Recommendations & Conclusions
14 items
1
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 finances currently under strain. However, a radical departure from the Section 106/Community Infrastructure Levy (CIL) regime, which currently constitute the existing mechanisms of land value capture in England, would risk a detrimental impact on the supply of land in the short-term. We recognise that this would be disruptive to the Government’s housebuilding agenda. (Conclusion, Paragraph 26)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
2
Recommendation
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 homes for Social Rent—in line with the Government’s wider policy ambitions. The Government must also trial additional mechanisms of land value capture in areas where there are significant uplifts in land value which current mechanisms may not capture effectively. Specifically, the New Towns programme discussed in Chapter 5 presents a vital opportunity to test new ways of financing infrastructure delivery on large developments and learn lessons for future reforms. (Recommendation, Paragraph 27)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
14
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 further exacerbated by a lack of transparency of coverage, as the Government does not publish regular data on which local authorities are charging CIL and at what rates. It is likely that the Ministry already holds this data centrally. (Conclusion, Paragraph 79)
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Government response AI summary
The Government takes on board the Taskforce’s recommendations to consider the interaction between new towns and housing targets ahead of its fuller response.
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Ministry of Housing, Communities and Local Government
16
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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, …
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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, including by pooling CIL receipts to deliver larger infrastructure projects. This collaboration may also encourage more local authorities to establish CIL charging schedules across a wider area, and thus improve CIL coverage. This adds to the case that the Government must invest in dedicated planning officers for the new Strategic Authorities. (Conclusion, Paragraph 87)
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Government response AI summary
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 of funding.
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Ministry of Housing, Communities and Local Government
18
Recommendation
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 on the national map of CIL coverage, to collate this information and ensure all local authorities have an up-to-date IFS, as required by legislation. (Recommendation, Paragraph 89) New Towns
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
19
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 many of the locations where new settlements are planned will require significant upfront infrastructure investment to support new communities. (Conclusion, Paragraph 102)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
21
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 of the New Towns Taskforce. It appears that the Government has not yet established any delivery body to purchase land or enter agreements with landowners, which risks allowing developers considerable time to acquire sites for speculative development and immediately push up land values. The Taskforce said that, in the worst-case scenario, this could “jeopardise New Town plans”. (Conclusion, Paragraph 112)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
23
Recommendation
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 has so far indicated that it will rely primarily on private financing from institutional investors. If the Government is to realise the full potential of the development corporation model, it must ensure they have access to their own capital funding to build infrastructure to unlock housing development. Whilst we welcome the Taskforce’s recommendation for a minimum target of 40% affordable housing of which at least half should be for Social Rent, this must not restrict development corporations 66 from using land value capture mechanisms to negotiate a greater contribution of Social Rent homes on sites where this is financially viable. (Conclusion, Paragraph 114)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
24
Recommendation
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 within the 40% affordable homes requirement, rather than other types of affordable housing. Development corporations must be granted comprehensive planning powers and access to capital funding to fulfil this objective. (Recommendation, Paragraph 115)
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Government response AI summary
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 will be assessed case-by-case. They …
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Ministry of Housing, Communities and Local Government
26
Recommendation
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 on each site, and the estimated development timeline for each New Town. (Recommendation, Paragraph 117)
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Government response AI summary
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 in this Parliament.
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Ministry of Housing, Communities and Local Government
27
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 investments. However, it is concerning that the Government has not yet launched its pilot projects under the new model, which is due to be implemented nationally in spring
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Government response AI summary
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 in due course.
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Ministry of Housing, Communities and Local Government
29
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 dark. We are also deeply disappointed that the Government has been unwilling to engage with us on the development of the Strategy, or provide any updates on its delayed publication, other than to tell us that it will be published “later this year”. (Conclusion, Paragraph 140)
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government
33
Conclusion
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 heard that London’s model of affordable housing targets, and a ‘fast-track’ viability route, is one which should be replicated across England, to provide certainty to developers and deliver more affordable housing. The Greater London Authority itself told us that reductions in affordable housing requirements can result in inflated land values and/or developer returns and slow down delivery. (Conclusion, Paragraph 147)
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Government response AI summary
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 build out to address this.
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Ministry of Housing, Communities and Local Government
35
Recommendation
3rd Report - Delivering 1.5 million new…
Acknowledged
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 …
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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 may deliver more affordable housing units, by increasing the number of new homes built overall. Any reduction to London’s affordable housing target must be accompanied by a clawback mechanism to ensure developers return a portion of their profits to the local authority, ringfenced for affordable housing delivery, if a development surpasses an agreed benchmark profit. If London’s affordable housing target is reduced and the number of affordable housing units delivered declines, the Ministry and the Greater London Authority must commit to reinstating the 35% target. (Recommendation, Paragraph 149) 69
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Government response AI summary
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.
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Ministry of Housing, Communities and Local Government