Plan to make it easier for councils to seize land for housing

Published On Mar 11, 2025, 8:08 AM

The UK government has introduced a new Planning and Infrastructure Bill aimed at accelerating housebuilding by granting councils more powers to acquire land without owner consent through compulsory purchase orders (CPOs). Currently, councils must consider the 'hope value' of land, which is being eliminated to allow purchases at lower prices. This measure is intended to address housing shortages but has faced criticism from rural groups concerned about potential pressure on farmers and loss of green spaces. The bill also seeks to streamline planning processes, reduce bureaucratic obstacles, and promote the construction of new homes, with a target of 1.5 million housing units in the next five years, despite challenges in the construction workforce. Key provisions also include energy cost reductions for nearby residents of new power projects and expedited approvals for significant infrastructure projects.

Stock Forecasts

ITB

Positive

The proposed legislation indicates increased government intervention in the construction sector, which could benefit companies involved in housing and infrastructure development. As the market responds to this push for new housing, companies in the construction and real estate sectors may see positive momentum. Potential beneficiaries include companies that provide building materials and services, as well as real estate investment trusts (REITs) focused on residential properties.

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