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
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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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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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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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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Conclusions (5)
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.
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.
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.
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.