Compulsory Purchase: Know Your Rights, Maximise Your Compensation

A Guide for Property Owners, Landlords & Business Occupiers

When you're facing the prospect of a compulsory purchase order (CPO) whether due to road expansion, airport development, or regeneration, it's natural to feel uncertain. Many clients approach us with the same concerns:

“I’m seeking expert advice on my rights, compensation entitlements, and how best to prepare for any negotiations.”

If that sounds familiar, you’re not alone. In this blog, we explain what your rights are under the Compensation Code, what types of compensation may be available, and how early professional advice can make a significant difference.

 What Are My Rights in a Compulsory Purchase?

Under UK law, if your property is acquired through a CPO, you are entitled to:

• Market Value – based on the value of your property in the “no scheme world” (as if the scheme didn’t exist)

• Loss Payments – such as Home Loss Payment (10% of value for homeowners) or Basic Loss Payment (7.5% for landlords and investors)

• Disturbance Compensation – including moving costs, legal and surveyor fees, stamp duty, and in business cases, loss of profits, relocation costs, or refitting expenses

• Severance and Injurious Affection – if only part of your property is taken

The key point? You're entitled to be placed, as far as possible, in the same financial position as before the acquisition.

Who Should Seek Professional Advice?

• Homeowners wondering whether to sell now or wait for the CPO

• Buy-to-let landlords seeking to protect rental income and capital value

• Business owners or occupiers affected by potential relocation, access issues, or full acquisition

Every case is unique, and without advice, you could leave thousands of pounds unclaimed.

 How to Prepare for Negotiations

Preparation is critical — and the earlier you start, the stronger your position will be. Here’s what we advise:

1. Appoint a Chartered Surveyor
   Your own surveyor (not the acquiring authority’s) will value your interest, prepare claims, and represent you in negotiations. In most cases, their fees are paid by the authority.

2. Gather Records & Evidence
   Especially important for businesses, collect leases, trading accounts, tenancy schedules, fit-out costs, etc.

3. Understand the Heads of Claim
   Don’t assume market value is the only entitlement. You may be due additional payments, especially under disturbance or for part-acquisitions.

4. Stay Informed
   Keep an eye on scheme updates, red line plans, and any safeguarding zones. Seek early advice if you suspect your property is affected.

How Olden Property Can Help

At Olden Property, we specialise in compulsory purchase and compensation claims, acting for homeowners, commercial landlords, and business occupiers across London, Kent, Surrey and Sussex.

We provide:

• RICS-compliant Red Book valuations

• Advice on voluntary schemes, blight notices, and statutory claims

• Skilled negotiation with acquiring authorities or their agents

• Support through Upper Tribunal proceedings, if necessary

We’re independent, experienced, and focused on securing the maximum compensation you're entitled to with no out-of-pocket costs, as our fees are typically recoverable from the acquiring authority.

Get in Touch

If you’re seeking advice on your rights, entitlements, or how best to prepare for a CPO negotiation, we’d be happy to help.