Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 23
23
Acknowledged
Government's development corporation model lacks direct funding and capital access.
Recommendation
We welcome that the Government has stated its preference for New Towns to be delivered through development corporations with powers of land assembly, under a similar model to the 20th century new towns. However, the Government has not yet announced any new direct funding for the New Towns programme, and has so far indicated that it will rely primarily on private financing from institutional investors. If the Government is to realise the full potential of the development corporation model, it must ensure they have access to their own capital funding to build infrastructure to unlock housing development. Whilst we welcome the Taskforce’s recommendation for a minimum target of 40% affordable housing of which at least half should be for Social Rent, this must not restrict development corporations 66 from using land value capture mechanisms to negotiate a greater contribution of Social Rent homes on sites where this is financially viable. (Conclusion, Paragraph 114)
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.