The Land Compensation Act

Meeting: 
MQT on 2018-05-17
Session date: 
May 17, 2018
Reference: 
2018/1214
Question By: 
Nicky Gavron
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

The Land Compensation Act (1961) stipulates that in the event of compulsory purchase, Landowners are to be reimbursed not only for the value of their land as it stood but for its potential value if it were used for something else in the future. This has given landowners an incentive to landbank to be able to sell that land for a higher price in the future and this higher price has forced developers to cut the affordable housing they can afford and to drip feed properties into the market in order to keep prices high. Would you support reform of this Act to allow public sector bodies to purchase land according to its current use and not its future use?

Answer

Answer for The Land Compensation Act

Answer for The Land Compensation Act

Answered By: 
The Mayor

Yes, I would support reform of rules around land assembly, including a fundamental review of compulsory purchase powers and how land is valued for these purposes. This reform should enable more of the land value increase resulting from development to be captured and reinvested in infrastructure and genuinely affordable homes".

A copy of the report can be found at: www.london.gov.uk/better-land