Compulsory Purchase Order Advice & Valuation

Our fully-qualified RICS chartered surveyors are able to support you during a Compulsory Purchase Order, acting on your behalf to maximise the Market Value and level of compensation entitlement.

Facing a Compulsory Purchase Order can be a highly stressful time so ensuring you have the most comprehensive and professional advice is essential. RES Property Surveyors Ltd ensure that our fees are fully recoverable from the Acquiring Authority.

How does a compulsory purchase order work?

The Compulsory Purchase Act 1965, the Acquisition of Land Act 1981 and the Compulsory Purchase (Vesting Declarations) Act 1981 allow an Acquiring Authority to purchase land in the public interest. This is usually a Local Authority, but it can also be local highway authorities or even utilities such as water and electricity companies.

Once the purchase order has been served to landowners, there is a period of at least 21 days in which landowners can object to the order. If there are any objections, a public inquiry will take place to review and confirm the order.

What are the general principles of compulsory purchase?

Compulsory Purchase Orders are served by an Acquiring Authority to purchase land in the public interest, usually for the development of infrastructure.

The law of compensation follows a fundamental and basic principle of equivalence. This means that landowners deprived of their land in the public interest are entitled to compensation equal to the true and actual loss suffered. RES Property Surveyors Ltd works to ensure that the compensation granted is no more or no less than that amount.

Can you fight a compulsory purchase order?

Once served a Compulsory Purchase Order, you as a landowner will be able to make objections on grounds including:

• the order was not made in the public body’s statutory authority; and
• the harm done to the interests of the landowners outweighs the public benefit objective of the Acquiring Authority.

If an objection is unsuccessful, landowners have six weeks in which to challenge the order in the High Court on grounds such as: 

• The powers used go beyond those granted by the authorising Act of Parliament;
• There is no evidence that the Inspector or Minister has acted properly in reaching the decision; and
• Procedural rules have not been followed correctly.

How long does the CPO process take?

The process typically takes a year or more from the initial information gathering to the implementation of the order.

Am I entitled to compensation?

The Acquiring Authority will be legally obliged to compensate for the acquisition of the land. This will normally mean the owner of the land will be compensated under one or all of the following heads of compensation:

• Market Value of the legal title to the land or property;
• Disturbance payment – recovery of the cost to occupiers of having to find alternative premises. In the case of residential this is normally either 7.50% (investor) or 10.00% of the Market Value (owner-occupier);
• Injurious affection or severance – the reduction in value of the land you still hold if only part of your property is being purchased.

Your RICS-qualified surveyor will establish and maximise the Market Value and compensation value, working to protect your interests as a landowner at all times.

Is compulsory purchase compensation taxable?

The compensation for compulsory purchase of your land can be subject to Capital Gains Tax. The stamp duty to buy an alternative property is usually recoverable/ paid by the authority.