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Agenda item 3 is consideration of evidence from the Minister for Transport, Infrastructure and Climate Change, which arises from our evidence session of 23 April on Scottish planning policy 3, "Planning for Housing". The minister is accompanied by Scottish Government officials Stephen Garland, who is from the planning modernisation and co-ordination division, and Aidan Grisewood, who is head of the communities analytical services division. I welcome them and invite the minister to make introductory remarks on SPP 3.
Thank you for giving me the opportunity to discuss the review of SPP 3 with the committee. My officials have given evidence to the committee on the issue and I hope that my presence will further assist your thinking.
I want to focus on two issues. First, you said that the key role of SPP 3 is to tackle obstacles to developing housing. Given that that is precisely the role of the housing supply task force, why was the task force not consulted on the draft revised SPP 3?
There are differences between the purposes of the task force and of the revised SPP 3. The task force looks at a much broader picture of housing issues, whereas we set policy for planning. There is significant crossover between the membership of the task force and the stakeholder group that advised on the revision of SPP 3. For that reason, the revised SPP 3 reflects the work of the task force. By moving ahead in parallel, we are able to accelerate what is happening.
That is a bit odd, given that previously we were told that the role of the housing supply task force was narrower than that of SPP 3. You may remember that the establishment of the task force was announced with bells and whistles, but since then it has been virtually silent. One might have expected not that there would be crossover between the task force and the stakeholder group or that they would operate in parallel, but that there would be joined-up thinking on issues such as land supply, housing planning and the delivery of affordable housing policy.
I suggest that there has been joined-up thinking. The aspiration for 35,000 houses a year that comes from housing policy is clearly reflected in planning. I invite Stephen Garland to make some additional comments.
This iteration of SPP 3 places strong emphasis on the delivery of housing. That reflects much of the discussion that has taken place in the housing supply task force and with its members.
It would be useful if you could indicate which parts of the document were influenced by the task force. I am concerned that the work of the task force and the revision of SPP 3 have been separated.
This afternoon, the Deputy First Minister will make a statement on housing to Parliament—I would be in some difficulty if I pre-empted that. My role is to ensure that the planning issues that affect our ability to build the appropriate number of houses are resolved—what we are doing relates to those issues.
There is a requirement for 25 per cent of housing developments to be affordable housing. How is that being monitored and how will it change? There are concerns that the requirement is not effective. Given that house builders in the private sector are telling us that they are not undertaking developments, how will the gap be met? At the same time, we are not addressing the housing associations' concerns that they will be forced to borrow more.
If I may say so, that is not essentially a planning issue for me to comment on. I am sure that the subject will be covered this afternoon, if not in the substantive statement then in the questions that you and others will ask the Deputy First Minister, who is responsible for housing.
I asked how the 25 per cent requirement is being monitored, given that there are concerns about its effectiveness.
As I said the last time that I came to the committee, new processes have been put in place to monitor the implementation of affordable housing policies. The first report was at the end of April, and the early indications are that a number of authorities have policies in place and are beginning to deliver in relation to the quotas that are required. However, it is early days for the quota system in affordable housing policy and we will continue to keep it under review. Obviously, in the current circumstances, we need to reflect on the matter.
I emphasise the urgency of the matter. It is critical that those who are responsible for planning and housing speak to one another about it. My impression from speaking to those in the private sector is that things have moved quickly and there needs to be a commensurate response from the Government on how it can address the situation.
A significant number of meetings have been held about the issue, between officials and at ministerial level. As the minister noted, the situation is developing at quite a pace, so we are looking to assess it.
It might be useful to make the rather obvious comment that Mr Maxwell and I are in adjacent offices. You can be assured that we keep each other fully briefed on the subject.
The minister commented that there might be a silver lining in the dark economic cloud that is above us, because land might become available at a lower cost. As I recall, Shelter said that there might be a positive in that regard, although the point was not made as positively by the other witnesses at the same meeting. What work has been done to assess the likely impact of more land being available and the opportunities that you describe? Do developers not plan their developments over a longer period? Would they not simply sit on such land? There will be land banks throughout the country, and some derelict and other sites might not be developed. What plans do you have to ensure that that will not be the case?
You make some appropriate points, convener. I would not wish to overegg the pudding by using such phrases as "silver lining", but we can make our contribution through the planning system by relieving some of the constraints on housing development. That does not mean that land that is designated for housing ends up in developers' land banks; neither does it mean that developers move ahead with developments. However, it addresses a frequently cited inhibition on housing development, which is that there is inadequate designation of land. In the complex set of relationships between the private sector, the economic environment and the planning system, it is important to continue to relieve the constraints that planning might put on housing development, and—without using the phrase "silver lining"—that might just bring benefit and opportunity.
I seek information about houses in multiple occupation and the revised SPP 3. There are great concerns, some of which I share, that young people in particular are being demonised by the potential changes in Government policy, including those that concern HMOs. Judging from my background knowledge, the vast majority of HMOs work quite well under the existing planning process. Why does there need to be a change in the controls that apply to HMOs?
Forgive me for the pause in answering—I like to write down the questions, especially when they are from Mr Tolson.
I have a list of members who wish to ask questions, but I will also take supplementaries. Bob Doris and Patricia Ferguson have questions on HMOs. I will take Patricia Ferguson first, to be followed by Bob Doris.
I am afraid that I do not share Mr Tolson's sanguine view of HMOs. The legislation on HMOs is, quite rightly, designed to protect those who live in them—two tragic fatalities in my constituency a number of years ago helped to spark that argument—but my concern is that the legislation does not afford protection to those who live adjacent to an HMO.
Yes. We intend to take any comments that are made on that and to deal with it through a revision of planning circular 4/2004, "Houses in Multiple Occupation: Guidance on the interface between planning control and licensing". We do not intend to deal with HMO policy within the context of SPP 3.
What would the effect of that be? I am all for there being a greater interface between the licensing of the HMO and the agreement to an HMO existing or qualifying to become one. In my experience, it is the gap between the two that most often causes the problem. I would be grateful if you could clarify exactly what is meant.
By moving the policy on HMOs to a planning circular, we are addressing the bridging of that gap. Stephen Garland will make some detailed comments.
The consultation set out the proposal to detach the annex on HMOs from the revised SPP 3 as a means of taking forward this important issue. Many responses to the consultation commented that the guidance on HMOs did not sit well as an annex to SPP 3. However, as you noted, it is still necessary to have guidance on this issue. We will detach the annex in the revised SPP 3, but we will also publish separate guidance that picks up on issues that were set out in the draft SPP 3. As we have discussed, in planning terms the issue is about concentrations of HMOs and authorities striking a balance between providing enough of the right type of housing, reflecting the need for HMOs, and dealing with concentrations of such properties in particular areas. We propose not to force authorities to take a particular policy on concentrations, but to ask them to consider whether such a policy would be appropriate in their area. The approach very much works alongside the licensing regime, which is, after all, about ensuring that standards are maintained.
I am not sure that that is helpful. Surely if this is all part of the planning system it should be dealt with under planning guidance.
It will be dealt with in a planning circular.
I am sorry; I took your comments to mean that it would be dealt with on the HMO licensing side of things rather than on the planning side.
No. There will be a planning circular on the interaction between the planning system and the HMO licensing system.
But if I understand you correctly, the decision on the appropriate number of HMOs in a particular area will be one that local authorities can make if they wish to do so, instead of one that they are required to make.
Local authorities have always had that ability, and we are not seeking to change that. We are simply encouraging them to consider whether a policy is appropriate.
Has that change been made as a result of lobbying on the issue and the responses to the consultation?
We have—I believe, rightly—taken account of what happened in the consultation and of points that were raised in a useful meeting that I had with Pauline McNeill, in whose constituency a range of HMO issues has arisen, and some of her constituents. We want to ensure that planning does what it needs to do with regard to HMOs but that that activity is properly linked to the licensing regime.
How do you see a local authority enforcing any quota that it might come up with?
A local authority can set its own rules for that, as Glasgow does. We do not plan to change that. There is a broader issue about enforcement, which we will continue to talk about.
Are you confident that the current approach works?
I am confident that it can be improved.
Do you believe that the measures that you are taking will improve it?
We have yet to publish the updated planning circular, but we would expect that to contain the appropriate guidance that will help local authorities. I am happy to continue to work with individual members and local authorities on a process that is about striking a balance and ensuring that there is a strong local input that adequately reflects local needs and circumstances. A minister would be unwise to second guess what happens in areas that are often relatively constrained, within cities. In such areas, the local authorities are best placed to decide what the right balance is.
I offer Mr Stevenson an opportunity to visit some of my constituents who would like to discuss some of the issues with him. I would be happy to arrange that visit.
I was happy to meet some of Pauline McNeill's constituents to discuss the matter. If a meeting with your constituents would be helpful, I will certainly try to accommodate that. There is a tension in the situation that is quite difficult to resolve, and if Government ministers can assist local authorities to strike the right balance, I would, of course, wish to engage in that process.
I will allow a couple of supplementary questions, strictly on the subject of HMOs.
I will start by putting on the record the fact that students and others have not been demonised by the Government's approach to HMOs. It is important to provide some responsible context around the issue of how communities and individuals are affected. If someone has a family home in the same close as an HMO that happens to be a student dwelling, they might find that the students in that flat change every year, which means that, as soon as they have built up a good relationship with one set of students, another set might replace them. An area can experience a complete change of character due to an overconcentration of HMOs. Students have rights, and are not being demonised in the slightest, but other residents also have rights. It is important to say that I have met many people who have concerns about the overconcentration of HMOs but I have not met anyone who attempts to demonise students. It is irresponsible to say that that is what is happening.
The issue that you are asking about is a matter for the local authority. In my constituency, there is a substantial number of HMOs and we probably have around 2,000 or 3,000 migrant workers. However, we do not have multistorey buildings—I believe that we have only one four-storey building, and it is our highest—unlike city centres, which often have many tenements. That is why the local authority must consider what an appropriate definition of an area should be for the purposes of calculating the number of HMOs. The situation is further complicated by the fact that some houses have their own front door and others share a communal stairwell.
I invite a couple of brief questions on the issue. I am not sure that we are making any progress.
I was following a line of questioning, convener.
No. I am taking brief questions and supplementaries from members. I am not convinced—
I will ask a brief supplementary question.
I let you ask your question ahead of members who had requested to speak earlier. I ask you to respect that courtesy.
I have no choice, convener.
I invite brief supplementaries on HMOs. I hope that we will make some progress on the issue. The minister has answered a number of questions, but not much has changed in his previous four or five answers.
The draft proposal on HMOs was controversial with the NUS and Shelter, which raised the issues of more illegal HMOs, increased rents and shortage of supply. Can you explain the difference between the arrangements that were in place before the publication of the draft SPP 3, what was proposed in the draft policy, and what you are suggesting now? At what point did you decide to issue guidance on HMOs in a circular? There was concern that permitting the establishment of quotas to address concentrations of HMOs would affect supply. Other people say that unless concentrations of HMOs are addressed, they will remain a problem in communities.
I will respond in a couple of ways. It is quite proper that we should respond to consultations; if we fail to do so, the consultation process means nothing. I acknowledge that I am responding to the consultation on the draft SPP 3. When we deconstructed concerns that were expressed about the document, we found that a large proportion of them related to the inclusion of HMO material in a planning document, which appeared to signal a radical shift in policy that we were not trying to make. Our taking the HMO material out of the draft SPP 3 and inserting it in planning circular 4/2004 reflects the need for distance between SPP 3, which is a planning document, and the planning circular, which is about joining up the planning system to the licensing system. The draft SPP 3 did not signal a dramatic shift of policy on HMOs, but the inclusion of HMO material in the document gave rise to concerns. It is right that I should respond to concerns that have been expressed, and I have done so.
You mentioned illegal HMOs, and I am thinking of the rights of tenants, particularly migrant workers. Does the Government have any idea of what efforts are being made at a local level to identify illegal HMOs and enforce the existing legislation?
That is not directly a question for me to answer, because it is in essence on a housing issue. It is a matter for local authorities, which carry out enforcement on the ground. We expect that the new HMO licensing regime under the Planning etc (Scotland) Act 2006 will improve enforcement because rent penalty notices to unlicensed landlords or those breaching licensing conditions can be imposed without the need to go to court and the maximum fine for unlicensed HMOs will rise from £5,000 to £20,000. Enforcement should therefore be easier and more effective.
I thank David McLetchie and Kenny Gibson for their patience—we will take questions from them to finish.
Good morning again, minister. I want to return to the acceleration of land supply in the context of the review of SPP 3 as highlighted in "Firm Foundations". On page 17 of that document, it says:
The more consistent use of land audits allows for modifications where shortfalls are identified, and we want to ensure that plans continue to contain a five-year supply of housing land, as is the case under the 2006 act. Ensuring that there are regular reviews of action programmes is part of the issue. The consultative draft of SPP 3 reinforced the presumption—which I think that you are referring to—that, where there is a planning shortfall, planning authorities can act in the way that you suggest, provided that that is consistent with the overall locational strategy and other council policies.
A network of local development plans is meant to have been rolled out in Scotland under the 2006 act, but there is an indication in "Firm Foundations" that, somehow or other, areas may be designated for housing in advance of communities and local people proposing local development plans and those plans being adopted. That will effectively make a nonsense of the development plan concept in some areas, because any discussions of or decisions on comprehensive development plans for those areas will be pre-empted. Is that correct?
Essentially, we are looking at areas of Scotland in which plans are far from up to date and indicating an area for flexibility while such a situation prevails. We want plans to be updated more regularly, and we want to change the character of the engagement between communities and planners in developing plans. It would be fair to say that there is modest interchange on plans at the moment and that we probably want to improve that, but we want to ensure that the planning system is flexible enough to ensure that we can progress the housing agenda. What has been proposed in part reflects that.
I return to the issue of current market conditions and circumstances. Members have said that there seems to be very little prospect that we will get anywhere near 35,000 houses by the middle of the next decade. Last week, we learned from Homes for Scotland that work has ground to a halt on most new sites in Scotland and that there is a substantial inventory of unsold stock. One would like to think that a rapid recovery will take place, but the outlook is far from promising.
I think that the convener was, as ever, the expert in spotting silver linings.
Ever positive.
I welcome that.
The issue is whether a presumption should be written into SPP 3 in the terms that are outlined in "Firm Foundations". In the current and foreseeable circumstances, there is no need for such a presumption to be included in SPP 3. There would be no need for any presumption at all if we focused our energies on getting development plans up to date, because they would reflect the need and demand for housing in communities. Is that not the issue? No presumptions would be needed if the development plans were up to date.
I believe that Winston Churchill said that prediction is difficult, especially about the future. In the changes that we are making, we have not presumed that the conditions that prevail at one instant in time will prevail for the entire period for which the planning policy will apply. If, as a knee-jerk response to the current circumstances, we constrained what we are trying to do in SPP 3, I think that we would find ourselves having to revisit the policy—well, I hope that that is what we would do. We are taking a principled decision that we in planning can make a contribution to changing the way in which things are proceeding. For example, I highlight that our population growth will be substantially higher than that in the European Union 15 countries. Although the global conditions affect us, the local impacts may be different from those elsewhere. It would be difficult to justify not taking the opportunity for planning to make its contribution to relieving future constraints that might be important at a later time.
Planning can make its contribution by having an up-to-date set of local development plans, with appropriate housing allocations identified, from which everyone can proceed with confidence. We are talking about the allocation of land for housing outwith the development plan process. I am glad to hear the minister taking Winston Churchill's name in praise. He was very well aware of the need to have well-laid plans. I suggest that in Scotland we need well-laid development plans. We should be getting on with them and we should not have presumptions that pre-empt the conclusions and outcomes in well-laid development plans.
I am happy to agree with Mr McLetchie that we need and should have up-to-date development plans throughout Scotland. Provisions for the circumstances where that is not the case are sensible fallback provisions.
I am glad that the minister is optimistic about population growth, given that Scotland has had the lowest rate of population growth of anywhere on the planet over the past century. He talked about the network of constraints. Surely one constraint is the way in which local authorities deal with developments. To what extent will SPP 3 ensure greater consistency of decision making by local authorities, with more objectivity and less subjectivity? How will the policy expedite the process? Despite the economic climate, several developers in my area want to progress, but there is an inconsistency of approach. For example, in one part of my constituency, houses have been built on land that is so wet and boggy that grass does not grow in people's gardens, while in another area someone is being told to introduce elaborate flood prevention mechanisms, despite the fact that residents in their 80s say that there has not been a single day of flooding in the past 70 or 80 years. How do we ensure that the best plans that you and your team can devise are implemented expeditiously on the ground for the benefit of our communities?
Consistency and certainty will be important parts of sustaining confidence among the development community as we progress. In broad terms, we wish to speed up the planning system, although not necessarily to give different outcomes. For example, it is as valuable to give an early, "No, this is not appropriate," as it is to accelerate to the point at which we say, "Yes, it is appropriate." If we say no early, we avoid people wasting money and we allow developers to consider other projects. The housing need and demand assessment guide that was published in April sets out the process that local authorities should take, which involves not just assessing housing need but considering a range of important issues, including market demand.
In my constituency, developments have been rejected by a planning officer who has no qualifications in hydrology, for example, but who makes subjective decisions about that. I am concerned that, despite the best will in the world to improve the supply of land for housing, decisions are inconsistent. On 18 January, I attended a public meeting in Arran on planning at which one individual said that a staff member had told him to build his property in one corner of a field and he produced a plan for that, which cost several thousand pounds, but when that staff member left the council, someone else was appointed who said that the property should be built in another corner of the field. That cost the applicant considerable time and money. Several such examples were presented at that meeting.
Consistency is important. In one planning authority's area, one would expect the consistent and logical application of planning policies. To an extent, the question relates to vacancies and skills gaps in planning authorities, to which the member alluded. We are considering that issue.
I thank the minister and his officials for their evidence.
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