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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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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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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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 (8)
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.
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.
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.
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.
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.