Source · Select Committees · Housing, Communities and Local Government Committee
3rd Report - Delivering 1.5 million new homes: Land Value Capture
Housing, Communities and Local Government Committee
HC 672
Published 28 October 2025
Recommendations
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 …
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Government Response Summary
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.
Ministry of Housing, Communities and Local Government
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3
Accepted
Publish updated land value estimates to support effective land value capture reforms.
Recommendation
Any reforms to land value capture should also be considerate of the wider tax system, to balance public needs and equitable charges on development. To support this work, the Government should publish updated land value estimates, which were last published …
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Government Response Summary
MHCLG is working in partnership with the Planning Advisory Service (PAS) to develop a suite of resources to support section 106 negotiations, including developing a standardised s106 agreement for medium sites as an immediate priority.
Ministry of Housing, Communities and Local Government
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5
Rejected
Develop and publish Section 106 template clauses to streamline negotiations for local authorities.
Recommendation
As part of the site thresholds consultation that will take place later this year, the Ministry must seek views on how standardised Section 106 templates could most effectively streamline the negotiation process across sites of all sizes. Based on the …
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Government Response Summary
The government does not consider it appropriate to fund local plan-making through planning application fees.
Ministry of Housing, Communities and Local Government
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6
Rejected
Local planning authorities are under-resourced, with restricted apprenticeships hindering future planner recruitment.
Recommendation
Local planning authorities across England are frequently under-resourced and stretched to deliver on local priorities. The Government’s funding for 300 new planning officers demonstrates that it recognises this problem, but this announcement equates to less than one planning officer on …
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Government Response Summary
The government does not intend to implement third-party adjudication for unresolved issues regarding section 106 planning obligations, believing non-statutory guidance and policy will have a more immediate impact.
Ministry of Housing, Communities and Local Government
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7
Accepted in Part
Reinstate planning apprenticeships and invest in specialist officers for Strategic Authorities and LAs.
Recommendation
The Government must take a more strategic approach to boost the skills and capacity of local planning authorities, starting with reinstating access to funded Level 7 planning apprenticeships for students over the age of 21. The Government must invest in …
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Government Response Summary
The Government is delivering a comprehensive Planning Capacity and Capability Programme aimed specifically at the public sector, which directly increases the number of planners in LPAs, targeting high-calibre applicants, funding salary bursaries and supporting accredited postgraduate training, but did not commit to the requested Level 7 apprenticeships.
Ministry of Housing, Communities and Local Government
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8
Rejected
Make regulations allowing local authorities to include plan-making costs in planning fees.
Recommendation
Once the Planning and Infrastructure Bill receives Royal Assent, the Secretary of State must make regulations to allow local planning authorities to take into account the cost of local and regional plan-making when calculating local planning fees. Local planning authorities …
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Government Response Summary
The government rejected the recommendation to set indicative benchmark land values nationally, arguing that it would not account for regional variation, but are consulting on testing viability at the plan-making stage using a standardised scenario for greenfield, Green Belt land.
Ministry of Housing, Communities and Local Government
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10
Accepted
Introduce a statutory Section 106 dispute resolution scheme for housing development.
Recommendation
The Government should introduce a statutory Section 106 dispute resolution scheme, under the provisions of the Housing and Planning Act 2016. If the Government does not intend to pursue this, it should set out a detailed explanation as to why …
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Government Response Summary
The government considers it more appropriate for the IFS to be obtained through authority websites, as an authority is able to update its IFS at any time.
Ministry of Housing, Communities and Local Government
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12
Accepted
Update national policy to encourage minimum affordable housing targets in Local Plans.
Recommendation
As part of its ongoing review of the viability planning practice guidance, the Government must consider how different types of developer contribution could be re-negotiated following a viability assessment, to protect affordable housing contributions. The Government must also update national …
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Government Response Summary
The government stated that existing legislation provides clear powers for compulsory purchase of land for new towns based on the ‘no-scheme’ principle, and that Homes England, LAs and potential Development Corporations already have access to CPO powers.
Ministry of Housing, Communities and Local Government
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13
Accepted
Publish indicative benchmark land values to inform viability assessments on Green Belt land.
Recommendation
The Government must continue to develop its proposal to publish indicative benchmark land values to inform viability assessments on Green Belt land across England. The Government must publish different benchmark land values for each region of England, to reflect variation …
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Government Response Summary
The government committed to a 'gold standard aim' of 40% affordable housing in new towns, with an emphasis on Social Rent, and will work with delivery vehicles to support implementation. They are also developing mechanisms, including guidance, to facilitate the implementation of placemaking principles.
Ministry of Housing, Communities and Local Government
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15
Deferred
Publish an interactive map of CIL coverage and charging rates for local authorities.
Recommendation
The Ministry must publish an interactive map of CIL coverage on its website, updated quarterly to include the rates charged in each local authority in England. Publishing a national map would support the housing sector to navigate different charging schedules …
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Government Response Summary
The government deferred action by noting that initial engagement on the early adopter program has begun and that they will agree on an ambitious timeline for the delivery of the early adopter program and wider rollout of place based business cases in due course.
Ministry of Housing, Communities and Local Government
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18
Acknowledged
Publish local authorities' Infrastructure Funding Statements on the national CIL map.
Recommendation
The Ministry must review its guidance to local authorities on IFSs, to ensure all local authorities have a clear, up-to-date IFS which sets out how CIL receipts will be used locally, and when they will be pooled to deliver larger …
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Government Response Summary
The government acknowledges the recommendation and points to existing planning practice guidance and PAS website resources on IFSs, stating they will consider a further update; however, they deem publishing IFSs on a national CIL map inappropriate.
Ministry of Housing, Communities and Local Government
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20
Deferred
Enable greater use of Tax Increment Financing to fund infrastructure in New Towns.
Recommendation
Whilst the Government’s plan to allow all mayors of strategic authorities to charge Mayoral CIL is a welcome step towards greater fiscal devolution, the Government must go further to support local leaders with revenue raising powers to deliver infrastructure and …
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Government Response Summary
The government defers a full response on financing models, including Tax Increment Financing, to Spring 2026 as part of the New Towns Taskforce's report, but states they are exploring different financing models used previously and will give new powers to Mayoral Authorities to raise revenue.
Ministry of Housing, Communities and Local Government
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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 …
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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.
Ministry of Housing, Communities and Local Government
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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 …
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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.
Ministry of Housing, Communities and Local Government
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24
Acknowledged
Announce new funding for development corporations, mandating Social Rent priority and capital access.
Recommendation
At the Autumn Budget 2025, the Government must announce new funding to establish the development corporations, so they can commence land acquisition on the first sites without delay, and complete this work by spring 2026. The development corporations must be …
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Government Response Summary
The government states it is committed to a gold standard aim of 40% affordable housing with an emphasis on Social Rent and will work with delivery vehicles to support implementation. The need for development corporations to take on planning powers will be assessed case-by-case. They highlight existing and future funding sources, but don't commit to specific new funding at the Autumn Budget 2025.
Ministry of Housing, Communities and Local Government
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26
Acknowledged
Clarify New Towns' housing delivery interaction with local targets and publish programme roadmap.
Recommendation
The Government must immediately clarify how housing delivery in New Towns will interact with local authority housing need targets. In its final response in spring 2026, the Government must include a roadmap for the New Towns programme, to show when …
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Government Response Summary
The government acknowledges the need to consider the interaction between new towns and housing targets ahead of its fuller response. They aim to begin work as soon as possible, with spades in the ground on at least three new towns in this Parliament.
Ministry of Housing, Communities and Local Government
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28
Deferred
Provide a timeline for place-based business case pilot projects and national rollout, ensuring Green Book reforms benefit all regions.
Recommendation
In response to this Report, the Government must provide a timeline for when it will launch its pilot projects using place-based business cases, and when the new model will be rolled out nationally. It must also set out how it …
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Government Response Summary
The government states initial engagement on the early adopter programme has already begun and an ambitious timeline will be agreed for the delivery of the early adopter programme and wider rollout of place based business cases in due course. Value for money assessments will adopt a holistic approach.
Ministry of Housing, Communities and Local Government
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31
Accepted
Slow plan-making system prevents local plans from collectively meeting the 1.5 million housing target.
Recommendation
The Government can only begin to make significant progress towards its 1.5 million target once the sum of local housing need targets in Local Plans add up to that figure. Whilst the Government’s reforms to the National Planning Policy Framework …
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Government Response Summary
Regulations commencing the new 30-month plan-making system will be laid in Parliament shortly, with the system coming into force early this year; new local plans will be expected to be adopted within 30 months and kept up-to-date.
Ministry of Housing, Communities and Local Government
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32
Accepted
Bring forward the Long-Term Housing Strategy to deliver 1.5 million new homes without further delay.
Recommendation
The Government must immediately bring forward its Long-Term Housing Strategy without further delay. It must set out an ambitious, comprehensive, and achievable set of policies that will deliver 1.5 million new homes by July
Government Response Summary
The government will publish a Long-Term Housing Strategy shortly, outlining reforms undertaken to deliver 1.5 million new homes, including fixing the foundations of the development sector, transforming the housebuilding industry, and building social and affordable homes. They point to the revised NPPF, New Homes Accelerator, and record funding for social and affordable housing.
Ministry of Housing, Communities and Local Government
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35
Acknowledged
Continue working with GLA to accelerate London housing delivery, implementing a clawback mechanism for profits.
Recommendation
The Ministry must continue its work with the Greater London Authority to deliver an acceleration package, so that London boroughs are delivering housing in line with their local housing need targets. In response to this Report, the Ministry must provide …
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Government Response Summary
The government acknowledges the recommendation and points to a new package of support for housebuilding in London that includes developers to access a new, time-limited planning route to incentivise build out to address this.
Ministry of Housing, Communities and Local Government
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Conclusions (15)
1
Conclusion
Acknowledged
There is scope to reform the current system of developer contributions in England to capture a greater proportion of land value uplifts from development to deliver affordable housing and public infrastructure. There is a compelling case for such reforms—especially in the context of a deepening housing crisis and with public …
Government Response Summary
The Government has already taken important steps to strengthen the system of developer contributions to ensure new developments provide necessary affordable homes and infrastructure, and launched a consultation on further changes to the NPPF.
4
Conclusion
Accepted
There is a strong case for the introduction of template clauses for aspects of Section 106 agreements across England, as was recommended by the National Audit Office and others. Templates would allow local authorities to focus negotiations on site-specific factors rather than legal wordings. Template clauses would also allow for …
Government Response Summary
The government has identified a funding package to support SDS production and expects to make some initial payments in March and to confirm the full package in the summer.
9
Conclusion
Accepted
Local planning authorities across England have expressed concern that protracted Section 106 negotiations are causing delays to housing delivery. Drawn out negotiations do not benefit public outcomes and cause undue delays to development, which may impede the Government’s housebuilding ambitions. Whilst we recognise the Minister for Housing and Planning’s concerns …
Government Response Summary
The Government intends to publish a map of CIL coverage in England, alongside a list of CIL charging authorities in England by region, without accompanying information on rates.
11
Conclusion
Deferred
Too often, site-specific viability assessments are used by developers to negotiate down affordable housing requirements in circumstances where this is completely unjustifiable. Affordable housing contributions are frequently the first provision to be cut following a viability assessment, even where a developer may be making other significant contributions through Section 106 …
Government Response Summary
The government deferred responding to the point about site-specific viability assessments until Spring 2026, when it plans to issue a full response to the New Towns Taskforce’s report.
14
Conclusion
Acknowledged
Around half of local planning authorities have adopted CIL, and its uptake has remained broadly unchanged for several years. There has been little progress towards addressing the complex patchwork of CIL coverage and charging schedules across England in the years since the 2016 CIL Review Group report. This complexity is …
Government Response Summary
The Government takes on board the Taskforce’s recommendations to consider the interaction between new towns and housing targets ahead of its fuller response.
16
Conclusion
Acknowledged
Currently, stretched local planning authorities are likely to focus their limited staffing and resources on affordable housing delivery as a priority, rather than establishing and administering CIL, even where CIL may be financially viable. The reintroduction of strategic planning in England presents an opportunity for greater co-operation between local authorities, …
Government Response Summary
The government acknowledged the importance of strategic planning but focused on its Long-Term Housing Strategy and existing efforts to deliver 1.5 million new homes, including publishing a revised NPPF, launching the New Homes Accelerator, and announcing a record £39 billion of funding.
17
Conclusion
Accepted
It is important that existing local communities and new residents see the benefits of development, with new local and regional infrastructure being delivered alongside housing. This is especially the case when local authorities choose to pool CIL receipts to deliver large infrastructure projects. Whilst the Government should encourage local authorities …
Government Response Summary
The government acknowledged viability pressures in London, highlighted existing affordable housing levels, and referenced a new package of support for housebuilding in London, including a new planning route to incentivise build out.
19
Conclusion
Acknowledged
The Government’s New Towns programme is likely to require billions of pounds of public and private investment over several decades, including millions from HM Treasury to establish development corporations during this Parliament. The Government has not yet set out where this funding will 65 come from. It is likely that …
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.
21
Conclusion
Acknowledged
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 …
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.
25
Conclusion
Accepted
The Ministry is right to prioritise New Towns which have the greatest potential to boost housing supply in the short-term, but its plan to “get spades in the ground on at least three new towns in this Parliament” does not match the scale of the Government’s housebuilding ambition. The New …
Government Response Summary
The government states that the Taskforce has prioritised sites where housing can be delivered quickly, reflecting the urgent need for housing.
27
Conclusion
Acknowledged
For decades, there has been a perception that HM Treasury’s investment decisions have benefitted some parts of England at the expense of others. We therefore welcome HM Treasury’s Green Book reforms to introduce place-based business cases, which will change how costs and benefits are assessed for major housing and infrastructure …
Government Response Summary
Initial engagement across Government and local government on the early adopter programme has already begun, and the Government will be agreeing an ambitious timeline for the delivery of the early adopter programme and wider rollout of place based business cases in due course.
29
Conclusion
Acknowledged
The housing sector is eagerly awaiting the Government’s Long-Term Housing Strategy, which it first announced in July 2024. Originally, this was to be published alongside the Spending Review in spring 2025. The continuing lack of a cohesive plan to deliver 1.5 million new homes has left the sector in the …
Government Response Summary
The Government will publish a Long-Term Housing Strategy shortly, which will bring together the significant programme of reform that the Government has undertaken since taking office in July 2024.
30
Conclusion
Deferred
Sector representatives have expressed doubt as to whether the target will be achievable by July 2029, and Ministers have themselves described the 1.5 million target as “stretching” and “hugely ambitious”. The Government was right to set an ambitious target, but this must be supported with a clear Strategy to meet …
Government Response Summary
The government will publish a Long-Term Housing Strategy shortly, bringing together reforms undertaken since July 2024.
33
Conclusion
Acknowledged
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 …
Government Response Summary
The government acknowledges the concerns about potential cuts to London's affordable housing target and viability pressures and points to a new package of support for housebuilding in London that includes developers to access a new, time-limited planning route to incentivise build out to address this.
34
Conclusion
Accepted
We are also concerned to hear that the Secretary of State may be considering suspending local authorities’ powers to charge the Community Infrastructure Levy to address concerns about development viability. None of the evidence to our inquiry—including from representatives of developers—advocated abolishing CIL entirely as a means of addressing viability …
Government Response Summary
The government commits to publishing a map of CIL coverage in England and will extend the power to charge a Mayoral CIL across all Mayors of Strategic Authorities through the English Devolution and Community Empowerment Bill.