General

Question 1

What is the main legislation governing compulsory purchase?

Answer 1

Land Compensation Act 1961 = s5 rules
Compulsory Purchase Act 1965 = procedure + additional compensation (McCarthy Rules) + s8 MD
Land Compensation Act 1973 = part 1 claim + home loss + farm loss payments
Acquisition of Land Act 1981 = procedure
Town and Country Planning Act 1990 = all development proposals, incl. rights LPA to use CPOs + blight notices

Question 2

What is the procedure to make a Compulsory Purchase Order?

Answer 2

The procedure is set out under the Acquisition of Land Act 1981:

1) Formulation
2) Resolution
3) Referencing
4) Making the order
5) Notification and Publicity
6) Objections
7) Consideration of objections
8) The Inquiry
9) The Written Representation
10) The Decision

Question 3

What are the Rules of Valuation in respect of a compulsory purchase acquisition?

Answer 3

Set out in S.5 of the Land Compensation Act 1961:
Rule 1 - No allowance shall be made account of the acquisition being compulsory.
Rule 2 - The value shall be the same as if the land was sold in the open market by a willing seller.
Rule 2A - The value should be assessed with the no-scheme principle.
Rule 3 - The special suitability of the land shall not be taken into account, where it could be applied only in pursuance of the scheme and statutory powers.
Rule 4 - Where the land is used unlawfully, no increase in value should be taken into account.
Rule 5 - Where the land is used for a purpose of such a nature that there is no demand or market for, the compensation may be assessed on the cost of equivalent reinstatement.
Rule 6 - The provisions of rule (2) shall not affect the assessment of compensation for disturbance.

Question 4

What would be the typical Heads of Claim for a Landowner?

Answer 4

1) The Value of the Land Taken
2) Severance and Injurious Affection
3) Disturbance
4) Loss Payments
5) Professional Fees

Question 5

What would be the typical Heads of Claim for a Tenant?

Answer 5

1) Value of unexpired interest of the tenancy
2) Severance and injurious affection
3) Any just allowance by an incoming tenancy
5) Rent reorganisation payment (If an AHA tenant)
6) Disturbance
7) Loss payments
8) Professional fees

Question 6

What is severance?

Answer 6

Severance occurs where the land acquired contributes to the value of the land which is retained so that when severed from it, the retained land loses value.

Question 7

What is Injurious Affection?

Answer 7

The depreciation in value of the retained land as a result of the proposed construction on land acquired both for construction of works and their subsequent use.

Question 8

What is Betterment?

Answer 8

The increase in value of retained land that is adjacent to the land acquired. The increase in value would be offset against the total compensation.

Question 9

What is Material Detriment?

Answer 9

A claimant is able to serve a counter-notice within 2 months of a CPO notice requesting the acquiring authority purchase the retained land if found that the part being compulsorily acquired cannot be taken without causing material detriment to the remainder, MD meaning usually that is no longer suitable or able to be farmed or used for its previous use. S8 of CPA 1965 gives right for Upper tribunal to require the AA to purchase land caused MD to as part of scheme.

Question 10

What is the Pointe Gourde principle?

Answer 10

Any increase in the value of the land which is solely attributable to the scheme should not be paid as compensation. (Quarry case law)

Question 11

What powers are available to acquire land?

(notices/vesting etc.)

Answer 11

1) By Agreement
2) Notice to Treat followed by Notice of Entry
3) General Vesting Declaration

Question 12

What is the procedure for acquiring land via the Notice to Treat and Notice of Entry route?

Answer 12

1) A Notice to Treat must be served within 3 years of the confirmation of the CPO and state that the acquiring authority is willing to negotiate for possession of the land.
2) The Notice of Entry must then be served to take possession of the land within 3 years of the Notice to Treat being served. A minimum of 14 days notice must given for entry,
3) Possession can take place but the Title will not be conveyed to the acquirer until the compensation has been paid.

Question 13

What is the procedure for acquiring land by a General Vesting Declaration?

Answer 13

1) A preliminary notice (A form of statement of effect of a GVD) must be served on all affected parties.
2) A GVD may be executed 2 months after the preliminary notice.
3) A second notice (Notice of making) is then served stating that the GVD has been executed and specifying a date when the land vests - at least 28 days notice must be given.
4) On the vesting date, possession can be taken and the Title is transferred.

Question 14

What is a blight notice?

Answer 14

A blight notice can be served on an acquiring authority requesting the acquiring authority to purchase the property at its untainted value. The value of the property must have been reduced by the scheme. The acquiring authority have 2 months to respond to the blight notice. Eg counter-notice within 2 months of receipt

Rules for eligibility on Statutory Blight are set out in s149 of Town and Country Planning Act 1990
For owner occupiers only (not on let property)

Grounds for AA countering (s151)

The person who served the blight notice can then refer the matter to Tribunals service within one month of receiving the counter notice.

Question 15

What are the Notification and Publicity requirements of making a CPO?

Answer 15

1) A notice must be published for 2 successive weeks in a local newspaper
2) A notice must be published on the site
3) Notices must be served on affected parties providing details of the scheme and the timeframe for objections - This must be at least 21 days from the date the notice was served.

Question 16

What is the timeframe for notifying parties of an Inquiry in respect of a CPO?

Answer 16

42 days notice must be given for the Inquiry

Question 17

What is Basic Loss?

Answer 17

Basic Loss an additional payment made to reflect the inconvenience and disruption caused by the acquisition. The payment made is 7.5% of the value of the interest subject to a maximum payment of £75,000. To qualify you must have held an interest in the land for a year or more prior to possession.

Question 18

What other loss payments are there and what statute are they governed under?

Answer 18

Home Loss 10% and occupiers loss 2.5%. S33 of LCA 1973

Question 19

What are the Crichel Down Rules?

Answer 19

Non-statutory and set out the arrangements under which surplus government land acquired by, or under threat of, compulsion should be offered back to former owners, their successors or to sitting tenants.
The original rules (provided under DoE Circular 18/84 October 1992) stated the original owner or their heir in title, should be offered first refusal at current market
value.
The revised rules n Circular 06/2004: Compulsory purchase and the Crichel Down rules supersedes those which have gone before and part 2 of the memorandum includes specific guidance on the operation of the rules. I

Question 20

Section 8 of Compulsory Purchase Act 1965

Answer 20

Provides mechanism whereby a landowner can require the acquiring authority to purchase the whole of their land (if retained land suffers material detriment) holding rather than just the part contained in the CPO

Question 21

Schedule 1 of Compulsory Purchase (Vesting Declarations) Act 1981

Answer 21

Contains procedures to enable landowner to serve notice (within 28 days of receipt of GVD) on AA to require it to take the whole of the severed land.

Question 22

‘Qualifying Person’ as identified and defined under the Compulsory Purchase of Land (Prescribed Forms) (Ministers) Regulations 2004

Answer 22

1- an owner, lessee or tenant or other occupier of the land
2- person entitled to be served with a notice to treat
3-person likely to be entitled to make a ‘relevant claim’

Question 23

Highways Act 1980

Answer 23

Authorises the use of compulsory purchase powers to take land needed for the construction and improvement of highways.

Question 24

Hybrid Bill

Answer 24

Hybrid of a public general act and private act
Affecting population at large but the scheme has a localised impact
E.g. HS2

Question 25

DCO process

Answer 25

6 stages = Pre-application stage formally consult,
Acceptance formally submitted to Planning inspectorate - if accepted moves to
Pre-examination stage - publish how get involved 28 days min + appoint ExA + prelim meeting next day = start of
examination stage 6 months WRs + ISHs etc. - then 3 months recommendation report ExA- sos has 3 months Decision -
post decision stage - potential for judicial review.

Question 26

You say you reviewed heads of terms for an ‘option to purchase’ proposed by the acquiring authority

What did these include?

Answer 26

Identified the scheme.
Parties + their solictiors and agents etc.
Set out the terms of an option agreement for the landowner to enter into with the AA for them to purchase the land they are seeking to acquire permanently
option period
right to renew
identifies the land
option fee
consideration
fees willing to reimburse Landowners agent/solicitor,
access + survey access
reinstatement - refers to temporary land take
time frame for completion.

Question 27

What is a Part 1 claim? and are there time limits?

Answer 27

A Part 1 claim under the Land Compensation Act 1973 allows persons who own or occupy a property which has been adversely affected by a scheme to claim compensation. The requirements of the scheme have to be measurable and evidenced physical factors, which have occurred as a result of the scheme being operational (so since the construction phase has ended) and the claimants interest, i.e. tenancy or purchase of property has to have been acquired before the relevant date. Items such as:

• noise
• vibration
• smell
• fumes
• smoke
• artifical lighting

but can’t claim for loss of view, privacy, inconvenience caused/arising during construction

Time limits = can’t claim until 12 months after relevant date (i.e. first claim day 366 days after RD) and claim notice can be served anytime within the 6 years following first claim date.

Question 28

Horn v Sunderland case and what it has to do with the principle of equivalence?

Answer 28

‘the owner shall be paid neither less nor more than his loss’ The fundamental principle underlying the ‘Compensation Code’ is that of ‘equivalence’.

In all situations several factors need to be identified to arrive at the compensation payable. They are:

the nature of the interest being acquired and whether this is subject to a tenancy or a restrictive covenant;
the extent and condition of the property;
the use and potential changes in use of the property;
the date of valuation;
the costs and losses incurred by the owner of the interest as a result of the acquisition (so-called ‘disturbance’).

Question 29

What are the McCarthy Rules?

Answer 29

McCarthy Rules are contained under s10 of the Compulsory Purchase Act 1965.
Another mechanism for claiming compensation where no interest in land has been acquired.

Compensation for Injurious Affection caused by the Execution of the works – NOT the use of the works
Right to compensation to anyone whose land or interest has been injuriously affected by the execution of the works
Damage must come from an interference with some right in land which adds value to the claimants property

Question 30

What did the Housing & Planning Act 2016 bring in?

Answer 30

Powers of Entry for Survey Purposes
Changes to Advance Payment process
Dispute resolution
Counter-notice provisions

Question 31

What did the Neighbourhood Planning Act 2017 bring in?

Answer 31

Temporary Possession
“No Scheme” principle
Treatment of Minor Tenancies
Repeal of Part 4 of Land Compensation Act 1961