Land value capture does seem to be in the news more and more these days. Especially in relation to large strategic projects. It does seem fair enough that if these projects need huge injections of public money to get them off the ground that the landowners should not gain from that. However to suggest that land could be taken simply for existing use value is surely going too far, and is a sure fire way to ensure that landowners sit on their land rather than encouraging it to come forward for development.
Landowners can currently sell their land at a price which takes into account “hope” value due to potential planning permission for development. The Labour Party proposes amending compulsory purchase legislation (the Land Compensation Act 1961) to allow acquisition of land at lower prices, without taking into account potential future planning permissions.