Matt - Compulsory purchase and Compensation - Level 1 Flashcards
What is the purpose of compulsory purchase and compensation?
To enable public bodies to acquire land for use within future public schemes whilst also allowing suitable compensation to be paid.
What are the four main heads of claim?
- Land taken/required
- Severance and injurious affection
- Disturbance
- Surveyor fees
Can you tell me a bit about the Land Compensation Act 1961?
This is the legislation which encompasses the 6 statutory rules used for assessing compensation.
What are the six statutory rules for compensation?
Rule 1: No additional allowance shall be made on account for the acquisition being compulsory.
Rule 2: The value of the land shall be taken to be the amount that it would achieve if sold on the open market.
Rule 3: Special suitability or adaptability of the land is to be ignored
Rule 4: Increase in value due to illegal use is to be ignored
Rule 5: If the land acquired has no general demand or market for land of that purpose, the compensation may be assessed on the basis of the reasonable cost of equivalent reinstatement.
Rule 6: Disturbance compensation assessed on ‘value to owner’ basis not “open market value”
Can you tell me a bit about the Compulsory Purchase Act 1965?
This is the legislation which encompasses the four main heads of claim
Can you tell me about the Land Compensation Act 1973?
This is the legislation which covers Part 1 claims which is compensation based on injurious affection but no land being taken
What are the seven physical factors detailed within the Land Compensation Act 1973?
- Noise
- Vibration
- Smell
- Fumes
- Smoke
- Artificial lighting
- Discharge of solid or liquid substance onto the land
What RICS guidance is there in relation to Compulsory purchase and compensation?
- UK VPGA 16 - the UK Red Book Supplement
- Surveyors advising in respect
of compulsory purchase and
statutory compensation
Can you tell me a bit about UK VPGA 16?
It’s a section of the U.K. National Supplement which reminds Surveyors of other RICS guidance when engaged in CPO work such as the professional standard of Surveyors advising in respect of compulsory purchase and compensation, the Red Book and Surveyors acting as an expert witness
What is the principle of equivalence in relation to compulsory purchase and compensation?
You should be no better or worse off in financial terms after an acquisition than you were before.
What is Betterment?
This is the opposite of injurious affection. There may be instances where the scheme of the acquiring authority may increase the value of the retained land.
What is the “no-scheme” rule?
This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.
What is the home-loss payment?
This is an additional sum to reflect and recognise the distress and discomfort of being compelled to move out of a persons home.
When can compensation be claimed for no land taken?
A reduction in the value of land caused by the execution of public works.
A reduction in the value of land caused by the subsequent use of public works.
If compensation is not agreed, what happens next?
A reference can be made to the Upper Tribunal (Lands Chamber) by either the claimant or the acquiring authority. Proceedings are commenced by filing a notice of reference.
