My Lords, my name is down in support of Amendment 195, so brilliantly introduced by the noble Lord, Lord Young of Cookham. It is also supported by the noble Lord, Lord Lansley. The amendment would return us to the position whereby each local plan must be designed to secure enough homes to meet the target for the area set by government. I too see this as a matter of considerable significance.
In essence, this country needs to build at least 300,000 homes each year to ease the problems caused by acute housing shortages: overcrowding, homelessness, poverty and health inequalities. This national target will not be achieved by leaving the supply of sufficient homes to individual councils to determine. On its own, of course, the requirement on all local authorities to have local plans that together make provision for 300,000 homes will not mean that the planned-for number will necessarily be built. Market factors will affect private housebuilding. Insufficient government support will affect social housing output, and so on. If local plans do not plan for their share of the national total, it is certain that it will not be accomplished.
Many analysts suggest that the overall figure of 300,000 homes per annum is not enough. The Centre for Cities has explained that we would have another 4.3 million homes if we had matched the average rate of housebuilding of our European counterparts over recent decades. We have a massive catching-up job to do. The Centre for Policy Studies argues that 460,605 homes should have been added last year. The actual output was barely half this figure—235,000 net additions, including conversions of existing buildings. For the moment, 300,000 homes is a sensible, short-term target.
Why is it so improbable that this figure will be reached unless local planning authorities are obliged to meet housing targets? First, because a number of councils have already made clear that, if the decision on numbers is now in their hands, they will reduce the amount of development previously planned for. Even if only, say, a quarter of authorities opt to see fewer homes built, there will be a big undershoot of the grand total. Reducing acute shortages will then be even more difficult in future than it has been to date.
Secondly, nationally determined targets are necessary because—as I guess we all recognise—it is incredibly difficult for elected Members to champion new housebuilding in their areas. New housing is perceived as meaning more traffic, more pressure on services, disruption from construction and—although this may be an urban myth—a fall in house prices. It is also true that housebuilders have often singularly failed to create quality places. There is a long way to go in reforming that industry. These concerns do not mean that we can simply set aside the need for new homes.
The harsh fact is that where a councillor is likely to be voted out of office if they do not vociferously oppose new development, few will feel able to act in the interests of those who need a home but do not yet have a vote in that area. The structure of democracy at local level makes it nigh on impossible for representatives of local communities to act in the wider interests of those who do not live there.
Our planning system recognises that no one is keen to have a power station, airport or highways project on their doorstep. Nationally significant infrastructure
projects are taken outside the remit of the local council. No one is suggesting the same approach for housing developments, even very large ones, but recognition should be given to what is in the national, rather than necessarily the local, interest. Securing sufficient new homes is a national priority and should be part of the national decision-making process.
This important amendment removes the unfair onus on local councillors to determine how many new homes their local plan should be designed to secure. It removes an unreasonable expectation that those who are—or hope to be—elected as local councillors will always do what is right for the next generation, the wider region and the country, rather than what the often vocal local electorate of here and now are demanding. I acknowledge that arguments can still rage over the methodology for setting housing targets and that there will rightly be lengthy consideration of exactly what gets built and where, but these are separate matters and do not affect the amendment before us. Rather, I warn that, without this change to the prevailing position, without decisions on overall numbers of new homes being taken at a higher level than the local planning authority, we will certainly not see 300,000 additional homes built each year. The horrendous housing shortage will get worse. I urge the Minister to accept this essential amendment.
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