Business Relocation After a Compulsory Purchase Order (CPO): What You Need to Know

When a CPO Forces Your Business to Relocate

One of the most disruptive outcomes of a Compulsory Purchase Order (CPO) is being forced to relocate your business.

Whether you operate from a retail unit, office, warehouse, or industrial premises, relocation can affect everything from staff and customers to turnover and long-term viability.

Under the compensation code, the principle remains: you should be put back in the same financial position as if the scheme had not occurred.

However, relocation claims are often complex and require careful handling to ensure all losses are recovered.

Can You Claim the Cost of Relocating Your Business?

Yes ,  if your business is displaced by a CPO, you are entitled to claim reasonable relocation costs.

This falls under the heading of disturbance compensation, and can cover far more than just the physical move.

What Relocation Costs Can Be Claimed?

A relocation claim can include a wide range of costs, depending on the nature of your business:

Physical Moving Costs

• Removal company fees

• Transport of equipment, stock, and materials

• Specialist handling (e.g. machinery or sensitive equipment)

Fit-Out and Reinstatement Costs

• Adapting a new premises to suit your business

• Installation of fixtures, fittings, and equipment

• IT and telecoms setup

• Rebranding and signage

Professional Fees

• Surveyors

• Solicitors

• Planning consultants (if required)

These are generally recoverable where reasonably incurred.

Business Disruption During the Move

• Loss of profits during downtime

• Reduced turnover following relocation

• Staff inefficiencies or temporary closure

Search and Acquisition Costs

• Time and expense involved in finding a suitable alternative premises

• Agents’ fees

• Additional rent deposits or premiums (in some circumstances)

Do You Have to Relocate?

Not always.

In some cases, businesses may argue that:

• Relocation is not viable

• The business cannot be replicated elsewhere

• Closure is the only realistic option

In these scenarios, compensation may instead be based on total loss of the business, including goodwill.

However, acquiring authorities will usually expect reasonable efforts to relocate where possible.

Like-for-Like Replacement: A Key Principle

A critical issue in relocation claims is whether the new premises are a reasonable substitute for the original.

Factors considered include:

• Location and accessibility

• Size and configuration

• Footfall (for retail businesses)

• Operational suitability

If the replacement premises are inferior, this can lead to ongoing losses — which may form part of your claim.

Timing Is Crucial

Relocation claims are highly sensitive to timing.

Key risks include:

• Moving too early without agreement on costs

• Delays in securing new premises

• Gaps in trading leading to avoidable losses

Early professional advice can help structure the move in a way that protects your entitlement.

Temporary Relocation and Phased Moves

Some businesses are forced into:

• Temporary premises

• Phased relocation

• Operating across multiple sites

These scenarios often increase costs and complexity  but the additional expenses can still be recoverable, provided they are reasonable and properly evidenced.

Evidence Required to Support a Relocation Claim

A strong relocation claim will typically include:

• Detailed cost schedules

• Quotes and invoices

• Trading data before and after the move

• Evidence of business disruption

• Justification for decisions taken

The more structured and contemporaneous the evidence, the stronger the position in negotiations.

Negotiating Your Relocation Claim

Relocation claims are frequently challenged, particularly around:

• Whether costs are “reasonable”

• Whether relocation was necessary

• The extent of business disruption

A well-prepared claim, supported by valuation and commercial analysis, is essential to achieving a fair outcome.

How Olden Property Can Help

We advise businesses throughout the relocation process, including:

• Assessing whether relocation or closure is the correct approach

• Identifying all recoverable costs under the compensation code

• Preparing and evidencing relocation claims

• Negotiating with acquiring authorities

Our role is to ensure that the full impact of relocation — not just the obvious costs — is properly reflected.

Get Advice Before You Move

If your business is facing relocation due to a Compulsory Purchase Order, early advice is critical.

Decisions made at the outset can significantly affect the level of compensation you recover.

Contact Olden Property to discuss your position and protect your claim.