Compulsory purchase is the legal power of a public authority to force the sale of land or property for a project considered to be in the public interest – for purposes such as utilities, housing development, road or rail schemes, regeneration and schools or hospitals.
Recent changes to compulsory purchase for housing in England can be summarised in four main points:
- councils can now acquire some land more cheaply,
- “hope value” can be excluded from compensation,
- CPO procedures are being streamlined,
- government is pushing councils to use CPOs more actively for housing and regeneration.
The biggest change came through the Levelling-up and Regeneration Act 2023 (by a Conservative Government) and regulations brought into force in April 2024. Since the 2024 election, the Labour government has proposed going further by:
- simplifying CPO procedures,
- allowing wider routine use of no-hope-value compensation,
- reducing ministerial sign-off requirements,
- and accelerating land assembly for its housing targets and proposed new towns.
The authority using compulsory purchase must usually show:
- a clear public benefit,
- that the scheme is realistic and deliverable,
- and that compulsory purchase is necessary rather than merely convenient.
People affected can object, and some cases go to public inquiry before confirmation by ministers or inspectors.
There is now a Labour Government (which has strengthened compulsory purchase), a Labour Mayor in North Allerton, and a Labour controlled council in York. The previous Conservative Government started the strengthening and the Reform Party promises to strengthen compulsory purchase even more.
The City of York Council could even use a Compulsory Purchase Order (CPO) to acquire land designated for housing in the adopted 2025 York Local Plan, provided they can demonstrate a “compelling case in the public interest”. The compulsory purchase of other land will be less trouble. If enough land is captured for new homes the exorbitant value of a building plot, (~£200,000 per new house) will fall and homes will become cheaper. The plan here will be for them to be much cheaper.
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