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Housing and Planning Bill (HC Bill 108)

A

BILL

[AS AMENDED IN PUBLIC BILL COMMITTEE]

TO

Make provision about housing, estate agents, rentcharges, planning and
compulsory purchase.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

Part 1 New homes in England

CHAPTER 1 Starter homes

1 Purpose of this Chapter

5The purpose of this Chapter is to promote the supply of starter homes in
England.

2 What is a starter home?

(1) In this Chapter “starter home” means a building or part of a building that—

(a) is a new dwelling,

(b) 10is available for purchase by qualifying first-time buyers only,

(c) is to be sold at a discount of at least 20% of the market value,

(d) is to be sold for less than the price cap, and

(e) is subject to any restrictions on sale or letting specified in regulations
made by the Secretary of State.

(2) 15“New dwelling” means a building or part of a building that—

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(a) has been constructed for use as a single dwelling and has not
previously been occupied, or

(b) has been adapted for use as a single dwelling and has not been
occupied since its adaptation.

(3) 5“Qualifying first-time buyer” means an individual who—

(a) is a first-time buyer,

(b) is under the age of 40, and

(c) has any other characteristics specified in regulations made by the
Secretary of State (for example, relating to nationality or minimum
10age).

(4) “First-time buyer” has the meaning given by section 57AA(2) of the Finance
Act 2003.

(5) “Purchase”: the reference to a building or part of a building being available for
purchase is to a freehold or a leasehold interest in the building or part being
15available for purchase.

(6) The “price cap” is set out in the table.

Location of starter home Price cap
Greater London £450,000
Outside Greater London £250,000

(7) 20The Secretary of State may by regulations amend the definition of “first-time
buyer”.

(8) The Secretary of State may by regulations amend the price cap; and the
regulations may provide for different price caps to apply—

(a) for starter homes in different areas in Greater London;

(b) 25for starter homes in different areas outside Greater London.

3 General duty to promote supply of starter homes

(1) An English planning authority must carry out its relevant planning functions
with a view to promoting the supply of starter homes in England.

(2) A local planning authority in England must have regard to any guidance given
30by the Secretary of State in carrying out that duty.

(3) “English planning authority” means—

(a) a local planning authority in England, or

(b) the Secretary of State when exercising a function relating to the grant of
planning permission on an application in respect of land in England.

(4) 35“Relevant planning functions” means—

(a) functions under Part 3 of the Town and Country Planning Act 1990,
other than functions relating to the grant of permission in principle;

(b) functions under Part 8 of the Greater London Authority Act 1999;

(c) functions under Part 2 of the Planning and Compulsory Purchase Act
402004.

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(5) The Secretary of State may by regulations—

(a) amend the definition of “English planning authority” in subsection (3);

(b) amend the definition of “relevant planning functions” in subsection (4).

4 Planning permission: provision of starter homes

(1) 5The Secretary of State may by regulations provide that an English planning
authority may only grant planning permission for a residential development of
a specified description if the starter homes requirement is met.

(2) “English planning authority” means—

(a) a local planning authority in England, or

(b) 10the Secretary of State when exercising a function relating to the grant of
planning permission on an application in respect of land in England.

(3) “The starter homes requirement” means a requirement, specified in the
regulations, relating to the provision of starter homes in England.

(4) Regulations under this section may, for example, provide that an English
15planning authority may grant planning permission only if a person has entered
into a planning obligation to provide a certain number of starter homes or to
pay a sum to be used by the authority for providing starter homes.

(5) The regulations may confer discretions on an English planning authority.

(6) The regulations may make different provision for different areas.

(7) 20In section 70 of the Town and Country Planning Act 1990 (determination of
applications: general considerations), for subsection (3) substitute—

(3) Subsection (1) has effect subject to the following—

(a) section 65 and the following provisions of this Act;

(b) section 15 of the Health Services Act 1976;

(c) 25sections 66, 67, 72 and 73 of the Planning (Listed Buildings and
Conservation Areas) Act 1990;

(d) regulations under section 4 of the Housing and Planning Act
2015 (starter homes requirements).”

5 Monitoring

(1) 30A local planning authority in England must prepare reports containing
information about the carrying out of its functions in relation to starter homes.

(2) The Secretary of State may by regulations make provision about reports under
this section, including—

(a) provision about their form and content;

(b) 35provision about their timing;

(c) provision requiring them to be combined with reports under section 35
of the Planning and Compulsory Purchase Act 2004.

(3) The regulations may require a report to contain information about applications
to which regulations under section 4 apply and details of how those
40applications have been dealt with.

(4) An authority must make its reports under this section available to the public.

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6 Compliance directions

(1) The Secretary of State may make a compliance direction if satisfied that—

(a) a local planning authority has failed to carry out its functions in relation
to starter homes or has failed to carry them out adequately, and

(b) 5a policy contained in a local development document for the authority is
incompatible with those functions.

(2) A “compliance direction” is a direction that no regard is to be had to the policy
for the purposes of any determination to be made under the planning Acts.

(3) A compliance direction remains in force until revoked by a further direction
10given by the Secretary of State.

(4) A direction under this section must include the Secretary of State’s reasons for
making it.

(5) The Secretary of State must publish any direction under this section and give a
copy to the local planning authority.

7 15Interpretation of this Chapter

In this Chapter—

  • “development” has the meaning given by section 336 of the Town and
    Country Planning Act 1990;

  • “functions in relation to starter homes”, in relation to a local planning
    20authority, means the authority’s functions under—

    (a)

    section 3, and

    (b)

    regulations under section 4;

  • “local development document” is to be read in accordance with sections
    17 and 18(3) of the Planning and Compulsory Purchase Act 2004;

  • 25“local planning authority” means a person who is a local planning
    authority for the purposes of any provision of Part 3 of the Town and
    Country Planning Act 1990;

  • “the planning Acts” has the meaning given by section 117(4) of the
    Planning and Compulsory Purchase Act 2004;

  • 30“planning obligation” means a planning obligation under section 106 of
    the Town and Country Planning Act 1990;

  • “planning permission” has the meaning given by section 336 of the Town
    and Country Planning Act 1990;

  • “residential development” means a development that includes at least one
    35dwelling;

  • “starter home” has the meaning given by section 2.

CHAPTER 2 Self-build and custom housebuilding

8 Definitions

(1) In section 1 of the Self-build and Custom Housebuilding Act 2015 (register of

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persons seeking to acquire land), before subsection (1) insert—

(A1) In this Act “self-build and custom housebuilding” means the building
or completion by—

(a) individuals,

(b) 5associations of individuals, or

(c) persons working with or for individuals or associations of
individuals,

of houses to be occupied as homes by those individuals.

(A2) But it does not include the building of a house on a plot acquired from
10a person who builds the house wholly or mainly to plans or
specifications decided or offered by that person.”

(2) In subsection (1) of that section—

(a) omit “(including bodies corporate that exercise functions on behalf of
associations of individuals)”;

(b) 15for “in order to build houses for those individuals to occupy as homes”
substitute “for their own self-build and custom housebuilding”.

(3) After subsection (6) of that section insert—

(6A) In this section—

  • “association of individuals” includes a body corporate that
    20exercises functions on behalf of an association of individuals;

  • “completion” does not include anything that falls outside the
    definition of “building operations” in section 55(1A) of the
    Town and Country Planning Act 1990;

  • “home”, in relation to an individual, means the individual’s sole
    25or main residence.”

(4) In section 5 of that Act (interpretation)—

(a) at the appropriate place insert—

  • ““self-build and custom housebuilding” has the meaning
    given by section 1;”;

(b) 30for the definition of “serviced plot of land” substitute—

  • ““serviced plot of land” means a plot of land that—

    (a)

    has access to a public highway and has
    connections for electricity, water and waste
    water, or

    (b)

    35can be provided with those things in specified
    circumstances or within a specified period;”;

(c) at the end of that section (the existing text of which becomes subsection
(1)) insert—

(2) Regulations may amend the definition of “serviced plot of land”
40by adding further services to those mentioned in paragraph
(a).”

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9 Duty to grant planning permission etc

(1) After section 2 of the Self-build and Custom Housebuilding Act 2015 insert—

2A Duty to grant planning permission etc

(1) This section applies to an authority that is both a relevant authority and
5a local planning authority within the meaning of the Town and
Country Planning Act 1990 (“the 1990 Act”).

(2) An authority to which this section applies must give suitable
development permission in respect of enough serviced plots of land to
meet the demand for self-build and custom housebuilding in the
10authority’s area arising in each base period.

(3) Regulations must specify the time allowed for compliance with the
duty under subsection (2) in relation to any base period.

(4) The first base period, in relation to an authority, is the period—

(a) beginning with the day on which the register under section 1
15kept by the authority is established, and

(b) ending with the day before the day on which section 9 of the
Housing and Planning Act 2015 comes into force.

Each subsequent base period is the period of 12 months beginning
immediately after the end of the previous base period.

(5) 20In this section “development permission” means planning permission
or permission in principle (within the meaning of the 1990 Act).

(6) For the purposes of this section—

(a) the demand for self-build and custom housebuilding arising in
an authority’s area in a base period is the demand as evidenced
25by the number of entries added during that period to the
register under section 1 kept by the authority;

(b) an authority gives development permission if such permission
is granted—

(i) by the authority,

(ii) 30by the Secretary of State or the Mayor of London on an
application made to the authority, or

(iii) (in the case of permission in principle) by a development
order, under section 59A(1)(a) of the 1990 Act, in
relation to land allocated for development in a
35document made, maintained or adopted by the
authority;

(c) development permission is “suitable” if it is permission in
respect of development that could include self-build and
custom housebuilding.

(7) 40A grant of development permission in relation to a particular plot of
land may not be taken into account in relation to more than one base
period in determining whether the duty in this section is discharged.

(8) No account is to be taken for the purposes of this section of
development permission granted before the start of the first base
45period.

(9) Regulations under subsection (3)

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(a) may make different provision for different authorities or
descriptions of authority;

(b) may make different provision for different proportions of the
demand for self-build and custom housebuilding arising in a
5particular base period.”

(2) In section 3 of that Act (guidance), after subsection (2) insert—

(3) An authority that is subject to the duty in section 2A must have regard
to any guidance issued by the Secretary of State in relation to that
duty.”

(3) 10In relation to entries made on the register under section 1 of that Act before the
commencement of this section, any reference to self-build and custom
housebuilding in section 2A of that Act (inserted by subsection (1) above) is to
be read as if, in section 1 of that Act (as amended by section 8 above)—

(a) the words “or completion” in subsection (A1) were omitted, and

(b) 15the definitions of “completion” and “home” in subsection (6A) were
omitted.

10 Exemption from duty

After section 2A of the Self-build and Custom Housebuilding Act 2015
(inserted by section 9 above) insert—

2B 20Exemption from duty in section 2A

(1) If an authority applies for exemption to the Secretary of State in
accordance with regulations, the Secretary of State may direct that the
authority is not subject to the duty in section 2A.

(2) The regulations may specify the cases or circumstances in which an
25authority may apply for exemption.

(3) Regulations may make further provision about applications under
subsection (1), and may in particular—

(a) require an application to be supported by specified information
and by any further information that the Secretary of State
30requires the authority to provide;

(b) require an authority that is granted exemption to notify persons
on the register kept under section 1.”

11 Further and consequential amendments

(1) In the Schedule to the Self-build and Custom Housebuilding Act 2015
35(registers under section 1), in paragraph 3 (eligibility)—

(a) after sub-paragraph (2) insert—

(2A) Regulations relating to the matters set out in sub-paragraph
(2) may provide for eligibility to be determined by reference
to criteria set by a relevant authority.”;

(b) 40at the end insert—

(4) The regulations may provide—

(a) that persons who fail to meet particular conditions of
eligibility, but who meet the other conditions

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specified, must be entered on a separate part of the
register;

(b) that the duty in section 2A does not apply in relation
to such persons.”

(2) 5In paragraph 6 of that Schedule (fees)—

(a) in sub-paragraph (1), for “section 1” substitute “sections 1 and 2A”;

(b) in sub-paragraph (2)(b), after “fixing of fees by” insert “the Secretary of
State or”;

(c) after sub-paragraph (2) insert—

(3) 10The regulations may specify circumstances in which no fee is
to be paid.”

(3) In section 4(1) of that Act (regulations subject to affirmative resolution
procedure)—

(a) in paragraph (b) omit “or”;

(b) 15after that paragraph insert—

(ba) section 2A(3),

(bb) section 5(2), or”.

(4) In section 4(2) of that Act (regulations subject to negative resolution
procedure)—

(a) 20before paragraph (a) insert—

(za) section 2B,”;

(b) in paragraph (a), for “section 5” substitute “section 5(1)”.

Part 2 Rogue landlords and letting agents in England

CHAPTER 1 25Introduction

12 Introduction to this Part

(1) This Part is about rogue landlords and property agents.

(2) In summary—

(a) Chapter 2 allows a banning order to be made where a landlord or
30property agent has been convicted of a banning order offence,

(b) Chapter 3 requires a database of rogue landlords and property agents
to be established,

(c) Chapter 4 allows a rent repayment order to be made against a landlord
who has committed an offence to which that Chapter applies, and

(d) 35Chapter 5 contains definitions.

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CHAPTER 2 Banning orders

Banning orders: key definitions

13 “Banning order” and “banning order offence”

(1) In this Part “banning order” means an order, made by the First-tier Tribunal,
5banning a person from—

(a) letting housing in England,

(b) engaging in English letting agency work,

(c) engaging in English property management work, or

(d) doing two or more of those things.

(2) 10In this Part “banning order offence” means an offence of a description specified
in regulations made by the Secretary of State.

(3) Regulations under subsection (2) may, in particular, describe an offence by
reference to—

(a) the nature of the offence,

(b) 15the characteristics of the offender,

(c) the place where the offence is committed,

(d) the circumstances in which it is committed,

(e) the court sentencing a person for the offence, or

(f) the sentence imposed.

20Imposition of banning orders

14 Application and notice of intended proceedings

(1) A local housing authority in England may apply for a banning order against a
person who has been convicted of a banning order offence.

(2) If a local housing authority in England applies for a banning order against a
25body corporate that has been convicted of a banning order offence, it must also
apply for a banning order against any officer who has been convicted of the
same offence in respect of the same conduct.

(3) Before applying for a banning order under subsection (1), the authority must
give the person a notice of intended proceedings—

(a) 30informing the person that the authority is proposing to apply for a
banning order and explaining why,

(b) stating the length of each proposed ban, and

(c) inviting the person to make representations within a period specified in
the notice of not less than 28 days (“the notice period”).

(4) 35The authority must consider any representations made during the notice
period.

(5) The authority must wait until the notice period has ended before applying for
a banning order.