Select Committee on Environmental Audit Minutes of Evidence


Examination of Witnesses (Question Numbers 140-157)

CLLR PAUL BETTISON, MR MARTIN WHEATLEY, MR GIDEON AMOS AND MS JULIE COWANS

20 MAY 2008

  Q140  Joan Walley: The other side of building on Green Belt is to use brownfield sites more constructively. I am just really wanting you to spell out for us the problems that there are at the moment about current opportunities to build on brownfield sites and, for example, the issues relating to Defra and gap funding that could be available to deal with land remediation not necessarily being available, and to what extent is English Partnerships involved in town centre development on brownfield sites? What more needs to be done to facilitate more and better-use recycling of brownfield land?

  Mr Bettison: There is no doubt that the bringing into use of brownfield sites, especially sites where contamination has occurred, is sometimes less attractive to developers because of the question of the natural expense of that land by the time the remediation of the contamination has been taken into account. Also, some sites are not able to be brought in for reuse as local authorities would wish because the organisation that actually created the contamination is no longer around and, therefore, there is no one, there is no company to pick up the tab for the remediation of the land, and of course central government funding through Defra is limited and we wish there were more of that. The other thing of course is that providing the guarantees after remediation is another extremely expensive thing to do, and we feel that this is actually restricting the availability of some brownfield sites which otherwise might be able to be recycled and save pressure on greenfield sites.

  Q141  Joan Walley: So how much is the shortcoming of funding from Defra under the, I think it is, 1990 Environmental Protection Act, how much is that prohibiting and what more can be done with the new agency that has been set up?

  Mr Wheatley: I think that is a very good example of one of the big challenges to councils in bringing forward housing development which is different parts of government and different government programmes operating consistently through all sorts of different capital investment streams, of which remediation is one and there would be transport, funding for new schools and so on, and one of the biggest challenges the councils face is getting all these different government funding programme ducks in a row to support the new development which they are very much in favour of, but only if it can be realised. The new Chief Executive-designate of the Homes and Communities Agency, Sir Bob Kerslake, has been talking in a way which we find very encouraging about a single conversation in the agency being the basis for a single conversation between government and locality about development, but, unless there is adequate funding in their range of programmes, of which Defra's remediation is one, and the Government allows the agency to pull the timing and the amount of funding together in the right way, we will constantly get missed opportunities in terms of development, whether it is on brownfield or elsewhere.

  Ms Cowans: I think this is potentially very exciting, that the Homes and Communities Agency has started to talk about different ways of funding to bring forward these through equity investment and gap funding, and I think that, although this is at kind of the exploratory stage at the moment, they have a real willingness to think about the different ways of investing public sector money rather than just kind of grant-giving, if you like, investing public sector cash to make sure not only the brownfield sites are brought forward, but that we are enabled to achieve the affordable housing targets that we need to and also to ensure that the quality of what is developed not only meets environmental standards, but design quality as well. I share the view that perhaps there will never be enough public subsidy to go around, but I think that the transition team for the new Homes and Communities Agency really do have a willingness to look at very different ways of working, and they do have experience through English Partnerships at some of this kind of working, but of course it needs to be much more on a national scale. I think the difference in the new arrangements will be that they will be working much more closely with local authorities and local planning authorities.

  Q142  Joan Walley: Is the TCPA involved in any pilot projects on that?

  Ms Cowans: Not at the moment. We have been holding discussions in an advisory capacity.

  Q143  Joan Walley: Can I just ask as well about the Empty Homes Agency which I think has set out how currently empty properties could contribute something like 1.2 million homes that might be better, if you like, recycled rather than going down this route of new building. Could that be one example of using brownfield sites better?

  Mr Amos: Certainly. We have actually produced a pamphlet jointly with the Empty Homes Agency on bringing empty homes back into use, but it is not going to make a big dent on the three million target.

  Q144  Joan Walley: So you do not recognise the figure of 1.2 million being the number of empty homes that could be brought into use?

  Mr Amos: I have not studied their most recent figures, but, if it is 1.2 million, then obviously that could make a big contribution.

  Q145  Martin Horwood: A 30% dent.

  Mr Amos: Indeed, but I would still think that the time that would be taken to get some of those into use would be lengthy, and there is also a need for a continuing stock of empty homes which are transferring from one ownership to another and there will always be a small percentage of those, so I think it is probably impossible to eliminate empty homes completely, but clearly the contribution is welcome, we have always welcomed it, but there is going to be an ongoing need for a significant amount of new build.

  Q146  Joan Walley: How big a contribution do you think second homes are making to the housing shortage, as it were?

  Mr Amos: Well, clearly it is a problem area. We have not submitted figures to you on second homes, but we support an approach which increases the taxation on second homes, and clearly the level of occupancy generally of housing is of major importance as well as supply-side measures. We need to use demand-side measures and supply-side measures if we are going to meet the housing needs of the nation.

  Mr Wheatley: I think we would support the TCPA in that. The figures we have for long-term empties as opposed to those that are just in the process of sale is 280,000. On the one hand, that is not huge in relation to the three million, but it is a useful contribution. Local authorities have relatively recently been given new powers in the 2004 Housing Act, empty property management orders, and it is fair to say that they are getting into their stride in terms of working out how those can be used to drive up the availability of housing in localities. Our sister organisation LACORS, is certainly working to spread understanding among local authorities about how they can use those powers to increase housing supply locally, so it is a useful contribution to the supply needed, but it is nothing like the whole and complete answer to the challenge of the number of homes that we need to secure.

  Q147  Joan Walley: How much do you think that that is linked, for example, in the Kate Barker Report, to the focus on building in the South East if you are looking to bring more empty properties that are empty into use without there necessarily being the parallel investment in the economic revival that needs to be taking place as well in some of the more hard-to-let areas?

  Mr Wheatley: We certainly agree that wider economic questions in the housing market need to be put together and the aspect of the sub-national review that we support is a single regional strategy that brings planning, housing and economic development together, and we think that, if we can get the governance of the new regional institutions right so that they are not imposing approaches on local people and local councils, there ought to be scope to achieve what the Government is trying to achieve which is a narrowing in the longstanding disparity in economic growth rates between different regions, and that would have a knock-on obviously in terms of demand for housing in areas where it is historically needed.

  Q148  Dr Turner: I would like to ask you about eco-towns. What are your views on the criteria that should be adopted in terms of eco-towns?

  Mr Amos: Well, we have a very long list of criteria, but I would perhaps just pick out a few key points. The first thing in terms of the zero-carbon objective is that we support the points that are made in the Government's promotional material on eco-towns, that all the buildings across the eco-towns would be zero carbon, so that is not just the housing, it is more ambitious than the Building Regulations trajectory and it would include commercial buildings where there are already moves towards looking at Building Regulations there, but also all public buildings. The second point I would raise is the transport issue and achieving a serious modal shift from private car use to the use of public transport and sustainable transport modes is particularly important for the TCPA as one of the criteria we will be applying. Thirdly is the high quality and plentiful supply of green infrastructure with up to 40% of the eco-town being green infrastructure. There are many more and we are producing worksheets jointly with the Department and they are available on our website with much more detail, but those are three key areas for our Association.

  Mr Wheatley: We would broadly agree with the TCPA, that they need to be eco in a much wider sense than being settlements of zero-carbon homes, and environmental sustainability goes much wider, but, in addition, they have to work on the two other aspects of sustainability, the social and economic. You cannot lose sight of those because you are doing something that is very progressive on the environmental side, and we know, for example, that the Government talks of eco-towns having up to 50% affordable housing which is a good objective to have in itself, but we know from some decades of experience of developments that, where there are high percentages of affordable housing, one has to be particularly careful about getting all the other economic and social elements in place to make them successful and thriving communities.

  Q149  Dr Turner: Taking that point, do you have a view on whether it is better for eco-towns to be intimately linked with local communities or to be separate and freestanding and perhaps some miles away from the nearest larger communities?

  Mr Wheatley: I am not sure that that question could be answered on a general national basis. In some cases, it will make sense for economic and environmental reasons to put a settlement adjacent to somewhere and elsewhere maybe it will work to do it separately. You cannot answer those questions in an abstract way, but that does lead us on to one of our very important concerns about eco-towns which is that they should only go ahead where the local community is satisfied that they are fully sustainable and that the planning process has done the work that it is set up to do which is to make sure that all the different things that need to go into making a place successful are there.

  Q150  Dr Turner: Which of course is not enshrined in the proposed legislation at the moment because eco-towns bypass the planning system. I take it you are not entirely happy with that.

  Mr Bettison: That is absolutely right. We believe, as has been said, in the principles of eco-towns, but we believe that simply making dwellings ecologically sound is no reason for bypassing the planning process which looks at many of the other elements of a successful development. These need to be holistic developments that will operate either as part of a larger area, as you suggest, as an extension to the existing conurbation or, alternatively, as a stand-alone, but in all cases, if they are to be sustainable in every sense of the word, then such elements as are normally dealt with by the planning process must be taken account of, and at the moment, as we see it, there is no restriction on them. In fact, if I may very quickly give an example in my own authority, a developer with aspirations to put 6,000 homes in a very unwelcome position suddenly announced it was to be an eco-town and put in for an eco-town and, when it was rejected, the managing director of the development company simply said, "Oh well, it's back to plan A then".

  Q151  Dr Turner: Another feature of eco-towns is that they are meant to be exemplary developments that will set the standard for other developments. What do you think their wider influence will be and do you think there will be enough time for eco-towns to influence a significant number of the three million new homes targeted for 2020?

  Mr Amos: First, perhaps I may just associate ourselves with much of what was said by the LGA, that we want to see proposals for eco-towns properly scrutinised. In terms of the exemplary features, one in particular, I think, is significant which is energy. The fact is that an entirely new settlement offers pretty much unrivalled opportunities to put in a new energy infrastructure which would be very difficult to achieve, say, in Hackney where I happen to live. In doing that, one might be able to supply not just the new eco-town, but the neighbouring existing community, if there is one at a reasonably short distance, so I think, depending very much on what the particular circumstances are for that eco-town and there might be a fantastic waste facility to be built in connection with the eco-town or it might be a renewable energy installation, it depends on the circumstances, they can then support the existing host and network of places. There may be other links as well, such as economic support and so forth, but I think looking at putting in new infrastructure which is more comprehensive is the key point and then to enable existing communities to feed into that.

  Ms Cowans: I think that TCPA's advice to the Government and to those considering eco-towns is that they should be, as you quite rightly say, exemplars and that they should take advantage of their position, topography, location, et cetera, to experiment, and I think it will be important to keep reminding government that this is not just about numbers, it is about setting the barre, if you like, for the future and what we want to see from new stock as a whole. Yes, you are quite right, in the rush to numbers, in the rush to get something up and running, we should not lose sight of that and that will require constant monitoring.

  Q152  Mr Chaytor: I would like to ask about compliance with Building Regulations. We have some concerns that this is not as effective as it might be and I wonder what you think could be done to improve it.

  Mr Wheatley: I think in the LGA we have a concern that the twin challenges of a lot more housing and achieving much higher standards of environmental sustainability in our new build are putting hugely increased pressure on the building control system. It really is in many areas, particularly for the zero-carbon, the mechanism through which the Government's policy ambition is being delivered, yet the current consultation on building control does not seem to us to be taking a wider view of that kind at all and only comes forward with very modest proposals for improving the quality assurance of the building control process largely led by the building control sector itself. It is likely in our response to the consultation that we will be arguing, yes, for a very strong sectoral approach to compliance, but backed up with some sort of external quality control and check on whether the regulations are actually being adhered to. One of the problems is of course that, once the work has been signed off and the structure sealed up, it is extremely difficult and it may be many years before any deficiencies become obvious, so we certainly do share the Committee's concern to an extent and will be arguing for a rather more solid standard of quality assurance.

  Q153  Mr Chaytor: Is the fact that people can choose which inspector to come and inspect their property a serious issue or not, that you have the right to choose whether it is a local authority inspector or a private inspector? Is that a concern to you or not? Is there any evidence that people are sort of playing the market to get a less rigorous inspection?

  Ms Cowans: I am a former member of the Building Regulator's Advisory Committee, so I can bore at length on this! I think that regulation is only as good, and you can have the most fantastic building regulations and policies from Europe, but they are only as good as the compliance and, although there are isolated incidents of developers playing the market, if you like, for inspection, I think they are relatively isolated. On the whole, I think we can be quite confident that the building inspection service, whoever provides it, is quite robust. The problem is, as my colleague has outlined, that you cannot inspect every house. One of the things that had been in discussion some years ago and, I believe, might be on the agenda again is to think about industry self-regulation, fine, but with tougher penalties if that industry regulation is not adhered to in terms of compliance completely, so penalties along with the freedoms to self-regulate from the industry, I think, might be the way forward.

  Q154  Mr Chaytor: So in terms of not inspecting every house, are you saying that, as of now, not every new build is inspected?

  Ms Cowans: Yes. Often it is percentages.

  Q155  Mr Chaytor: Why have I just paid £250 for my inspection? Did I have a choice to do that or not?

  Ms Cowans: In major developments, it would be a cross-section of the properties, a representative sample.

  Q156  Mr Chaytor: But every individual development will be inspected?

  Ms Cowans: Yes.

  Q157  Mr Chaytor: Are there enough inspectors or is there a skills shortage here?

  Mr Amos: We are also concerned that the local authorities report a lack of resources to provide enough inspectors is a worry because planning departments also rely on building inspectors to enforce conditions and the lack of enforcement of planning conditions is a sore issue and is a big problem.

  Mr Wheatley: Part of the Department's consultation is a proposal to deregulate the fees that local authority building inspectors charge and I think that ought to be helpful if it enables councils to charge an economic rate and, therefore, resource the service. As I said earlier, I think there is a big delivery co-ordination challenge for the Department in zero-carbon homes and this issue of building control and whether we have got enough skills when the system is working right is a very good example of where we need stronger leadership from central government in making sure that the different elements that we need in place are actually there.

  Chairman: Well, thank you very much indeed for coming in.





 
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