Select committee: Housing, Communities and Local Government Committee
Conclusion 33
3rd Report - Delivering 1.5 million new homes: Land Value Capture
Published 28 Oct 2025
Addressed to Ministry of Housing, Communities and Local Government
Housing, Communities and Local Government Committee Delivering 1.5 million new homes: Land Value Capture All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We are seriously concerned by media reports that London’s affordable housing target could be cut. Whilst the 1.5 million national target cannot be met without a significant increase in housing supply in London, a significant proportion of those new homes must be affordable to local people. During our inquiry we heard that London’s model of affordable housing targets, and a ‘fast-track’ viability route, is one which should be replicated across England, to provide certainty to developers and deliver more affordable housing. The Greater London Authority itself told us that reductions in affordable housing requirements can result in inflated land values and/or developer returns and slow down delivery. (Conclusion, Paragraph 147)
From: Housing, Communities and Local Government Committee, 3rd Report - Delivering 1.5 million new homes: Land Value Capture (HC 672), 28 October 2025
Government response
The government responded to the whole report on 20 March 2026 (deadline 28 December 2025).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's inquiry and says it "recognises there is more to do" on developer contributions, accepting some recommendations, noting or not pursuing others, and pointing to its NPPF consultation and wider reforms.
- On Community Infrastructure Levy (CIL) coverage, the government "has agreed to the Committee's recommendation and commits to publishing a map of CIL coverage in England", but intends to do so without accompanying information on rates.
- On funded Level 7 planning apprenticeships, the government "notes" the recommendation and considers that funding apprenticeship routes alone "does not guarantee" learners will work in or remain in local planning authorities. It points instead to its Planning Capacity and Capability Programme.
- On planning fees, it does "not consider it appropriate to fund local plan-making through planning application fees". On a statutory Section 106 dispute resolution scheme, it does not intend to implement the 2016 Act provisions "at this time" but "will keep this under review".
- On land value estimates, the government is developing updated estimates and says "the aim is to publish updated values for a range of land uses this year".