The Labour government is introducing significant changes to planning rules, granting councils and mayors greater powers to acquire land for affordable housing. Under the new legislation, local authorities in England and Wales will no longer need central government approval to issue compulsory purchase orders (CPOs), a move intended to speed up the redevelopment of vacant and derelict land.

The changes will be implemented through the Planning and Infrastructure Bill, expected to be introduced to Parliament on Tuesday. This follows a recent public consultation on proposed amendments to the planning system. A key aspect of the reform is the removal of the requirement to consider a property’s “hope value” – the estimated worth of land with planning permission. Previously, under Conservative policies, councils had to seek ministerial approval on a case-by-case basis to bypass hope value when purchasing land. Labour’s new legislation will create a general rule allowing councils to buy land for housing at its current value rather than its speculative future worth.

The government is encouraging councils to make greater use of CPOs to facilitate housing development. Officials argue that these changes will enable local authorities to build homes and large infrastructure projects, such as schools and hospitals, more quickly and at lower costs, supporting urban regeneration efforts.

Labour has set an ambitious target of delivering 1.5 million new homes by the end of the parliamentary term. Ministers acknowledge that meeting this goal will be challenging but assert that expanding affordable housing remains central to their political agenda. The party has prioritised increasing homeownership opportunities for young people, addressing the ongoing housing affordability crisis.

The Planning and Infrastructure Bill will introduce comprehensive reforms designed to accelerate the housebuilding process. One of its key elements is granting mayors and local authorities greater autonomy to overcome planning obstacles. In January, Labour leader Keir Starmer pledged to tackle excessive legal challenges that frequently delay or obstruct development projects, vowing to take on the “Nimby” (Not In My Back Yard) resistance to new housing.

Deputy Prime Minister and Housing Secretary Angela Rayner emphasised the government’s commitment to nationwide regeneration, stating: “We need to make sure public bodies have the tools they need to unlock vacant and derelict sites for public benefit.” She highlighted that the new powers should be used when negotiations to acquire land by agreement fail, ensuring that bureaucratic hurdles do not delay much-needed development. Rayner also reiterated Labour’s commitment to delivering the most significant expansion of affordable and social housing in a generation.

The use of CPOs has proven successful in past regeneration projects. A notable example is Leicester City Council’s use of compulsory purchase powers a decade ago to revitalise the city’s waterside area. This initiative led to the construction of 1,000 homes and the development of 9,000 square metres of office space. The area, which had suffered decline following the collapse of local industries in the 1980s, was transformed after the council acquired and redeveloped the land.

Labour’s new approach aims to replicate such successes on a national scale, ensuring that councils have the authority and resources to drive urban renewal and expand housing availability.