The government’s new Planning and Infrastructure Act is being presented as the engine behind its ambition to get Britain building again, with promises of faster decisions, streamlined processes and a renewed push for both housing and major infrastructure.
The Planning and Infrastructure Act underpins the wider commitment to deliver 1.5 million safe and decent homes in England and to accelerate the 150 nationally significant infrastructure projects needed to meet the Clean Power 2030 target, including schemes such as the Peak Cluster carbon capture project in the Northwest. The Act received Royal Assent in December 2025, and most of its provisions come into force next month following the necessary commencement regulations.
For rural landowners, the implications are real
The Act reshapes the consenting process for infrastructure and updates compulsory purchase procedures, introduces a new Environmental Delivery Plan to replace the previous patchwork of environmental assessments, and brings in several changes to the English planning system that could influence how and where development is directed. These reforms are designed to speed things up, which inevitably means more pressure on land—particularly where infrastructure corridors or housing allocations intersect with farmland.
Reversal of Loss Payments
One of the most immediate changes concerns compensation. Under the current system, those affected by compulsory purchase can receive loss payments worth 10% of market value, capped at £100,000, with 7.5% going to the owner and 2.5% to the occupier. The Act reverses this split. In future, the owner will be entitled to a maximum of £25,000, while the occupier could receive up to £75,000. For Landlords, this represents a notable reduction in the compensation available when land is taken.
No Hope Value
Alongside this, earlier reforms in 2024 made significant changes to the treatment of hope value—the uplift in land value based on the possibility of future development. Historically, hope value has been a major component of compensation for farmland near settlements. Authorities can now apply to remove hope value entirely where it is necessary to deliver a public‑interest scheme such as social housing, regeneration or infrastructure. Local authorities, development corporations and certain public bodies can all seek this Direction, but they must show that removing hope value is essential to delivering the scheme. Private commercial developments such as speculative housing, retail parks or industrial estates cannot use this mechanism. For councils, the ability to strip out hope value makes it easier to acquire land for affordable and social housing, however many would struggle to fund market value opposed to any hope value.
The future
As renewable energy projects expand and the demand for social and affordable housing continues to rise, the landscape for rural landowners is shifting. More schemes are moving forward, compulsory purchase is becoming more streamlined, and the financial assumptions that once underpinned negotiations are being rewritten. In this environment, having a long‑term plan for your land—whether for succession, diversification, promotion or negotiation—can make a significant difference when discussions about value and acquisition begin.
If your land has any potential of compulsory purchase or is close to settlements, please do not hesitate to contact us to discuss how we can help protect your assets.
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