Capturing land value

So say MPs in ‘Land value capture’, a report from the Commons’ Housing, Communities and Local Government Select Committee.

The report makes a number of recommendations that the LGA has called for, including:

  • improvements to compulsory purchase powers so they are simplified, and made faster and less expensive for local authorities
  • reforms to the Land Compensation Act 1961 so that councils have the power to compulsorily purchase land at a fairer price
  • that government should work with the LGA to provide additional resources, training and advice to local planning authorities to ensure that they are able to negotiate robustly with developers.

Cllr Martin Tett, the LGA’s Housing Spokesman, said: “We have long called for reforms to land compensation and compulsory purchase laws and are pleased the committee has called for the Government to implement several of our recommendations.

“Rising land prices are one of the most influential contributors to our housing crisis – they mean fewer homes are built, they are less affordable, they are built more slowly, there can be compromises on quality, and there is not enough funding left over for vital local infrastructure and services that communities need to back development.

“There are therefore huge gains for communities, economies and public services in allowing councils to capture potentially billions of pounds of land value increases to invest in the very infrastructure and services that generate those increasing values.

“We are also pleased the committee recommends that government provides extra support to councils, through the LGA, to help give local authorities a strong hand in negotiations with developers.

“Government action on these recommendations would have a significant impact on building more homes with the right infrastructures and places that people want to live and work.”


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