New Homes

Question

15:35:00

Asked by

To ask His Majesty’s Government what logistical and supply chain barriers they have identified to the possibility of building 1.5 million new homes by 2029.

To deliver 1.5 million homes over this Parliament the housebuilding sector will need skilled and competent workers, efficient planning and a reliable materials supply chain, as well as certainty for the construction industry. We started on planning immediately, and we will publish the revised national framework tomorrow. We are working with industry to provide high-quality training opportunities and create a more diverse work force to build the homes that the country needs. The industry also needs access to sufficient quality safe materials. We have set a clear direction of growth for the housing sector, so suppliers can be confident in increasing their capacity to meet the demand.

I thank the Minister for her reply. A target of 1.5 million homes is commendable, but Governments do not actually build houses, local councils are disempowered, and the private sector simply does not have the capacity. The UK is the world’s largest importer of bricks—about 500 million a year—30% to 40% of cement is imported, and the construction industry says it needs another 251,000 workers to get anywhere near the housebuilding target. In addition to the publication tomorrow, can the Minister also publish a detailed report showing how each of the constraints on housebuilding is to be alleviated?

I thank my noble friend. He is right, to the extent that we recognise the constraints. We spent a lot of time early in government identifying what they were, working with the sector. We expect housebuilding activity to double in four years, but the supply of construction materials would need to increase by only about 20% to meet the demand, because housebuilding makes up only about 20% of the construction sector. We expect demand for construction products primarily used in housing, such as bricks, and green tech, such as PV panels and heat pumps, to increase at a high rate, and we see that as an opportunity for great British innovators to get going and improve the supply chains with us.

My Lords, during the passage of the Environment Act we introduced the excellent principle of biodiversity net gain. In Committee we voiced concerns over the lack of qualified BNG assessors both in the private sector and, more importantly, in local government. The Minister—the noble Lord, Lord Goldsmith of Richmond Park—assured me that the markets would provide. I was sceptical then, and I am sceptical now, given local government finances. What update can the Minister provide us on the availability of those qualified to assess biodiversity net gain?

We are increasing the support for the planning system, but the specific point about biodiversity net gain assessors is, I appreciate, a different issue. We expect that planning officers will take a role in this, but we need a specific increase in BNG assessors, so if I may I will reply to the noble Earl in writing on that matter.

My Lords, the noble Lord, Lord Sikka, mentioned a shortage of 251,000 skilled construction workers if the Government are to hit their target. Modern methods of construction have the potential to help meet that shortage and drive up productivity, but have had a mixed reception in this country because of a lack of sustained demand. As many of the 1.5 million houses will come from the public sector, can the Government use their purchasing power to relaunch modern methods of construction with a sustainable level of demand, to meet the productivity requirement and give the country the homes it needs?

I am grateful to the noble Lord for giving me the opportunity to say that I went to visit British Offsite with Weston Homes in Braintree earlier this week. What a fantastic example of British innovation, using recycled steel to build MMC products. MMC is an important opportunity to improve productivity in the construction sector, to deliver quickly the very high-quality energy-efficient homes we need, and to create new and diverse jobs. We are working to address the strategic barriers to the further uptake of MMC, including improved supply chain confidence, clarity for warranty and insurance markets, and planning reform. We will say more about that in the long-term housing strategy next year.

My Lords, there are currently tens of thousands of Section 106 affordable homes with detailed planning permission waiting to be built out on active sites, but stuck because the registered providers will not take them on due to the current financial capacity in that sector. Will the Government as a short-term emergency measure consider the use of Homes England grant funding specifically, so that registered providers can afford to take up these much-needed affordable homes on these stuck sites?

The noble Baroness is quite right about the stuck sites but, in spite of the very difficult Budget round this year, the Government have put £500 million more into affordable housing. That takes the total for affordable housing up to about £3 billion. Homes England is working through its programme of how it is going to support the delivery of those affordable homes. I am sure that support for registered providers will form part of that.

My Lords, does the Minister agree that it would be very unwise to rely on the oligopoly of volume housebuilders to produce all the homes that we need? Has the time come and are the Government now ready to promote the model of the development corporation? It is an arm’s-length body controlled by local authorities which buys the land. It then has a master plan and parcels out the sites—yes, to the volume housebuilders, but also to housing associations and those building for students and older people and the SME builders. Is not that model now really necessary rather than reliance on those major volume housebuilders?

I am sure the noble Lord is aware of my great passion for development corporations and the way that they work. It is true that we are encouraging Homes England to break down the great big contracts it had been issuing more, so that there is more opportunity for smaller developers to take those on. As well as that, we recognise the very challenging conditions that SME housebuilders have faced to deliver homes in recent times. They are essential to our housebuilding targets, build out quickly, train the workforce and are embedded in local communities. We will announce further support for SMEs next year, but this breaking down of the great big development organisations is key to delivering the homes we need in the places that people want them.

My Lords, we all agree that more homes need to be built but, with the introduction of the higher local authority housebuilding targets, which will be mandatory, including on “ugly” parts of the green belt, can the noble Baroness define what ugly means? Is this not entirely subjective, where “ugly” is not just a grey-belt issue but a completely grey area? Are those living in such areas not going to be left wringing their hands in despair as the bulldozers roll in without genuine protections in place?

There is no intention for bulldozers to bowl in without any local say in this. By strengthening the housing targets and allowing development on that poor-quality grey-belt land, we will get Britain building again. We will set out tomorrow in the National Planning Policy Framework the definitions of “grey belt” and how we intend to move things forward. Making those housing targets mandatory will reverse the decline we saw when the targets were cancelled last year.

My Lords, can the Minister reassure us that these 1.5 million new homes will be resilient in the face of future climate change? I am thinking particularly of the risks of flooding and overheating.

I am working daily on that task at the moment. We are looking at the future homes standard with the future homes hub, which involves the whole construction industry, to make sure that we make homes as resilient to climate change as we possibly can. Of course, there is a balance to be struck in delivery of homes but we want to make sure that we do not end up with a whole generation of homes that need retrofitting in the future. We will do our best, working with the industry, to make sure that they are as fit for the future as we can possibly make them.

My Lords, I return to the issue of the impact on the environment of importing building materials. I understand that the use of 500 million bricks—whatever they are used for —has resulted in nearly 300,000 tons of carbon emissions. Will the Government consider what role they will play in ensuring that we develop alternatives to building materials, to be produced in the UK?

It is important that the Government support the development of the supply chain that we need in this country in order to enable the building that we want. There are, of course, many areas of the supply chain which we need to develop. That is why the Government have supported the development of an electric arc furnace at Port Talbot so that we can continue to produce steel. We need to think about the solar panels, the ground-source heat pumps and the battery storage: these are huge opportunities in our economy that will contribute to the growth that the country needs.