New powers allowing local authorities to compulsorily purchase housing land more cheaply that are being considered by Labour if it wins a next general election would mean a 'sea change in the pace at which housing can be delivered,’ York’s new housing boss says.

Under the proposals, Labour would overhaul how land is valued under the compulsory purchase order process as part of efforts to tackle housing shortages.

Using compulsory purchase orders, local authorities can effectively force property owners to sell land to make way for major projects or housing developments.

Labour’s shadow levelling up secretary Lisa Nandy is reportedly considering bringing forward legislation to allow councils to purchase land at a price that does not reflect the ‘hope value’ - the value accrued through the expectation of planning permission in the future.

Cllr Michael Pavlovic, Labour’s new executive member for housing on City of York Council, stressed that the policy was ‘still being worked on’ at national level.

“But this idea, were it to become a commitment, will certainly benefit the majority of young people and those for whom the prospect of home ownership has never been more distant,” he said.

“Land values are vastly inflated for those fortunate enough to own it near to the infrastructure, the facilities, the roads and schools that we have all paid for.

“Giving councils the opportunity to compulsory purchase land earmarked for development at its actual value, rather than the vastly inflated figures, will allow for a sea change in the pace at which housing can be delivered and the final price that purchasers and renters will pay for a home.

“This proposal would ensure that this land could be used for the benefit of the community as a whole rather than just an individual.”

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York Central MP Rachael Maskell said it was right that local authorities should be given greater powers over the local development of land for housing.

She said compulsory purchase reform and the creation of genuinely affordable homes should be a part of a Labour government’s planned ‘Taking Back Control’ Bill.

“Too many people are denied their right to a good home, by a housing system that treats homes as a financial asset rather than a place to live,” she said.

“The driving force of development is currently profit, rather than places and communities.

"It could be transformative to reform compulsory purchase laws, allowing public authorities to acquire land at near use-value. This would ensure that suitable development land could be brought forward for homes, rather than banked on the basis of a future financial windfall should residential planning permission ever be gained.”

Cllr Chris Steward, leader of the Conservative group on City of York Council, said: "Labour are right that significant action is needed on house building given the lack of enough new houses. 

"However as with everything, we need to see the details of Labour's CPO (compulsory purchase order) idea. CPOs are by law based on market values and anything changing that will have implications.

"More lower cost homes are needed but government intervention could even scare off would be landowners and developers and reduce supply of housing. We also cannot have a building free for all in the greenbelt at the expense of brownfield sites."

Anthony Vigor, York-based Persimmon Homes’ Group Director of Policy and External Affairs, said further details were needed on specific Labour proposals.

But he added: “Persimmon remains committed to providing the opportunity of homeownership to thousands of families a year. Our new homes are typically priced 20 per cent below the market average.”

Cllr Nigel Ayre, leader of the Liberal Democrat Group on City of York Council, said: "As long ago as Autumn 2021 Liberal Democrats adopted national policy which acknowledged that the UK is currently experiencing a housing crisis, and this crisis is impacting people's freedom to start a family, live a healthy and dignified life when they get old, and is having an adverse effect on social mobility."

He said Lib Dem policy would allow local authorities to take the lead on house building by allowing local authorities to acquire landbanked land from housing developers at its 'current use value', in order to be used to meet the community's need for housing.

It would also increase compulsory purchase powers, while acquiring land and planning infrastructure such as roads and green spaces before allowing developers to bid for plots.

He added: "We welcome the Labour Party recognising that there is a housing crisis and signing up to a policy advocated by the Liberal Democrats.”