Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 2
2
Acknowledged
Pursue immediate reforms to Section 106/CIL and trial additional land value capture mechanisms.
Recommendation
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)
Government response summary AI-generated
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.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Acknowledged
HM Government · verbatim extract
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.
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