Government consults on further reforms intended to make compulsory purchase process “faster and more efficient”

The Government has detailed a series of reforms aimed at expanding and simplifying compulsory purchase orders (CPOs) in a consultation launched today (19 December).

The Ministry of Housing, Communities and Local Government's consultation said: "We want to maximise the opportunities for provision of vital development facilitating much-needed benefits in the public interest through delivery of housing, infrastructure, amenity, and transport improvements where the use of compulsory purchase powers is facilitating land assembly for those purposes."

The proposals aim to expand upon reforms to hope value – which is the cost land could be worth if developed on in the future – and compulsory purchase orders (CPOs) introduced in the Levelling-up and Regeneration Act 2023.

Proposals include a new requirement that CPOs made under section 125 of the Local Government Act 1972 on behalf of town and community councils "should have the ability for directions to be included to remove hope value where the underlying schemes are facilitating affordable or social housing".

In addition, the document noted that the Government believes decisions on the confirmation of CPOs, which include directions to remove hope value that have been objected to, should be eligible to be undertaken by inspectors.

"Likewise, where a CPO which includes a direction to remove hope value has been made but there are no objections to the CPO, for example, the acquiring authority and landowner reach an agreement on the voluntary acquisition of the land, we see no reason why the confirmation decision should not be taken by the acquiring authority", it added.

The document also detailed plans to help those affected by compulsory purchase to be entitled to fair compensation.

To ensure fair value is always awarded in the circumstances where a CPO is confirmed with a direction to remove hope value, "we believe it necessary to reform the legislation to make it clear that all assessments of compensation relating to market value must be undertaken in accordance with the direction", the consultation added.

The document meanwhile suggested technical changes to the CPOs to speed up the process, including introducing electronic notices.

It also proposed changes to the rules around CPO notices to address instances where councils have published the entire CPO schedule of interests in newspapers.

"We consider it is no longer necessary or practical for newspaper notices to go into this level of detail if that detail is available online and in physical copy available for inspection, for example, in the CPO", it said.

The full list of technical changes can be read here.

Matthew Pennycook, the Housing and Planning Minister, 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 closes on 13 February 2025.

Adam Carey