As part of the continual investment in green energy and infrastructure by the Government, acquiring authorities will aim to utilise their rights to acquire land and build these types of schemes. The most common method of compulsory acquisition is a Compulsory Purchase Order (CPO).
Gone is the day when an acquiring authority engages early with a landowner and attends to their every requirement. Some used to refer to large schemes as “gravy trains”, whereas now there are strict budgets for schemes, with the most reasonable of claims and works being scrutinised, with the term “it must be in the tax payers interest” being banded about constantly by their agents.
The reason for this post is to provide an explanation of what a CPO is and what rights the acquiring authorities have. Throughout North West England we have HS2 and the proposed Hynet scheme which will be colossal infrastructure schemes over the next 20 years, never mindthe day to day utility or highway schemes impacting the local area. HS2 alone could serve 50,000 Compulsory Purchase Notices and, as a result CPO is likely to be a large issue in the area for a while.
In this post we will provide some definitions and need-to-know phrases, the CPO process, what to do if you receive a CPO and what you can claim for.
What is Compulsory Purchase?
A legal mechanism by which acquiring authorities (such as HS2, National Grid, Highways England, Scottish Power and United Utilities) can acquire property or land without the consent of the owner. This includes the right to enter land to undertake surveys such as ecological or ground investigation works. Examples projects, which must be in the public interest, include development, regeneration, and infrastructure.
Why is a Compulsory Purchase Order Important?
As mentioned above it is a legal process that allows a 3rd party to undertake works on your land and property. As part of any legal process there are opportunities to raise concerns and to mitigate any losses. In most cases landowners are at a loss owing to land being taken; being aware of the process and your rights can assist in being treated fairly and compensated accordingly. Burying your head in the sand or locking gates, doesn’t achieve anything. For example, if a landowner does not engage with the acquiring authority the latter will have no understanding of the business or its requirements, so no mitigation would be provided such as crossing points, access or water troughs. This comes back to bite the landowner when they can’t’ farm what they are left with, thus affecting the business efficiency and profitability.
“Government guidance states - Although compulsory purchase powers can help to deliver positive change, the government recognises that it can be upsetting and stressful to discover that land which you own or occupy is to be compulsorily acquired. Furthermore, the law and procedures relating to compulsory purchase are complex, which can be daunting”
Therefore, we believe it is vitally important to understand a CPO
CPO Process
It is worth considering that most legislation dates back to the 1960s and has been tweaked ever since. It is not in the acquiring authorities interest to use their compulsory purchase powers but rather to negotiate and acquire the rights by agreement. Indeed, without negotiating they would not be able to obtain the order. Below details the process of obtaining a CPO:
- Preliminary enquiries – Acquiring authority considers whether land is required to deliver a project it is promoting and the extent of the land that may be required.
- CPO preparation and submission – Acquiring authority formality “resolves” to use its compulsory purchase powers and gathers detailed information about land ownership and occupation. The acquiring authority then makes the CPO, publicises it and submits it to the confirming authority.
- Objecting to a CPO – Those affected by the CPO are invited to submit objections to the confirming authority.
- CPO consideration – The CPO is considered by the confirming authority through a public inquiry or written representations.
- Decision – The confirming authority decides whether to confirm, modify or reject the CPO.
- Possession and acquisition – The acquiring authority takes ownership of the land.
- Compensation – There is generally a right to compensation if your land is compulsorily acquired.
During the whole process the acquiring authority should look to negotiate with the affected party to acquire the interest via agreement.
What should I do if I receive a CPO?
Seek professional advice and keep a record of all correspondence and time taken. The Royal Institution of Chartered Surveyors and Central Association of Agricultural Valuers can recommend suitably qualified professionals (Selby Rural is accredited by them both). In most circumstances in relation to a CPO, the fundamental rule is that a claimant should be “no better off and no worse off”. Therefore, those affected can employ a specialist surveyor to act on your behalf and the acquiring authority should cover these costs. They would not pay for objecting or petitioning against a scheme.
What can I claim for?
Unfortunately an acquiring authority will not buy replacement land or property; they will compensate you for the market value (what the land or property would sell on the open market as if the scheme were not happening) of what they acquire.
The items that can be claimed for depend on the impact of the proposal on each property or block of land. The most common types of claim include:
- Land take
- Land severance (is retained land further to get to or no longer has a water or electric supply and therefore decreased in value?)
- Injurious affection/ devaluation of retained land (has the retained land now been decreased in size if so is it not as viable as before?)
- Disturbance (time dealing with the scheme such as meetings, extra time working the land, liaising with contractors or anything as a result of the scheme)
- Loss payments (Statutory payments to recognise the inconvenience and disruption, capped and dependent on what is being acquired).
The CPO process is not quick nor is it particularly enjoyable when being on the receiving end of it, however it is here to stay and provides companies with opportunities to build projects that are apparently in the interest of the public. Having a basic understanding can assist with the jargon used when large notices are served or consultation documents produced. No one ever wants a CPO notice and the compensation never factors in the hassle and stress it can cause to landowners. Having seen this continually on schemes, we would certainly advise early engagement and having a plan – what would you have done if it were not for the scheme. With this in mind, a management plan can be put together and referred to.
If you are affected by a CPO or another infrastructure scheme, please do not hesitate to get in touch, as mentioned above, when has putting your head in the sand ever helped?
01829 423 183