The use of compulsory purchase orders (CPO) has decreased in recent years but they are still vital to facilitate urban regeneration, law firm says.

New figures released by law firm Womble Bond Dickinson LLP reveal that submissions of planning CPOs, which are often deployed to facilitate complex large scale development projects, decreased by 30% in 2016.

There were 40 applications last year compared to 57 in 2015 and 58 in 2014. However this is still higher than the 36 submitted in 2013 - the lowest level since 2003. Housing CPOs also saw a dip from 54 submitted in 2015 to 39 in 2016.

The use of Planning CPOs in 2016 falls short of pre-recession levels and a 'new normal' for a lower number of CPO submissions made each year appears to have been established — a sign of low economic confidence.

The law firm’s findings show that success rates for both kinds of CPO remain high. At least 87% of planning CPOs succeeded in 2015 and 82% in 2016. For Housing CPOs the equivalent figures are at least 93% in 2015 and 94% in 2016.

For the period between 2003-2016, the North West of England and London saw the most CPO submissions. This was followed by the West Midlands.

The report also found that while many authorities have used their compulsory purchase powers, they do so sparingly. A relatively small number of authorities account for a significant proportion of CPOs made.

The report notes that the programme of Housing CPOs made by Newham stands out, as do those of Burnley and Wigan Councils. The use of planning compulsory purchase powers by Liverpool and Manchester City Councils also contributed significantly to the final results.

In the West Midlands, Birmingham and Wolverhampton Councils have made substantial numbers of Housing CPOs, with the former also making 19 Planning CPOs.

Womble Bond Dickinson LLP looked at why CPOs fail. They found the reasons Housing CPOs do not succeed are fact specific. However, for Planning CPOs some more general reasons can be identified.

These include: a failure to assess alternative schemes, planning permission not conclusive of need and Public Sector Equality Duty issues.

‘Our fourth report echoes many of the key messages of previous reports: CPOs are a vital tool for regeneration, success rates for both Planning and Housing CPOs remain high and there are a range of reasons, from technical to evidential, why a small percentage of CPOs are not confirmed,’ said Jonathan Bower, Planning Partner at law firm Womble Bond Dickinson LLP.

‘A significant number of local authorities make use of compulsory purchase powers but generally they do so sparingly.

‘Acquiring authorities can take comfort from the good prospects of success but must use CPOs with care and pay close attention to the circumstances of each case to meet legal and policy requirements.

‘The use of compulsory purchase requires a supporting policy base and it is most successful when there is strong political will to use the powers.’