In a bid to accelerate housebuilding, the UK government has unveiled proposals to simplify compulsory purchase orders (CPOs), a key tool that allows councils to acquire land without the owner's consent. Under the new plan, the "hope value" which currently inflates land prices by factoring in potential gains from planning permission would be axed. This reform is intended to make land more affordable for redevelopment, particularly on brownfield sites, and to help councils secure sites for building up to 1.5 million new homes in England over the next five years.
Housing Minister Matthew Pennycook emphasized that the changes would enable local authorities to make more informed decisions about which land is suitable for regeneration. “We believe these powers, used far more often on previously developed land, will unlock new construction opportunities without compromising the integrity of our planning process,” he said.
Critics, however, have raised concerns that the removal of hope value may force farmers and rural communities to sell land at knock-down prices, disproportionately affecting those who have not contributed to the housing crisis. Additionally, there are fears that streamlining the planning process by reducing statutory consultees could bypass the input of local councillors, particularly in rural areas where a few new homes can significantly impact communities.
Despite these concerns, Deputy Prime Minister Angela Rayner and other officials maintain that the reforms are essential to cutting through the bureaucratic delays that have long hindered housebuilding in the UK. They stress that the measures are part of a broader initiative to “back the builders” and ensure that affordable homes can be delivered quickly, while still maintaining robust safeguards through expert planning support for elected councillors.
The proposals now await further consultation as the government seeks to balance the urgent need for new housing with the interests of rural communities and the broader democratic process in planning decisions.
