Levelling-up and Regeneration Act 2023 (c. 55)

Prospective

Part 5 E+W Community land auction pilots

Community land auction arrangements E+W

141 Community land auction arrangements and their purpose E+W

(1) In making CLA regulations the Secretary of State must aim to ensure that the overall purpose of community land auction arrangements is to ensure that costs incurred in—

(a) supporting the development of an area, and

(b) achieving any purpose specified under section 143(7), section 144(3) or section 145(3),

can be funded (wholly or partly) by owners or developers of land.

(2) “CLA regulations” means regulations made under this Part by the Secretary of State.

(3) A “community land auction arrangement” means an arrangement provided for in CLA regulations under which—

(a) a local planning authority is to invite anyone who has a freehold or leasehold interest in land in the authority’s area to offer to grant a CLA option over the land, with a view to the land being allocated for development in the next local plan for the authority’s area,

(b) any CLA option granted under the arrangement ceases to have effect if the land subject to the option is not so allocated when that plan is adopted or approved (unless the option has already been exercised or been withdrawn or otherwise ceased to have effect), and

(c) the local planning authority may—

(i) exercise the CLA option and dispose of the interest in the land to a person who proposes to develop the land,

(ii) exercise the CLA option with a view to developing the land itself, or

(iii) dispose of the CLA option to a person who proposes to exercise it and then develop the land.

(4) A “CLA option”, in relation to land, means an option to acquire a freehold or leasehold interest in the land which—

(a) subject to CLA regulations under paragraph (c), can be—

(i) exercised by the local planning authority in whose area the land is situated, or

(ii) disposed of by that authority to any other person, on such terms as the authority considers appropriate,

(b) is granted under a community land auction arrangement, and

(c) meets any requirements imposed by CLA regulations.

(5) CLA regulations under subsection (4)(c) may, in particular, include provision about—

(a) how long a CLA option must be capable of being exercised for;

(b) when, or the circumstances in which, a CLA option may or must be capable of being exercised;

(c) when, or the circumstances in which, a CLA option may or must cease to have effect;

(d) when, or the circumstances in which, a CLA option may or must be withdrawn;

(e) when, the circumstances in which or the terms on which, a CLA option may or must be disposed of;

(f) sums that are to be paid under or in connection with a CLA option (including provision permitting or requiring such sums to be adjusted to reflect changes in the value of money);

(g) the form and content of a CLA option.

Commencement Information

I1 S. 141 not in force at Royal Assent, see s. 255(4)

142 Power to permit community land auction arrangements E+W

(1) This section applies where—

(a) CLA regulations provide that a local planning authority which is to prepare a local plan may put in place a community land auction arrangement in relation to that plan,

(b) the local planning authority resolves to do so (and that resolution has not been rescinded), and

(c) the community land auction arrangement has not come to an end.

(2) The local plan may only allocate land in the authority’s area for development—

(a) if the land is subject to a CLA option or a CLA option has already been exercised in relation to it, or

(b) in circumstances which are prescribed by CLA regulations.

(3) Any financial benefit that the local planning authority has derived, or will or could derive, from a CLA option may be taken into account—

(a) in deciding whether to allocate land which is subject to the option, or in relation to which the option has been exercised, for development in the local plan;

(b) in deciding whether the local plan is sound in an examination under Part 2 of PCPA 2004.

(4) CLA regulations may make provision about how, or to what extent, any financial benefit may be taken into account under subsection (3) (including provision about how any financial benefit is to be weighed against any other considerations which may be relevant to whether the land should be allocated for development in the local plan or to whether the plan is sound).

(5) References in this section to a local plan do not include references to a joint local plan (but see section 147 in relation to the application of this Part in relation to joint local plans).

Commencement Information

I2 S. 142 not in force at Royal Assent, see s. 255(4)