Recommendations & Conclusions
12 items
3
Recommendation
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 do so, it must explain why it no longer publishes this data. (Recommendation, Paragraph 28) 61 Reforms to Section 106 agreements
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
4
Conclusion
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 greater standardisation and clarity of requirements across all local authorities, and in turn reduce the workload of local authorities and Small and Medium-sized Enterprise developers. (Conclusion, Paragraph 36)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
9
Conclusion
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 that introducing a dispute resolution scheme may add complexity to the system, we believe the potential benefits to affordable housing delivery and unlocking stalled development outweigh this risk. (Conclusion, Paragraph 54)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
10
Recommendation
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 for by Parliament in the 2016 Act. This should include setting out any specific technical or legal barriers to implementation which the Ministry has identified. (Recommendation, Paragraph 55) Viability assessments
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
12
Recommendation
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 percentage target for affordable housing in their Local Plan for all major developments that include housing. This figure should be based on a local need assessment for affordable housing in each local authority, with particular regard for the local need for Social Rent homes. Local authorities should be encouraged to offer a ‘fast-track route’ for developments which meet the local affordable housing target, by making those developments exempt from detailed viability assessments and re-assessments later in the development process. This would encourage developments with a high percentage of affordable housing and speed up the delivery of housing of all tenures. (Recommendation, Paragraph 71)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
13
Recommendation
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 viability planning practice guidance contains clear advice on the “local material considerations” that would warrant local adjustments. The Government should continually review the effectiveness of the policy and consider how it may be extended to development on land that is not in the Green Belt. (Recommendation, Paragraph 72) Reforms to the Community Infrastructure Levy
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Government response AI summary
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 implementation of placemaking principles.
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Ministry of Housing, Communities and Local Government
17
Conclusion
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 to deliver strategic infrastructure using CIL receipts where appropriate, it must provide support for all local authorities to publish Infrastructure Funding Statements (IFSs) annually, to ensure residents can see how CIL receipts are spent. Local planning authorities must also ensure their IFS considers plans for public sector investment in infrastructure, including from borough and county councils, alongside new major developments. (Conclusion, Paragraph 88)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
22
Recommendation
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 Compulsory Purchase Orders to assemble land where ownership is fragmented or negotiations stall. The Government must ensure arrangements for the purchase of land on New Towns sites are in place before it announces its final decision on locations by spring 2026. (Recommendation, Paragraph 113)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
25
Conclusion
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 Towns programme can and must make a contribution towards increasing housing supply during this Parliament. (Conclusion, Paragraph 116)
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Government response AI summary
The government states that the Taskforce has prioritised sites where housing can be delivered quickly, reflecting the urgent need for housing.
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Ministry of Housing, Communities and Local Government
31
Recommendation
3rd Report - Delivering 1.5 million new…
Accepted
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, …
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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, local authorities will take several years to transition to this national annual target, as the currently Local Plans take seven years to produce and adopt on average. The Government has stated its ambition to introduce a 30-month plan-making timeline, but the relevant provisions in the Levelling- up and Regeneration Act 2023 to speed up plan-making have still not been implemented. (Conclusion, Paragraph 142)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
32
Recommendation
3rd Report - Delivering 1.5 million new…
Accepted
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 AI summary
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 revised NPPF, New Homes Accelerator, …
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Ministry of Housing, Communities and Local Government
34
Conclusion
3rd Report - Delivering 1.5 million new…
Accepted
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 …
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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 concerns. On the contrary, we heard that the Government should reform CIL to extend its coverage where it is viable. CIL is an effective tool to support infrastructure funding and unlock housing development in the local authorities where it is charged. (Conclusion, Paragraph 148)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government