Councils across the country will be able to buy cheaper land to
help build thousands more social and affordable homes, thanks to
new Government reforms coming into force today, as part of the
long-term plan for housing.
Councils will be able to buy land for development through the use
of Compulsory Purchase Orders without paying inflated ‘hope
value' costs. ‘Hope value' estimates the cost land could be
worth if it was developed on in the future, meaning councils are
forced to pay potentially thousands more to buy land for housing
or developments and get stuck in lengthy disputes about costs.
The new measures will remove hope value in certain circumstances
where Compulsory Purchase Orders are being used and make it
cheaper and easier for councils to transform communities by
building new homes.
Levelling Up Minister 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.”
Kate Henderson, Chief Executive of the National Housing
Federation, says:
“Enabling local councils to buy cheaper land through Compulsory
Purchase Orders without paying ‘hope value' will allow them 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.”
The Levelling-up & Regeneration Act 2023, allows bodies such
as Homes England and councils using Compulsory Purchase Orders
and looking to build, to apply to the Secretary to remove ‘hope
value'. This is under the condition development is in the public
interest and is facilitating affordable or social housing, health
or educational uses.
Compulsory Purchase Orders have previously been successfully used
across the country to facilitate development. Examples include:
- The ongoing major regeneration of Leicester's Waterside and
the development of up to 500 new homes, as well as new office and
retail space. This involved Leicester City Council acquiring the
Friars Mills site via a Compulsory Purchase Order and helping
bring derelict industrial land back into use.
- The development of derelict land on the edge of Sheffield
city centre for a mix of new homes, offices, retail, leisure and
a hotel.
- The acquisition of an empty supermarket and a terrace of
empty shops in Wellingborough to pave the way for housing
development
- The development of new housing in Helmsley, North Yorkshire
that had been stalled by the former landowner.
