The Government is on a mission to have a generational impact on housebuilding and construct 1.5 million homes during the next parliamentary term: this will be challenging but the questions posed in the recent NPPF consultation confirm the Government’s belief that interventionist measures are necessary to achieve this target.
This note considers the ever-evolving case for the Government to intervene in the housing market using compulsory purchase powers and further changes to hope value compensation and considers the likely consequences of such actions in the context of recently published research.
In November’s Social Housing Annual Conference and Inside Housing Development and Regeneration Summit, Angela Rayner, the Secretary of State for Housing, Communities and Local Government, admitted the target of 1.5 million homes this parliament is more challenging than anticipated. Therefore, all eyes are on the Government’s use of interventionist methods including the controversial use of compulsory purchase powers to unlock more housing.
The Levelling Up and Regeneration Act 2023 (‘LURA’) – introduced under the previous Tory administration – provides for a direction to be sought, as part of a compulsory purchase order (CPO), for ‘hope value’ to be limited/removed from the payment of compulsory purchase compensation to claimants. This is in circumstances where the scheme provides affordable housing, health or education and sets out the public benefits in a Schedule of Commitments.
The industry expects the Government to go further than the previous administration and the awaited Planning and Infrastructure Bill is odds on favourite to be the vehicle to deliver the changes.
Download the briefing note where we discuss the case for and against using compulsory purchase and compensation changes. If you have any questions on these recent announcements, and how they might impact your future plans, please speak to one of the team.
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