HCLG Committee launches inquiry into land value capture reforms.

Florence Eshalomi MP, Chair of the Housing, Communities and Local Government committee, has announced a new inquiry into how land value capture mechanisms can be reformed.

In a press release on Wednesday 22nd January, Ms Eshalomi has encouraged written evidence to be submitted to the Committee before Wednesday 5th March 2025.

The Committee will investigate whether current mechanisms, such as the Community Infrastructure Levy, Section 106 agreements and Compulsory Purchase Orders, should be reformed with the aim of supporting the government’s ambitious 1.5 million home target.

Acknowledging the role that land costs have played in the ongoing housing crisis, Ms Eshalomi stated that land value capture policies “could make a valuable contribution to funding affordable housing and investing in public infrastructure”.

“We need a land value capture system which is fair and that helps to deliver what communities need – affordable housing and public services which people can rely on”, the Chair added.

In particular, the Committee will explore how reforms could impact the release of ‘grey belt’ land and complement the delivery of New Towns.

The inquiry will also seek international inspiration, exploring LVC mechanisms that have been effective in other countries.

If you would like to make a written submission to the inquiry, click here

SP Broadway will continue to monitor how government planning reforms impact you and the wider development industry.

 

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