New planning powers to accelerate housebuilding and infrastructure projects

The Government has unveiled transformative planning changes to help councils deliver thousands of homes more quickly and efficiently, while driving economic growth and revitalising local communities.

Key Highlights of the Announcement:

• Cheaper Land Acquisition: Local councils and public bodies, including Homes England, will be empowered to acquire land at fair prices using Compulsory Purchase Orders (CPOs), removing inflated ‘hope value’ costs.
• Increased Housing Supply: The reforms aim to help councils meet housing targets, contributing to the government’s ambitious goal of building 1.5 million homes.
• Efficient Land Use: Vacant and derelict land will be repurposed for much-needed homes and infrastructure, providing social and affordable housing while improving the appearance of unused spaces.

Simplifying the Process

The changes include streamlining the CPO process to reduce costs, speed up decision-making, and ensure fair compensation for landowners. These reforms are designed to empower councils and developers to meet housing demands more efficiently and effectively.

Addressing Housing Challenges

By eliminating ‘hope value’—which inflates land prices based on speculative future development—councils can secure land for public interest projects without lengthy disputes or excessive costs. This will help accelerate housebuilding and deliver homes that meet the needs of communities, particularly in areas facing acute housing shortages.

Supporting Broader Reforms

This initiative is part of a larger push to overhaul the planning system, following recent updates to the National Planning Policy Framework (NPPF). Other measures include:

• Launching a New Homes Accelerator to unlock stalled housing projects.
• Introducing brownfield passports to streamline approvals for high-quality developments.
• Funding additional resources for councils, with £100M allocated for technical studies and staffing.
• Establishing a New Towns Taskforce to plan large-scale communities of at least 10,000 homes each.

Industry Consultation

An eight-week consultation on the CPO reforms has been launched, inviting feedback from builders, councils, and other stakeholders. The input will shape the forthcoming Planning and Infrastructure Bill, expected later this year.

Housing and Planning Minister’s Vision

Matthew Pennycook, Housing and Planning Minister, emphasised the significance of these changes: “These reforms will make the process faster and more efficient, enabling more land value to be captured and invested in public benefit schemes, helping us deliver the housing and infrastructure the country needs.”

This announcement marks a significant step forward in addressing the UK’s housing challenges, fostering collaboration between councils and contractors to deliver transformative projects for communities across the nation.

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