Select Committee · Housing, Communities and Local Government Committee

Delivering 1.5 million new homes: Land Value Capture

Status: Closed Opened: 22 Jan 2025 Closed: 1 May 2026 20 recommendations 15 conclusions 1 report

The Housing, Communities and Local Government Committee is holding an inquiry to look at how land value capture policies - which seek to capture the value uplift on land that when it is granted planning permission - can contribute to the delivery of the Government’s house building plans and help fund affordable housing and public …

Reports

1 report
Title HC No. Published Items Response
3rd Report - Delivering 1.5 million new homes: Land Value C… HC 672 28 Oct 2025 35 Responded

Recommendations & Conclusions

35 items
1 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

Developer contributions system reform needed, but radical changes risk short-term land supply.

There is scope to reform the current system of developer contributions in England to capture a greater proportion of land value uplifts from development to deliver affordable housing and public infrastructure. There is a compelling case for such reforms—especially in the context of a deepening housing crisis and with public …

Government response. The Government has already taken important steps to strengthen the system of developer contributions to ensure new developments provide necessary affordable homes and infrastructure, and launched a consultation on further changes to the NPPF.
Ministry of Housing, Communities and Local Government
2 Recommendation 3rd Report - Delivering 1.5 million new… Acknowledged

Pursue immediate reforms to Section 106/CIL and trial additional land value capture mechanisms.

Reforms to land value capture should be iterative, starting with improvements to existing mechanisms. Therefore, the Government must immediately pursue the reforms to Section 106 and CIL outlined in the chapters below. These reforms must optimise the system’s capacity to capture land value uplifts and deliver infrastructure and affordable housing—particularly …

Government response. The Government is developing updated land value estimates for use in policy appraisal and aims to publish updated values for a range of land uses this year.
Ministry of Housing, Communities and Local Government
3 Recommendation 3rd Report - Delivering 1.5 million new… Accepted

Publish updated land value estimates to support effective land value capture reforms.

Any reforms to land value capture should also be considerate of the wider tax system, to balance public needs and equitable charges on development. To support this work, the Government should publish updated land value estimates, which were last published in August 2020. If the Government does not intend to …

Government response. MHCLG is working in partnership with the Planning Advisory Service (PAS) to develop a suite of resources to support section 106 negotiations, including developing a standardised s106 agreement for medium sites as an immediate priority.
Ministry of Housing, Communities and Local Government
4 Conclusion 3rd Report - Delivering 1.5 million new… Accepted

Strong case exists for Section 106 template clauses to streamline negotiations and reduce workload.

There is a strong case for the introduction of template clauses for aspects of Section 106 agreements across England, as was recommended by the National Audit Office and others. Templates would allow local authorities to focus negotiations on site-specific factors rather than legal wordings. Template clauses would also allow for …

Government response. The government has identified a funding package to support SDS production and expects to make some initial payments in March and to confirm the full package in the summer.
Ministry of Housing, Communities and Local Government
5 Recommendation 3rd Report - Delivering 1.5 million new… Rejected

Develop and publish Section 106 template clauses to streamline negotiations for local authorities.

As part of the site thresholds consultation that will take place later this year, the Ministry must seek views on how standardised Section 106 templates could most effectively streamline the negotiation process across sites of all sizes. Based on the consultation responses, the Ministry must work with the Planning Advisory …

Government response. The government does not consider it appropriate to fund local plan-making through planning application fees.
Ministry of Housing, Communities and Local Government
6 Recommendation 3rd Report - Delivering 1.5 million new… Rejected

Local planning authorities are under-resourced, with restricted apprenticeships hindering future planner recruitment.

Local planning authorities across England are frequently under-resourced and stretched to deliver on local priorities. The Government’s funding for 300 new planning officers demonstrates that it recognises this problem, but this announcement equates to less than one planning officer on average for each local authority in England. At the same …

Government response. The government does not intend to implement third-party adjudication for unresolved issues regarding section 106 planning obligations, believing non-statutory guidance and policy will have a more immediate impact.
Ministry of Housing, Communities and Local Government
7 Recommendation 3rd Report - Delivering 1.5 million new… Accepted in Part

Reinstate planning apprenticeships and invest in specialist officers for Strategic Authorities and LAs.

The Government must take a more strategic approach to boost the skills and capacity of local planning authorities, starting with reinstating access to funded Level 7 planning apprenticeships for students over the age of 21. The Government must invest in dedicated planning officers for Strategic Authorities and set out its …

Government response. The Government is delivering a comprehensive Planning Capacity and Capability Programme aimed specifically at the public sector, which directly increases the number of planners in LPAs, targeting high-calibre applicants, funding salary bursaries and supporting accredited postgraduate training, but did not …
Ministry of Housing, Communities and Local Government
8 Recommendation 3rd Report - Delivering 1.5 million new… Rejected

Make regulations allowing local authorities to include plan-making costs in planning fees.

Once the Planning and Infrastructure Bill receives Royal Assent, the Secretary of State must make regulations to allow local planning authorities to take into account the cost of local and regional plan-making when calculating local planning fees. Local planning authorities and Strategic Authorities should be allowed to spend these contributions …

Government response. The government rejected the recommendation to set indicative benchmark land values nationally, arguing that it would not account for regional variation, but are consulting on testing viability at the plan-making stage using a standardised scenario for greenfield, Green Belt land.
Ministry of Housing, Communities and Local Government
9 Conclusion 3rd Report - Delivering 1.5 million new… Accepted

Protracted Section 106 negotiations causing significant delays to housing delivery.

Local planning authorities across England have expressed concern that protracted Section 106 negotiations are causing delays to housing delivery. Drawn out negotiations do not benefit public outcomes and cause undue delays to development, which may impede the Government’s housebuilding ambitions. Whilst we recognise the Minister for Housing and Planning’s concerns …

Government response. The Government intends to publish a map of CIL coverage in England, alongside a list of CIL charging authorities in England by region, without accompanying information on rates.
Ministry of Housing, Communities and Local Government
10 Recommendation 3rd Report - Delivering 1.5 million new… Accepted

Introduce a statutory Section 106 dispute resolution scheme for housing development.

The Government should introduce a statutory Section 106 dispute resolution scheme, under the provisions of the Housing and Planning Act 2016. If the Government does not intend to pursue this, it should set out a detailed explanation as to why the Ministry has chosen not to implement the provision legislated …

Government response. The government considers it more appropriate for the IFS to be obtained through authority websites, as an authority is able to update its IFS at any time.
Ministry of Housing, Communities and Local Government
11 Conclusion 3rd Report - Delivering 1.5 million new… Deferred

Site-specific viability assessments frequently reduce affordable housing requirements unjustifiably.

Too often, site-specific viability assessments are used by developers to negotiate down affordable housing requirements in circumstances where this is completely unjustifiable. Affordable housing contributions are frequently the first provision to be cut following a viability assessment, even where a developer may be making other significant contributions through Section 106 …

Government response. The government deferred responding to the point about site-specific viability assessments until Spring 2026, when it plans to issue a full response to the New Towns Taskforce’s report.
Ministry of Housing, Communities and Local Government
12 Recommendation 3rd Report - Delivering 1.5 million new… Accepted

Update national policy to encourage minimum affordable housing targets in Local Plans.

As part of its ongoing review of the viability planning practice guidance, the Government must consider how different types of developer contribution could be re-negotiated following a viability assessment, to protect affordable housing contributions. The Government must also update national policy to encourage all local authorities to set a minimum …

Government response. The government stated that existing legislation provides clear powers for compulsory purchase of land for new towns based on the ‘no-scheme’ principle, and that Homes England, LAs and potential Development Corporations already have access to CPO powers.
Ministry of Housing, Communities and Local Government
13 Recommendation 3rd Report - Delivering 1.5 million new… Accepted

Publish indicative benchmark land values to inform viability assessments on Green Belt land.

The Government must continue to develop its proposal to publish indicative benchmark land values to inform viability assessments on Green Belt land across England. The Government must publish different benchmark land values for each region of England, to reflect variation in land values. The Government must also ensure that the …

Government response. The government committed to a 'gold standard aim' of 40% affordable housing in new towns, with an emphasis on Social Rent, and will work with delivery vehicles to support implementation. They are also developing mechanisms, including guidance, to facilitate the …
Ministry of Housing, Communities and Local Government
14 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

Complex patchwork of CIL coverage and charging schedules across England lacks transparency.

Around half of local planning authorities have adopted CIL, and its uptake has remained broadly unchanged for several years. There has been little progress towards addressing the complex patchwork of CIL coverage and charging schedules across England in the years since the 2016 CIL Review Group report. This complexity is …

Government response. The Government takes on board the Taskforce’s recommendations to consider the interaction between new towns and housing targets ahead of its fuller response.
Ministry of Housing, Communities and Local Government
15 Recommendation 3rd Report - Delivering 1.5 million new… Deferred

Publish an interactive map of CIL coverage and charging rates for local authorities.

The Ministry must publish an interactive map of CIL coverage on its website, updated quarterly to include the rates charged in each local authority in England. Publishing a national map would support the housing sector to navigate different charging schedules across local authorities; would enable greater public scrutiny of the …

Government response. The government deferred action by noting that initial engagement on the early adopter program has begun and that they will agree on an ambitious timeline for the delivery of the early adopter program and wider rollout of place based business …
Ministry of Housing, Communities and Local Government
16 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

Local authorities prioritise affordable housing delivery over CIL establishment due to stretched resources.

Currently, stretched local planning authorities are likely to focus their limited staffing and resources on affordable housing delivery as a priority, rather than establishing and administering CIL, even where CIL may be financially viable. The reintroduction of strategic planning in England presents an opportunity for greater co-operation between local authorities, …

Government response. The government acknowledged the importance of strategic planning but focused on its Long-Term Housing Strategy and existing efforts to deliver 1.5 million new homes, including publishing a revised NPPF, launching the New Homes Accelerator, and announcing a record £39 billion …
Ministry of Housing, Communities and Local Government
17 Conclusion 3rd Report - Delivering 1.5 million new… Accepted

Local communities require greater transparency on how CIL receipts are spent.

It is important that existing local communities and new residents see the benefits of development, with new local and regional infrastructure being delivered alongside housing. This is especially the case when local authorities choose to pool CIL receipts to deliver large infrastructure projects. Whilst the Government should encourage local authorities …

Government response. The government acknowledged viability pressures in London, highlighted existing affordable housing levels, and referenced a new package of support for housebuilding in London, including a new planning route to incentivise build out.
Ministry of Housing, Communities and Local Government
18 Recommendation 3rd Report - Delivering 1.5 million new… Acknowledged

Publish local authorities' Infrastructure Funding Statements on the national CIL map.

The Ministry must review its guidance to local authorities on IFSs, to ensure all local authorities have a clear, up-to-date IFS which sets out how CIL receipts will be used locally, and when they will be pooled to deliver larger infrastructure projects. The Ministry should also publish local authorities’ IFSs …

Government response. The government acknowledges the recommendation and points to existing planning practice guidance and PAS website resources on IFSs, stating they will consider a further update; however, they deem publishing IFSs on a national CIL map inappropriate.
Ministry of Housing, Communities and Local Government
19 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

New Towns programme requires billions in investment without clear funding sources.

The Government’s New Towns programme is likely to require billions of pounds of public and private investment over several decades, including millions from HM Treasury to establish development corporations during this Parliament. The Government has not yet set out where this funding will 65 come from. It is likely that …

Government response. The government is considering the Taskforce's recommendations on land purchases to secure land value capture and will clarify its position in a forthcoming consultation, but commits to no specific action.
Ministry of Housing, Communities and Local Government
20 Recommendation 3rd Report - Delivering 1.5 million new… Deferred

Enable greater use of Tax Increment Financing to fund infrastructure in New Towns.

Whilst the Government’s plan to allow all mayors of strategic authorities to charge Mayoral CIL is a welcome step towards greater fiscal devolution, the Government must go further to support local leaders with revenue raising powers to deliver infrastructure and housing. In particular, the Government should enable greater use of …

Government response. The government defers a full response on financing models, including Tax Increment Financing, to Spring 2026 as part of the New Towns Taskforce's report, but states they are exploring different financing models used previously and will give new powers to …
Ministry of Housing, Communities and Local Government
21 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

Government risks land value capture by announcing New Town sites without policy.

There is significant potential to use land value capture as part of funding the proposed New Towns, especially on green field sites. However, we are concerned that the Government has announced substantial detail of the 12 potential sites without a planning policy to protect land value, contrary to the recommendation …

Government response. The government is considering the Taskforce's recommendations on land purchases to secure land value capture and will clarify its position in a forthcoming consultation, but commits to no specific action.
Ministry of Housing, Communities and Local Government
22 Recommendation 3rd Report - Delivering 1.5 million new… Accepted

Conduct Existing Use Value analysis and secure land purchase arrangements for New Town sites.

The Government must immediately conduct an analysis of Existing Use Values (EUV) on each of the 12 sites to maximise the capture of future land value uplifts, and develop plans for using appropriate mechanisms for land value capture on each site. This must include the option of development corporations using …

Government response. The government states existing legislation and powers available to Homes England, LAs, and potential Development Corporations, including CPO powers, are sufficient for land valuation and purchase.
Ministry of Housing, Communities and Local Government
23 Recommendation 3rd Report - Delivering 1.5 million new… Acknowledged

Government's development corporation model lacks direct funding and capital access.

We welcome that the Government has stated its preference for New Towns to be delivered through development corporations with powers of land assembly, under a similar model to the 20th century new towns. However, the Government has not yet announced any new direct funding for the New Towns programme, and …

Government response. The government is considering the Taskforce's recommendations on land purchases to secure land value capture and will clarify its position in a forthcoming consultation, but commits to no specific action.
Ministry of Housing, Communities and Local Government
24 Recommendation 3rd Report - Delivering 1.5 million new… Acknowledged

Announce new funding for development corporations, mandating Social Rent priority and capital access.

At the Autumn Budget 2025, the Government must announce new funding to establish the development corporations, so they can commence land acquisition on the first sites without delay, and complete this work by spring 2026. The development corporations must be mandated to prioritise the delivery of homes for Social Rent …

Government response. The government states it is committed to a gold standard aim of 40% affordable housing with an emphasis on Social Rent and will work with delivery vehicles to support implementation. The need for development corporations to take on planning powers …
Ministry of Housing, Communities and Local Government
25 Conclusion 3rd Report - Delivering 1.5 million new… Accepted

Current New Towns plan lacks ambition to meet Government's housing supply targets.

The Ministry is right to prioritise New Towns which have the greatest potential to boost housing supply in the short-term, but its plan to “get spades in the ground on at least three new towns in this Parliament” does not match the scale of the Government’s housebuilding ambition. The New …

Government response. The government states that the Taskforce has prioritised sites where housing can be delivered quickly, reflecting the urgent need for housing.
Ministry of Housing, Communities and Local Government
26 Recommendation 3rd Report - Delivering 1.5 million new… Acknowledged

Clarify New Towns' housing delivery interaction with local targets and publish programme roadmap.

The Government must immediately clarify how housing delivery in New Towns will interact with local authority housing need targets. In its final response in spring 2026, the Government must include a roadmap for the New Towns programme, to show when each development corporation will be established, when development will commence …

Government response. The government acknowledges the need to consider the interaction between new towns and housing targets ahead of its fuller response. They aim to begin work as soon as possible, with spades in the ground on at least three new towns …
Ministry of Housing, Communities and Local Government
27 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

Green Book reforms welcomed but place-based pilot projects remain unlaunched.

For decades, there has been a perception that HM Treasury’s investment decisions have benefitted some parts of England at the expense of others. We therefore welcome HM Treasury’s Green Book reforms to introduce place-based business cases, which will change how costs and benefits are assessed for major housing and infrastructure …

Government response. Initial engagement across Government and local government on the early adopter programme has already begun, and the Government will be agreeing an ambitious timeline for the delivery of the early adopter programme and wider rollout of place based business cases …
Ministry of Housing, Communities and Local Government
28 Recommendation 3rd Report - Delivering 1.5 million new… Deferred

Provide a timeline for place-based business case pilot projects and national rollout, ensuring Green Book reforms benefit all regions.

In response to this Report, the Government must provide a timeline for when it will launch its pilot projects using place-based business cases, and when the new model will be rolled out nationally. It must also set out how it will ensure the Green Book reforms will see the benefits …

Government response. The government states initial engagement on the early adopter programme has already begun and an ambitious timeline will be agreed for the delivery of the early adopter programme and wider rollout of place based business cases in due course. Value …
Ministry of Housing, Communities and Local Government
29 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

Long-Term Housing Strategy publication remains delayed, leaving the housing sector without a cohesive plan.

The housing sector is eagerly awaiting the Government’s Long-Term Housing Strategy, which it first announced in July 2024. Originally, this was to be published alongside the Spending Review in spring 2025. The continuing lack of a cohesive plan to deliver 1.5 million new homes has left the sector in the …

Government response. The Government will publish a Long-Term Housing Strategy shortly, which will bring together the significant programme of reform that the Government has undertaken since taking office in July 2024.
Ministry of Housing, Communities and Local Government
30 Conclusion 3rd Report - Delivering 1.5 million new… Deferred

Ambition of 1.5 million housing target jeopardised by continued lack of a clear strategy.

Sector representatives have expressed doubt as to whether the target will be achievable by July 2029, and Ministers have themselves described the 1.5 million target as “stretching” and “hugely ambitious”. The Government was right to set an ambitious target, but this must be supported with a clear Strategy to meet …

Government response. The government will publish a Long-Term Housing Strategy shortly, bringing together reforms undertaken since July 2024.
Ministry of Housing, Communities and Local Government
31 Recommendation 3rd Report - Delivering 1.5 million new… Accepted

Slow plan-making system prevents local plans from collectively meeting the 1.5 million housing target.

The Government can only begin to make significant progress towards its 1.5 million target once the sum of local housing need targets in Local Plans add up to that figure. Whilst the Government’s reforms to the National Planning Policy Framework seek to plan for approximately 370,000 new homes per year, …

Government response. Regulations commencing the new 30-month plan-making system will be laid in Parliament shortly, with the system coming into force early this year; new local plans will be expected to be adopted within 30 months and kept up-to-date.
Ministry of Housing, Communities and Local Government
32 Recommendation 3rd Report - Delivering 1.5 million new… Accepted

Bring forward the Long-Term Housing Strategy to deliver 1.5 million new homes without further delay.

The Government must immediately bring forward its Long-Term Housing Strategy without further delay. It must set out an ambitious, comprehensive, and achievable set of policies that will deliver 1.5 million new homes by July

Government response. The government will publish a Long-Term Housing Strategy shortly, outlining reforms undertaken to deliver 1.5 million new homes, including fixing the foundations of the development sector, transforming the housebuilding industry, and building social and affordable homes. They point to the …
Ministry of Housing, Communities and Local Government
33 Conclusion 3rd Report - Delivering 1.5 million new… Acknowledged

Serious concerns about potential cuts to London's affordable housing target hindering delivery.

We are seriously concerned by media reports that London’s affordable housing target could be cut. Whilst the 1.5 million national target cannot be met without a significant increase in housing supply in London, a significant proportion of those new homes must be affordable to local people. During our inquiry we …

Government response. The government acknowledges the concerns about potential cuts to London's affordable housing target and viability pressures and points to a new package of support for housebuilding in London that includes developers to access a new, time-limited planning route to incentivise …
Ministry of Housing, Communities and Local Government
34 Conclusion 3rd Report - Delivering 1.5 million new… Accepted

Reform the Community Infrastructure Levy (CIL) to extend its coverage where viable.

We are also concerned to hear that the Secretary of State may be considering suspending local authorities’ powers to charge the Community Infrastructure Levy to address concerns about development viability. None of the evidence to our inquiry—including from representatives of developers—advocated abolishing CIL entirely as a means of addressing viability …

Government response. The government commits to publishing a map of CIL coverage in England and will extend the power to charge a Mayoral CIL across all Mayors of Strategic Authorities through the English Devolution and Community Empowerment Bill.
Ministry of Housing, Communities and Local Government
35 Recommendation 3rd Report - Delivering 1.5 million new… Acknowledged

Continue working with GLA to accelerate London housing delivery, implementing a clawback mechanism for profits.

The Ministry must continue its work with the Greater London Authority to deliver an acceleration package, so that London boroughs are delivering housing in line with their local housing need targets. In response to this Report, the Ministry must provide its assessment of how changes to London’s affordable housing target …

Government response. The government acknowledges the recommendation and points to a new package of support for housebuilding in London that includes developers to access a new, time-limited planning route to incentivise build out to address this.
Ministry of Housing, Communities and Local Government

Oral evidence sessions

3 sessions
Date Witnesses
15 Jul 2025 Joanna Key · Ministry of Housing, Communities and Local Government, Matthew Pennycook MP · Ministry of Housing, Communities and Local Government, William Burgon · Ministry of Housing, Communities and Local Government View ↗
10 Jun 2025 Avril Roberts · Country Land and Business Association, Councillor Richard Clewer · County Councils Network, Emily Williams · Savills UK Limited, Melanie Leech CBE · British Property Federation (BPF), Paul Brocklehurst · Land, Planning and Development Federation, Robbie Calvert · Royal Town Planning Institute, Will Jeffwitz · National Housing Federation View ↗
23 Apr 2025 Anna Hart · Transport for London, Chris Whitehouse · WSP, Dr Hugh Ellis · Town and Country Planning Association, Dr Thomas Aubrey · London School of Economics, Jeremy Aston · Royal Institution of Chartered Surveyors (RICS), John Kavanagh · BusinessLDN, Maurice Lange · Centre for Cities, Tom Kennedy · Northern Housing Consortium View ↗

Correspondence

3 letters
DateDirectionTitle
11 Sep 2025 To cttee Letter from the Minister of State for Housing and Planning to the Chair dated 2…
3 Sep 2025 To cttee Letter from the Chair to the Minister of State for Housing and Planning dated 2…
9 Jul 2025 To cttee Letter from Sir Michael Lyons to the Chair dated 1 July 2025 concerning the New…