Under new legislation, local authorities in England and Wales will no longer need central government approval to issue compulsory purchase orders (CPOs), a move aimed to make use of vacant and derelict land.
These changes have been introduced in the planning and infrastructure bill, which was newly presented in Parliament on March 11th. This followed a public consultation on planning reforms that concluded last month.
One of the key changes if the removal of a property's "hope value" from CPO considerations. A "hope value" refers to the estimated worth of a piece of land if planning permission was granted, which often led to the inflation of prices and therefore delayed development.
Previously, councils had to seek ministerial approval to disregard the "hope value" when purchasing land, but Labour's bill will establish a blanket rule that allows land to be acquired without factoring in speculative prices.
This change is intended to help local authorities accelerate housing projects and large infrastructure developments such as schools and hospitals.
The new planning bill will also introduce sweeping reforms, giving local leaders more authority to speed up construction and bypass delays caused by legal challenges. In January, Prime Minister Kier Starmer vowed to tackle obstructionist opposition from so-called "Nimbys" who used legal appeals to block development.
Deputy Prime Minister and Housing Secretary, Angela Rayner, emphasised the importance of regeneration, stating; "We need to ensure public bodies have the tools to unlock vacant and derelict sites for public benefit". She added that CPO powers should be used when negotiations to acquire land stall, ensuring councils can contribute to Labour's housing targets.
An example of the use of CPOs in a positive manner is the regeneration of Leicester City Council's waterside area, which led to 1,000 new homes and commercial developments. The site, which had been in decline since the 1980s, was transformed after the council purchased the land and cleared the derelict buildings for new homes.
Labour hopes the new legislation will encourage similar regeneration projects across the country, addressing the current housing crisis whilst boosting economic growth.