ENGLISH landowners stand to lose millions of pounds of potential profit under government proposals that would allow large developers to acquire land for housing by only paying its agricultural value.

Under the Housing and Planning Act (HPA) 2016, developers of Nationally Significant Infrastructure Projects – such as large transport links, energy lines, and water pipes – will be able to compulsorily acquire English and Welsh land for related housing development.

Central Association of Agricultural Valuers policy adviser Kate Russell pointed out that by setting compensation rates at the existing land use value, the new law transferred the profitable capital uplift of any housing project straight intodevelopers’ pockets.

“This is a significant change, but is very much in the theme of other new Bills which seek to make new infrastructure development easier for developers," said Ms Russell.

Under the HPA, ‘related housing development’ means one or more dwellings on the same site, or within a mile of, any part of the infrastructure project: “These are really quite draconian powers,” warned Ms Russell. “They allow developers to get housing in places that might not otherwise have been justified – and they are able to do so at existing land use value, transferring the windfall uplift in value from the landowner to the acquirer.”

Responding to the changes In England, SAAVA president Rob Forrest said that he would have "serious concerns" should this type of legislation be proposed in Scotland.

“On the one hand, the Scottish Government are trying to encourage Rural Development, enabling farmers and landowners to benefit from potentially improved planning systems and better connectivity and on the other, south of the border we are witnessing the haemorrhaging of any windfall uplift in value prospective.

"I have no doubt that developers will include a sufficient profit margin within any development proposal, so really why should they have the vendor’s share of any profit too?" asked Mr Forrest. "Part of the attraction of anyone selling land for development is that they are able to capitalise their loss or earnings on that area of land and benefit from the uplift in value."