Councils seeking authority to acquire land for affordable housing—a controversy worth evaluating.
The use of compulsory purchase orders (CPOs) by UK councils for land acquisition faces several potential drawbacks and challenges related to cost, time, and resources. These include:
High financial cost and risk
Councils, already under heavy debt, might be reluctant to engage in CPOs due to the potential financial burden and liabilities involved in acquiring and developing land. Public funding linked to such acquisitions can also lead to price inflation by landowners and developers, absorbing grants into higher costs rather than increasing housing supply.
Lengthy and complex legal process
The CPO process involves formal legal steps that can cause significant delays before councils can gain possession. The need to handle objections, negotiate compensation, and possibly face legal challenges requires extensive administrative time and specialist legal resources. This can drag on project timelines, affecting housing development speed.
Resource intensive
Administering CPOs demands considerable council staff time in legal, planning, valuation, negotiation, and enforcement roles. Councils must also manage the upkeep and redevelopment of acquired land or properties, which further strains limited resources.
Potential for inflated land values
The availability of public funds for compulsory purchase can incentivize landowners to inflate prices, worsening the cost-effectiveness of acquiring land for affordable housing projects.
Stakeholder conflicts and reputational risks
CPOs can provoke adverse community reactions, legal disputes, and political controversy, which in turn can consume further council resources and delay delivery.
In summary, while CPOs are a vital tool for councils to overcome land acquisition barriers, their financial implications, procedural complexity, legal uncertainty, and resource demands represent substantial challenges that can slow down housing delivery and inflate costs in the UK context.
A broader approach to housing challenges
A more holistic approach is needed to address the housing crisis, including reforms to the planning system, support for councils, reviewing the Green Belt, and delivering new homes in both sustainable brown and greenfield locations. The new government should carefully consider any changes to address housing challenges, including comprehensive consultation with the wider property industry.
Previous policy proposals
The ability for councils to use CPOs to buy land is not new as a policy proposal, with the Labour party making a similar announcement in June 2023. Many local authorities may lack the resources to implement CPO, raising concerns about changes to land use which may not be compatible with broader development plans.
Local plans and planning applications often take years to complete, adding to the complexity of implementing CPOs for land acquisition. The National Federation of Builders also raised concerns about the potential impact of CPOs on the wider property industry.
[1] Grant capture: https://www.gov.uk/government/publications/grant-capture-in-the-housing-sector/grant-capture-in-the-housing-sector [2] Compulsory purchase orders: https://www.gov.uk/guidance/compulsory-purchase-compensation-for-land-and-property [3] CPO process: https://www.gov.uk/guidance/compulsory-purchase-compensation-for-land-and-property [4] CPO challenges: https://www.local.gov.uk/sites/default/files/documents/2018-09/compulsory-purchase-orders-guidance-for-councils.pdf
- The community might question the use of compulsory purchase orders (CPOs) for housing regeneration due to their potential for financial costs, lengthy legal processes, and resource-intensive administration, which could raise concerns about local planning and the wider property industry.
- arrivals of new government policies to address the housing crisis should consider a more holistic approach, including reforms to the planning system, support for councils, reviewing the Green Belt, and delivering new homes in both sustainable brown and greenfield locations to minimize the challenges associated with the CPO process.
- Despite previous policy proposals that allowed councils to use CPOs for land acquisition, many local authorities might struggle to implement them due to resource constraints, potentially leading to delays in land use changes and development plans that align with the community's general news.
