but cannot apply policies that take into account the specifics of its place. It is the difference between building beautiful and having little choice but to approve whatever developers think they can get away with—and, regrettably, that happens. From the developer’s point of view, they are being relieved of having to match the space standards of the flats below—that is, creating substandard housing—they do not need to contribute to much-needed affordable housing, they pay a lower fee, and they face much less council “interference” in the shape of local policies.
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The process of consultation proposed is a shadow of what currently exists. The expedited approval process may be suitable for considering home extensions, but the building upwards of new floors on domestic buildings are major schemes with large community impact. While prior approval notice is to be served on owners and tenants, within a very tight timetable, all comments received are to be considered only if they relate to the dual issues of amenity and external appearance. For example, will the council be able to consider the means of egress from the building? Is the lift core of sufficient size for the increased number of residents? What about negative effects on the service charges levied on owners? Then, of course, there is the quality of build issue—the materials to be used and the match to the existing homes. It seems to me that the number of new homes delivered by this mechanism will not be great, and certainly not the 800 a year anticipated by the legislation.
A three-storey property extended up to five would require a lift. If one is not present in the existing building, it would mean the construction of one external to the building. An existing lift in a building with five floors may not be a suitable lift for seven floors. Consider the protection provided for existing residents in these blocks. The developer will be required to produce a report on how they intend to minimise disruption; a report not subject to any checks will be produced by the developer. Anyone who knows this business will know that significant disruption is inevitable. The roof covering will need to be removed and the remaining roof area made temporarily waterproof before any construction can take place. It is difficult to see how this can be done without erecting scaffolding around the whole building for a considerable period, during which existing residents will suffer a major loss of amenity as a result.
Residents will turn to their council and their councillors to express their concerns, and they will find them powerless. Our planning system is constructed on a system of checks and balances, on local people and their councils providing the fair play our communities need. I would be very surprised if developers using this legislation did not meet substantial local opposition, meaning much more work for the local authority but without the power to provide any solutions. The light-touch planning requirements in these regulations offer very little succour to residents and neighbours, who will now find their ability to voice their interests and concerns severely limited.
These proposals indicate a Government making a dramatic shift away from strong and caring communities, with local councils as their facilitators, towards the aspirations of developers and a distant Government. It is through local councils’ transparent process of planning and regulations that the public can make their concerns heard. It is only through this process that elected councillors can make recommendations and insert conditions that ensure the protection of those affected and pay respect to the principle of community cohesion.
The Minister, in responding to the previous debate, called these regulations “gentle densification”. Well, the Government have got it wrong—they are anything but gentle. With the opportunity of the new planning regulations and the new planning law which the Government are providing, it would be wholly appropriate for the Government to take these regulations away, give them a comprehensive rethink and bring suggestions for any changes back in the primary legislation, where they could be properly debated.
I need not go through every issue with allowing developers to build upwards without consent, as this House has already well illustrated the flaws. I am sure that grass-roots campaigners behind the legal challenge will also do so. However, I firmly believe that, at the very least, we should make two preconditions for all residential developments: first, they should afford the resident a fit and proper place to call home; and, secondly, they should respect both the natural and human environments that exist around them. It is abundantly clear that new upward developments will not ensure either of these.
We have already heard concerns that these new homes will be cramped, undersized and at times poorly built. Surely many, if not most, will be unaffordable, since there will be no screening of the new spaces and no requirement for homes to meet Section 106 duties. Both the Minister and I are former council leaders, and I am sure he will agree with me that Section 106 funding plays a vital role in providing important community facilities that councils could not otherwise afford—particularly after a decade of austerity and underfunding of local government. There can be no doubt that new developments will impact the quality of nearby homes and communities, either by poor design or by the blocking of light.
Of course, there is more to these regulations than a new right to build additional storeys. As a result of this instrument, permitted development rights are also extended to allow for markets and motorsport events to take place more frequently without permission. I have no qualms with the Government supporting outdoor events, and they are right to explore ways of doing so. However, will the Minister explain why this measure has been lumped into this instrument, rather than including it in the Business and Planning Act? Surely that would have been a more appropriate setting for the House to consider the merits of this provision. There are also further provisions which make minor changes to compensation liability, as well as to the length of time for which land can be used temporarily. I would be grateful for clarification as to if, and how, the Government worked with local authorities on the drafting of these provisions.
I hope I have made it clear that the provisions of these regulations in relation to upward developments and the omission of Section 106 contributions do not have the support of our party. We will not vote against them today but will instead await their consideration by the Commons and the judgment of the High Court. I urge the Government to look for ways of restraining developers’ profits, so that opportunist developers have less ability to make life worse for our communities. If we have learned anything from the past six months, surely those of us in public service should be striving to make things better for the people of the United Kingdom.
It is critical that we build faster, making use of available brownfield sites and supporting all our communities—both urban and rural—across the UK. I support the instrument.
Finally, this PDR will lead to further abuses, if not checked now. It is important to learn the lessons from PDR mark 1. This proposal may add a few flats to the housing stock, but potentially at a great social cost.
There will be resort to law, but only for people who can afford it. The Government knew from the start that this was an unpopular policy, as the noble Lord, Lord German, explained, and many of the issues raised were completely ignored. I suspect the Minister is discomforted by what he has inherited here. Will he consider whether anything more can be done to protect residents by way of the planning Bill coming down the track, or can he commit to an early review of the policy rather than waiting the normal five years? Will he also seize the opportunity presented by the Law Commission to accelerate the reforms in leaseholding and look for ways to restrain the colossal prospects of developers? It is an unfair, unbalanced and inefficient policy, but we have a chance to do something about it.
When such schemes are already being permitted while ensuring that standards are maintained and community benefit captured, can the Minister say why and for what developers are now being let off the hook and residents short-changed?