Theresa May suggested communities and local governments should spend more on affordable housing

Theresa May hinted at forcing owners to hand over more of their profits when their land is given planning permission.

Agricultural land increases in value from £21,000 per hectare to £1.95 million on average when councils allow it be used for new homes, according to government figures.

Campaigners say that the windfalls should be shared more equally between owners and the state. Reforms to so-called land-value capture are understood to be part of a wider review into housebuilding by Sir Oliver Letwin.

Mrs May told the National Housing Federation that the demand “for more of the value generated by public investment and the planning system to be captured and invested in affordable homes, public services and local infrastructure” was an important issue.

The Commons housing,