Compulsory Purchase

What is Compulsory Purchase?

Compulsory Purchase Orders are typically made in relation to large infrastructure projects including roads, railways, airports, regeneration developments etc. Compulsory Purchase Orders are issued by the authority acquiring the applicable land which is usually the local government, government agencies, utility companies etc. The acquisition of the land/site in relation to a Compulsory Purchase Order needs to be proven to be in the public’s interest to ensure it is successful. A Compulsory Purchase Order is normally achieved through a public inquiry.

Receipt of a Compulsory Purchase Order does not always result in the owner of a property being required to submit to the property being purchased. The Compulsory Purchase Order indicates that an application has been made to the relevant government department and it often takes months or years for the Compulsory Purchase to be activated. The owner of the property will be given the opportunity to object to the order and to negotiate the proposal.

A valuation surveyor can be engaged at the outset of the project to advise the acquiring authority on the market value of the various assets which are intended to be purchased via a Compulsory Purchase Order. This market valuation should also reflect the likely loss in value which has resulted from the Compulsory Purchase Order being enacted. A valuation surveyor can also be engaged by the property owner to assess whether the proposed market valuation is adequate/acceptable.

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How to deal with Compulsory Purchase?

There are various steps which need to be undertaken by both parties in relation to a Compulsory Purchase Order, these are:

Firstly, the acquiring authority should undertake a feasibility assessment of the proposed area/land to confirm the extent of the land proposed to be acquired, what is positioned/built on the land, and also what the surrounding areas include. This will likely include input from a valuation surveyor.
Following the initial feasibility study, the acquiring authority will get in touch with the owner of the land with the intention of negotiating the Compulsory Purchase.
Following initial conversations/negotiations an outline Compulsory Purchase Order may be served if the owner is not willing to sell. The owner should keep a record of the events and costs associated with the Compulsory Purchase. The acquiring authority will produce a report which will be used for the negotiations and inquiry.
It is recommended that any owner served with a Compulsory Purchase Order obtains legal advice as certain information will be required and this needs to be accurate, including proof of ownership.
All information will be gathered to assist with an inquiry, which will likely include plans, the formal market valuation produced by a valuation surveyor, and other information. A press release should also be issued for a minimum of 2 weeks and a physical notice applied to the area/land subject to the Compulsory Purchase.

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Notices should also be issued to anybody who will be impacted by the Compulsory Purchase Order.
The above will give suitable time for any objections and when this time period has expired it will be confirmed as to whether an inquiry is required. This will be subject to the value of the objection(s). The inquiry will confirm whether the Compulsory Purchase Order is approved or rejected, or should be amended.

Once the Compulsory Purchase Order is approved, compensation will be calculated and issued.

Why engage a valuation surveyor as part of a compulsory purchase?

A valuation surveyor will provide reliable and independent advice, and market knowledge in relation to valuing land or an asset in relation to the service, negotiation and agreement of a Compulsory Purchase. By engaging a valuation surveyor the acquiring authority will ensure that they have taken a robust and practical approach to assessing the likely compensation which will be due to the property owner.