An overdue overhaul

Compulsory purchase orders may not be the most riveting subject for some, but they have a significant impact on the lives of those affected. CPOs give the right for public bodies, most often the local authority, to acquire the homes in which people live, and also provide the basis upon which sites are assembled for key infrastructure and public projects. It should therefore be a matter of deep concern that the law in this area is fair, and the procedures quick and effective.

In 1998 the government announced a fundamental review of the compulsory purchase system. This review was welcome, as the relevant law for CPOs is found in statements which date from 1845 through to 1998, and the whole system has become notorious for complexity and slowness.

The Office of the Deputy Prime Minster has now published proposals for change, the aim being to introduce more speed into CPOs and make them fairer to those affected by them. The proposals also address uncertainties in the law, the scope of some CPO powers, and the adequacy of compensation levels.

What the proposals will mean
The present mass of CPO statutes will be consolidated in clear and unambiguous new legislation. This will improve the legislative basis upon which councils can compulsorily acquire land for planning purposes. In particular, councils will be given wider power to acquire land for the purposes of development, redevelopment or improvement for the economic, social and/or environmental benefit of its area.

Simplifications will include:

• unopposed CPOs to be confirmed by the acquiring authority rather than having to be referred to the minister
  
• objections to be dealt with by written representations, where the objectors agree to this, rather than by public inquiry
  
• a definitive compensation code to replace the present reliance on large amounts of contradictory case law
  
• A statutory definition of the dates from which compensation entitlements arise – assets to be determined and valued on the date the acquiring authority takes possession.

These latest proposals, although not radical, will hopefully lessen delays and uncertainty for all those involved

Unified inquiry rules will be introduced to govern both CPO and various other planning-related public inquiries. And there will be improved guidance for acquiring authorities on what is needed to be shown by them to justify a CPO for planning purposes.

A fairer deal all round

• The introduction of an additional "loss payment" to make CPOs more palatable to owners and occupiers. This will be based on a percentage of the value of the interest acquired, topped up by an additional payment set with regard to the amount of land or floorspace taken away from them.
  
• Treating everyone with an interest in the land to be acquired (importantly, including tenants) as statutory objectors.
  
• Greater certainty in the timing of CPO acquisition – acquiring authorities will have three years (presently six years) to complete compulsory purchase following its confirmation, with a maximum of 18 months from confirmation to serve a notice to treat and a further 18 months for the notice to remain effective.
  
• The period between serving notice of entry and taking possession will be increased from two weeks to two months. The authority must take possession within one month of the notice's expiry, with no power to serve a further notice if possession isn't taken.
  
• A new compensation code.
  
• Professional fees and unavoidable additional taxes to be reimbursed in full.
  
• Improved advance payment arrangements including compensation to mortgagees if the owner and mortgagee agree to this.
  
• New rules on subsequent disposal of compulsorily acquired land.
  
• Easier access to the Lands Tribunal, and more tribunal discretion on awarding costs.

While the new legislation is pending, interim changes to home-loss payment thresholds will be made. Authorities will be encouraged to provide clear information on the rights of persons affected by CPOs and to inform them of critical dates in the process.

Speed is of the essence

• Orders will be confirmed in stages, so the acquisition process can exclude "problem" areas of land which can be dealt with later on.
  
• Authorities to be empowered to CPO land required only for mitigation works.
  
• Powers to requisition information on ownership/interest in land to be extended to regional development agencies.
  
• Authorities will be encouraged to use alternative dispute resolution to minimise objections which go to public inquiry.