Labour plans would let councils buy land for lower prices

Labour says it would give councils in England new powers to buy land at lower prices to boost housebuilding if it wins the next election.

Councils would be able to buy land under compulsory purchase orders (CPOs) without having to factor in the value of potential planning permissions.

Labour is promising to "back the builders, not the blockers" in its pitch to voters.

The government said it was already planning to reform the system.

However, its plans would involve giving the powers to approve CPOs and sales at lower prices to the secretary of state.

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Currently, councils buying sites through CPOs must factor in the "hope value" - the potential value if planning permission for development is secured in the future.

However, Labour's proposals, first reported by the Guardian and the Financial Times, would allow local authorities to buy land at a price that does not reflect the "hope value", if they can demonstrate this is in the public interest.

The Country Land and Business Association, which represents landowners in rural England and Wales, criticised the plans.

The association's president, Mark Tufnell, said: "Forcing hard-pressed farmers to sell their land for a fraction of its potential value, only to then - via local authorities - put it in the hands of developers who make hundreds of millions of pounds profit every year, is a strange way to level up the country."

A Department for Levelling Up, Housing and Communities spokesperson said: "We want councils to be able to unlock more land for affordable housing, which is why we are reforming compensation for compulsory purchase orders.

"The current rules can significantly increase costs for councils and our reforms will ensure the taxpayer gets best value for money, by removing 'hope value' where justified and in the public interest.

"It will ultimately be for the Secretary of State to decide whether a compulsory purchase order can be approved and if the removal of hope value is appropriate."

Housebuilding is set to be a key battleground of the next general election, with Labour promising to take "tough decisions" to boost housing supply.

The party has already said it would give councils in England more powers to build on green belt land, where it does not "affect the beauty of our countryside".

Leader Sir Keir Starmer has also pledged to restore local housing targets, which are being watered down after calls from some Conservative MPs.

The 2019 Conservative manifesto promised to build 300,000 homes a year in England by the mid-2020s.

But in December, the government said councils would get more flexibility over meeting centrally-set housing need targets.

Tory MPs critical of the government's targets had argued they undermined powers of local councils to decide where building takes place.

But others have raised concerns the changes will lead to fewer homes being built.