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New Powers for Councils to Accelerate Affordable Housing Development
In a significant policy shift, the Labour government is set to empower local councils and mayors with enhanced authority to seize land for affordable housing projects. This initiative, expected to redefine planning regulations, will be introduced in parliament as part of a forthcoming planning and infrastructure bill.
The reforms will enable local authorities in England and Wales to bypass the need for central government approval when issuing compulsory purchase orders (CPOs). This move is aimed at facilitating the utilization of vacant and derelict land for housing development, a critical aspect of addressing the ongoing housing crisis.
Following a public consultation wrapped up last month, the government is moving forward with plans to reform how CPOs are enacted. Notably, the revised approach will eliminate the requirement for councils to consider a property’s “hope value”—a speculative estimate of a property’s worth contingent on obtaining planning permission. Previously, this aspect significantly complicated the acquisition process.
Under the previous Conservative administration, obtaining permission to overlook hope value was only possible on a case-by-case basis. With Labour’s new legislation, a broad rule will be established that allows councils to acquire land for housing free from this valuation burden.
The government is actively promoting the use of CPOs as a tool to expedite housing development. Officials argue that these changes will not only accelerate the construction of homes but also support large infrastructure initiatives like schools and hospitals, ultimately fostering local area regeneration.
Labour has pledged to build 1.5 million new homes by the conclusion of its parliamentary term, a goal that critics have suggested may be challenging to fulfill. The housing affordability crisis has become a cornerstone of Labour’s appeal to the electorate, particularly in terms of helping young individuals enter the housing market.
The anticipated planning bill encompasses extensive alterations to the planning framework, granting increased authority to local authorities and mayors to streamline the housing development process. Earlier this year, party leader Keir Starmer reiterated his commitment to combating the so-called “NIMBY” mentality, which has historically obstructed progress through prolonged legal challenges.
In remarks made on Monday, Deputy Prime Minister and Housing Secretary Angela Rayner expressed the government’s ambition to catalyze regeneration efforts across the nation. She emphasized the necessity of equipping public bodies with the necessary tools to repurpose abandoned and derelict sites for community advantage.
Rayner remarked, “We’ve been clear that the use of these powers should be considered where negotiations to acquire land by agreement are failing and holding back progress. These new powers will support councils and others in fulfilling our commitment to 1.5 million homes, representing the most substantial increase in affordable and social housing in a generation, alongside essential infrastructure as part of our Plan for Change.”
An illustrative example of successful land acquisition through CPOs can be seen in Leicester, where the city council utilized such powers ten years ago to revitalize the waterside area. This initiative has led to the construction of 1,000 homes and the development of approximately 9,000 square meters of office space.
Once a declining region following local industrial closures in the 1980s, the area has undergone a comprehensive redevelopment, with CPOs enabling the council to acquire a 7-hectare (17-acre) site and dismantle derelict structures.
Source
www.theguardian.com