Baroness Hodgson of Abinger:

Moved by Baroness Hodgson of Abinger

240: After Clause 106, insert the following new Clause—“Land purchasing: duty to declare other approaches to purchase or lease land(1) Any developer or company approaching a landowner to buy or lease land for the purpose of development must declare whether they are also approaching other owners of land in the vicinity to buy or lease land for the purpose of development. (2) The declaration required under subsection (1) must include whether the combined amount of land intended to be purchased or leased will be submitted for application as a nationally significant infrastructure project as set out in Part 3 of the Planning Act 2008.(3) In subsection (1), “in the vicinity” means any land immediately adjoining or within ten miles of the land intended to be leased or purchased.”Member’s explanatory statementThis Amendment seeks to ensure that any landowner being approached is aware of whether it is just their land that is the subject of purchase/leasing or whether there are others being approached so that the total sum of the land obtained may result in application for designation as a nationally significant infrastructure project.

My Lords, I shall also speak to Amendment 241. Amendment 240 is a return to the debate that we had about the issues of transparency and the right of landowners to be fully informed of the potential scale of a project. It would insert a new Clause after Clause 106, creating a duty to declare other approaches to purchase or lease land in the vicinity. Proposed new subsection (2) states that that declaration

“must include whether the combined amount of land … will be submitted for application as a nationally significant infrastructure project”, while proposed new subsection (3) provides a definition of what is meant by “in the vicinity” in this context; namely, anything adjoining or within 10 miles of the land intended to be leased or purchased. The amendment would not prevent land purchasing from occurring but would force better practices, bringing in transparency and accountability to the process for potentially very large projects.

In Committee, the Minister argued that the amendment could inadvertently breach confidentiality agreements, potentially jeopardising progress on development projects. I disagree. I am not asking the developer to provide each potential partner with chapter and verse on other negotiations but simply to indicate that the land in question might form part of a larger project connecting to neighbouring land. That is a simple statement that would not be an onerous burden on developers; it would be a way of ensuring that all of them acted within the spirit of professional behaviour that we would expect, although sadly, as examples given in both Houses during the passage of the Bill have confirmed, that does not take place.

All too often it is the actions of a few that tarnish the reputation of the many, but surely it is only morally right and fair that landowners and the local communities potentially impacted have a true sense of the potential scale of the project being proposed and how it might have a bigger impact beyond the one plot being discussed. Anecdotally, I have heard of a case where the developer failed to notify those selling or leasing their land that they would be part of a big project; when it was discovered, there was considerable anger from the local community, with those who had agreed to lease their land being ostracised. Not only is this therefore the right thing to do, because surely all deals of this kind should be open and transparent, but it is also in the interests of community cohesion. I have since checked this with a land agent, who said that he thought it was eminently sensible.

The Minister referred to the book of reference and how it is available for public view—if indeed anyone knows about it—and that it should list all land and interests in land that may be affected by development. I reiterate a point made by others throughout our discussions: to the general public, development jargon and process is all a bit of a mystery to start with. However, the Minister herself mentioned the problem here: she implied in her Committee response that the book of reference is available for public view only once the application has been submitted and accepted by the Secretary of State. Transparency after the application is too late and not transparent at all.

While some landowners may jump at the chance of being part of a nationally significant project, others may not wish to be. If they do not know what is being proposed, how can they make an informed choice? In this House, surely we should not be enabling corporate underhand behaviour. We need to ensure that consideration is given to those being approached for land with projects and the communities that will all have to live with the consequences.

Amendment 241 requires a similar simple statement, which again has the principles of transparency and good practice at its core. It seeks to prevent land banking, the practice of purchasing undeveloped land and holding it for future development or resale, rather than immediately building on it. Its proposed new subsection (1) would create an obligation on the developer or company to declare whether they held planning permission for similar developments within a 10-mile radius of the new site they were seeking permission to buy or lease. Proposed new subsection (2) would give the power to refuse development if any similar sites identified by proposed new subsection (1) had not been activated for over a year.

I remind the House that we must not conflate housing delivery with granting planning permission. Planning permission will not meet targets if it is not acted on. I will not reiterate all the stats from the debate we had in Committee, but suffice to say that, as another noble Lord highlighted, around four years’ worth of the Government’s current target is sitting in land banks. Better transparency will only help build trust and confidence in what our planning system can deliver.

I was pleased that the Minister expressed that the working paper is looking to see that permissions given are built out as quickly as possible and I suggest that this amendment could only strengthen the incentive for this to happen. It was also mentioned that a form of use it or lose it could be brought about by implementing the provisions in the Levelling-up and Regeneration Act. Why has this not been kick-started already? Can the Minister give us a timetable in which she hopes that this will be implemented? How many other land banks will be approved before this comes into force? I beg to move.

My Lords, I thank the noble Baroness, Lady Hodgson, for bringing these amendments, particularly Amendment 241. The noble Baroness raised the issue of land banking in Committee and I am pleased that she is raising it again on Report. As she rightly said, land banking is one of the blockers of development. I will repeat one of the stats I gave in Committee: 1.2 million housing units with full planning permission are waiting to be constructed. Those figures are from the ONS. One of the reasons is that developers want to keep prices high and therefore phase development over a sometimes inordinately long timeframe. Indeed, in my own town there is a development of nearly 300 homes that the developer wishes to develop over 10 years, which explains, I think, as much as anything, why this country is short of the housing that it needs.

There are other consequences of land banking, apart from the crucial one of failing to supply the houses that the country needs in a timely way; it also has an impact on local plans. Where developers have full planning permission for all the allocated housing sites in a local plan, they can, and do, argue that they therefore need more sites, sometimes with preference for sites in the green belt, even though there is no intention of beginning, let alone completing, the sites they currently have with full planning permission. That is a really important issue on which I hope the Minister will give some comfort for those of us in local councils. I look forward to what the Minister has to say on these important issues.

My Lords, I thank my noble friend Lady Hodgson for her constructive engagement throughout the passage of this Bill, her close attention to its detail and her ambition to improve the legislation in a number of important areas. Amendment 240 needs to be considered carefully; I will be interested to hear what the Minister has on it. Where the total land being assembled could ultimately lead to an application for designation as a nationally significant infrastructure project, there is a real need for greater clarity at an early stage. That would only help to build trust between developers, landowners and local communities, and my noble friend’s proposals rightly highlight that need.

Amendment 241 addresses the concern about land banking, which I know many noble Lords share. The practice of acquiring undeveloped land, holding it for speculative purposes then drip-feeding it into the market, as the noble Baroness, Lady Pinnock, said, understandably attracts attention, particularly where there are strong pressures to deliver housing or infrastructure more swiftly. My noble friend is right to seek reassurance that the powers in the Bill cannot be used in a way that enables or encourages such behaviour. As my noble friend did, I too ask the Minister again: why have the Government not progressed the powers that are already in the Levelling-up and Regeneration Act on land banking?

My Lords, I am very grateful to the noble Baroness, Lady Hodgson, for Amendment 240. This amendment seeks to ensure that, when approaching landowners to buy or lease their land, developers must declare their interest in purchasing or leasing adjoining land. We appreciate the noble Baroness’s continued interest in promoting transparency and discouraging speculative land banking. However, we maintain that this amendment is neither appropriate nor necessary within the framework of the Bill.

There is existing guidance on the procedures in the Planning Act 2008 for the compulsory acquisition of land in connection with NSIPs. This guidance supports applicants to seek to acquire land by private negotiation, where practicable, using compulsory acquisition only where attempts to acquire by agreement fail. The guidance also encourages early engagement with affected parties to help build up good working relationships, to treat landowner concerns with respect and to help reduce the mistrust or fear that can arise in such circumstances.

Land acquisition for NSIPs can be highly sensitive and often involves confidential negotiations. Mandating developers to disclose discussions with adjacent landowners could risk breaching confidentiality agreements and potentially hinder the progress of vital infrastructure projects. This is particularly important at the pre-application stage, where early engagement is critical to shaping proposals and identifying potential issues. Forcing disclosure at this stage could discourage that open dialogue between developers and landowners. However, the Government recognise the importance of transparency for landowners and ensuring that there is a fair process in place before consent is granted to authorise the acquisition of land.

For those reasons, when applications that seek to authorise compulsory acquisition are developed and submitted to the Planning Inspectorate, applicants are required to submit the accompanying book of reference, to which the noble Baroness referred. This is a publicly available document. It outlines all land and interests in land affected by a proposed development, including those subject to compulsory acquisition, temporary possession or other impacts. This ensures transparency and public accountability. I think there is an obligation to make people aware of the presence of that document.

After an application has been accepted, and to proceed to examination, applicants are required to notify landowners under Section 56 of the Planning Act 2008. Landowners are also recognised as interested parties under Section 102 of that Act, which enables them opportunities for involvement during examination. This is not merely procedural; it grants landowners meaningful opportunities to engage in the examination process. These provisions are vital to ensure that the voices and interests of landowners are not only heard but properly considered throughout the process.

In light of the sensitivities involved, the existing government guidance and the transparency mechanisms already in place, we do not think this amendment is necessary. I thank the noble Baroness for her continued engagement on this issue and kindly ask her to withdraw Amendment 240.

I also thank the noble Baroness, Lady Hodgson, for tabling Amendment 241 related to the buildout of development, an issue we discussed in Committee. The amendment seeks to address the concerns around land banking by requiring planning permissions to be refused if developers have not commenced another development nearby within a year.

I fully recognise the intention behind this amendment and share the noble Baroness’s commitment to improving the buildout rate of residential development. As I have previously set out, the Government remain firmly committed to ensuring that planning permissions are translated into homes being built. However, we do not believe that this amendment is necessary to achieve that goal. We confirmed at the time of the response to the NPPF consultation that we will implement the Levelling-up and Regeneration Act provisions following a technical consultation.

During our earlier debates, I highlighted the publication in May of the working paper that sets out a more effective and comprehensive strategy for speeding up buildout, including greater transparency on buildout rates, new powers for local authorities to decline to determine applications from developers that have built out more slowly and greater emphasis on mixed-use tenures, as well as exploring a potential delayed homes penalty as a last resort.

The working paper also sets out our intention to make it easier for local authorities to confirm CPOs, helping to unlock stalled sites and making land assembly easier when this is in the public interest. We are analysing the responses to that working paper and will set out our next steps in due course. I remain confident that the measures set out will make a real and meaningful difference to the buildout of residential development that we all want to see. Given this and the broader strategy we are pursuing, I hope the noble Baroness will consider not moving her amendment.

I thank the Minister for her response, although I am, of course, slightly disappointed by it.

I worry about when people are approached for land, either for leasing or buying, and not treated with honesty and transparency. I do not see how saying that developers should declare what the endgame is would impede an open dialogue. In fact, not telling people is not an open dialogue.

The Minister set out the process to be followed, but what happens when developers do not follow it? What comeback is there? It is all too late. I am disappointed about that, and I hope that there will be further consideration of it at some point.

I am glad to hear that there is a working paper and that there are plans to implement parts of the LURA. I will withdraw my Amendment.

Amendment 240 withdrawn.

Amendment 241 not moved.

Clause 107: Amendments relating to section 14A of the Land Compensation Act 1961

Amendments 242 and 243 not moved.