Grants and compensation

Copyright © 2024 LexisNexis

General principles

The compulsory purchase system is based on the general principle that an owner of land or rights compulsorily acquired or interfered with is entitled to compensation and should be no worse or better off in financial terms following the acquisition.

The assessment of compensation will take into account the value of the property, disregarding the influence of the compulsory purchase order (CPO) and the value of related effects.

The amount of compensation cannot exceed the total financial loss. The claimant has a duty to mitigate its loss. See Practice Note: Compulsory purchase—compensation.

Compensation Code

The Compensation Code is the collective term used to describe the legislation and case law governing the procedures for compensation following compulsory purchase.

The main statutes are the Land Compensation Acts and the Compulsory Purchase Act 1965 (CPA 1965).

Basis for compensation

There are five principal potential elements of a claim for compensation:

  1. •

    the value of the land taken

  2. •

    severance and/or injurious affection

  3. •

    disturbance and other losses not directly based on the value of the land

  4. •

    home loss payments, and

  5. •

    fees

Land

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Planning News

DESNZ announces new measures for Warm Homes Plan

The Department for Energy Security and Net Zero (DESNZ) has announced new measures for its Warm Homes Plan, with the aim of upgrading 300,000 homes in 2025. These measures include increased funding for the Boiler Upgrade Scheme to facilitate heat pump adoption and the amendment of existing permitted development rights to remove the one-meter planning rule for heat pump installations in England, enabling more households to install air source heat pumps without obtaining planning permission from early 2025. DESNZ also plans to consult on raising minimum energy efficiency standards for rented homes by 2030 and improving standards for new boilers and heat pumps. In addition, it will introduce a reformed Clean Heat Market Mechanism from 1 April 2025.

PINS updates RoW guidance and archives certain advice notes

The Planning Inspectorate (PINS) has consolidated several of its Rights of way (RoW) advice notes, including 1, 3, 9, 16, 20, 21, 22, and 23, into the appendices of the RoW guidance booklet. Advice notes addressing policy and legal matters, including 5, 6, 8, 11, 12, 14 15, 19, which fall outside PINS’ remit, will no longer be updated and will be archived. Additionally, the consistency guidelines have also been archived and will not be updated.

Planning weekly highlights—21 November 2024

This week's edition of Planning weekly highlights includes: a written ministerial statement on housing, Welsh consultations on changes to planning services in Wales, including increased planning fees, and new regulations for the control of works to trees, new PINS guidance on statements of common ground for appeals, and publication of the November 2024 planning update newsletter.

UKGBC launches second consultation on Climate Resilience Roadmap

The UK Green Building Council (UKGBC) has launched a second consultation on the Climate Resilience Roadmap, aimed at assisting the built environment in adapting to climate change. The consultation document outlines five key policy recommendations, including prioritising climate safety at a national level under the Prime Minister's leadership, reforming the planning system, and ensuring existing and new buildings are prepared for future climate hazards. The consultation also seeks feedback on updated proposals from the UKGBC’s July 2024 consultation, with the aim of refining the roadmap before its final publication. The final roadmap, scheduled for publication in March 2025, will comprise a policy recommendations report, technical guidance, and an interactive 'vulnerability to climate hazards' web map. The consultation closes on 6 January 2025.

View Planning by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Transport and Works Act Orders

Transport and Works Act OrdersOrders under the Transport and Works Act 1992 (TWA 1992) are statutory instruments which can authorise guided transport schemes and certain other types of infrastructure project in England and Wales. Under TWA 1992, a promoter can apply to the Secretary of State (SoS)

What is the precedent value of an Upper Tribunal decision on other courts? Would a decision of the Upper

What is the precedent value of an Upper Tribunal decision on other courts? Would a decision of the Upper Tribunal (Lands Chamber) on the interpretation of the National Planning Policy Framework, National Planning Practice Guidance and the Town and Country Planning (Development Management Procedure)

Purchase notices

Purchase noticesWhat is a purchase notice?The purchase notice procedure provides landowners with a means of having land acquired by a local planning authority (LPA) where the land has become incapable of reasonably beneficial use. The purchase notice system is often referred to as 'reverse

Achieving best consideration on disposal and General Disposal Consent 2003

Achieving best consideration on disposal and General Disposal Consent 2003Duty to achieve best consideration on disposal of land held by principal councilsGeneral dutyUnder section 123(1) of the Local Government Act 1972 (LGA 1972), principal councils are entitled to dispose of land held by them 'in
Transport and Works Act Orders

Transport and Works Act Orders

Transport and Works Act OrdersOrders under the Transport and Works Act 1992 (TWA 1992) are statutory instruments which can authorise guided transport schemes and certain other types of infrastructure project in England and Wales. Under TWA 1992, a promoter can apply to the Secretary of State (SoS)

What is the precedent value of an Upper Tribunal decision on other courts? Would a decision of the Upper

What is the precedent value of an Upper Tribunal decision on other courts? Would a decision of the Upper

What is the precedent value of an Upper Tribunal decision on other courts? Would a decision of the Upper Tribunal (Lands Chamber) on the interpretation of the National Planning Policy Framework, National Planning Practice Guidance and the Town and Country Planning (Development Management Procedure)

Purchase notices

Purchase notices

Purchase noticesWhat is a purchase notice?The purchase notice procedure provides landowners with a means of having land acquired by a local planning authority (LPA) where the land has become incapable of reasonably beneficial use. The purchase notice system is often referred to as 'reverse

Achieving best consideration on disposal and General Disposal Consent 2003

Achieving best consideration on disposal and General Disposal Consent 2003

Achieving best consideration on disposal and General Disposal Consent 2003Duty to achieve best consideration on disposal of land held by principal councilsGeneral dutyUnder section 123(1) of the Local Government Act 1972 (LGA 1972), principal councils are entitled to dispose of land held by them 'in