Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 1
1
Acknowledged
Developer contributions system reform needed, but radical changes risk short-term land supply.
Conclusion
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)
Government Response 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.
Government Response
Acknowledged
HM Government
Acknowledged
24. The Government welcomes the focus on iterative improvements to existing mechanisms. The Government has already taken important steps to strengthen the system of developer contributions to ensure new developments provide necessary affordable homes and infrastructure. This includes the introduction of ‘Golden Rules’ for major development involving the provision of housing on land within or released from the Green Belt, and other changes to the NPPF published in December 2024 which support the increased provision of affordable housing and infrastructure. 25. We recognise that there is much more to do. On 16 December 2025, we launched a consultation on further changes to the NPPF, including proposals relating to developer contributions and viability. The changes aim to promote greater clarity about expected contributions, including those related to affordable housing, and the limited circumstances in which site- specific viability assessments may be justified. The consultation will remain open for responses until 10th March 2026. 26. The revised NPPF also includes wider proposals designed to further support the delivery of affordable housing. The consultation seeks views on setting a national minimum expectation for 10% social rent on new developments, and whether further guidance is needed to support authorities in assessing affordable housing need. 27. The Government is also taking further action by giving all mayors of strategic authorities the power to raise a Mayoral Community Infrastructure Levy through the English Devolution and Community Empowerment Bill. 28. The Government is considering the recommendations of the New Town Taskforce report with regard to using early land purchases to secure land value capture; and where this approach is suitable it could form a part of new town delivery strategies. The Taskforce also suggested that Government should explore the role of tax within the financing model, to support the delivery of new towns.