Compulsory Purchase Orders
INFORMATION FOR
PERSONS AFFECTED BY COMPULSORY PURCHASE ORDERS
(“CPOs”)
Frequently Asked Questions
1. What is a
CPO?
2. What does the CPO
process involve?
3.
What does it mean for me if I own or lease a property within the
CPO area?
4.
What does it mean for me if I own a business located in the CPO
Area?
5.
What are my rights and what opportunities exist to resist or
influence the procedure?
6. Where can I get more
information?
1. What is a CPO
CPOs enable public bodies to secure land for regeneration
projects where there is a compelling case in the public interest.
This power is conferred on LTGDC by legislation, in the Local
Government Planning and Land Act 1980.
LTGDC, if authorised by the Secretary of State, may acquire land
by a CPO to further its statutory objects which are to secure the
regeneration of its area by:
- bringing land and buildings into effective use
- encouraging the development of existing and new industry and
commerce,
- creating an attractive environment and
- ensuring that housing and social facilities are available to
encourage people to live and work in the area.
LTGDC’s preferred option for acquiring the land is by reaching
private agreement with landowners.
However, the size of the sites within LTGDC’s designated areas
and the number of landowners, occupiers and property interests
involved makes it unlikely that all the necessary land interests
can be acquired by agreement in a reasonable timeframe. This is why
LTGDC needs to use its CPO powers.
2. What does the CPO process involve?
One of the first steps is to contact all landowners potentially
affected by the CPO to find out the exact nature of their property
interest and identify any other landowners that may be
affected.
It is important to seek to identify all parties so that everyone is
aware of the subsequent CPO process. This known as "Land
Referencing". However, it is possible that some land that has been
referenced will not in fact be included in the CPO.
Once Land Referencing has been carried out, in due course the LTGDC
may go on to make a CPO.
If this happens, LTGDC will send a copy of the CPO to all
persons whose land will be directly affected. It will also publish
notices in a local newspaper and put up notices in the vicinity of
the CPO.
When LTGDC sends Notices of the making of the CPO to affected
landowners and occupiers it will include a 'Statement of Reasons'
explaining the reasons for making the CPO.
Persons affected have the right to make an objection to the CPO
in writing and this will need to be sent to the address shown on
the Notices, within 21 days. It will be the address of a Government
Department. Objections that relate to matters of compensation may
be disregarded by the Secretary of State, because that is a matter
for the Upper Tribunal (Lands Chamber), the court of law that
determines compensation.
If there are objections (other than those relating to
compensation), the Secretary of State will (subject to certain
exceptions where the matter may be determined on paper) order a
public inquiry or hearing to be held to consider LTGDC’s case and
the Objector(s’) case(s). The Inquiry or Hearing is conducted
by a Planning Inspector.
The Inspector then prepares a written report with a
recommendation to the Secretary of State.
Whether or not there is a public inquiry, the Secretary of State
then decides to confirm, confirm with modifications or not confirm
the CPO. If it is confirmed or confirmed with modifications, a
formal notice of the decision is published and served on all
persons directly affected by the CPO.
There follows a six-week period during which legal challenges to
the CPO can be made in the High Court on legal grounds.
LTGDC’s powers to acquire land compulsorily under the CPO take
effect from the date on which the notice of the Secretary of
State's confirmation of the CPO is published. However, LTGDC
is not then legally obliged to proceed with the CPO.
Once the Secretary of State has confirmed the CPO, LTGDC may serve
Legal Notices on individual owners and occupiers. Technically,
there are two types of notice and these are known as “General
Vesting Declarations” and “Notices to Treat and Notices to Enter”
as appropriate. The practical effect of these different procedures
on the owners/ occupiers is the same and in each case they require
the owners/occupiers to give up possession. The
owners/occupiers are then entitled to bring a claim for
compensation against LTGDC. Compensation is discussed below.
3. What does it mean for me if I own or lease a
property within the CPO area?
Generally, the principle of CPO compensation is that where land
is acquired you should be no worse or better off in financial terms
after the acquisition.
In addition to the market value of your property, you may be
entitled to disturbance compensation and must normally be in
physical occupation of the land to qualify. Disturbance costs
entitlement will be the costs and expenses normally incurred in
vacating the property. These can include costs of acquiring a
replacement property (but not the cost of the property) and the
costs of moving to the property.
If the property is your home you may be entitled to a home loss
payment in addition to any compensation due.
If you rent your property and the landlord is entitled to
require possession quite apart from the CPO (such as in the case of
an assured shorthold tenancy) you will probably not be entitled to
compensation.
The above is a very general overview, and is not a substitute
for professional advice. We would strongly advise you to read the
free booklets issued by the Government that provide a more detailed
guide of the many issues that may arise from your own
circumstances. See
below.
4.
What does it mean for me if I own a business located in the CPO
Area?
Generally, the principle of CPO compensation is that where land
is acquired you should be no worse or better off in financial terms
after the acquisition.
Compensation is based on the market value of the land, together
with disturbance compensation that would entitle you to the losses
that might arise from being "disturbed" from the land or premises.
Essentially this relates to the presumption that the business is
relocated, or if it is not viable to do so is closed.
If you rent your property and the landlord is entitled to
require possession quite apart from the CPO (such as in the case of
a licence or some short term lettings) you will probably not be
entitled to compensation.
The above is a very general overview, and is not a substitute for
professional advice. We would strongly advise you to read the free
booklets issued by the Government that provide a more detailed
guide of the many issues that may arise from your own
circumstances. See
below.
In addition in limited circumstances the LTGDC is prepared to
consider meeting the proper and reasonable costs of affected
persons obtaining professional advice. This is subject to various
conditions and does not apply in all cases. This is set out in the
LTGDC ‘s “Relocation and Acquisition Policy” which can be accessed
by
clicking here.
5. What are my rights and what opportunities exist to
resist or influence the procedure?
If you own or occupy property that is affected
you have the right to make an Objection to the CPO which must be in
writing within 21 days. If the Secretary of State orders that
Public Inquiry or Hearing be held you will have the right to appear
before the Planning Inspector to state your case. You may be
represented by a solicitor or barrister but legal aid is not
available for this.
If the Order is confirmed you have the right
to make a legal challenge in the High Court within 6 weeks of any
such confirmation.
If LTGDC implement the Order and you and we
cannot agree on the amount of compensation then either you or we
may refer the matter to the Upper Tribunal (Lands Chamber) which is
the Court of Law that determines such disputes.
6. Where can I get more
information?
The Department of Communities and Local
Government (CLG) has a series of five booklets explaining how the
compulsory purchase system works.
The booklets can be downloaded from the CLG
website in pdf format.
Alternatively these publications are available free of charge
from Communities and Local Government Publications;
PO Box 236, Wetherby LS23 7NB.
Tel: 0870 1226 236
Fax: 0870 1226 237
Email: communities@capita.co.uk.
Please quote the product code (04 PD 02635/1 to /5) when
ordering. Delivery will be five to seven days from receipt of your
order. A maximum quantity restriction may apply. For an enquiry
about your order please contact customer services on 0870 1226 236,
open Monday to Friday 08:00 - 18:00.
Alternative formats under Disability Discrimination Act
(DDA): if you require any of these publications in an
alternative format (e.g. Braille or audio) please email alternativeformats@communities.gsi.gov.uk
quoting the title and product code of the publication, and your
address and telephone number.
This guidance is not a substitute for professional
advice. If your property may be the subject of a Compulsory
Purchase Order you should seek advice from a professionally
qualified person such as a chartered surveyor or solicitor, who
should be able to advise on your rights and also act on your behalf
if appropriate. It is best to seek professional help as early as
possible.