Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 22
22
Accepted
Conduct Existing Use Value analysis and secure land purchase arrangements for New Town sites.
Recommendation
The Government must immediately conduct an analysis of Existing Use Values (EUV) on each of the 12 sites to maximise the capture of future land value uplifts, and develop plans for using appropriate mechanisms for land value capture on each site. This must include the option of development corporations using Compulsory Purchase Orders to assemble land where ownership is fragmented or negotiations stall. The Government must ensure arrangements for the purchase of land on New Towns sites are in place before it announces its final decision on locations by spring 2026. (Recommendation, Paragraph 113)
Government Response Summary
The government states existing legislation and powers available to Homes England, LAs, and potential Development Corporations, including CPO powers, are sufficient for land valuation and purchase.
Government Response
Accepted
HM Government
Accepted
61. The Government is aware of the potential of securing the land value uplift created by schemes such as the New Towns Programme. Existing powers in legislation are clear that, should negotiations fail to purchase land by agreement for the delivery of new towns, valuations for the compulsory purchase of land will be on the basis of the ‘no-scheme’ principle (so disregarding the scheme of development, or prospect of the scheme, underpinning the compulsory purchase). Homes England, LAs and any potential Development Corporations all have access to CPO powers if negotiations to buy land fail and there is a compelling case in the public interest for use of a CPO. The strategy for valuation and purchase of land will be delivered with those existing statutory provisions and commercial considerations in mind.