Compulsory Purchase in Focus: CPO Changes Unlocking Housing Delivery

It’s fair to say that Compulsory Purchase and change do not often go hand in hand.

The primary piece of legislation which governs compensation is over 60 years old, and it has been 20 years since the Law Commission recommended sweeping reforms to the Compulsory Purchase Order (CPO) process to make it more accessible and easier to use. Save for a few minor tweaks; most of those recommendations remain just that.

However, there is a clear need to modernise the Planning and CPO law so that it can help deliver the Government’s ambitious housing targets. In addition, the Great Grid Upgrade is the largest overhaul of our energy infrastructure in decades.

All of this will require CPO powers to acquire land and rights and a system that is easy for promoters to use whilst paying fair compensation to affected landowners.

In recent months, there has been an influx of changes to CPO guidance and legislation with the aim of making it easier, quicker and more efficient to use. But is this coming at the expense of landowners who may face the loss of their land for less than its worth?

Over the course of this week, our team of CPO experts within the Advisory department will explore the various updates and changes to legislation which make up the ‘CPO Code’, including the Levelling Up & Regeneration Act, Government Guidance and RICS Professional Standards.

Recent Changes to CPO Legislation

Most recently, however, the Planning & Infrastructure Bill has brought in some additional, important areas affecting CPO worth noting:

1. Further expansion of the disapplication of ‘hope value’ to include local and community projects providing affordable and social housing (explored later this week)
2. Reversal of the ‘Loss Payment’ process allowing those in occupation of land to claim up to £75,000 in additional compensation rather than those not in occupation and removing of Home Loss Payment in some circumstances
3. Electronic service of notices rather than traditional post
4. More flexibility to modify CPOs at the confirmation stage
5. Quicker vesting of land
6. Finally, and most importantly, access to CPO powers for Natural England to fulfil its Environmental Delivery Plans

For the industry, it will be essential to keep up with the evolving legislation to both protect property assets and make the most of new opportunities. However, as a whole, these changes should support wider moves to free up development in the right places as part of well-considered schemes that will deliver new housing and infrastructure.

Look out for part 2 on the role of Acquiring Authorities in delivering new homes going live this afternoon.