Select committee: Built Environment Committee
Conclusion 140
1st Report - Meeting housing demand
Published 10 Jan 2022
Built Environment Committee Meeting the UK’s housing demand All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Developer contributions paid through Section 106 Agreements and the Community Infrastructure Levy were valued at £7 billion in 2018/19 (an increase of 9% from 2016/17 in real terms). This included both financial and in-kind contributions. In 2020, 47% of local authorities received contributions from developers through the Community Infrastructure Levy. 67% of contributions went into affordable housing (providing 44,500 new affordable homes), with 53% of developer contributions agreed in London and the South East. 217 The Chartered Planners in Academic Practice Group estimates that Section 106 Agreements and Community Infrastructure Levy captured approximately 30% of development value on greenfield sites from landowners/developers and another 20% was captured by national capital gains and stamp duty land taxes. 218 These estimated contributions are gross values and do not include projects where the Section 106 contribution is rendered unviable.
From: Built Environment Committee, 1st Report - Meeting housing demand, 10 January 2022
Government response
The government responded to the whole report on 28 March 2022 (deadline 10 March 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's report and says it is "taking action on a number of the issues identified", agreeing with some recommendations while disagreeing with others, including on home ownership schemes and the Apprenticeship Levy.
- It "disagrees with the report's assessment that homeownership schemes do not provide good value for money", citing independent evaluations and its own evaluation of Help to Buy.
- On older people's housing, it is launching a new taskforce "this year", chaired by the Minister for Housing, to look at better choice, quality and security of housing.
- It does "not intend to set out a proportion" of Affordable Homes Programme funding for social housing, though "around half" of the affordable homes are to be for social and affordable rent.
- On the Apprenticeship Levy it says it has "no plans to review" it. On planning fees it is "exploring options" to increase them, and on local plans it will make an announcement "in due course".