Housing and Planning Bill (HL Bill 117)

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,

(e) is subject to a restriction requiring repayment of the 20% discount,
reduced by 1/20th for each year of occupation by the purchaser, for a
15period of 20 years, and

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

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

(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
5occupied since its adaptation.

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

(a) is a first-time buyer,

(b) is at least 23 years old but has not yet reached the age of 40, and

(c) meets any other criteria specified in regulations made by the Secretary
10of State (for example, relating to nationality).

(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.

(7) 20The Secretary of State may by regulations—

(a) amend the definition of “first-time buyer”;

(b) disapply the age requirement in subsection (3)(b) in relation to
specified categories of people;

(c) specify circumstances in which a dwelling may still be a starter home
25even if it is available for purchase by joint purchasers not all of whom
meet the age requirement.

(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) 30for starter homes in different areas outside Greater London.

(9) Before making regulations under subsection (8) the Secretary of State must
consult—

(a) each local planning authority in England,

(b) the Mayor of London, and

(c) 35any other person the Secretary of State thinks appropriate.

(10) Regulations under this section may amend this Chapter.

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
by the Secretary of State in carrying out that duty.

(3) “English planning authority” means—

(a) a local planning authority in England, or

(b) 5the Secretary of State when exercising a function relating to the grant of
planning permission on an application in respect of land in England.

(4) “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) 10functions under Part 8 of the Greater London Authority Act 1999;

(c) functions under Part 2 of the Planning and Compulsory Purchase Act
2004.

(5) The Secretary of State may by regulations—

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

(b) 15amend the definition of “relevant planning functions” in subsection (4).

4 Planning permission: provision of starter homes

(1) An English planning authority may only grant planning permission for a
residential development having had regard to the provision of starter homes
based on its own assessment of local housing need and viability.

(2) 20“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.

(3) Regulations under this section may, for example, provide that an English
25planning 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.

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

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

(6) 30In 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) 35sections 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
2016 (starter homes requirements).””

5 Monitoring

(1) 40A 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) provision about their timing;

(c) 5provision 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
applications have been dealt with.

(4) 10An authority must make its reports under this section available to the public.

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) 15a 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
20given 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 25Interpretation 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
  30authority, 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;

• 35“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;

• 40“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;

Housing and Planning BillPage 5

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

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

CHAPTER 2 5Self-build and custom housebuilding

8 Definitions

(1) In section 1 of the Self-build and Custom Housebuilding Act 2015 (register of
persons seeking to acquire land), before subsection (1) insert—

“(A1) In this Act “self-build and custom housebuilding” means the building
10or completion by—

(a) individuals,

(b) associations of individuals, or

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

15of 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
a 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) 20omit “(including bodies corporate that exercise functions on behalf of
associations of individuals)”;

(b) for “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) 25In this section—

• “association of individuals” includes a body corporate that
  exercises 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
  30Town and Country Planning Act 1990;

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

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

(a) at the appropriate place insert—

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

(b) for 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
  40connections for electricity, water and waste
  water, or

  (b)

  can 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”
by adding further services to those mentioned in paragraph
(a).””

9 5Duty 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
a local planning authority within the meaning of the Town and
10Country 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
authority’s area arising in each base period.

(3) 15Regulations 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
kept by the authority is established, and

(b) 20ending with the day before the day on which section 9 of the
Housing and Planning Act 2016 comes into force.

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

(5) In this section “development permission” means planning permission
25or 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
by the number of entries added during that period to the
30register under section 1 kept by the authority;

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

(i) by the authority,

(ii) by the Secretary of State or the Mayor of London on an
35application 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
document made, maintained or adopted by the
40authority;

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

(7) A 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
5development permission granted before the start of the first base
period.

(9) Regulations under subsection (3)—

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

(b) 10may make different provision for different proportions of the
demand for self-build and custom housebuilding arising in a
particular 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
15to any guidance issued by the Secretary of State in relation to that
duty.””

(3) In 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
20be 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) the definitions of “completion” and “home” in subsection (6A) were
omitted.

10 Exemption from duty

25After section 2A of the Self-build and Custom Housebuilding Act 2015
(inserted by section 9 above) insert—

“2B Exemption 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
30authority is not subject to the duty in section 2A.

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

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

(a) 35require an application to be supported by specified information
and by any further information that the Secretary of State
requires the authority to provide;

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

11 40Further and consequential amendments

(1) In the Schedule to the Self-build and Custom Housebuilding Act 2015
(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) 5at 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
specified, must be entered on a separate part of the
10register;

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

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

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

(b) 15in sub-paragraph (2)(b), after “fixing of fees by” insert “the Secretary of
State or”;

(c) after sub-paragraph (2) insert—

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

(3) 20In section 4(1) of that Act (regulations subject to affirmative resolution
procedure)—

(a) in paragraph (b) omit “or”;

(b) after that paragraph insert—

“(ba) section 2A(3),

(bb) 25section 5(2), or”.”

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

(a) before paragraph (a) insert—

“(za) section 2B,”;”

(b) 30in paragraph (a), for “section 5” substitute “section 5(1)”.

Part 2 Rogue landlords and property agents in England

CHAPTER 1 Introduction

12 35Introduction 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
property agent has been convicted of a banning order offence,

(b) 40Chapter 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) Chapter 5 contains definitions.

CHAPTER 2 5Banning 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,
banning a person from—

(a) 10letting 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) See also section 17 (which enables a banning order to include a ban on
15involvement in certain bodies corporate).

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

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

(a) 20the nature of the offence,

(b) the 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) 25the sentence imposed.

Imposition 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) 30If a local housing authority in England applies for a banning order against a
body 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
35give the person a notice of intended proceedings—

(a) informing 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
40the notice of not less than 28 days (“the notice period”).