The Home Builders Federation (HBF) has responded to the latest report by the Communities and Local Government Committee on proposals for a Planning Gain Supplement (PGS).
Stewart Baseley, Executive Chairman of the HBF says: "The HBF agrees with the Committee's opening conclusion that, to achieve a step-change in housing supply, adequate infrastructure needs to be provided. However, after detailed analysis and consultation on the Government's proposed Planning Gain Supplement, the industry has significant concerns that the complexity of the levy may not help bring more land forward for development, nor speed up the planning process. The HBF therefore fully supports the Committee's belief that simplicity and clarity are essential, and agrees that much more work needs to be done - such as further statistical modelling and cost-benefit analysis - before the Government can implement the levy. The HBF is keen to work with the Government to help find a workable route forward."
In September, the HBF published a joint report undertaken by Knight Frank LLP which demonstrated that the PGS, as envisaged by the Government, may not deliver the levels of funding sought for new local infrastructure and could render some smaller developments unviable.
