2. Legislation and Guidance

Question 1

List some of the Primary CPO Legislation

Answer 1

Compulsory Purchase Act 1965 - process for acquiring land compulsorily

Land Compensation Act 1961 - Rules on compensation, including the principle of equivalence.

Land Compensation Act 1973 - compensation for disturbance, home loss, and payments for depreciation due to public works.

Acquisition of Land Act 1981 - main framework = procedural requirements.

Town and Country Planning Act 1990 - planning relating to compulsory purchase

Question 2

What are the relevant guidance and RICS Professional Standards relating to CPO?

Answer 2

Compulsory Purchase Guidance (MHCLG) - Provides practical guidance on compulsory purchase and compensation (in detail)

The Crichel Down Rules - (As set out in the above) Sets out policy for offering back surplus acquired land to former owners or their successors.

RICS Professional Standard, Surveyors Advising in Respect of Compulsory Purchase and Statutory Compensation (2024) - Guidance and mandatory requirements for members that outlines key responsibilities for surveyors including how to manage client instructions and resolve disputes.

Question 3

What would be the typical Heads of Claim for a Landowner? (Right to compensation)

Answer 3

1) The Value of the Land Taken
2) Severance and Injurious Affection
3) Disturbance
4) Loss Payments
5) Professional Fees

Question 4

What are the Rules of Valuation in respect of a compulsory purchase acquisition? (Section 5) LCA 1961.

Answer 4

Land Compensation Act 1961 - section 5:

Rule 1 - no allowance for the acquisition being compulsory
Rule 2 - open market value by a willing seller.
Rule 2A - no-scheme principle.
Rule 3 - no special value for statutory purposes
Rule 4 - illegal uses ignored
Rule 5 - equivalent reinstatement. (a claimant is compensated by having their property replaced with a similar one)
Rule 6 - rule 2 shall not affect disturbance

Question 5

When can compensation be claimed when no land is taken?

Answer 5

The McCarthy Rules - Section 10 under Compulsory Purchase Act 1965 - A reduction in the value of your land caused by the execution of public works when no land is taken.

Question 6

How are Surveyors’ Fees assessed?

Answer 6

Fees are assessed on a quantum meruit basis which is an hourly rate basis reflecting the complexity and particular requirements of each case.

Ryde’s Scale plus 30% is still used for some schemes (A scale of fees calculated dependent on the level of claim)

Question 7

Main legislation relating to CPO powers for regeneration?

Answer 7

• Major regen act authorising acquisition is s226 TCPA 1990.
• Also Planning Act

Question 8

Which documents details the negotition process for CPOs?

Answer 8

• RICS Professional Standard, Surveyors Advising in Respect of Compulsory Purchase and Statutory Compensation (2024)
• MHCLG guidance
• Planning Act guidance for DCO’s. noting it references the MHCLG guidance.
• Estate Regeneration National Strategy - Resident Engagement and Protection

Question 9

What are disturbance costs?

Answer 9

Costs/expenses of relocating such as moving expenses, conveyance costs and surveyor fees.