Review of permitted development rights

Part of Neighbourhood Planning Bill – in a Public Bill Committee am 4:15 pm ar 27 Hydref 2016.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Jim McMahon Jim McMahon Shadow Minister (Communities and Local Government) (Devolution) 4:15, 27 Hydref 2016

I beg to move, That the clause be read a Second time.

New clause 14 intends to finally hold the Government to account on the extension of permitted development rights. We have heard a lot about our aspirations for quality, decent neighbourhoods and places where people aspire to live and are proud to live. Extension of permitted development rights flies in the face of that, because it allows a free-for-all for developers without checks and balances, local control and long-term stability and quality in mind.

It was evident that the reason that this was introduced was to kick-start the number of units being brought to the market. Most people anticipated that it would be a temporary move until more permanent features were introduced that took a longer term view. Many people were therefore surprised when it became permanent. They say, and I agree, that it flies in the face of what the Government are trying to do on a range of other issues. That is the purpose behind the new clause.

It is worth putting the new clause into some context. The Library has provided data—I know that, like me, the Minister has a passion for data. Figures from his own Department highlight the reduction in the number of units being converted from commercial to residential use—a figure that dropped significantly, unsurprisingly, in the 2008 crash, because demand fell. Up to that point, many decent-quality conversions took place. Many of our major cities and towns were revitalised, with mills being converted into decent properties that people wanted to live in, creating brand-new communities in areas that were previously derelict. Those conversions were welcomed by many people, but since the financial crash we have seen a year-on-year reduction in the number of conversions. In 2006-07, 20,000 units were converted, but the number fell 12% in the following year, and by 6%, 18% and 15% in subsequent years. With the introduction of the temporary extension to permitted development, the figure increased in 2014-15 back to 20,000 units.

If the intention was to kick-start such development and get it back to where it was before the crash, it achieved that, but developers and communities were waiting for the long-term plan that would put quality and affordability back into the system. It is depressing that that has not been forthcoming. Although 20,000 units were brought to the market in 2014-15, it only takes us back to the pre-crash situation. That is good news, but there is a world of difference in the quality of what was being developed before the financial crash and what is currently being developed under extended permitted development rights—and I am not the only one saying that.

We heard several representations in our oral evidence sessions. We have shared our own views on the issue. I also sought out the views of Shelter, which has a keen interest in ensuring that we provide decent-quality housing. It has a living home standard because it wants to ensure that affordability and quality are key in people being able to access their own home, but when it applied the test, four out of 10 households failed it on affordability. Many of the developments being converted from commercial to residential use are in some of the most expensive parts of the country. Developers are making a lot of money off the back of such schemes, without providing the quality.

Julia Park is the head of housing research at Levitt Bernstein and she spent seven months advising DCLG on its housing strategy towards the Housing and Planning Bill. She was advising Government and she was aware of the discussions that were taking place, and her assessment is stark. Her view is that the office to residential free-for-all has resulted in terrible homes, including some flats of only 14 square metres. “Terrible” was the term that she used, as someone actually involved in the housing and planning review. That was not a political point, but a professional view of the quality of those homes. In another pointed remark, she said:

“Bypassing all standards except basic building regulations is short-sighted and desperate”.