Planning Partner Tom Barton commented for Property Week on the Government's newly proposed plans to limit land sellers' use of "hope value", facilitating housing development in an effort to build 1.5 million homes.
These proposed changes are the latest in land value debates dating back to just after the Second World War, when legislation enabled land to be purchased for existing use value in response to the post-war housing crisis.
In 2023, the Levelling-up and Regeneration Act 2023 (LURA) gave local authorities several albeit limited ways of disregarding hope value. An official consultation was launched in late 2024, by the Ministry of Housing, Communities and Local Government (MHCLG), accompanied by a letter from Housing Minister Matthew Pennycook arguing the importance of usable land for projects of public interest.
However, there are concerns that the proposed changes ultimately discourage development and breach human rights laws.
Referring to the difference between a piece of land's development value and agricultural value, Tom commented "[The Government] is potentially taking that uplift off the table. That could be an interference with your schedule of human rights: the right to respect for property.”
Read Tom's full comments .