The government has doubled the amount of money councils can offer to homeowners under compulsory purchase orders.
The move comes amid growing concerns that problems with the process could blight regeneration of the market renewal pathfinders.

From 1 September, councils will be allowed to pay households between £3100 and £31,000 in compensation for taking their house. Previously, the minimum was £1500 and the maximum was £15,000.

However, there are concerns that the change could lead to a rise in mercenary landlords seeking to make a profit on houses in the pathfinders.

Speaking at the Housing Market Renewal Conference in Birmingham last Thursday, Derek Long, housing association lead in the market renewal team at the Office of the Deputy Prime Minister, said: "We've seen specific landlords in the pathfinder areas trying to take advantage of the compulsory purchase order process by buying up houses at cheap rates, and holding out for money from the council."

Bill Field, policy and strategy officer for Liverpool council's housing strategy unit, said he had seen a definite surge in housebuying in the 125,000-home Merseyside pathfinder area since the scheme was announced.

And Mike Gahagan, chair of the South Yorkshire pathfinder and former director of housing at the Office of the Deputy Prime Minister, said he expected that getting compulsory purchases through would be the biggest problem for the pathfinders in meeting their delivery deadlines.

The reassessment of the compulsory purchase prices comes in advance of the Planning and Compulsory Purchase Bill, which has been delayed until the next parliamentary session.

The ODPM claims the legislation will make further improvements to the compulsory purchase process. The revision is the first such amendment since 1991.

Source

Housing Today