Housing and Planning Bill — House of Lords, 2016-03-22
Topic: Housing
Nicholas True (Conservative, Centre-right): My Lords, I also have amendments in this group, although they are unrelated, but I will speak to them now so as not to delay the matter. I hope that I will not test the patience of my noble friend the Chief Whip, but we have had a reasonably lengthy speech. I am about to speak about a matter of fundamental importance so far as my local authority is concerned to people who live there and other local authorities in the London area. It concerns a grave injustice that is being carried out and I intend to pursue a remedy, come what may, in your Lordships’ House. I hope that that will not be necessary and that the Government will listen The amendments relate to a specific issue, which is the impact of the proposal pushed through in 2013 to allow the automatic conversion of offices of B1 use, to use the jargon, to be converted to residential C3 use without full planning permission. At the time, many local authorities in London asked the coalition Government not to proceed with this step. I remember some testy meetings at the time, but of course the man in Whitehall knew best. We were told we could pass so-called Article 4 directions. We have explained now and many times since the problems of Article 4 directions, but again, the man in Whitehall knew best. We reminded Ministers of the principle of localism and not imposing a one-size-fits-all policy across the country but to let local authorities decide what was beneficial or damaging to the local economy. But I am afraid, again, the man in Whitehall knew best and the order was imposed in 2013 allowing automatic conversion of office to residential use. Under the procedure, councils’ residents and office workers—the people who work there—cannot object to these changes, except on the limited grounds of flooding, contaminated land and traffic. There is no consideration of the impacts on employment or on patterns of commuting. There is no requirement to meet space standards. There is no distinction between offices that are occupied and those that are not, and absolutely no provision for affordable housing, which is what the Bill is supposed to be about, among other things What has happened since in high-value residential areas such as mine? It was entirely predictable; we predicted it at the time. The consequences, at first sad, are now immoral and, for some families, bordering on the tragic. I will take some examples from my borough, but the London Councils brief shows that there are problems in many parts of London. Developers, driven by greed and with no social obligation, are asset-stripping high streets for housing, without any contribution to schools, transport or health. There is profit for the developers; the community picks up the ancillary cost By autumn 2014, Richmond Borough alone had lost 56,500 square metres of offices—almost 20% of the space in our borough. By April 2015, that had risen to 25% of office space, despite the attempt to contain this with Article 4 directions. The latest figure I have is of 234 prior approval applications granted, with a loss of almost 30% of our office space. I have to hand information on 143 of these prior approvals. Of them, 61 were empty. They are cases where a council such as mine would probably have given permission anyway, but with a social contribution from the developer. Some 22% of the offices turned into homes were partly occupied, and 50 offices, with nearly 15,000 square metres, were fully occupied. Yes, we are told that 189 residential units may come from those, but at what cost? Businesses were given notice or wound up, with no opportunity for succession, for the sake of a quick buck for the developer This bleeding of employment space is creating bottlenecks of supply in various parts of London, as the London Councils report indicates. Potential sites for free schools are being lost. The Government are cutting off their nose to spite their face: the policy means that the Education Funding Agency has to pay above odds to buy "resi-value" offices. At a recent public meeting I held, a doctors’ practice wishing to expand to serve new residents moving into new homes in the area complained that it cannot now find space in the area because the offices that they had in mind are being converted to houses. In our council’s latest business survey, 20% of businesses with between six and 10 employees said that they found it hard to find premises. The gearing between residential and office values in Richmond is up to £4 of residential value for every £1 of office value. It is a no-brainer for those after quick money: double your money, double it again and catch the plane to Bermuda, with not one penny in compensation to those who lose their jobs or business places, or the communities that bear the costs My Amendment 101B in this group, which I will not talk to given the hour, provides for compensation in these cases to those tossed out, and to the community. The quantities may not be right—I will hear an argument from the Government about that—but surely the principle is unarguable My borough has the largest number of these so-called prior notifications, but it is a widespread picture of growing damage across London. Well over 100,000 square metres of occupied space—businesses no longer there—have been lost in London. Rents are rising in many areas, deterring investment. Around 7,000 dwellings have been agreed in schemes of 10 units or more across London, which might, in the normal planning process, have yielded nearly 1,000 affordable homes. This way, there are none Article 4 could certainly be improved. Councils could be allowed to take into account impacts on jobs; local authorities could be allowed to charge fees. Article 4 directions could apply immediately, without risk of compensation claims, and I support the thrust of Amendment 100ZAZB in the name of the noble Baroness, Lady Thornhill. But ultimately, the answer is two "L"s: localism and listening My amendment is about localism—it is not to be prescriptive, but concessive; not to be centralist but localist. It allows those who want the Government’s order to have it and I have been told that, in some areas, it is very welcome and has been very helpful. They can frame the order on the wall of the mayor’s office if they want to, with a portrait of the Minister alongside. My amendment allows an affected local authority to opt out of the order, where it is doing damage, in the interests of the well-being of its community and to protect jobs. What possible rational objection could there be to this, except the "They shall not pass" principle about which I was talking the other day When I put down this amendment, I was very disappointed to see that, very shortly afterwards, the Government arrogantly tabled an order making this prior approval permanent, without waiting even to hear your Lordships’ arguments or discussion on this subject. In my submission, that was a shabby way to treat Parliament and this House. It would be possible for this House to pray against that order and sweep away this whole policy. If that happened, it would go where it was wanted and where it was not wanted. In my view, that would be exceeding the proper performance of this House, but it could happen. Or we could take my approach. Let it stay where it is wanted and end it where it is damaging the economy and costing jobs I beg my Front Bench and my Government to listen. What morality, what principle, can there be in a policy—a Conservative policy—that puts hard-working people out on the streets, destroys jobs and enriches those who speculate at the expense of those who create? I find that shameful. I cannot explain it to my residents and it is profoundly, morally wrong. I beg this Government to listen and to think again.