Compulsory purchase and compensation update – 2015
| Date | 07 September 2015 |
| Pages | 586-593 |
| DOI | https://doi.org/10.1108/JPIF-07-2015-0052 |
| Published date | 07 September 2015 |
| Author | Gary Sams |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
LAW BRIEFING
Compulsory purchase and
compensation update –2015
Gary Sams
Reading University, Reading, UK
Abstract
Purpose –The purpose of this paper is to provide a summary and analysis of recent legal decisions
relating to compensation for compulsory purchase.
Design/methodology/approach –The paper summarises three important decisions and provide a
critical assessment of each of them.
Findings –These decisions provide clarification of some of the most complex aspects: the compulsory
purchase compensation code.
Research limitations/implications –Case law is specific to the facts of each individual case and
con provide only “in principle”guidance for future compensation disputes.
Practical implications –The analysis of these decisions will assist surveyors and lawyers working
in the compensation field to advice clients in future compensation disputes.
Originality/value –As these legal decisions have been published relatively recently there will be
few other similar commentaries available.
Keywords Compensation, Compulsory purchase, Betterment, Land taken, No-scheme world,
Ransom value
Paper type Technical paper
Introduction
As last year’s update concentrated on the new HS2 compensation provisions I have
a pool of two years legal decisions to choose from in this update. I have, however,
disregarded the opportunity to cover a wide range of topics and instead I look at three
cases, two from the Upper Tribunal (UT) (Lands Chamber) and one from the Court of
Appeal, which cover broadly similar ground. Each of the cases relates predominantly
to valuing the land acquired under compulsory purchase. This mainly concerns the
approach to ignoring the scheme so the compensation paid is neither reduced nor
enhanced by its impact on property value. Other issues include ransom value,
betterment and depreciation in the value of land retained.
Disregarding the scheme using the cancellation approach
In J.S. Bloor (Wilmslow) Ltd v. Homes and Communities (2015) EWCA Civ 540 the Court
of Appeal had to consider an appeal against the decision of the UT (Lands Chamber)
ACQ 78 2011 in a case concerning greenfield land in Rochdale. The case centred on the
approach to disregarding the scheme as required by s.6 of the 1961 Land Compensation
Act and the Pointe Gourde Rule. This has long been regarded as one of the most
complex aspects of the compensation code and this decision, while providing useful
guidance, did little to simplify the issue. I shall try and summarise the issues and
outcomes in a manner which is comprehensible while remaining true to the decision.
I may not succeed.
The case concerned the compulsory purchase by the North West Development
Agency of two plots of grazing land totalling 10.86 hectares. The claimant had
Journal of Property Investment &
Finance
Vol. 33 No. 6, 2015
pp. 586-593
©Emerald Group Publishing Limited
1463-578X
DOI 10.1108/JPIF-07-2015-0052
Received 26 July 2015
Revised 26 July 2015
Accepted 27 July 2015
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1463-578X.htm
586
JPIF
33,6
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