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Monday, Mar 10, 2025

Labour Government to Enhance Council Powers for Seizing Land for Affordable Housing in England and Wales

Labour Government to Enhance Council Powers for Seizing Land for Affordable Housing in England and Wales

New planning bill aims to streamline compulsory purchase orders and accelerate housing development amid rising affordability concerns.
The Labour government in the United Kingdom has announced plans to grant local councils and mayors greater powers to implement compulsory purchase orders (CPOs) aimed at facilitating the construction of affordable housing.

This significant shift in planning regulations is set to be unveiled as part of a planning and infrastructure bill introduced to Parliament this week.

Under the proposed changes, councils in England and Wales will no longer require central government authorization to proceed with CPOs, a measure designed to unlock vacant and derelict land for development.

This legislative move follows the conclusion of a public consultation regarding reforms to the planning system, which took place last month.

The revisions to CPO regulations mean that local authorities will no longer need to consider a property's 'hope value', a term that refers to an estimate of a property's worth if granted planning permission.

Previously, under Conservative governance, councils were permitted to apply for CPOs without accounting for hope value on a case-by-case basis.

The incoming Labour legislation intends to broadly allow councils to acquire land for housing development without factoring in this value.

Officials from the Labour government, including Angela Rayner, the Deputy Prime Minister and Housing Secretary, have emphasized the necessity of empowering councils to utilize CPOs more effectively to expedite housing construction.

The administration anticipates that these changes will enable the faster and more cost-effective development of homes, as well as essential infrastructure such as schools and hospitals.

This initiative is aligned with Labour's aim to address the housing crisis and achieve a target of delivering 1.5 million new homes by the end of the current parliamentary term, a goal that has been acknowledged as ambitious.

The planning bill is poised to introduce comprehensive reforms to the planning process, empowering local authorities and mayors, thereby facilitating more efficient housebuilding and reducing delays due to bureaucratic hurdles.

In earlier statements, Keir Starmer, leader of the Labour Party, expressed a commitment to overcoming the 'challenge culture' that often hampers developmental projects, particularly from local opposition groups.

In demonstrating the practical implications of these new measures, Leicester City Council's previous use of CPO powers a decade ago is highlighted.

The council undertook the regeneration of the city's waterside area, resulting in the construction of 1,000 homes and the development of approximately 9,000 square meters (96,875 square feet) of office space.

This transformation followed the decline of local industries in the 1980s, showcasing the potential impact of effective land acquisition and redevelopment initiatives.

The government contends that these new powers will be critical for councils striving to acquire land through negotiation, especially when such talks are stalled, thereby obstructing progress in addressing the pressing need for affordable housing across the country.
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