COUNCIL chiefs behind plans for two new towns are arming themselves with controversial powers to buy up sites in a bid to deter landowners from jacking up prices.

Colchester Council is joining forces with Tendring Council, Braintree Council and Essex County Council to create the 2,500-home garden villages east and west of the town as they try to meet Government housing targets.

Now the councils are hoping to secure compulsory purchase order powers by setting up a new development corporation.

They say the move will keep power in the authorities’ hands and would allow any necessary CPOs to be lodged earlier.

Planning rules state councils cannot use CPOs until permission has been granted but development corporations can rely solely on an approved local plan, which could come years before planning permission.

In documents set to go before Colchester Council’s ruling cabinet next week, it states: “One of the main advantages of a development corporation model is that it is likely to lead to earlier agreements regarding the acquisition of land, in addition to acquisition by compulsion in those cases where agreement proves impossible.

“The designation of an area as a new town, likely to follow closely after the adoption of the local plan, would be a clear signal that the Secretary of State would be likely to confirm a subsequent CPO.

“That, in itself, would encourage landowners to reach a voluntary agreement.”

It adds: “Despite the new legislation, a CPO remains a last resort, therefore negotiations must continue, with CPO powers only ever being used as a fall-back option.

“That does not, however, prevent authorities starting the process of preparing for a CPO alongside negotiations which may improve the likelihood of reaching negotiated settlements, since landowners see the CPO route is being taken seriously.”

John Spence, the chairman of North Essex Garden Communities Ltd, created to oversee the schemes by the councils, said: “What we are trying to do in north Essex is of national importance, and it is our belief that the opportunity to create a new development corporation takes the programme to the next level and enables us, if viability is proven, to deliver the vision we have set out.”

Paul Smith, Colchester Council leader, added: “I’m proud to lead a council that values its commitment to helping those in need of a home today and which is resolutely at the forefront of efforts to prevent the scourge of homelessness tomorrow."