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New Homes: Developers, Housebuilders and Management Companies
05 January 2022
Lead MP
David Johnston
Responding Minister
Eddie Hughes
Tags
EconomyHousingClimate
Word Count: 14295
Other Contributors: 9
At a Glance
David Johnston raised concerns about new homes: developers, housebuilders and management companies in Westminster Hall. A government minister responded.
Key Requests to Government:
Implement stricter quality control measures with penalties for non-compliance. Introduce 'use it or lose it' planning permissions to prevent land banking. Update environmental standards retroactively for ongoing developments. Ensure developers commit to affordable housing criteria and management companies provide transparent services without exploitative practices. Prioritise infrastructure development before new home construction.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The quality of homes built in the constituency is poor, with major defects taking years to repair. The environmental impact includes loss of greenfield sites and biodiversity commitments not being met. Affordability is a significant issue, as new homes are out of reach for most renters despite developers' promises. Management companies exploit residents by charging high fees for inadequate services. Developers often fail to adhere to planning conditions and section 106 agreements, leading to insufficient infrastructure.
Holly Lynch
Lab
Halifax
Ms Lynch highlighted issues in her constituency with unfinished roads and poorly maintained homes. She cited examples like Greenside Gardens where a developer left an access road in poor condition, requiring residents to clear it themselves. At Moorside Lea, Harron Homes built properties that were advertised as luxury but had numerous snagging issues unresolved years after completion. These problems highlight the lack of accountability and transparency in the house building process.
Jim Shannon
DUP
Strangford
The hon. Member asked if it was agreed that people in England, Wales and Scotland faced difficulties purchasing their freehold compared to those in Northern Ireland, where they could buy out the freehold. The council rules in Northern Ireland are more stringent, requiring developers to make financial commitments for infrastructure and land set aside for leisure, shopping, and education. The speaker suggests the Minister should look at these regulations when considering changes.
Justin Madders
Lab
Ellesmere Port and Bromborough
The hon. Member inquired about the argument developers use regarding viability, suggesting a 20% profit margin per property is unsustainable. Mr Justin Madders highlighted the inadequacies in housing development, arguing that developers often fail to adhere to local conditions imposed on them. He raised concerns about insufficient infrastructure and delays in road adoption by local authorities, as well as the expansion of estate management companies which he believes burdens homeowners with excessive costs and a lack of transparency.
Kate Green
Lab
Wirral South
Ms Green highlighted the need for new homes in her constituency, noting that developers are often at fault for substandard developments and conflicts of interest. She raised concerns about defective cladding removal costs and urged the Minister to update assistance measures. She also discussed issues with management companies like Residential Management Group and called for tougher regulations on company law.
Mark Francois
Con
Rayleigh and Wickford
Mark Francois discussed the controversial issue of housing development in his constituency, emphasising the need for developers to work with local communities rather than against them. He criticised the delay in publishing the planning Bill, which prevents local councils from finalising their plans efficiently. Francois also highlighted the dominance of a few major house builders that restrict choice and inflate prices through limited supply. Additionally, he mentioned instances of unethical behaviour by companies like Bloor Homes, illustrating the need for an inquiry into market concentration. It is disappointing that the Minister cannot give any timings on when the planning Bill is coming, because some of us would like to know before we retire. He has heard 10 very good Back-Bench contributions in this debate, all of which have been, in one way or another, highly critical of the housebuilding industry in this country. When will the Government support a Competition and Markets Authority inquiry into the UK housebuilding industry?
Matt Western
Lab
Warwick and Leamington
Matt Western expressed concern about the lack of reference to local authorities in the debate, highlighting the importance of locally elected representatives and proper consultation. He argued for more affordable housing and criticised the government's approach to building regulations and planning legislation, which he felt favoured developers over community needs. He also raised issues with land banking, poor quality house building, exploitative management companies, and high annual fees imposed on residents.
Greenwich and Woolwich
Highlights the quality issues with new homes, the lack of sustainable communities due to poor planning systems, and unfair deals for leaseholders, particularly concerning ground rents. Calls for measures to address specific problems in addition to broader reforms such as rescinding relaxed permitted development rights.
Natalie Elphicke
Con
Dover and Deal
Natalie Elphicke highlighted the need for better standards in new home developments, mentioning that only 4% of new home buyers believed developers met all fundamental principles set out in a new code. She introduced the New Homes Quality Board, which holds a register of developers and provides an ombudsman service free to consumers.
Robbie Moore
Con
Keighley and Ilkley
Mr Moore highlighted the mismanagement issues at the High Banks development in Silsden by Harron Homes, citing poor road conditions, unfinished sewer connections, structural problems, and inadequate communication with residents. He urged Harron Homes to adhere to their contractual obligations without blaming subcontractors for delays and called for a robust auditing process after home completion.
Government Response
Eddie Hughes
Government Response
The Minister of State thanked Members for their contributions and highlighted the Government's efforts to secure funding through section 106 agreements, community infrastructure levy, and housing infrastructure fund. He proposed a new non-negotiable infrastructure levy to replace the current system, aiming for at least as much value and on-site affordable housing. The minister noted that planning reform is under consideration with an announcement expected in due course. He assured Members of the Government's commitment to introduce legislation protecting freeholders from unfair practices by management companies. Additionally, he mentioned ongoing work regarding the Building Safety Bill and welcomed discussions about specific concerns like those raised by Harron Homes.
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Assessment & feedback
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.