Frequently Asked Questions

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• What is a CPO?

  Compulsory Purchase Orders are made by an Acquiring Authority (eg a local authority, highways agency, development corporation, etc). They are bodies which need to obtain land or property for the public benefit and are seeking to purchase a property without the consent of the owner. Compulsory Purchase Orders may be used for new roads, airport extensions, town centre, developments and urban regeneration. The Acquiring Authority must 'think' it is in the publics interest

• Who authorises a CPO?

  An Acquiring Authority (often a local authority) makes a compulsory purchase order but approval is required from the Secretary of State (usually after a Public Inquiry) or by Parliament.

• Do I lose my property if I receive a CPO?

  No. You can object to a Compulsory Purchase Order and your objection will be heard at a Public Inquiry. The Secretary of State (after the Inquiry) decides whether to confirm, amend or reject the Compulsory Purchase Order. If the Order is confirmed, the Acquiring Authority has a period of 3 years from the confirmation in which to exercise their CPO powers. It is only at this stage that you lose your property.

• What is the CPO Process?

  Compulsory Purchase is a legal process but the basic steps are as follows: The Acquiring Authority makes an Order - This will be for the implementation of a proposed scheme and will be supported by a Statement of Case. The Order is 'made' and submitted to the appropriate Secretary of State. In the case of planning orders, this is the Deputy Prime Minister and First Secretary of State. Notification of the Order is served on all those having an interest in the land. This then allows objections to be made. Anyone can object to the Order, not just those having interests in the land concerned. At this point, objections can be made. If this objections are not withdrawn, a Local Inquiry will be held, which a Government Inspector will oversee. This is open to the public and at the Inspectors discretion, it may be possible for those not having a direct interest in the Order to be heard. Following the Inquiry, the Inspector will prepare a report and recommendations to the Secretary of State who ill then issue a decision. This can either be confirmation of the Order, confirmation of the Order with Modifications of Rejection of the Order. If the Order is confirmed, the Acquiring Authority has the power to acquire the property.

• What circumstances make a CPO viable?

  The Acquiring Authority must demonstrate that the taking of land is necessary and there is a 'compelling case in the public interest'. Acquiring Authorities need to show how the redevelopment will contribute to the economic, social and environmental well-being of the area. Owners/Occupiers can challenge this and their objection is heard by independent Inspector.

• Can I object to a CPO?

  Yes. There is a 28 day period from the service of notice by the Acquiring Authority to object to the CPO. An objection cannot be on financial grounds eg the Acquiring Authority have not offered me enough compensation. Objections must challenge the scheme itself. For example, a ground for objection could be that the Acquiring Authority has not proven that the CPO is in the public interest.

• How long do I have to relocate?

  Usually there will be a long period of time (up to 18 months) from when a CPO is made by an Acquiring Authority until it is confirmed by the Secretary of State. The time period from confirmation until possession is required can be short (typically less than 6 months).

• Once a CPO is confirmed how long will it be before I have to leave the property?

  Acquiring Authorities have a 3 year period to exercise their powers. Usually, however, powers are exercised within 6 months of confirmation. There is a notice process so you will be aware when the Acquiring Authority intend to take possession.

• What are my rights for compensation?

  The principal of Compulsory Purchase compensation is to place the affected party in no better or worse position than prior to the Compulsory Purchase. Compensation should be fair and full. All costs incurred reasonably associated with the CPO are claimable as compensation. The actual compensation will depend on the specific circumstances. Typical heads of claims include: market value of property lost, disturbance costs, basic loss and occupiers loss payments, professional fees, cost of reinvestment etc.

• Can I claim for the affect of the CPO on my business?

  Yes. Under Rule 6 of Section 5 of the 1961 Land Compensation Act you can claim for all business disturbance/cost incurred as a result of the Compulsory Purchase Order. This can include: loss of profits, relocation costs, time costs, business down time, directors time, finance costs etc. It may well involve the total extinguishment of the business. Under certain rules you may be entitled to total extinguishment by virtue of your age.

• Who will pay for my professional costs?

  The Acquiring Authority will in all usual circumstances be responsible for the payment of your professional costs relating to the CPO. The position can change once a compensation claim is referred to the Lands Tribunal for determination.

• How long will it take before I receive compensation?

  If the compensation is agreed with the Acquiring Authority then this should be within one or two months of agreeing the compensation. If you are unable to agree the correct level of compensation there is a procedure where the Acquiring Authority pay you 90% of their offer on account. This must be paid within a 3 month period from service of notice on the Acquiring Authority. The balance of the claim can be settled by negotiation or determination of the Lands Tribunal.

• What are loss payments?

  Under the Planning and Compulsory Purchase Act 2004, claimants can make an additional claim for loss payments. A basic loss payment is for owners (who have an interest of greater than one year). This is calculated at 7.5% of the value of an interest up to a maximum payment of £75,000. An occupiers loss payment is an additional 2.5% up to a maximum of £25,000 and is payable to an occupier. An owner occupier can therefore receive the maximum 10%. Different rules apply in respect to agricultural land and residential property.

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