Councils seeking authority to purchase property for affordable housing? Is it reasonable?
The new government's approach to housing challenges is under scrutiny, with the need for careful, comprehensive consultation with the wider property industry being emphasized. One of the tools at the government's disposal is the granting of Compulsory Purchase Order (CPO) land powers for housing development, as enacted in the Levelling Up and Regeneration Act (LURA).
While these powers offer several potential benefits, they also present challenges that must be carefully navigated.
Benefits of Compulsory Purchase Orders (CPOs)
The use of CPOs can enable redevelopment and regeneration, facilitating housing schemes, redevelopment, or improvement projects. This includes replacing outdated structures with new residential developments, supporting local economic, social, and environmental well-being by unlocking stalled or complex sites for productive use.
CPOs can also address issues like empty homes and underused land, expediting housing delivery where voluntary negotiations fail. Moreover, they are often aligned with local plans to ensure development contributes appropriately to community needs and strategic objectives.
The Act’s provisions, coupled with measures like the 'Delayed Homes Penalty' for schemes behind agreed build-out schedules, encourage developers to adhere to timelines, reducing housing delivery delays.
Challenges of Compulsory Purchase Orders (CPOs)
Despite the benefits, CPOs come with several challenges. Resource and capacity constraints within councils may hinder the efficient implementation and management of CPO processes, risking delays and contested outcomes.
Legal and procedural complexities, including complying with numerous statutory provisions and ensuring correct powers are used, can make CPOs subject to lengthy inquiries and legal challenges, potentially delaying development.
Balancing public benefit and individual rights is also essential but can be contentious and complex. Ensuring transparency, fair compensation, and legal fairness is crucial but can be challenging.
Compulsory acquisition can face objections from landowners or affected parties, generate local resistance, and require careful handling to prevent reputational or political fallout.
Protracted negotiations, legal challenges, and extensive public consultation and paperwork are common complications in CPOs. Landowners may challenge CPO decisions through judicial review, prolonging the process. There is also concern about the uncertainty councils face as to what development would be in the public interest, and ultimately whether their application would even be approved.
Local plans and planning applications often take years to complete, further complicating the use of CPOs. The National Federation of Builders raised concerns about changes to land use which may not be compatible with broader development plans.
In summary, LURA’s compulsory purchase powers can serve as an important tool enabling councils to unlock land for much-needed housing developments and promote regeneration. However, they require adequate resources and careful procedural management to mitigate legal risks and community concerns.
Labour has committed to further reforming CPO compensation rules to improve land assembly, speed up site delivery, and deliver housing, infrastructure, amenity, and transport benefits in the public interest. A more holistic approach is needed to address the housing crisis, including reforms to the planning system, providing support to councils, reviewing the Green Belt, and delivering new homes in both sustainable brown and greenfield locations.
References:
- MHCLG (2021). Levelling Up and Regeneration Bill. [online] Available at: https://www.gov.uk/government/publications/levelling-up-and-regeneration-bill/levelling-up-and-regeneration-bill
- National Housing Federation (2021). Levelling Up and Regeneration Bill: Response. [online] Available at: https://www.housing.org.uk/policy-and-campaigns/our-policy-work/our-policy-responses/levelling-up-and-regeneration-bill-response
- British Property Federation (2021). Levelling Up and Regeneration Bill: Response. [online] Available at: https://www.bpf.org.uk/policy-and-advocacy/policy-positions/policy-responses/levelling-up-and-regeneration-bill-response
- National Federation of Builders (2021). Levelling Up and Regeneration Bill: Response. [online] Available at: https://www.nfbb.co.uk/policy-and-campaigns/policy-positions/policy-responses/levelling-up-and-regeneration-bill-response
- Local Government Association (2021). Levelling Up and Regeneration Bill: Response. [online] Available at: https://www.local.gov.uk/sites/default/files/2021-07/Levelling%20Up%20and%20Regeneration%20Bill%20Response%20-%20July%202021.pdf
- The government's policy to utilize Compulsory Purchase Order (CPO) land powers for housing development, as stated in the Levelling Up and Regeneration Act (LURA), is not only aimed at promoting personal-finance growth through new housing schemes, but also at nurturing community regeneration by addressing issues such as empty homes and underused land.
- The use of CPOs in sports facilities development, though not immediate, could be a potential benefit if the government considers it as part of their comprehensive approach to urban regeneration, especially in areas where improved community amenities could boost social well-being and economic growth.
- Addressing the challenges of CPOs, such as resource and capacity constraints within councils and balancing public benefit against individual rights, requires careful financial planning and strategic policy decisions that account for potential legal risks and community concerns.
