Proposed Changes to the Compulsory Purchase Regime

Introduction

In December 2001, the Government published its consultation document "Compulsory Purchase and Compensation: delivering a fundamental change" as part of its proposals to review the compulsory purchase regime. This has now been followed by the publication in July 2002 of a draft Circular entitled" Compulsory Purchase Orders". The draft Circular has been issued for public consultation until 31 October 2002. Simultaneously, the Government's policy response, "Compulsory Purchase Powers, Procedures and Compensation: The Way Forward" has been published.

Ultimately, the Circular will replace the extant advice in DOE Circular 14/94 albeit it is designed to address a wider range of issues. Enabling legislation will also follow to facilitate delivery of the Government's response. This ongoing work is being addressed by the Law Commission.

The Government's Response

The Government recognises that the present system of compulsory purchase is lengthy and cumbersome, and proposes (in summary) the following changes:-

1. The planning basis for a compulsory purchase order ("CPO") as set out in Section 226 of the Town and Country Planning Act 1990 ("the Act") will be replaced by a wider power. A local planning authority will be empowered to compulsorily acquire land for the purpose of carrying out development, re-development or improvement which it considers will be for the economic, social and/or environmental benefit of its area. Hence, it will no longer be necessary to demonstrate that the land is "required" (see our comments below).

2. An acquiring authority itself will be able to confirm an unopposed CPO.

3. The asset being acquired will be valued on the date on which the authority enter and take possession.

4. New consolidated Inquiry Procedure Rules will be published.

5. All those with an interest in land (including short term tenants for a month or less) will be treated as a statutory objector with a right to be heard at a public inquiry.

6. A general scheme for "loss" payments will be devised to run in parallel with existing home loss payment arrangements. Although the detail is as yet undecided, it is suggested that the new scheme could take the form of a basic loss payment for each owner, based on a percentage of the value of his interest in the property subject to a maximum cap.

7. Revised time limits for CPOs will be introduced. The overall period within which an acquiring authority has to complete the process following confirmation of a CPO will be reduced from 6 years to 3 years. A maximum of 18 months will be permitted between confirmation and service of a notice to treat (or a general vesting declaration). A notice to treat will only remain effective for a further 18 months.

8. The period between service of a notice of entry and physically taking possession will be increased from 14 days to 2 months. If the authority has not then taken possession within one month of the expiry of the 2 month period then the notice will cease to have effect and no further notice can be served.

9. The Ryde's Scale for determining surveyors fees will be revoked, and surveyors will be reimbursed in full in line with other professional advisers.

10. The current Crichel Down Rules (i.e. that compulsorily acquired property which has become surplus shall be offered back to the original owner) will be revised and the subject of a separate consultation exercise in due course.

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