New planning powers will lead to thousands of more homes being built across the country, the government has claimed.

Under proposals set out last week, local councils across the country will be empowered to buy cheaper land through the use of compulsory purchase orders and build homes and infrastructure, as part of the government’s Plan for Change milestone to build 1.5 million new homes.

Councils, mayoral combined authorities and other public bodies, including Homes England, will be able to directly take control of vacant and derelict land from landowners paying a fair price and not inflated ‘hope value’ costs, where they are delivering in the public interest. ‘Hope value’ estimates the cost land could be worth if developed on in the future, meaning many councils are often forced to pay thousands of pounds more to buy land for development or get caught in lengthy disputes over costs.

The government says the reforms expand existing legislation allowing ‘hope value’ to be removed in more circumstances where social and affordable housing is being built, accelerating housebuilding, helping more families on to the property ladder and to get more of the social and affordable homes communities need built, as well as making a positive use of unsightly, vacant land.

Matthew Pennycook, the housing and planning minister, said: “In our manifesto, we committed ourselves to further compulsory purchase reform to deliver more housing, infrastructure, amenity, and transport benefits in the public interest.

“The consultation we are launching today is the next step in fulfilling that commitment – proposing reforms that will make the process faster and more efficient, enabling more land value to be captured and then invested in schemes for public benefit.”

Proposed changes to CPOs are now being consulted on and include proposals that aim to speed-up decision making, reduce the cost of the process and ensure the compensation paid to landowners is fair.

The eight-week consultation will consider views from builders, councils, and the wider sector before the findings are analysed and used to inform the forthcoming Planning and Infrastructure Bill, to be introduced next year.