'Labour would force landowners to sell for knockdown prices, it was revealed last night.
Under existing laws, the amount of compensation for land compulsorily purchased by the State is calculated by its value after development.
It means a hectare of agricultural land – which would be worth around £20,000 undeveloped – would sell for around £2million.
But Labour would set up a quango, the English Sovereign Land Trust, and give it powers to buy sites at rock-bottom prices which excluded the up-rating after planning consent is granted.
Last night there were warnings that such a move would damage pension funds that invest heavily in land.
Property experts Savills also warned there would be legal challenges to the move as it could breach property rights.
Labour’s housing spokesman John Healey said: ‘The principle behind this idea is simple: the additional value of land publicly created by the granting of planning permission should flow to the local community rather than just as windfall profit to big developers, landowners and land agents.’'
Read More: Revealed, Labour's plan for a 'land grab': Party could force owners to sell at rock-bottom prices without giving them compensation