An alternative approach to expanding CPO powers for housing delivery

The government is currently consulting on proposed planning and housing policy reforms aimed at accelerating housebuilding. Among the proposed changes is an expansion of compulsory purchase order (CPO) powers, which would allow local authorities to force landowners to sell green belt land if it could support new housing developments. While this approach aims to address the housing shortage, E-Rail’s George Hazel, explains how this may overlook a more sustainable alternative.

How CPO works at present

Compulsory purchase orders are a tool that government entities use as a last resort to acquire land for public benefit. The process is complex, requiring a clear purpose and strong political backing, often resulting in legal challenges, significant costs, and the risk of failure. Additionally, the use of CPOs can alienate local communities, who may feel their rights are being overridden by centralised decisions. In a country like the UK, where land is limited and public sentiment is strong, relying on CPOs to meet housing needs is likely to provoke significant resistance and delay.

Potential impact of new CPO proposals

The government’s new proposals will involve councils needing to confer with their planning colleagues to select the most appropriate sites. This in itself may be controversial. How will they decide which sites work best? There is irrefutable evidence that the most sustainable sites will be those with fixed transport links, be they existing or new. If existing, they should be a shoe in! If the sites are within a 1 km radius of a potential new station site, then it is possible to use land value capture as a financing ingredient, by harnessing a share of the uplift created by the planning approval process. This is entirely equitable and would mean that a CPO can be avoided.

“How will they decide which sites work best? There is irrefutable evidence that the most sustainable sites will be those with fixed transport links, be they existing or new. If existing, they should be a shoe in!”

All local authorities whether they are up to date with their planning strategies or not, will have pre-conceived ideas of what is expected of them to satisfy the housing shortage without the new intervention from Westminster. So, will this strategy make them react positively or simply comply with less enthusiasm and encourage delay?

The new government proposal suggests that landowners will get existing use value, and the local authority will secure the benefit of any uplift as a result of a beneficial planning consent. This is controversial as the body applying a CPO is also the giver of valuable planning consents. This is in effect a development land tax by the back door and may be open to both abuse and manipulation, on all sides.

Uncontrolled consents will do two things, lower the value of land and undermine the banking system of lending against value. If the housing is to be local authority controlled, then the financing of the project will need to come from central government.

A more sustainable and equitable alternative

We believe there is no need for development in any areas where it cannot be served by public transport, especially heavy, light rail or trackless tram. New roads will only add to congestion, pollution, accidents and social inequity. There are a huge number of development opportunities throughout England and Wales which could justify development, be they brown or green fields, with the justification for planning changes driven by new public transport provision.

“Our experience at E-Rail, built over 12 years and involving 56 projects in collaboration with Network Rail and local authorities, demonstrates that housing needs can be met through strategic development around existing or planned rail and tram stations.”

Rather than expanding CPO powers, the government should focus on integrating transport infrastructure with housing development. Our experience at E-Rail, built over 12 years and involving 56 projects in collaboration with Network Rail and local authorities, demonstrates that housing needs can be met through strategic development around existing or planned rail and tram stations. This approach not only aligns with sustainability goals but also provides significant funding opportunities through land value capture.

Developing housing in areas served by public transport reduces the need for new roads, which can lead to congestion, pollution, and social inequity. Instead, focusing on transport-connected land enables faster project delivery, meets sustainability objectives, and minimises public opposition. In addition, this approach supports broader economic goals by improving access to jobs and enhancing social mobility.