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Planning Speed Read: Updates to new statutory instruments on CPOs and The Lords ‘Grey Belt’ inquiry

In this planning speed read, we look at the new statutory instruments relating to CPOs and the 'Grey Belt' inquiry.

New statutory instruments relating to CPOs:

Two new sets of regulations have been laid dealing with changes to the CPO regime:

Both regulations are set to come into force on the 1st October 2024.

The ability for any “hope value” (the prospect of a planning permission being granted) to be taken into account when arriving at a market value for land to be compulsorily acquired has been limited through LURA 2023 and its amendments to the Land Compensation Act 1961 where the purpose of any such land acquisition is for affordable housing, healthcare facilities or education. Such limitation is through a “Section 14A direction” to disapply section 14 of the LCA 1961. However, the amendments allowed for additional compensation (in lieu of the hope value) to be claimed where the acquiring authority has not in fact achieved what it set out to achieve when acquiring the land after a period of 10 years from the date the CPO became operative.

The Land Compensation (Additional Compensation) (England) Regulations 2024 now set out the procedure to be followed to claim such additional compensation.

The statutory instrument provides for:

  • The procedure for making applications for directions for additional compensation, including the statutory form to be used for such an application
  • The procedure for making claims for the payment of additional compensation
  • The steps to be taken for publicising or giving notice of a direction for additional compensation
  • The rate of interest to be applied to amounts of additional compensation which are payable; and
  • How and when any additional compensation (including interest) is to be paid.

The New Towns (Compulsory Purchase of Land) (Amendment) Regulations 2024 provides for new prescribed forms to be used in connection with  a CPO made under the New Towns Act 1981.

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The ‘Grey Belt’ inquiry:

The proposed amendments to the National Planning Policy Framework (NPPF) introduce the concept of the “grey belt” being a sub category of green belt land. An inquiry has been set up for the House of Lords Built Environment Committee to further understand what exactly ‘grey belt’ land is, how it can contribute to the Government’s housing targets (of building 1.5 million homes in five years) and what sustainable ‘grey belt’ development looks like. The Committee are asking for submissions answering eight key questions around the concept.

The Committee will consider the Government’s proposed ‘golden rules’ of the sequential test for land release, the requirements for the delivery of affordable housing, infrastructure, enhanced green spaces, and how this may affect the success of developments in the grey belt.

The Chair of the House of Lords Built Environment Committee, Lord Moylan has stated that ‘to inform our work we want to hear from as broad a range of people as possible’.

For more information please click here. Submissions can be made until 14th October 2024.

Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.

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