The Housing Forum has submitted evidence to the Communities and Local Government Committee’s inquiry into land value capture. The Committee is examining the effectiveness of current land value capture methods and the need for new ways of capturing any uplift in the value of land associated with the granting of planning permission or nearby infrastructure improvements and other factors.
The Housing Forum’s planning working group, comprising of members from across the whole of the housing sector, has met to discuss the proposals and questions set out in the inquiry, which has helped inform our response. The main points we raise are:
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The current system of CIL and S106, whilst not perfect, are effective means of capturing land value and ensuring that affordable housing is built without stifling land supply and housebuilding.
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The previous government tried to establish a new system of land value capture via the infrastructure levy. We saw very little enthusiasm for the levy from across the whole of the housing sector and were part of the cross-sector group that came together to raise these concerns publicly, and were pleased to see the new government confirm that it would not be taking forward the levy. The Housing Forum believes that the current system should be retained and improved rather than introducing a new mechanism.
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Reforming land value capture – beyond what is already underway via reforms to CPO powers and benchmark land values – would be a distraction and would not support the ambition of delivering 1.5 million new homes by the end of this parliament.
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