Case Study: Compulsory Purchase Order rejected in its entirety

Published on: 17th June 2016

Jewson are the UK’s leading chain of building merchants, with over 600 branches across the UK they supply building equipment, timber and building products and materials. We successfully assisted Jewson builders’ merchants brand in rejecting, in its entirety, a compulsory Purchase Order (CPO) placed on one of its outlets in Grantham.  

Jewson’s appointed Richard Farr from our Compulsory Purchase team, to act as both expert witness and advocate, to challenge Lincolnshire County Council’s proposed regeneration of over five acres of land in Grantham town centre.

The planned scheme, referred to as Station Approach, included a two-acre area of land at which Jewson and other industrial buildings were located. The council viewed the area as having the potential for mixed-use redevelopment to include offices, a hotel, public parking and bus/rail interchange facility with the possibility to include retail, leisure and housing.

Richard Farr opposed the scheme on behalf of Jewson’s, because the CPO was unjustifiable and there was very little commercial reasoning or planned end users for the scheme.

Richard stated “There was very little or no consultation with my client and the jobs of over 20 people were at risk if the store closed. What we were being confronted with was a flawed and ill-conceived scheme, lacking commercial reality and my client was determined to prove this point.

A request for a CPO is nearly always either confirmed as drafted or with alterations. In this case the scheme was totally rejected. 

In rejecting the scheme, the Inspector, John Felgate, said, “The redevelopment of the Station Approach site could potentially improve the environment of this key area, and act as a catalyst for the office employment that the town needs. However, to justify compulsorily depriving the existing owners of their land, the scheme needed to be demonstrated to be capable of being delivered.”

Richard commented, ““While my client is delighted that the scheme has been rejected, there is concern that an estimated £250,000 will have been spent by the Council - at a time when the public purse is pulled tight, it is more important now, than ever before, that proposed schemes are both realistic and well thought through.”

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Compulsory Purchase

Our industry leading team have a wealth of experience in dealing with compulsory purchase cases and we provide our first class services across the UK. If you have received a compulsory purchase order then we will guide you through the complicated process. Our team has experience dealing with a wide range of compensation claims and we will work with you to ensure you receive a fair compensation settlement. If you are applying powers, we will work with your team to provide advice throughout the project lifecycle to ensure that your scheme finishes on time and with minimal delays.

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Our industry leading team have a wealth of experience in dealing with compulsory purchase cases and we provide our first class services across the UK.

If you have received a compulsory purchase order then we will guide you through the complicated process. Our team has experience dealing with a wide range of compensation claims and we will work with you to ensure you receive a fair compensation settlement.

If you are applying powers, we will work with your team to provide advice throughout the project lifecycle to ensure that your scheme finishes on time and with minimal delays.

[fulltext] =>

Have you received a compulsory purchase order?

We know that dealing with the complex area of compulsory purchase can be challenging and time consuming for property owners.

Our industry leading team have a wealth of experience in dealing with compulsory purchase orders, and by providing support and honest advice throughout the process we ensure that you receive a fair compensation deal with minimal disruption to your business.

Read more about our work on behalf of claimants by clicking here.

Are you making a claim?

We understand that compulsory purchase is an important part of project delivery and at the heart of many infrastructure schemes.

Our team has previous experience working on a number of major infrastructure projects as well as redevelopment and regeneration schemes so are well equipped to work with your team from the inception of a scheme.

Read more about our work on behalf of the acquiring authority by clicking here.

Contact Us

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Services for the claimant

We know compulsory purchase orders can be stressful for businesses and individuals. Our dedicated team are highly skilled in acting for claimants, and will give you support and honest advice throughout the process. The services we provide include: Advice on planning objections to Compulsory Purchase Orders Expert evidence to public enquiries Advice on Certificates of Alternative Development Acquisition of alternative premises including accommodation works Estimation of compensation, values, disturbance, value of goodwill Negotiation of Claims Expert evidence of Lands Tribunal   Claimants are guided on the objection process, pre scheme losses, compensation, extinguishment of business, ransom and development value, relocation, certificates of alternative use. Claims are written, negotiated and expert evidence given in the Upper Tribunal (Lands Chamber). When promoting schemes for promoters, we provide the calculation of compensation budgets compliance with Circular 06/04, presentation of expert evidence at Public Inquiry, negotiation of all aspects of compensation and expert witness in the Upper Tribunal (Lands Chamber). Contact Us

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We know compulsory purchase orders can be stressful for businesses and individuals.

Our dedicated team are highly skilled in acting for claimants, and will give you support and honest advice throughout the process.

The services we provide include:

  • Advice on planning objections to Compulsory Purchase Orders
  • Expert evidence to public enquiries
  • Advice on Certificates of Alternative Development
  • Acquisition of alternative premises including accommodation works
  • Estimation of compensation, values, disturbance, value of goodwill
  • Negotiation of Claims
  • Expert evidence of Lands Tribunal

 

Claimants are guided on the objection process, pre scheme losses, compensation, extinguishment of business, ransom and development value, relocation, certificates of alternative use.

Claims are written, negotiated and expert evidence given in the Upper Tribunal (Lands Chamber). When promoting schemes for promoters, we provide the calculation of compensation budgets compliance with Circular 06/04, presentation of expert evidence at Public Inquiry, negotiation of all aspects of compensation and expert witness in the Upper Tribunal (Lands Chamber).

Contact Us

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Glossary of terms

The compulsory purchase process is full of technical jargon and can be very confusing. To assist with this the following glossary of terms may be useful. Compensation Code: A collective term for the principles, derived from Acts of Parliament and case law, relating to compensation for compulsory acquisition. Entry: See "Taking of Entry" General Vesting Declaration (GVD): A legal procedure used in connection with compulsory purchase whereby an acquiring authority, having obtained a CPO, is able to obtain possession and ownership of the land. This is a procedure for the speedy acquisition of land and normal conveyancing practice does not have to be adopted. Goodwill: The price which a purchaser of a business is prepared to pay, above the value of the premises and stock, for the probability that customers will continue to resort to the old place of business, or continue to deal with the firm of the same name: it is the benefit or advantage which a business has in its connection with its customers. Investment Property: Generally, any property purchased with the primary intention of retaining it and enjoying the total return, i.e. income and/or capital growth, over the life of the interest acquired. Land: Land includes buildings and structures. Existing interests and rights in land, such as freehold or leasehold together with any existing rights can be compulsorily acquiried either as a whole or in part. Lands Tribunal: A tribunal for England and Wales set up under the Lands Tribunal Act 1949 and proceeding in accordance with rules made by the Lord Chancellor. Its jurisdiction, amongst others, includes adjudication on disputed compensation for the compulsory acquisition of land. The tribunal comprises the Present (who must be a barrister or have held judicial office) and members who are all either legally qualified or experienced in valuation. Marriage Value: Latent value which is or would be released by the merger of two or more interests in land. For example, two adjoining parcels may be worth more as one property that the aggregate of their separate values. Similarly, two interests in the same property (such as freehold and the leasehold) may have a greater value when merged than the sum of their individual values. Mitigation of Loss: The duty of a claimant seeking compensation to take any reasonable steps open to him to reduce or avoid loss. For example, a claimant could mitigate loss by seeking a number of quotes from reputable contractors and instructing the cheapest. New Rights: Compulsory purchase can be used by most acquiring authorities to create and acquire new rights over land. An Example would be the creation of a right of way or a right of support. Noise Payment: A noise payment is available to moveable homes within 300 metres of a new or altered road who have been seriously affected by increased noise levels as a result. It is payable at the discretion of the Highway Authority. Notice of Entry: A notice served on the owner and occupier(s) of a property by an authority possessing compulsory purchase powers requiring possession to be given by a date prescribed in the notice. A minimum of 14 days notice must be given. Notice to Treat: A notice served on owners, lessees and mortgagees by an authority with compulsory purchase powers to acquire land. The notice gives particulars of the property to be acquired, demands details of the recipients interest in the land and his claim for compensation and states that the authority are willing to treat for the purchase of the land. Public Development: A new or altered highway, aerodrome or other public works. Ransom Value: The ability to obtain a high price for a small area which is key to the site being developed. For example, where your land could unlock the development potential of an adjoining site by providing the only possible access to it. Relevant Date:In the context of a Public Inquiry it is the date of the letter which the Confirming Minister sends to the acquiring authority and the objectors confirming that an Inquiry is to be held. This date is used to establish timetables for the Inquiry procedure. Statement of Case: A statement prepared by the acquiring authority which sets out full particulars of the case to be put forward at the inquiry and justifies the reasons for making the CPO. Statement of Reasons: Sets out the authority's reasons for seeking to acquire the land, and will accompany the CPO. Taking of Entry: This is the act of an acquiring authority physically entering and taking possession of a property following service of Notice to Treat and Notice of Entry. Contact Us

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The compulsory purchase process is full of technical jargon and can be very confusing. To assist with this the following glossary of terms may be useful.

  • Compensation Code: A collective term for the principles, derived from Acts of Parliament and case law, relating to compensation for compulsory acquisition. Entry: See "Taking of Entry"
  • General Vesting Declaration (GVD): A legal procedure used in connection with compulsory purchase whereby an acquiring authority, having obtained a CPO, is able to obtain possession and ownership of the land. This is a procedure for the speedy acquisition of land and normal conveyancing practice does not have to be adopted.
  • Goodwill: The price which a purchaser of a business is prepared to pay, above the value of the premises and stock, for the probability that customers will continue to resort to the old place of business, or continue to deal with the firm of the same name: it is the benefit or advantage which a business has in its connection with its customers.
  • Investment Property: Generally, any property purchased with the primary intention of retaining it and enjoying the total return, i.e. income and/or capital growth, over the life of the interest acquired.
  • Land: Land includes buildings and structures. Existing interests and rights in land, such as freehold or leasehold together with any existing rights can be compulsorily acquiried either as a whole or in part.
  • Lands Tribunal: A tribunal for England and Wales set up under the Lands Tribunal Act 1949 and proceeding in accordance with rules made by the Lord Chancellor. Its jurisdiction, amongst others, includes adjudication on disputed compensation for the compulsory acquisition of land. The tribunal comprises the Present (who must be a barrister or have held judicial office) and members who are all either legally qualified or experienced in valuation.
  • Marriage Value: Latent value which is or would be released by the merger of two or more interests in land. For example, two adjoining parcels may be worth more as one property that the aggregate of their separate values. Similarly, two interests in the same property (such as freehold and the leasehold) may have a greater value when merged than the sum of their individual values.
  • Mitigation of Loss: The duty of a claimant seeking compensation to take any reasonable steps open to him to reduce or avoid loss. For example, a claimant could mitigate loss by seeking a number of quotes from reputable contractors and instructing the cheapest.
  • New Rights: Compulsory purchase can be used by most acquiring authorities to create and acquire new rights over land. An Example would be the creation of a right of way or a right of support.
  • Noise Payment: A noise payment is available to moveable homes within 300 metres of a new or altered road who have been seriously affected by increased noise levels as a result. It is payable at the discretion of the Highway Authority.
  • Notice of Entry: A notice served on the owner and occupier(s) of a property by an authority possessing compulsory purchase powers requiring possession to be given by a date prescribed in the notice. A minimum of 14 days notice must be given.
  • Notice to Treat: A notice served on owners, lessees and mortgagees by an authority with compulsory purchase powers to acquire land. The notice gives particulars of the property to be acquired, demands details of the recipients interest in the land and his claim for compensation and states that the authority are willing to treat for the purchase of the land.
  • Public Development: A new or altered highway, aerodrome or other public works.
  • Ransom Value: The ability to obtain a high price for a small area which is key to the site being developed. For example, where your land could unlock the development potential of an adjoining site by providing the only possible access to it.
  • Relevant Date:In the context of a Public Inquiry it is the date of the letter which the Confirming Minister sends to the acquiring authority and the objectors confirming that an Inquiry is to be held. This date is used to establish timetables for the Inquiry procedure.
  • Statement of Case: A statement prepared by the acquiring authority which sets out full particulars of the case to be put forward at the inquiry and justifies the reasons for making the CPO.
  • Statement of Reasons: Sets out the authority's reasons for seeking to acquire the land, and will accompany the CPO.
  • Taking of Entry: This is the act of an acquiring authority physically entering and taking possession of a property following service of Notice to Treat and Notice of Entry.

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RICS CCS TDS Arla Ombudsman bsi