Local councils and mayors will soon have greater authority to seize land for affordable housing under the Labour government’s new planning reforms. The upcoming changes aim to unlock vacant and derelict land, making housing projects faster and more cost-effective.
As part of the planning and infrastructure bill, set to be introduced in parliament on Tuesday, local authorities in England and Wales will no longer need approval from central government to issue compulsory purchase orders (CPOs). This shift is expected to streamline the process and remove bureaucratic delays that have previously stalled development.
One of the most significant changes will be the removal of a property’s hope value from CPO considerations. Hope value refers to the estimated worth of land if it were to receive planning permission. Under the previous system, councils could request permission from ministers to ignore hope value on a case-by-case basis. However, the new legislation will establish a general rule allowing councils to acquire land at its existing use value, making housing projects more financially viable.
Labour is encouraging councils to use CPOs more frequently to boost housing supply. The government believes this will accelerate the construction of homes, schools, hospitals, and other essential infrastructure. Ministers argue that these reforms will support regeneration efforts and address the ongoing housing crisis.
Labour has committed to building 1.5 million new homes by the end of the current parliamentary term. However, officials acknowledge that achieving this goal will be challenging. The party has made housing affordability a key policy focus, aiming to help more young people buy their first homes.
The planning bill will introduce sweeping reforms, including increased powers for mayors and local authorities to bypass obstacles that delay construction. In January, Labour leader Keir Starmer pledged to take on opposition from those who repeatedly challenge housing developments through legal means. He vowed to reduce unnecessary delays and speed up much-needed projects.
Deputy Prime Minister and Housing Secretary Angela Rayner emphasized that 1.5 million new homes are crucial for the country’s future. She stated that councils and other public bodies must have the tools to unlock vacant sites and repurpose derelict areas. Rayner stressed that these reforms would deliver the largest expansion of affordable and social housing in decades while also supporting broader infrastructure development.
Leicester City Council previously demonstrated the success of CPOs in urban regeneration. A decade ago, it used these powers to transform the city’s waterside area, which had been in decline since the 1980s. The project led to the construction of 1,000 homes and 9,000 square meters of office space. By acquiring and redeveloping a 17-acre site, the council revitalized the area, proving how strategic land acquisition can drive economic growth.
With the introduction of the 1.5 million new homes plan, Labour hopes to replicate similar successes across the country. The government’s strategy focuses on making housing more affordable, reducing construction delays, and ensuring local authorities have the necessary power to drive urban development.
For more updates, follow London Pulse News.
