Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 21
21
Acknowledged
Government risks land value capture by announcing New Town sites without policy.
Conclusion
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)
Government Response 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.
Government Response
Acknowledged
HM Government
Acknowledged
19. The Government is aware of the potential for securing the land value uplift created by the New Towns Programme, and on 28 September this year, the Government published the New Towns Taskforce report as well as its initial response. New Towns have an important role to play in the delivery of much needed quality and genuinely affordable housing. The Government is considering the recommendations of the New Town Taskforce report on the use of early land purchases to secure land value capture; and where this approach is suitable it could form a part of new town delivery strategies. To ensure the right incentives are in place to support LPAs in bringing new towns forward, the Government is working closely with local leaders to understand the impacts of potential New Towns locations on how new towns are accommodated in areas’ Local Housing Needs, and will shortly clarify its position as part of the forthcoming New Towns Programme consultation.