Trade body the British Property Federation (BPF) has urged the government not to make compulsory purchase orders the default approach to unlocking brownfield land for development.
The BPF warned that it could disincentivise landowners bringing sites forward through the strategic land promotion process, due to not being able to fully recover the costs if the government removes the ‘hope value’ – the estimate of what the land could be worth if developed.
The Ministry of Housing, Communities and Local Government, plans to make it easier for councils, combined authorities and other bodies, including Homes England, to buy vacant land from landowners.
Under the proposals, public bodies will not have to pay hope value costs if the development is deemed in the public interest.
Sam Bensted, assistant director, planning and development, British Property Federation, said: “While the use of CPOs and associated compensation rules remain a useful tool in unlocking developable sites, we believe that rather than expanding the use of these powers policymakers should instead focus their efforts of addressing the broader barriers to brownfield development and site promotion.
“These include the cumulative impact of competing planning and local plan policies, as well as issues related to infrastructure investment and viability. As outlined in our submission the land promotion market is a complex one and the risk of unintended consequences following these reforms are high.
“Not just for those who promote land, but potentially for millions of use who have a pension or other forms of investment.”
