Compulsory purchase and compensation

Question 1

How do these impact upon development and CPO procedures?

Answer 1

CPOs can significantly affect development by enabling land acquisition for projects deemed in the public interest, which can speed up or delay development depending on objections or legal challenges.

Question 2

Tell me about the CPO process.

Answer 2

Linked back to the European Convention on Human Right and that Articule 1 provides the right to peaceful enjoyment of possessions. No one shall de deprived of this expect in the public interetst and subject to conditions for by law.

Two routes to compulsory purchase for a specific scheme is
1. Direct from Parliament (primary legisaltion) e.g HS2
2. Secondary legislation e.g Highways Act 1980 for road, Regeneration Town and Country Planning Act 1990

Process
1. Make the Order - SoS for approval, has all land identified and required, all affected parties notified
2. Inquiry - Planning Inspectorate holds an enquiry
3. Powers - if approved notice goes to affected parties, 6 week period for challenges

Question 3

What does compulsory purchase mean?

Answer 3

legal power of authorities to acquire private land without consent for public benefit, such as infrastructure or regeneration projects.

Question 4

Where do CPO powers come from?

Answer 4

CPO powers are derived from legislation such as the Acquisition of Land Act 1981 and the Town and Country Planning Act 1990, which grant authorities the right to acquire land.

Question 5

What is the public interest caveat?

Answer 5

Ensures CPOs can only be executed if the land acquisition is
- necessary to serve a public purpose, such as infrastructure or community benefit.
- Necessary for CP to deliver it
- Within authoirsed purpose
- Proportionate

Question 6

What do CPOs include?

Answer 6

Include:
Land to be acquired
Purpose of the acquisition
compensation arranged or antipated under the Land Compensation Act 1961

Question 7

Does planning permission have to be granted before a CPO can be granted?

Answer 7

No, planning permission does not always need to be granted before a CPO is issued, but it is generally expected that planning approval will be in place or imminent.

Question 8

What are the CPO confirmation criteria?

Answer 8

Necessary
In the public interest
Proportionate

Question 9

What is a statement of reasons?

Answer 9

document explaining why the authority believes the CPO is necessary, detailing the public interest and the intended use of the land.

Question 10

Briefly tell me about the procedure for making a CPO.

Answer 10

First identifiying the land interests to be acquired, serving notice on the affected parties, allowing time for objections, conducting the inquiry the obtaining approval/confirmation

Question 11

Who can object to a CPO?

Answer 11

Owners, tenants, or occupiers of the land and anyone with a legal interest can object to a CPO.

Question 12

Are any types of land protected from CPOs?

Answer 12

Certain types of land, such as common land, parks, and historic sites, may have additional protections or require special procedures.

Question 13

What is a public inquiry?

Answer 13

A public inquiry is a formal hearing where objections to a CPO are reviewed by an inspector, allowing both parties to present evidence.

Question 14

What are written representations?

Answer 14

Written representations are an alternative to public inquiries where parties submit written objections and responses for consideration.

Question 15

When may public inquiry be used over written representations for a CPO?

Answer 15

A public inquiry is used when there are complex issues or substantial objections that require cross-examination or oral evidence.

Question 16

What does confirming a CPO mean?

Answer 16

Confirming a CPO means the CPO has been approved by the confirming authority, making it legally enforceable.

Question 17

What are the two grounds for legal challenge of a CPO?

Answer 17

1. Grounds of procedural error
2. Not in the public interest

Question 18

What are the compulsory acquisition?

Answer 18

Compulsory acquisition refers to the legal process where authorities acquire private land without consent for public purposes.

Question 19

What is the role of the Upper Tribunal (Lands Chamber)?

Answer 19

The Upper Tribunal (Lands Chamber) resolves disputes related to compensation for land taken under compulsory acquisition

Question 20

How is compensation assessed where an interest in land is (not) acquired?

Answer 20

Injurious affection where no land is taken but that impact on value. Three types
1. part of land is taken - s 7 CPO Act 1965
2. no land taken but rights affected - s. 10 CPO Act 1965
3. no land acquired, no rights but value reduced due to the specific ‘physical factors’ of the scheme. Part 1 Land Compensation Act 1973. Only the use of the scheme (not presence or construction)

Question 21

What is the principle of equivalence?

Answer 21

Underpins the compensation code - referred to in case law as Lands v Shun Fun

Providing fair compensation for a claimatn whose land has been compulsorily taken from him, is entitled to be compensated fairly and fully for his los, but it not entitled to receive more then fair compensation.

Question 22

What is included in a Head of Claim?

Answer 22

1. Value of land taken
2. Injurious affection
3. Disturbance
4. Loss payments
5. Reasonable professional fees

Question 23

Where does the value of land taken come from?

Answer 23

s. 5 Land Compensation Act 1961 sets out 6 rules which are central to the assessment of the value of land taken. Centred around market value and disregarding the scheme

Question 24

What is Article 4?

Answer 24

Article 4 refers to a direction under the Town and Country Planning Act that removes certain permitted development rights in specified areas.

Question 25

How can articule 4 be used?

Answer 25

Article 4 can be used by local authorities to control development in sensitive areas, requiring planning permission for developments that would otherwise be permitted.

Question 26

What advice would you provide to a client facing CP?

Answer 26

Their rights to compensation, the CPO process and the timelines of this, understanding whether they had an objection and understanding the outcome looking at negotiation and compensation.

Question 27

Explain to your client the heads of claim for the total extinguishment of a business and in what circumstances total extinguishment may be claimed as a basis for compensation when only part of a freehold interest is being acquired.

Answer 27

If the part freehold makes the business unviable, total extinguishment may be claimed for. Head of claim would include, loss of profits, relocation costs, loss of any goodwill.

Question 28

What statutory abilities to acquire rights exist other than outright purchase? How might a utility company use statutory powers?

Answer 28

Statutory rights include acquiring easements, rights of way, or rights to install infrastructure. A utility company might use these powers to install pipelines or electrical lines without purchasing the land outright.

Question 29

What valuation techniques might be used in a CPO?

Answer 29

comparable method, investment method or residual depending on market and property type

Question 30

What surrounding caselaw are you aware of? What is the Compensation Code?

Answer 30

Pointe Gourde 1947 is the overarching caw law when determining compensation for land. Mine in Trinidad and the keys points were
1. no added value from the scheme
2. fair compensation
3. avoiding unjust enrichment

Compensation code about calculating fair compensation

Question 31

What is your duty under this? What RICS guidance are you aware of?

Answer 31

My duty is to act in the best interest of my client while adhering to the RICS standards. Relevant guidance includes the RICS Compulsory Purchase and Compensation practice notes.

Question 32

What approach should you take when dealing with a CPO?

Answer 32

I would take a proactive approach, advising the client to engage early, gather evidence for claims, negotiate with acquiring authorities, and consider alternative dispute resolution.

Question 33

What should you include in your ToE?

Answer 33

Terms of Engagement should include the scope of works, fees, timelines, obligations,

Question 34

What human rights legislation might you take into account for a CPO instruction?

Answer 34

The Human Rights Act 1998 and the European Convention on Human Rights (Article 1 of Protocol 1) are considered, ensuring the right to property is respected and compensation is fair.

Question 35

What type of fee basis might you agree?

Answer 35

You might agree to a fixed fee, hourly rate, or percentage-based fee, depending on the scope and complexity of the work.

Question 36

Talk me through the Public Inquiry process.

Answer 36

A Public Inquiry is held when objections to a CPO are raised. An independent inspector reviews the case, hearing evidence from both sides. Afterward, the inspector provides a report to the confirming authority, which makes the final decision.

Question 37

Explain what section of the UK National Supplement relates to CPOs.

Answer 37

The relevant section is UK VPGA 16, which provides guidance on valuing land for CPO purposes, including compensation for acquisition and impact on remaining land.

Question 38

What can Part 1 claims relate to?

Answer 38

Part 1 claims can relate to depreciation in property value caused by factors such as noise, vibration, pollution, or other nuisances from public works.

Question 39

What is the valuation date for a Part 1 claim?

Answer 39

One year after the public works have been completed and brought into use.

Question 40

How is compensation calculated for a Part 1 claim?

Answer 40

Compensation is calculated based on the reduction in market value of the property as a direct result of the public works.