CIH Scotland response to the compulsory purchase consultation

We support the review of compulsory purchase orders (CPOs) and the Scottish government’s stated intention to create a system that is simple, streamlined, and fair. We agree that replacing the complex system of legislation that has evolved over decades, with a single comprehensive Compulsory Purchase Act will be beneficial. 

CPOs can play a role in supporting housing supply by ensuring that we make the most of land and existing buildings to benefit and build communities. However, we know that these powers are rarely used because the process can be complex and time consuming. 

The Scottish government’s register of CPO cases from 2012 to 2025 shows only 57 cases raised by 11 local authorities under the category of “housing” demonstrating just how rarely the powers are used. One registered case had a processing time of 2,460 days, and while this was an outlier, the average processing time of 193 days confirms that there is much room for improving the process which would benefit acquiring authorities, owners and communities by providing greater clarity about the process, timescales and likely outcomes. 

Supporting the delivery of new homes

The Scottish government has committed to tackling the housing emergency with particular focus on reducing the use of temporary accommodation, which can only be achieved through significantly increasing the supply of social and affordable homes.

Research published this year by CIH Scotland, Shelter and SFHA found that 15,693 social and affordable homes must be delivered every year for the next five years to meet housing need. This does not include private development which would be in addition to this figure. The latest affordable housing supply programme (AHSP) outturn reports that only 9,515 affordable homes were delivered in 2023/24. We need a step change in supply if we are to meet Scotland’s housing need, and a streamlined CPO process can support this through acquisition of empty homes, land assembly and regeneration projects.

Current CPO powers for local authorities already include applications “For or in connection with the provision of housing accommodation” and can be delivered with partners such as registered social landlords and/or private developers. In our view this is already broad enough to cover what is needed. However, the decision making process could be more explicit in considering the delivery of housing in the public interest where need has been demonstrated. The supply of good quality homes across all tenures, and affordable housing in particular, benefits communities in a wide range of ways including:

• Supporting better health and wellbeing – good quality homes reduce health issues related to damp, mould and air quality. Accessible and adaptable homes support people to live independently within communities and reduce the need for unplanned hospital admissions or residential care. This will be even more important going forward as our population continues to age and our health and social care system is already under significant and unsustainable pressure.
• Tackling homelessness and the use of expensive temporary accommodation – the number of homeless households and the time spent in temporary accommodation has been increasing with 10,000 children now without a permanent home. The Scottish government recognises the need to urgently address the housing emergency and this can only be done through significant increases in housing supply and ensuring that rents remain affordable.
• Reducing energy use – energy efficient homes require less energy to heat, therefore reducing fuel poverty and contributing to reductions in carbon emissions and the Scottish government’s statutory target of reaching net-zero by 2045.
• Supporting the economy – house building and maintenance provide skilled jobs across the country. The provision of homes also supports local communities providing choice and flexibility for the workforce. Delivering affordable housing in rural areas can be pivotal in attracting key workers and preventing depopulation.

The revised CPO process must be fair for all parties involved and acquiring bodies should be prepared to pay a fair price for land and buildings. But the current system can support unrealistic expectations of value based on potential future use of land which can make it difficult or impossible to deliver social and affordable housing within benchmark levels. We appreciate the Scottish Government’s position that CPO compensation should continue to be based on the principle of equivalence so that an owner faced with a CPO would not be at a disadvantage compared with selling on the open market.

We do however support the consideration of powers for ministers to disregard the prospect of planning permission for alternative development in certain circumstances in line with the system in England. The Levelling-up and Regeneration Act 2023 includes three circumstances to remove “hope value” - in the development of social housing, healthcare and schools – and we would support a similar approach in Scotland. If this option is taken forward, the Scottish government must set clear parameters for the use of exclusions to avoid adding complexity and delays back into the system it is seeking to streamline.