Lord Roborough (Con)

My Lords, I rise to speak to this important group of amendments about planning consents and compulsory purchase. I will speak briefly in support of Amendment 217, so convincingly introduced by the noble Lord, Lord Cromwell. It seeks to ensure that acquiring authorities and those acting on their behalf adhere to the normal code of conveyancing practice—the same principles that would apply in a transaction between a willing buyer and a willing seller. This is a sensible and pragmatic proposal. Compulsory purchase is, by its nature, an intrusive power and must always be exercised with care, transparency and fairness. Ensuring that conveyancing practice aligns with what would be expected in an open market transaction will help to build trust and minimise disputes between landowners and acquiring authorities. It is essential that landowners do not continue to be disadvantaged and mistreated through the CPO process, as the noble Lord described. Amendment 219 in the name of the noble Baroness, Lady Pinnock, proposes a new clause that would make land subject to automatic consideration for compulsory purchase under the Housing Act 1985 where permission for a development of 100 homes or more has not been acted on within the relevant period. She touches on an interesting and widely debated issue: the problem of land banking—if I may use that term—and delays in delivering housing once planning permission has been granted. Her amendment raises the question of how we might create stronger incentives to build out permissions in a timely manner, particularly where housing need is acute. Before considering supporting this amendment, we would need to understand how widespread this practice, as the noble Baroness describes, really is. The figure of 1.2 million homes consented but unbuilt is bandied around. However, how many of these developments are unviable due to the Section 106 costs, community infrastructure levies and biodiversity net gain costs that are put on them? How many of these homes are stalled in negotiations around the details of implementing those consents? How many are stalled due to other issues outside developer or landowner control? I am not convinced that land banking is necessarily such a widespread issue as she contends, but I am very willing to listen to evidence. I would be grateful to the Minister for any information she can share with us. It is worth bearing in mind that housebuilders are businesses: they have obligations to their staff and their shareholders, and they need to have a build programme that ensures they know they can employ their staff over a multi-year period and develop profits which allow returns to shareholders. The shareholders are often pension funds and other such institutional investors in this country. The principle of housebuilders making profits is important. Where a developer does have more short-term supply ready to build on its balance sheet, in most cases it will be because it is building out sites in markets that can absorb only a certain number of units each year without undermining prices to the detriment of the local community. Housebuilders also generally have a 15% return on capital employment commitment to their shareholders. That means that if they are holding land off the market, they need to be very confident that they are making more than 15% per annum doing that, otherwise they are letting their shareholders down. The financial incentives for land banking are not clear. I would be most interested to hear if the Minister can identify what land banking is really happening in this country, where developers or landowners are holding on to consented land that could be built on right now without impacting on local housing prices. I very much look forward to her reply.