There is a unique opportunity to solve the housing crisis, re-boot England’s economic growth and do it all on the cheap! Nonsense! Too good to be true, many will say. Not necessarily. According to media stories Taylor Wimpey’s chief executive Jennie Daly says the economics of building homes in London has become so challenging that the company no longer sees sufficient returns to justify the risks involved, (The Standard, Niv Yadav 8 October 2026). She is quoted as saying ‘ The reward undertaking what is a very high-risk form of development in London has just evaporated’. So the market value of buying house building land will now be nil. We are looking into in a rare window of time, caused by the notorious volatility of land values. In theory, all that the Chancellor of the Exchequer has to do is announce on Budget Day (28 October 2026) that the state will compulsorily purchase of all land deemed suitable for house building at open market value with, or without planning consent, including development value prevailing at 28 October values , which will either be nil or low.. Local communities who actively take advantage of this new opportunity will in short order recover control of most or all future land use change throughout their area after one swift policy announcement.
Where does the money come from? As we know they are not making land anymore land. For sure land and property redevelopment values will once again rapidly recover, but no one knows when. In the meantime the budget announcement freezing development values will created a massive tangible asset of long term value for the state at low cost by introducing this long term land nationalisation step when development values are very low. A shrewd public move, as owners cannot complain they are financially losing out. Because when the land is taken into public ownership the price paid by the local authority will be the full open market value at Budget Day (before the announcement) plus any new additional value that emerges after Announcement Day less the development site’s value at Announcement Day.
Immediately after Announcement Day a nationwide data base of values in urban and rural areas will be set up. Which will become the foundation of all future compulsory purchases. If the new Prime Minister wants to make a radical boost to economy activity, and one which is not dependent upon his government reaching cross-party housing policy consensus, this proposal might be answer to his prayers.
Ian Campbell
9 October 2026
