The Compulsory Purchase Code

The Compulsory Purchase Code

The compulsory purchase code or compensation code is a term used mainly by CPO practitioners, surveyors and solicitors as a catch all phrase for all of the valuation rules, statute and case law which surrounds compulsory purchase. The truth is, although discussed at length an actual compulsory purchase code has never been created.  As the RICS Insights into compulsory purchase:

The compulsory purchase of property in the UK has a long history. The UK’s compensation code has been widely copied in other parts of the world. Yet even within the UK, this code now diverges between England and Wales, Scotland, and Northern Ireland. Although we call it a code, it is clear from the most cursory examination that it is not a single code at all.

The compulsory purchase code is spread across numerous Acts of Parliament and is informed by countless previous Tribunal cases. Statute includes the Acquisition of Land Act 1981, Land Compensations Acts of 1961 and 1973 and the Compulsory Purchase Act 1965 but much of this has been amended by additional Acts of Parliament.

Critical Tribunal Cases set many of the principles which set valuation rules and considerations.  Horn V Sunderland sets out the critical compulsory purchase code principle ‘… the right to be put, so far as money can do it, in the same position as if his land had not been taken’. Another case known as Bishopsgate Space Management is very important for business occupiers, established that, for business tenancies under the Landlord and Tenant Act 1954, no compensation was available for losses beyond the end of the immediate lease, even if there was every prospect of that lease being renewed for another term or longer. These are two famous cases but there are hundreds and the more complex (and expensive) the issue, the more likely there will be considerable case law around the subject, not least when it comes to the development potential of land acquired for compulsory purchase.   

If you are an individual homeowner, farmer or business and you receive notice that your property is subject to a CPO, your first reaction will be to Google the subject and you will be bombarded with government guidance, statute law and case law. If a compulsory purchase code or compensation code was available in one handy document, that would be ideal, but the truth is, this area of land acquisition is too complex to be bound in such a guide. This is why you, the affected party, are provided with a right to compensation for professional advice both in the build up to the compulsory purchase and after your property has been taken. Although there is a lot of information to understand, issues concerning certain situations pop up time and again in relation to certain property types and businesses. Rights to homeowners in occupation and investment owners are issues you could research for hours online but having completed thousands of sales by compulsory purchase, Olden Property could answer the questions in minutes.   

We have been advising clients in need of a compulsory purchase code for over a decade. Whether you need advice in advance of a CPO, once the CPO has been made, to object to a CPO or after your property has been taken, we would be very happy to assist. Should the case need to be referred to Tribunal, we can also act as Expert Witness.

Please contact us if you would like to discuss the compulsory purchase code. Surveying costs associated with dealing with a CPO are paid by the acquiring authority, as a matter of course we agree this in writing with the acquiring authority before taking on any instructions.