Compulsory Purchase

Question 1

What is the purpose of compulsory purchase?

Answer 1

1. To enable public authorities to acquire property and land for essential schemes at a fair price; and
2. To ensure that individuals receive fair compensation for property that is acquired from them compulsorily in the public interest

Question 2

How is compulsory purchase implemented?

Answer 2

1. Acts of Parliament (statute)
2. Case Law - the interpretation of statutory law principle by the courts

Question 3

What are the various courts where decisions are made in relation to compulsory purchase?

Answer 3

1. Upper Tribunal Lands Chamber
2. Court of Appeal (appeals on points of law from UTLC)
3. Supreme Court (further appeals on points of law)

Question 4

What are some of the key pieces of legislation in relation to compulsory purchase?

Answer 4

1. Land Compensation Act 1961
2. Land Clauses Consolidation Act 1845
3. Compulsory Purchase Act 1965
4. Land Compensation Act 1973
5. Acquisition of Land Act 1981
6. Town and Country Planning Act 1990
7. Planning and Compensation Act 1991
8. Planning and Compulsory Purchase Act 2004
9. Planning Act 2008
10. Neighbourhood Planning Act 2016

Question 5

What are the main components of a heads of claim?

Answer 5

1. Land taken
2. Severance and injurious affection
3. Disturbance
4. Surveyor’s fees

Question 6

What are the 6 rules for assessing compensation in respect of a compulsory purchase acquisition?

Answer 6

1) No allowance shall be made on account of the acquisition being compulsory:

(2) The value of land shall, subject as hereinafter provided, be taken to be the amount which the land if sold in the open market by a willing seller might be expected to realise:

[F1(2A)The value of land referred to in rule (2) is to be assessed in the light of the no-scheme principle set out in section 6A.]

(3) The special suitability or adaptability of the land for any purpose shall not be taken into account if that purpose is a purpose to which it could be applied only in pursuance of statutory powers, or for which there is no market apart from F2… the requirements of any authority possessing compulsory purchase powers:

(4) Where the value of the land is increased by reason of the use thereof or of any premises thereon in a manner which could be restrained by any court, or is contrary to law, or is detrimental to the health of the occupants of the premises or to the public health, the amount of that increase shall not be taken into account:

(5) Where land is, and but for the compulsory acquisition would continue to be, devoted to a purpose of such a nature that there is no general demand or market for land for that purpose, the compensation may, if the [F3Upper Tribunal] is satisfied that reinstatement in some other place is bona fide intended, be assessed on the basis of the reasonable cost of equivalent reinstatement:

(6) The provisions of rule (2) shall not affect the assessment of compensation for disturbance or any other matter not directly based on the value of land:

and the following provisions of this part of this Act shall have effect with respect to the assessment.