Housing and Planning Bill — House of Lords, 2016-04-25
Topic: Housing
Janet Royall (Labour, Centre-left): My Lords, I rise to speak to Amendment 119. I am grateful to the noble Lord, Lord Best, the right reverend Prelate the Bishop of St Albans and the noble Baroness, Lady Parminter, for their support. I start with huge thanks to the noble Lord, Lord Best, and the noble Lord, Lord Cameron of Dillington, for the tremendous work that they have done on this Bill on behalf of rural areas. The negotiations with the Government have been assiduous, and the Minister has been in listening mode I am delighted that the Government have agreed to exclude rural exception sites from the requirement to build starter homes and that they have agreed in principle to enable councils to retain their remaining housing stock in rural areas with an exemption from high-value sales requirements. Of course, we wait to see the fine print of the government amendments but, despite the fact that the Bill was regrettably not rural-proofed when drafted, there now appears to be a real understanding that rural areas have very specific challenges if they are to remain as vital and vibrant communities The Government recognise that social housing in rural areas needs protection, but much more is also needed. The economic and social viability of our rural communities is dependent on there being a mix of housing, including affordable homes. With an acute shortage of affordable housing in rural communities, I simply do not understand why the Government are trying in Clause 143 to reintroduce the restrictions, already overturned by judicial review, that would mean that local planning authorities should not seek affordable housing for sites of fewer than 10 units. As most residential development in rural areas is on sites of 10 units or fewer, the ability to seek affordable housing contributions on site, or as a commuted sum from these sites, is critical. In Shropshire, for example, 92% of its development is on sites of fewer than 10 units, and 86% on sites of fewer than five units. For Derbyshire’s rural local authorities between 2011 and 2014, 85% of their committed and completed development was on sites of 10 units or fewer. In 2014-15, 55% of affordable homes in villages were through Section 106 contributions on market sites. Much of this delivery is on sites of fewer than 10 units. In Shropshire, for example, 89% of its rural Section 106 affordable homes were on sites of fewer than 10 units. Because these market sites include homes to meet local affordable housing needs, they are much more likely to gain community support and avoid the delays and costs that result from opposition to development, so it is a win-win situation for the developer and for the mixed housing needs of the community In the same period, 44% of rural affordable homes were provided through rural exception sites, whose principal purpose is to meet local affordable housing needs. In seven areas, more than 50% of their rural exception site schemes were of 10 units or fewer, and in four of these more than 70% of their rural exception site schemes were of 10 units or fewer. As we heard in Committee, these sites are a critical source of commuted sums. As the availability of the government grant has declined, these are a vital source of capital funding, particularly for rural exception sites. Shropshire Council has raised £2.5 million from commuted sums, which it has used to help housing associations build 250 new affordable homes, and in the last three years Cornwall Council has raised more than £790,000 from its rural developments, all of it from sites of 10 units or fewer.