Submission Qu's Flashcards
What is the history of Compulsory Purchase?
The Lands Clauses Act 1845 outlined the procedure and the right to compensation. There is a fundamental human right that a person should not be deprived of land without compensation.
Now various Acts outline how compensation is payable, but severance and injurious affection is still largely based on the 1845 Act
What is the Acquisition of Land Act 1981?
The Act which sets out the the ways in which an acquiring authority can obtain compulsory purchase powers. Includes SECTION 23, the right to appeal.
What is the Compulsory Purchase Act 1965?
Sets out the right to claim compensation as a result of a compulsory purchase (Section 10). Sets out the rights to compensation for indirect affects of the scheme (four McCarthy Rules).
(What are the McCarthy Rules?)
- the injurious affection (IA) = result of lawful exercise of statutory powers
- the IA must arise from that which would give rise to action
- Value of the land must be directly affected by physical appearance
- Damage must come from execution of the works, not the authorised use.
What is a Compulsory Purchase Order?
An order made by a public body, through powers obtained in the Acquisition of Land Act 1981, to acquire the land forcefully.
What is a DCO?
Development Consent Order - used to consolidate purchase powers, planning permission and any other necessary consents needed for Nationally Significant Infrastructure Projects (NSIPs) as defined in the Planning Act 2008
What is a TWAO?
Transport and Works Act Order - to authorise new railways and trams as defined in the Transport and Works Act 1972
Who can make a compulsory purchase?
Government Departments and Agencies, Local Authorities, anyone with a parliamentary private bill
Eg Civil Aviation Authority, National Highways, Post Office, British Telecomms, Homes England
What is the relevant RICS guidance?
RICS Professional Statement, Surveyors Advising in Respect of Compulsory Purchase 2017
What other guidance is available?
Statutory Compensation UK (1st Ed), Land Compensation Claims Protocol 2018 and the Model Claim form for Claimants
What is the RICS Professional Statement, Surveyors Advising in Respect of Compulsory Purchase?
Provides guidance and mandatory professional behaviours to help provide advice regarding property interests in the UK realting to the seeking or use of compulsory purchase by or against your client, and where the use of such powers in contemplated
What is the Land Compensation Claims Protocol 2018?
Applies to any claim for compensation made by a claimant to a compensating authority that would involve a reference to the Upper Tribunal (Lands Chamber)
What is the Model Claim form?
A template used to help formulate a compensation claim
What is the Land Compensation Act 1961?
Relates to the assessment of compensation, and Section 5 six rules for compensation
What are the six rules for compensation?
Under section 5;
1. No allowance - although this is translated into the Land Compensation Act 1973 (Loss Payments)
2. Market Value
3. Special Suitability
4. Illegal User
5. Equivalent Reinstatement
6. Disturbance
What is Disturbance?
Disturbance compensation includes all costs reasonably associated with the CPO. A claimant has a duty to mitigate their loss. Examples of items which are claimed under “disturbance” include removal costs and acquisition fees incurred in purchasing a relocation property (including Stamp Duty Land Tax) as well as business losses
What is Severance and Injurious Affection?
when part of the property is taken and the value of the remaining is adversely affected by the scheme
when no land is acquired, but the building of the scheme and/or subsequent use may cause devaluation of the land
What are Statutory Loss Payments?
Under s.33 of the Land Compensation Act 1973, Basic and Occupiers Loss payments are paid to claimants other than residential occupiers and residential owner-occupiers
What is the Land Compensation Act 1973?
Outlines compensation for subsequent use of the scheme when no land is taken.
Includes statutory home loss payments
Part 1 - compensation for depreciation caused by use of public works (no sooner than 12mths since the opening of the scheme)
Part 2 - duty to responsible authorities to insulate buildings against noise caused or expected to be caused by the construction or use of public works or to make grants in respect of the cost of such insulation.
What is a GVD?
General Vesting Declaration
a formal procedure that gives a local authority the right to take over the ownership of property. The authority must wait two months after sending out a preliminary notice before it can make a GVD.
How did you assess the market value of the land to be compulsorily acquired? (Paul Lewis, L2)
Using the comparable method of valuation, I worked out the agircultural rates per acre in that area, and used this to determine the value of the amount of land taken
What was the valuation date? (Paul Lewis, L2)
In this case, the valuation date is the date of the GVD, however this can differ depending on the method used for the acquisition. if a notice to treat was served, the valuation date would be the date of entry, following the notice to treat.
What items were included in the heads of claim? (Paul Lewis, L2)
Loss of land
flooding due to scheme
compromised access to land
loss of crop and BPS
Can you clarify how the CPO affected your client? (Rosie Hayden, L2)
The CPO boundary went through a paddock she owns separately to her property. The example however refers to her property which has been indirectly affected by the scheme in the ways in which I have described.
How did you quatify the reduction in value due to the light pollution of oncoming traffic? (Rosie Hayden, L2)
As a client has a duty to mitigate their losses, the figure I attributed to the claim was the equivalent cost of having to install black out blinds in all the windows facing the road, and also the planting of some mature shrubs to reinstate the privacy. However, this must be no sooner than 12 months since the scheme opened according to Part 1 of the LCA 1973
How does the AHA tenancy affect the compensation available to the farmer? (Ellis’s, L3)
(What compensation did you advise was available to the tenant farmer?)
Tenants are entitled to compensation under the same heads of claim. The claim is based on the value of the unexpired lease term, and whilst the tenant cannot claim for land loss, they can claim for crop loss and the loss of income of that area of land. They can also claim for Loss Payments, as the AHA tenancy gives leasehold interest of more than one year and they are in occupation (7.5% and 2.5%)
What was the value of your clients interest? (Ellis, L3)
This claim is ongoing, but the figure is based on the crop loss and any future reduction due to the now smaller area of land.
What other items did you adivse were claimable? (Ellis, L3)
flooding, restricted access, less land to farm, needing to cross two highways
How did you assess market value if there was no claim under this heading? (Ellis, L3)
I spoke with the agents handling the freeholders estate, our tenant’s LL, to get the market value assigned on an per acre basis to claim both Basic and Occupiers Loss
What is the Upper Tribunal (Lands Chamber)?
Handles disputes relating to compensation for the acquisition of land, including for severance or injurious affection, and depreciation by physical factors caused by the use of public works.
Who can make a referral with the Upper Tribunal?
The Acquiring Authorty and the owner of the land
What is the procedure for a referral?
- The Upper Tribunal (Lands Chamber) will sit in public.
- Any member of the Tribunal dealing with the proceedings is entitled to enter and inspect the land in question.
- No declaration of impartiality is required from any member of the Tribunal.
- Not more than one expert witness on either side will be heard unless the Tribunal otherwise directs
- The general conduct of the hearing is at the Tribunal’s discretion, but is likely to be similar to arbitration.
- The party may conduct his own case or be represented by a barrister or solicitor.
- The Tribunal shall, on the application of either party, specify the amount awarded in respect of any particular matter the subject of the award.
- The jurisdiction of the Tribunal is limited to assessing compensation; it cannot decide questions as to the title to land.
- An unconditional offer, made with a view to securing a settlement by agreement, is not admissible as evidence of value during the inquiry (hence the term ‘sealed offer’).
- The Tribunal has a discretion in awarding costs under the rules laid down for its guidance by s.4 of the Land Compensation Act 1961.
