Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 4
4
Paragraph: 36
Reform of the Land Compensation Act 1961 is well overdue.
Recommendation
Reform of the Land Compensation Act 1961 is well overdue. We reiterate the recommendations of our predecessor Committee. The Government should amend the Land Compensation Act 1961 so local authorities and development corporations have the power to compulsorily purchase land at a fairer price. The present right of landowners to receive ‘hope value’ reduces revenues and opportunities for social housing. Compensation paid by landowners should be determined by an independent expert panel, which we expect will deliver a fairer deal than the current model.
Paragraph Reference:
36
Government Response
Acknowledged
HM Government
Acknowledged
On August 6 the Government released its White Paper Planning for the Future, which sets out an ambitious programme of reform for the planning system. This includes proposals to reform the system of developer contributions, replacing the current system of s106 planning obligations and the Community Infrastructure Levy with a new Infrastructure Levy. This would be charged on the final value of development, and will include a value-based minimum threshold below which the levy is not charged, to prevent low viability development from becoming unviable. The Government expects the new Levy to raise more revenue than under the current system of developer contributions and deliver at least as much – if not more – on-site affordable housing as at present. This approach to capturing land value will be simpler, more transparent and more consistent than the current system. The Government is also committed to a faster and better compulsory purchase process to support the delivery of housing, regeneration and infrastructure projects. We intend to publish proposals in the Autumn for consultation, including potential further reforms to the land compensation regime so it is fairer and easier to reach agreement.