Acquisition of Development Land (Assessment of Compensation) Bill 2021

Public bill · Private Member · Introduced

A new cap would be placed on the compensation local authorities must pay when they compulsorily buy land for housing and planning. For land with development potential, payment would generally be limited to 125% of its value as if it had no development prospects, with some extra allowances for the owner’s purchase cost, improvements, and a modest return, while ensuring compensation never exceeds open market value at the time of purchase. The aim is to stop large windfall gains to landowners, make land cheaper for public housing, and ensure any savings help deliver more affordable homes.

Formal long title

Bill entitled an Act further to regulate in accordance with the principles of social justice and to delimit by law the exercise of private property rights, insofar as such exercise gives rise to the assessment of compensation payable by local authorities in respect of the compulsory acquisition of development land, with a view to reconciling the exercise of those rights with the exigencies of the common good, and to provide for related matters.

Last updated 2 May 2025