The Planning and Infrastructure Bill had its first reading in the House of Commons on Tuesday, March 11. The government has said the bill will speed up the delivery of housing and critical infrastructure, supporting the delivery of its goal of building 1.5 million homes in England.
It proposes a number of changes to planning legislation including around the issue of compulsory purchase orders (CPO).
The new bill would make it easier for local authorities and bodies like the NHS or Homes England to use CPOs to buy agricultural land for development.
The bill also extends an existing power to remove value attributed to the prospect of planning permissions, or ‘hope value’.
According to the National Housing Federation, 9% of homes in rural areas are classed as affordable, with the average rural home costing £418,400. In some areas, house prices are up to 23 times the average earnings.
The Levelling-up and Regeneration Act 2023 introduced by the previous government allowed for the removal of ‘hope value’ if it was approved by the secretary of state, but the new Planning and Infrastructure Bill allows for inspectors, councils or mayors to take decisions where there are no objections.
This means the land could be sold at its current valuation as arable agricultural land, and not land that is set for development, meaning farmers and landowners could receive a lower price.
The government said the bill will improve the CPO process and land compensation rules to enable more effective land assembly through public sector-led schemes.
This includes allowing statutory notices to be delivered electronically, simplifying information required to be included in newspaper notices, more delegation of decisions, quicker vesting of land/properties, and changes to the loss payments regime.
The government said it was a combination of complex land purchasing processes along with “landowners unrealistic expectations on compensation can delay the assembly of land for housing and infrastructure by compulsory purchase.”
