FAQs

What is hope value in relation to land valuations?

Hope value refers to the potential increase in the value of land that arises from the expectation of obtaining planning permission for development in the future.

How can reforming hope value impact the housing crisis?

Reforming hope value can significantly reduce the amount of public grant funding required to build social homes, making mass social house building programs more financially viable and potentially allowing for the construction of more affordable homes.

What are the potential benefits of implementing hope value reforms?

The research suggests that hope value reforms could reduce the public grant required to build social homes by £4.5bn, leading to a 25% decrease in upfront costs or allowing for the construction of additional social rent homes each year.

Conclusion

The research highlights the importance of reforming hope value in the UK’s land market to address the housing crisis. By reducing the impact of hope value on land valuations subject to Compulsory Purchase Orders, the government can make mass social house building programs more financially viable and increase the number of affordable homes built each year. It is crucial for ministers to consider implementing further land reforms to ensure the successful delivery of 1.5 million new homes over the coming years.