Contribution
My Lords, I thank the noble Baroness, Lady Taylor of Stevenage, for her introduction to these regulations and my noble friend Lord Roborough for his amendment and thoughtful words. I also thank other noble Lords who participated in this debate for their thoughtful words. I think there is universal agreement that these regulations do not work.
We all want to see our natural environment preserved, but people also need somewhere to live. There are 1.34 million people on council waiting lists. Homes in many parts of England are simply unaffordable, with the average home costing 10 times average London wages. For private renters, rent is taking an increasing proportion of household income, about 40% in England and nearly two-thirds for some of the lower-income households. The situation is worsening, with Pepper Money estimating that there are 220,000 fewer rental properties as landlords exit the market following the Government’s Renters’ Rights Act.
We have a housing crisis, but the Government continue to make the situation worse. Despite their commitment to build 1.5 million new homes, only 200,000 were delivered last year, down 4% on the previous year. By contrast, the Conservatives delivered 1 million homes, as promised, over the last Parliament, and that included the impact of Covid. The Government continue to increase the burdens on housebuilding, which ultimately increases the cost to home buyers and renters. It is not just any one regulation or levy but the continual layering of additional burdens: the building levy, landfill tax, high-rise building safety, Section 106 and the future homes standard, among others. The Home Builders Federation estimates that the cost of building a low-rise home has increased by 76,000 since 2020.
It is easy to say that this should be reflected in the price of land, but often the value is simply not there, particularly for brownfield land. With the poor economic outlook and increasing interest rates, people cannot afford higher house prices or rents. If the cost of building is greater than the sales price, homes will not be built, and I fear that in many areas of the country we are approaching that point.
We do not dispute that harm to nature must be managed, mitigated and compensated for. It is a crucial consideration for any planning application, but people also need somewhere to live. During debates on the Planning and Infrastructure Bill, mitigation hierarchy, viability and mandation were discussed and assurances sought by this House. We need developments to provide infrastructure, whether it is schools, roads or health facilities, as well as affordable homes, but these regulations risk cuts to these in order to make sites viable.
My noble friends Lord Fuller, Lord Roborough and Lady Coffey all raised the effectiveness and efficiency of Natural England. Do we really want it to be judge, jury and executioner, setting the policy, determining whether it has been met and then setting up its own schemes and levies with no accountability? Do we want it to be able to create its own monopoly and eliminate competition, as in the Solent, mentioned by the noble Baroness, Lady Parminter?
The Minister has said that Natural England will be accountable to the Secretary of State, but is it realistic that the Secretary of State will be able to evaluate fully the financial effectiveness of every EDP and all the potential competing schemes that are being eliminated for it, not to mention the needs of every single site that might be affected by it? I am not sure that this is realistic. The Minister has said that this will not be an obligation on developers. However, the regulations are littered with words such as “obligation”, “imposed”, “mandatory” and “enforcement”.
We must also reduce our reliance on major housing developers, yet it is the smaller developers which will be most exposed to the individual costs and levies of these regulations. What assurances can the Minister give that viability will be a core part of these regulations; that schools, infrastructure and affordable homes will not lose out; that Natural England will not be able to impose a mandate; and that consideration will be given to SME builders, with recognition of the need to prioritise brownfield? As my noble friend Lord Randall of Uxbridge pointed out, when will we see the impact assessment of these regulations?
We need a balance between the need to preserve our environment and the need for housing. Regulators need to be accountable.