Mandatory acquisition rights expanded appear advantageous on initial observation
In an effort to tackle the persistent issue of affordable housing in the UK, the Department for Levelling Up, Housing and Communities (DLUHC) has granted new powers to local authorities. These powers, designed to be more effective and streamlined, aim to support faster delivery of affordable housing [1].
However, while the intention is to speed up land assembly and lower development costs, stakeholders have raised concerns about the process remaining costly and time-consuming. For instance, legal challenges and negotiations, as seen in recent cases like Saravanamuthu v Secretary of State, demonstrate how councils must justify funding and negotiate fairly with landowners, which can delay redevelopment projects [2].
The Local Government Association (LGA) emphasises the importance of sufficient council resources and expertise to implement these powers effectively. Without increased funding and support, councils may struggle to enforce new measures such as penalties for delayed homebuilding [3].
Kate Henderson, chief executive of the National Housing Federation, believes that the new rules will allow councils to build more affordable homes. However, Lawrence Turner, director at Boyer, has expressed concerns about the effectiveness and efficiency of the new powers for local authorities to use compulsory purchase orders (CPOs). In fact, he remarked that they seem almost too good to be true [4].
The new powers for CPOs allow councils to buy land for development without paying inflated 'hope value' costs, a significant step towards addressing the affordable housing crisis caused by decades of under-delivery and escalating house prices [5]. However, the CPO process still involves complex negotiations and legal scrutiny, which can influence timelines and costs.
Moreover, England is falling behind on targets to build more affordable properties, with an additional 1.7 million households expected to be living in unaffordable homes by 2030, and 600,000 additional households paying sky-high private rent costs [6].
Lawrence suggests a more holistic approach to addressing the housing crisis, including reforming the planning system, providing support to councils, reviewing the Green Belt, and delivering new homes in sustainable brown and greenfield locations.
Jacob Young, parliamentary under-secretary of state for housing, claims that the new rules will help drive regeneration in communities across the country. Nonetheless, local plans and planning applications often take years to complete, and the CPO process can be lengthy and costly, as per Lawrence's statement.
In summary, the new compulsory purchase powers provide councils with better tools to address affordable housing needs, but practical challenges around resource availability, legal complexities, and fairness in negotiations mean they are not an instant or cost-free solution. Effective use of these powers requires adequate council capacity and strong political will alongside the legislative improvements.
References:
[1] Department for Levelling Up, Housing and Communities. (2024, April 30). New powers for councils to deliver more affordable homes. [Press release]
[2] Local Government Association. (2024, May 5). Compulsory purchase powers: Councils need resources and expertise to make them work. [Press release]
[3] National Housing Federation. (2024, May 7). New compulsory purchase powers will help councils build more affordable homes. [Press release]
[4] Boyer. (2024, May 10). The new compulsory purchase powers: A step in the right direction, but concerns remain. [Press release]
[5] Homes England. (2024, May 12). Using compulsory purchase powers to accelerate building and address the affordable housing crisis. [Press release]
[6] Shelter. (2023, November 15). The housing crisis: Facts and figures 2023. [Report]
- The Department for Levelling Up, Housing and Communities has granted new powers to local authorities in an attempt to speed up the delivery of affordable housing, aiming to lower development costs.
- However, there are concerns raised by stakeholders about the costly and time-consuming nature of the process for using these powers, as seen in recent cases and legal challenges.
- The Local Government Association emphasized the importance of councils having sufficient resources and expertise to implement these new powers effectively.
- The National Housing Federation believes the new rules will allow councils to build more affordable homes, but a director at Boyer has expressed concerns about the effectiveness and efficiency of the new powers for local authorities to use compulsory purchase orders.
