The Scottish Government launched its consultation on proposals to modernise the law on compulsory purchase in Scotland on 19 September 2025. The consultation paper is a chunky read at 134 pages, containing 122 questions for stakeholders to consider.
The Scottish Government wants compulsory purchase to “fulfil its potential as a tool for delivering projects in the public interest – one that encourages authorities to make positive and proactive use of their powers, including in partnership with third parties.”
Its aim is to make the system simpler, more streamlined and fairer for all parties.
Compulsory purchase powers are wide and varied. The Scottish Government has, however, highlighted the important role which compulsory purchase can play in helping to tackle the housing crisis, through site assembly for the delivery of new homes by the public or private sector; wider regeneration initiatives in our towns and cities, and by bringing empty homes back into productive use.
Anyone with an interest in the housing sector should therefore share their views on the proposals.
Background to Consultation
Reform of the system is long overdue. The rules on making compulsory purchase orders (CPOs), taking title, claiming compensation and valuing land interests are spread across a number of statutes, some dating back to 1845, and are bolstered by a complex web of caselaw which lawyers and lay people alike struggle to understand.
The Scottish Government has had a longstanding commitment to bring forward new legislation and now proposes to do so in a comprehensive Compulsory Purchase Act which will set out the new legal framework in a single document.
It is hoped that this will encourage greater use of compulsory purchase in appropriate cases – where a compelling case in the public interest can be made - while helping to mitigate the impact on affected parties.
Housing CPOs
Local authorities have a range of compulsory purchase powers available to them under housing legislation which allows land or buildings to be acquired for housing purposes, whether new build or conversion, as well as various ancillary purposes.
Importantly, once the land is acquired, the local authority does not need to deliver the housing itself but may instead sell or lease the land to a third party, such as a housing association.
The CPO Register – maintained by the Scottish Government since 2012 - lists 57 CPOs made during that time by 11 different local authorities under the Housing (Scotland) Act 1987. The majority of these have involved the acquisition of single empty homes, with a view to bringing the properties back into active use, with Glasgow City Council leading the charge through their Empty Homes team.
At the other end of the scale, North Lanarkshire Council promoted a CPO for the acquisition of 169 flats, within three blocks in Cumbernauld, for the purposes of demolition and redevelopment as modern, fit for purpose affordable housing.
Compulsory purchase powers under the Town and Country Planning legislation may also be used to deliver housing development – potentially as part of a wider mixed-use scheme – which is supported by planning policy and achieves wider planning objectives.
As with the housing legislation, these powers can be used by local authorities with a view to transferring the land to a third-party developer – so-called “back-to-back” or “agency” CPOs. Typically, this will involve a back-to-back agreement being entered into which will regulate the parties’ rights and responsibilities, with the developer indemnifying the acquiring authority for its costs in the process, including compensation liability.
While agency CPOs could play a significant role in unlocking problem development sites, they are currently underused, whether due to lack of developer awareness or local authority reluctance. Scottish Government is keen to see this change and the proposed reform could assist by simplifying the process and raising the profile of compulsory purchase as a delivery tool.
Reform Proposals
The proposals themselves are too many to mention, but highlights include –
- Rights in land / temporary possession – new general powers are proposed to enable acquiring authorities to acquire rights falling short of full ownership (such as access rights) and rights of temporary possession, in all cases where justification is demonstrated.
- Taking title – a new, quicker single mechanism is proposed for vesting title
- Confirmation – currently the Scottish Ministers decide whether a CPO should be confirmed – should this responsibility shift to the acquiring authority if the CPO is unopposed (no objections / all objections resolved) allowing quicker decisions.
- Compensation – simplification and clarification of rules relating to valuation of acquired land, while keeping core principle of “equivalence” (compensation should put claimant back in position they would have been in had it not been for the CPO scheme).
Next steps
The consultation remains open until 19 December 2025. Responses can be submitted to Scottish Government using the template response form. Alternatively, you can contact the SG team at CPO.Reform@gov.scot.
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