A consultation paper from the Ministry of Housing proposes the removal of so-called ‘hope value’ to help councils buy development sites more cheaply.
Under the proposals, local authorities will be able to take control of vacant and derelict land from landowners paying a ‘fair’ price rather than inflated ‘hope value’ costs that are based on future development potential.
The reforms expand existing legislation allowing ‘hope value’ to be removed in more circumstances where social and affordable housing is being built, accelerating housebuilding, helping more families on to the property ladder and to get more of the social and affordable homes communities need built, as well as making a positive use of unsightly, vacant land.
Housing and planning minister Matthew Pennycook said: “In our manifesto, we committed ourselves to further compulsory purchase reform to deliver more housing, infrastructure, amenity, and transport benefits in the public interest.
“The consultation we are launching today is the next step in fulfilling that commitment – proposing reforms that will make the process faster and more efficient, enabling more land value to be captured and then invested in schemes for public benefit.”
The Consultation on Compulsory Purchase Process and Compensation Reforms runs until 13th February 2025. It is available here.
The findings will be used to inform the Planning and Infrastructure Bill that the government intends to introduce next year
