Government accused of more misguided planning reforms

Ceres Property reckons Labour’s Compulsory Purchase Process and Compensation Reforms consultation will do far more harm than good when it comes to local planning processes and the long-term delivery of new homes.

The government is considering introducing a general power to enable the Secretary of State to remove hope value from the assessment of compensation in brownfield land in built-up areas suitable for housing but with no extant planning permission for residential development.
And land allocated for residential development in local plans, but which has not come forward for development.

But Ceres Property says the pre-warning means it’s likely that it will be pushed forward despite concerns.

TECHNICAL REFORMS

There were also a number of other technical reforms with the most notable one being in favour of occupiers over investors in Loss Payment reforms. No more discretionary home loss payments for non-compliant property owners facing compulsory purchase.

Ceres says that Labour’s aim is to streamline the process of concluding infrastructure schemes and reducing costs. Especially with the reform on hope value, it also seems to be targeting ‘land banking’ – the concept that landowners delay development on land with planning permission in the hope of improved future market conditions.

“Claims of land banking delaying delivery of housing are contested.”

But the claims of land banking delaying delivery of housing are contested by many, but there is evidence of many infrastructure schemes (HS2 being the most obvious one) being delivered not on time and not on budget, and therefore clearly the system isn’t working.

And these reforms on hope value can become worrying for strategic land, which typically takes years to be promoted through the local planning process.

Ceres Property’s Development Team deals with numerous freehold sales of speculative sites with the hope that one day they will be developed into a more financially valuable use.

Compulsory purchase is always presented as the need for vital infrastructure for the ‘greater good’, but will this reform really be for the greater good in the long run?

DEEP CONCERNS
Boris White, Ceres Property
Boris White, Ceres Property

Boris White, a Partner in the Ceres Property Development Teams, says: “If these reforms on hope value come into force, we believe that the premiums currently paid for substantial hope value for long term strategic land will reduce significantly.

“This will be more acute if there is no reimbursement of monies spent in promoting sites – it can cost hundreds of thousands of pounds to get the site allocated in a Local Plan. We fear that the knock-on effect of this will be worse than any accusation of ‘land banking’ as it disincentivises speculative planning promotion.”

POKING A HORNETS’ NEST
Peter Cole, Ceres Property
Peter Cole, Ceres Property

Compensation for compulsory purchase order (CPO) schemes are commonly riddled with contention and Peter Cole, a Partner in Ceres Property’s Land Consultancy Team, adds: “Removing the concept of hope value in certain cases feels like the government is poking a hornets’ nest that is already on fire.

“The process of land, home or business being affected by a scheme using CPO powers is already a very emotional and stressful time for claimants.

“Although there is definitely a need for more infrastructure that is delivered on time and on budget, are we leaning too far to one side – claimants must be able to receive what is fair.”

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