COMPULSORY PURCHASE

Compulsory purchase is a significant and often contentious issue. Understanding the implications of compulsory purchase orders (CPOs) is crucial for property owners, investors, and developers alike. Terracotta Property can assist clients in navigating this complex terrain.

Compulsory Purchase Orders (CPOs) are legal mechanisms that allows certain public bodies, known as 'acquiring authorities', to forcibly acquire land or property without the owner's consent. These orders are typically issued when there is a compelling case in the public interest, such as for infrastructure projects, urban regeneration, or the provision of affordable housing.

Recent reforms introduced in the Levelling Up and Regeneration Bill have significantly altered the landscape of compulsory purchase. One of the most notable changes is the removal of the requirement for local authorities to pay 'hope value' when purchasing land for public interest projects, including social housing.

Terracotta Property's Perspective and Solutions

At Terracotta Property, we understand the complexities and potential stress associated with compulsory purchase orders. Our team of experts is well-equipped to guide clients through this intricate process, offering tailored solutions and support.

We can assist in:

  • Negotiating compensation: Our experts can help ensure you receive fair compensation based on the market value of your property.

  • Navigating the legal process: We can guide you through the statutory process, including objections and public inquiries if necessary.

  • Exploring alternatives: In some cases, it may be possible to negotiate with the acquiring authority to find mutually beneficial solutions.

Considerations for Property Owners and Investors

Property owners affected by CPOs should seek expert advice to ensure they receive fair compensation, including not just the market value of the property but also potential disturbance costs and other losses.

Investors and buyers should be aware of any planned or potential CPOs in an area, as these could significantly impact future property values.

In some cases, CPOs may create investment opportunities, particularly if they are part of larger regeneration schemes that could boost local property values in the long term.

It's important to note that the full impact of recent CPO reforms remains to be seen, as their effectiveness will depend on how they are implemented and used by local authorities and other public bodies. Property owners and investors should stay informed about CPO developments in their areas and seek professional advice when necessary.

Implications for Property Owners and Investors

For property owners and investors, the increased use of CPOs presents both challenges and opportunities. While the prospect of forced sale can be daunting, it's important to note that those affected by CPOs are entitled to compensation.

The compensation is typically based on the market value of the property, ignoring any increase or decrease in value caused by the proposed scheme. This is known as the 'no scheme principle'. However, the assessment of compensation can be complex, often requiring expert advice.

While CPOs can be challenging for property owners, they also play a vital role in facilitating public interest projects and addressing housing shortages.

At Terracotta Property, we're committed to helping our clients navigate these complexities with confidence. Whether you're facing a potential CPO or simply want to understand your rights and options, our team is here to provide expert guidance and support.

For more information on how we can assist you with compulsory purchase matters or any other property-related concerns, please don't hesitate to contact Terracotta Property

VALUATION services

Terracotta Property provides tailored valuation services for residential, commercial and HMO assets. Using advanced analytics and market expertise, their RICS Registered Valuers deliver accurate insights. Services include assessing income potential for commercial properties, valuing HMOs based on conversions and rental yields, and evaluating residential assets by location, condition, and market trends.