The Supreme People's Court (SPC) has directed local courts to "carefully" handle land expropriation cases and protect the rights of farmers and homeowners, following a new government regulation issued last month.

The SPC gave the direction in a circular issued Tuesday, Wednesday's Beijing News reported.

"Local courts should carefully consider the social impact of land expropriation cases when making a judgement," the newspaper quoted Du Wanhua, a SPC judge on civil cases, as saying.

China's State Council, or cabinet, issued the regulation on expropriation and compensation of houses in urban areas in late January, with the intention of easing tension over forced demolition.

Under the new regulation, forced demolition can only be carried out after review and approval by court, if a dispute arises over expropriation or compensation between the government and a homeowner.

In the circular, the SPC said it will introduce a system to monitor the social impact of the new regulation and seek the best way to resolve "important and sensitive" cases closely related to social stability.