Compulsory purchase and compensation rules – NFU submits response

13 February 2025

Farming landscape

Photograph: Derek Croucher / Alamy

The government has consulted on reforms to the compulsory purchase process and compensation rules. Read the NFU’s response.

The government sought views on a range of proposals aimed at implementing technical reforms to the compulsory purchase process to make it cheaper, quicker and fairer.

The proposals relate to England and Wales and the consultation was run by the MHCLG (Ministry of Housing, Communities and Local Government).

The government made the case that it is right to remove hope value from the assessment of compensation when schemes deliver benefits for communities which are in the public interest.

It has promised to take steps to ensure that for specific types of development schemes, landowners are awarded fair compensation rather than inflated prices based on the prospect of planning permission.

You can also read more about the consultation at: GOV.UK | Compulsory Purchase Process and Compensation Reforms 

13 February 2025

Consultation closed

This consultation has now closed.

13 February 2025

NFU submits response to the MHCLG compulsory purchase and compensation reforms consultation

The government launched a consultation on 19 December 2024 seeking views on a range of proposals aimed at implementing technical reforms to the compulsory purchase process to make it cheaper, quicker and fairer.

The government made the case that it is right to remove hope value from the assessment of compensation when schemes deliver benefits for communities which are in the public interest.

The NFU has submitted a response to the consultation incorporating members’ views and highlighting concerns around the proposal to allow for the removal of hope value in CPOs made on behalf of parish/town councils and also responding to proposed changes to the Compulsory Purchase Process.

NFU members can log in and read the response in full: NFU response to compulsory purchase and compensation consultation.

7 February 2025

NFU feedback form closes

The NFU's feedback form has now closed. We will publish our response shortly.

19 December 2024

The Ministry of Housing, Communities and Local Government launches consultation

The government is concerned there is a significant amount of suitable land available for housing which is currently lying vacant or is under-utilised and not coming forward for development or, where it is coming forward for development, the provision of affordable housing offered on those sites is below the minimum ask of the local authority.

It is stating the reforms will ensure the process for compulsorily acquiring land with a direction to remove the payment of hope value for schemes in the public interest is more efficient.

Also, that the balance of the assessment of compensation awarded to landowners is fair and quicker decisions on CPOs (compulsory purchase orders) can be made allowing schemes in the public interest to progress.

The government supports the approach of removing hope value compensation by the issuing of directions where CPO powers are being used to facilitate schemes which deliver vital public benefits such as affordable and social housing, schools and health facilities providing there is justification in the public interest.

This page was first published on 29 January 2025. It was updated on 13 February 2025.

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