In an effort to address the housing shortfall, Labour would change how land is assessed as part of the procedure for compulsory purchase orders.
Local governments may issue such decrees to effectively compel property owners to sell in order to make room for big construction projects or housing developments.
According to The Financial Times, Lisa Nandy, the shadow levelling up secretary, would introduce legislation to let councils to buy land at a price that does not represent the “hope value” — the value accumulated as a result of the anticipation of receiving planning permission in the future.
According to Labour, the plan would prevent the state from making below-market payments.
Instead, the plan would examine the policy restraints in the same manner that current regulations, including the use of “hope value,” have an impact on market price.
According to officials, adopting this strategy would bring England’s policies in line with those of Germany, France, and the Netherlands.
In the months leading up to the next general election, housing supply is set to take center stage.
Early on in his term as prime minister, the Prime Minister was pressured by Tory MPs and campaigners to abandon proposals for mandated local housing targets as part of a plan to build 300,000 homes annually.
However, Mr. Sunak is still under pressure to accelerate construction in Britain in order to reduce rising rents and housing shortages.
Housing Secretary Michael Gove acknowledged the difficulties facing those who wish to acquire a property earlier this month.
“There is a problem and the problem is there simply aren’t enough homes in this country,” he said.
“It is increasingly difficult to get on the property ladder.”
We want councils to be able to unlock more land for affordable homes, which is why we are changing compensation for compulsory purchase orders, according to a Department for Levelling Up, homes and Communities spokeswoman.
“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.”