Bolstered CPO powers for local councils come into force

New powers allowing councils to buy cheap land for affordable housing have come into force today. 

Historically, local authorities using compulsory purchase orders (CPOs) have had to pay for the ‘hope value’ of the land acquired, which represents the cost land could be worth if it was developed upon in the future.  

Under the new rules, brought in by the Levelling Up and Regeneration Act 2023, bodies such as Homes England and local councils will be able to apply to the secretary of state to remove hope value. 

The condition is that development is in the public interest and is facilitating affordable or social housing, health or educational uses.    

When the proposed changes were going through parliament last spring, developers criticised them as “ill-thought-through”, suggesting that the reforms could pose a risk to investment. 

Speaking today, levelling up minister Jacob Young said: “Our changes will act as a catalyst for investment in our towns and cities and drive much needed regeneration in communities across the country. 

“We know we need to build more homes and alongside our Long-Term Plan for Housing, these changes will help us do that, unlocking more sites for affordable and social housing, as well as supporting jobs and growing the economy.” 

>> Read more: Labour party to cut housebuilding cost by overhauling compulsory purchase orders

The new powers were welcomed by Kate Henderson, chief executive of the National Housing Federation, who said they would allow councils to “build more of the desperately needed affordable homes the country needs, in the right places for the people who need it most”. 

“To solve the housing crisis and unlock the land needed for these homes, these changes must sit alongside wider reforms to planning policy which should form part of a nationally coordinated fully funded long-term plan for housing,” she added.