Article

Compulsory purchase

With the emphasis, particularly in North Kent, on regeneration, one of the main tools available to public bodies to facilitate land assembly is compulsory purchase. The powers of compulsory purchase that
are available to public bodies were widened under the Planning & Compulsory Purchase Act 2004 with the result that Local Authorities can now acquire land if they consider that acquisition will facilitate the carrying out of development, redevelopment or improvement of land and that this will contribute to the economic, social or environmental well being of their area.

What can you do, though, as a landowner if your Local Authority intendsto acquire your land?

The answer is that you can take a variety of steps at various different stages of the process. Before a CPO is made the Local Authority will decide what land is required for the scheme and will embark
on an information and evidence gathering process. You may be able to enter negotiations with the Local Authority at this stage. Then, when the CPO has been made, there will be an opportunity to make objections to the CPO. Provided these are submitted in writing within the requisite timescale (i.e they are “duly made”) the Confirming Authority must take them into account. Essentially objections which amount to a pure attempt to undermine the development plan or which raise issues that are within
the sole remit of the Lands Tribunal, i.e compensation issues, can be overridden by the Confirming Authority, but others have to be “adjudicated upon” in some way, usually at a public local inquiry. Any “planning merits” points should, therefore, show so far as possible that fresh evidence exists that certain matters were not taken into account or fully considered previously, or that there has been a change in circumstances, so that a fresh view ought to be taken. If you are proposing to negotiate with the Local Authority, you should ensure that you enter duly made objections to give yourself leverage in the negotiations. You should also ensure that if those negotiations lead to a successful compromise, the agreement with the Local Authority is contained in writing and that it is legally enforceable before you withdraw your objections.

Following the confirmation of a CPO, and assuming that no legal challenge under Section 23 Acquisition of Land Act 1981 or judicial review is possible or advisable, the steps that you can take now will be limited to the issue of compensation. You could consider serving a Blight Notice to accelerate the acquisition of the land by the Local Authority or, if a Notice to Treat is served upon you, this is the formal Notice saying that the Local Authority is willing to negotiate for the purchase of your land as set out in the Notice. If these processes do not lead to the negotiation of an appropriate sale price which reflects all the heads of compensation to which you are entitled, you (or the Local Authority) can refer the matter to the Lands Tribunal to determine the correct level of compensation due. In carrying out your egotiations remember that there are a number of different heads of compensation which should be considered over and above the value of the land which is to be taken from you. In addition the question of land valuation itself is far from straightforward. For example how wide is “the scheme” that has to be ignored in assessing the development value of the land that is to be taken? And when considering planning permissions that can be deemed to exist for the purposes of valuation, what conditions should you assume and to what extent can they mirror those actually imposed in reality?

From the landowner’s point of view, therefore, a CPO or threatened CPO should not be seen as a death knell, but rather as an opportunity to make the most of a situation which the Local Authority itself will have to accept is riddled with legal complexities.

For further enquiries please contact Nick Horton (view full profile) on 01892 701313 or email nhorton@ts-p.co.uk.

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