Government urged to reform developer levies so profits can benefit local residents
Flawed developer processes are leaving communities without vital amenities, committee finds
- MPs have urged the government to reform levies on house builders to ensure local communities benefit from increased land values and receive vital amenities.
- A parliamentary committee found that current mechanisms, such as Section 106 agreements and the Community Infrastructure Levy, are flawed, leading to protracted negotiations and developers reducing affordable housing contributions.
- The Housing, Communities and Local Government Committee recommended reforms to viability assessments to guarantee agreed levels of affordable housing and encouraged local authorities to set minimum affordable housing targets.
- Concerns were raised about the government's delay in publishing a long-term housing strategy and its ability to meet the 1.5 million new homes target, with suggestions for new land value capture mechanisms for proposed new towns.
- The committee expressed serious concern over the reduction of affordable housing requirements for fast-track planning in London, fearing it could inflate land values and hinder delivery of genuinely affordable homes.