Delivering 1.5 million new homes: Land Value Capture

Housing, Communities and Local Government Committee Closed Inquiry
Opened: 22 Jan 2025 Closed: 1 May 2026 Parliament page
The Housing, Communities and Local Government Committee is holding an inquiry to look at how land value capture policies - which seek to capture the value uplift on land that when it is granted planning permission - can contribute to the delivery of the Government’s house building plans and help … Read more
20 Recommendations
15 Conclusions
1 Report
3 Oral sessions
3 Letters
3 Events
Activity timeline 11 events
20 Mar
2026
Report published
28 Oct
2025
Report published
11 Sep
2025
Correspondence
3 Sep
2025
Correspondence
15 Jul
2025
Oral evidence
15 Jul
2025
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
9 Jul
2025
Correspondence
10 Jun
2025
Oral evidence
10 Jun
2025
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
23 Apr
2025
Oral evidence
23 Apr
2025
Formal meeting (oral evidence session) · The Thatcher Room, Portcullis House
Oral evidence sessions 3 sessions
15 Jul 2025
View on parliament.uk
Oral Evidence
Joanna Key · Ministry of Housing, Communities and Local Government Matthew Pennycook MP · Ministry of Housing, Communities and Local Government William Burgon · Ministry of Housing, Communities and Local Government
10 Jun 2025
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Oral Evidence
Avril Roberts · Country Land and Business Association Councillor Richard Clewer · County Councils Network Emily Williams · Savills UK Limited Melanie Leech CBE · British Property Federation (BPF) Paul Brocklehurst · Land, Planning and Development Federation Robbie Calvert · Royal Town Planning Institute Will Jeffwitz · National Housing Federation
23 Apr 2025
View on parliament.uk
Oral Evidence
Anna Hart · Transport for London Chris Whitehouse · WSP Dr Hugh Ellis · Town and Country Planning Association Dr Thomas Aubrey · London School of Economics Jeremy Aston · Royal Institution of Chartered Surveyors (RICS) John Kavanagh · BusinessLDN Maurice Lange · Centre for Cities Tom Kennedy · Northern Housing Consortium
Title HC No. Published Items Response
3rd Report - Delivering 1.5 million new homes: Land Value Capture HC 672 28 Oct 2025 35 Responded
Recommendations & Conclusions
12 results
Clear
3 Recommendation Accepted
3rd Report - Delivering 1.5 millio…
Publish updated land value estimates to support effective land value capture reforms.
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 … Read more
Government Response
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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4 Conclusion Accepted
3rd Report - Delivering 1.5 millio…
Strong case exists for Section 106 template clauses to streamline negotiations and reduce workload.
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 … Read more
Government Response
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.
Ministry of Housing, Communities and Local Government
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9 Conclusion Accepted
3rd Report - Delivering 1.5 millio…
Protracted Section 106 negotiations causing significant delays to housing delivery.
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. … Read more
Government Response
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.
Ministry of Housing, Communities and Local Government
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10 Recommendation Accepted
3rd Report - Delivering 1.5 millio…
Introduce a statutory Section 106 dispute resolution scheme for housing development.
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 … Read more
Government Response
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 Recommendation Accepted
3rd Report - Delivering 1.5 millio…
Update national policy to encourage minimum affordable housing targets in Local Plans.
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 … Read more
Government Response
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 Recommendation Accepted
3rd Report - Delivering 1.5 millio…
Publish indicative benchmark land values to inform viability assessments on Green Belt land.
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 … Read more
Government Response
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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17 Conclusion Accepted
3rd Report - Delivering 1.5 millio…
Local communities require greater transparency on how CIL receipts are spent.
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 … Read more
Government Response
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.
Ministry of Housing, Communities and Local Government
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22 Recommendation Accepted
3rd Report - Delivering 1.5 millio…
Conduct Existing Use Value analysis and secure land purchase arrangements for New Town sites.
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 … Read more
Government Response
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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25 Conclusion Accepted
3rd Report - Delivering 1.5 millio…
Current New Towns plan lacks ambition to meet Government's housing supply targets.
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 … Read more
Government Response
The government states that the Taskforce has prioritised sites where housing can be delivered quickly, reflecting the urgent need for housing.
Ministry of Housing, Communities and Local Government
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31 Recommendation Accepted
3rd Report - Delivering 1.5 millio…
Slow plan-making system prevents local plans from collectively meeting the 1.5 million housing target.
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 … Read more
Government Response
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 Recommendation Accepted
3rd Report - Delivering 1.5 millio…
Bring forward the Long-Term Housing Strategy to deliver 1.5 million new homes without further delay.
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
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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34 Conclusion Accepted
3rd Report - Delivering 1.5 millio…
Reform the Community Infrastructure Levy (CIL) to extend its coverage where viable.
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 … Read more
Government Response
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.
Ministry of Housing, Communities and Local Government
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Government Response AI assessment · 35 of 20 classified
Accepted 12
Accepted in Part 1
Acknowledged 14
Deferred 5
Rejected 3
Total 20 recs + 15 conclusions
Correspondence 3 letters
11 Sep 2025 To committee Letter from the Minister of State for Housing and Planning to the Chair dated 29 August 2025 concerning Land Value Capture
Parliament page
3 Sep 2025 To committee Letter from the Chair to the Minister of State for Housing and Planning dated 25 July 2025 concerning Land Value Capture
Parliament page
9 Jul 2025 To committee Letter from Sir Michael Lyons to the Chair dated 1 July 2025 concerning the New Homes Taskforce and land value capture
Parliament page