Alarm sounded over compulsory purchase proposals

The Countryside Alliance has expressed concern over proposed reforms to councils’ powers to make compulsory purchase orders (CPOs) of land for housing development. 

Earlier this week the Guardian reported that the Labour Party, pursuing its ambition to support housebuilding, announced an election manifesto pledge to allow councils to make CPOs without having to factor the potential increase in the value of the land were a developer to be granted planning permission over it into the compensation payable to the existing landowner. This means they would no longer have to pay this additional so-called ‘hope value’ when making a CPO.

The Government responded that it is making similar plans, which form part of the Levelling-Up and Regeneration Bill that is currently progressing through the House of Lords. The primary difference is that under the Government’s plans, the Housing Secretary would need to approve an application to make a CPO without granting recompense for lost ‘hope value’. Labour has countered that retaining a role for the Secretary of State would disempower local planning officers and create vulnerability to lobbying. 

Both the Government and the Labour Party have questioned the fairness of including ‘hope value’ in CPO valuations, with Labour arguing that the system creates an imbalance in power between local communities – which in its parlance means local authorities – and landowners.  

The Countryside Alliance, however, argues that if land is to be developed for housing then the assumption that it will receive planning permission is intrinsic to its valuation. If, on the other hand, no planning permission will be forthcoming then it had better be retained as farmland to support the critical objective of securing our food supply. 

Sarah Lee, our Director of Policy, said:  

“There's no doubt we need more housing, particularly for the next generation in rural areas, but there is something incredibly sinister about forcing people to sell off land below market value. This would be totally the wrong approach and unnecessarily divisive. It could have devastating unforeseen consequences, particularly if we lose productive farmland needed to feed the nation.” 

The Countryside Alliance will continue to monitor this developing area of policy, advocating for fairness towards all parties within rural communities, including both landowners and those in need of housing.