What is a Compulsory Purchase Order?
A Compulsory Purchase Order (CPO) allows a public authority to acquire someone else’s property. This mechanism is also available to certain companies that provide public services, such as water or electricity companies.
If you receive a CPO, it means the authority intends to acquire ownership of your property, and you will have to transfer ownership to them.
Why might a Compulsory Purchase Order be created?
A CPO might be created where there is to be a major development, such as land required for a new hospital or a major housing development. It might be served by an electricity company that wishes to create a new substation or a water company that wishes to install a main sewer. Typically, new road and rail works lead to the issue of Compulsory Purchase Orders. One of the recent high-profile instances of the use of CPOs was the HS2 project.
What are the steps taken in creating and issuing a Compulsory Purchase Order?
When a public authority or utility company wishes to acquire land for a project, it goes through a series of steps.
The first step is to determine the extent of land required. They then need to identify the land owners they wish to acquire. Once this has been established, those who are affected are invited to object to the CPO. It then addresses objections either through written representations or a public enquiry. When these steps have been completed, the CPO is confirmed. The authority or company then takes steps to acquire ownership of the property that is subject to the CPO.
Can you object to a Compulsory Purchase Order?
Yes, you can. You should notify the issuing authority if you object to a CPO or make representations at any public enquiry. You will unlikely be recompensed for any expenditure you incur in objecting to the CPO.
Right to compensation
Those affected by a CPO have a right to compensation. However, the right only runs to put you in no worse financial position than before the CPO was served. You will be paid the market value of the land (and buildings), and you may receive additional compensation if other costs are incurred as a direct result of the CPO. An example of this would be removal expenses for moving house. The UK government has issued guidance in relation to making a compensation claim.
Making a compensation claim
You should consider instructing a professional to ensure you receive the correct compensation. Chartered surveyors can represent you in your compensation claim and agree on the amount of compensation you should receive. The UK government has published a Compulsory Purchase model compensation claim form and guidance notes to assist in your compensation claim.
Summary
If you are served with a Compulsory Purchase Order, it is essential you obtain professional advice. Dealing with a CPO can be challenging. A solicitor or surveyor will guide you through the process should you wish to object. They will also ensure your compensatory payment does not leave you out of pocket.
Contact compulsory purchase expert Stuart Jacobs today.
More from Stuart Jacobs on this topic: The Euston Estate: Compulsory Purchase Proceedings
Note: This article is not legal advice; it provides information of general interest about current legal issues.