Posted on 14th June 2022
Bypasses, ring roads, new railway lines, airport extensions, flood defence works and the installation of electricity pylons can all result in a compulsory purchase notice, which can be both worrying and confusing for rural business owners.
Walter’s Rural has considerable experience in helping farmers and rural businesses navigate compulsory purchases and achieve the best possible outcome for themselves.
No two cases are the same. However, when some or all of a client’s land is taken, they may be able to claim compensation under one of the following categories or ‘heads of claim’:
The value of the land taken depends on several factors and must be assessed on the ‘valuation date’. The valuation date is the earliest of:
The law says that compensation is based on the market value of the land which is being acquired.
The organisation acquiring the land will usually appoint a chartered surveyor to value the land. However, you can also appoint a surveyor to value the land and negotiate on your behalf.
When calculating the value of the land, several factors are taken into account:
Disturbance Payments compensate you for losses caused by the land being taken away from you and are not based on the value of the land. It is down to you to prove the value of the impact of the compulsory purchase, and you have to act reasonably to reduce or eliminate your loss. Professional advice is undoubtedly needed in this area.
Loss Payments are the additional amount paid to eligible claimants to compensate them for the inconvenience and disruption caused by the compulsory purchase. Again, this is a complex area, and your eligibility for home loss payment, basic loss payment or occupier’s loss payment will require professional assistance.
Severance and injurious affection
If you only lose part of your land through the compulsory purchase, this clause will compensate you for any adverse effect on the land you retain. Again, you will need a professional adviser to calculate how much the retained land has fallen in value due to the adjacent land being sold.
The legislation relating to compulsory purchases and the compensation received by the affected landowner is both lengthy and complicated. We’ve only touched the surface here.
If you need help with a compulsory purchase, as members of the Royal Institution of Chartered Surveyors, we offer compulsory purchase surveying as a service and 30 minutes of free advice, which you can access by giving us a call on 01522 696, email email@example.com or fill in our contact form.
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