Rural Compulsory Purchase Update 2011
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Transcript of Rural Compulsory Purchase Update 2011
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Charles Cowap MBA MRICS FAAV
Compulsory Purchase Update
The Theory
Charles Cowap
Penkridge, Staffs
10 October 2011
http://www.slideshare.net/cdcowap
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Theoretical framework
Classical Utilitarianism John Rawls’ Theory
of Justice
Pretium concept of compensation
Barry Denyer-Green Market pricing
Compensatio concept of compensation
Sharing the Pain
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Planning Act 2008
• Infrastructure Planning Commission (IPC)
• Nationally Significant Infrastructure Projects (NSIPs)
• National Policy Statements
• Development Consent Orders
• Compulsory Acquisition Powers
3
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
NSIPs
• Generating stations
• Cables and Pipes
• Gas storage
• Highways
• Airports
• Harbours
• Railways
• Dams and water transfer
• Hazardous waste and waste water
• Size thresholds
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
The Application Process
5
1. Pre-Application 2. IPC Acceptance
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV 6
3. Pre-Examination 4. Examination
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV 7
5. Decision 6. Post-decision
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Pre Application Stage
Proposals @ 10 October 2011 Number
Pre Application 59
Pre Examination 2
Examination 1
Decision 1
Archived 8
Total 71
Energy schemes 53
Transport schemes 16
Waste water schemes 2
TOTAL 71
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV 9
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Pre-application: Adviser
• Procedural advice
• Information re. Land tenure and occupation: 14 days deadline
• Consultation responses: 28 days
• Pre-entry surveys and compensation claims
• Early alert to compulsory acquisition
10
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
2. Acceptance by IPC
• IPC time period 28 days to accept or reject on
grounds of adequate consultation and quality
11
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Rookery South, Bedfordshire
Waste Combustion Plant, 65 MW,
Bedfordshire
Decision due by 15 October
Developer’s Artist’s Impression
12
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
3. Pre-Examination: Adviser
• Register as an ‘interested party’
• Make ‘relevant representation’
• Initial representations – in outline
– Principal arguments
– NOT merits of NPS, compensation issues
• Respond to published representations: 21 days
• Preliminary meeting
• Clarify role: representative, expert witness
• Working up detailed representations
13
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
4. Examination: Adviser
• Preparation of detailed submissions: 28 days
• Preliminary hearings: procedures, requests for expert witness
• Respond to other submissions: 21 days
• Hearings: representative or expert witness
• Request compulsory acquisition hearing
• Respond to local authority Local Impact Report
• Land Acquisition negotiations
• Resolution of acquisition issues via ADR or Compulsory
Acquisition Hearings
14
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
5. Decision: Adviser
National Policy
Statements
• Energy
– Overarching
– Renewables
– Fossil fuels
– Oil and Gas
– Electricity network
– Nuclear
– Approved on 19
July 2011
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
6. Post-decision
• Legal challenge
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
.. And what IPC does not cover:
• Infrastructure below the NSIP thresholds
– Lower voltage electricity lines
– Local highways
– Smaller pipelines etc etc
• Proposals covered by Hybrid Bill proposals
– Eg HS2, the high-speed London-Birmingham rail link
17
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
IPC: All Change!
• Localism Bill
– Powers and procedures to be transferred to Major
Infrastructure Planning Unit within Planning Inspectorate
– All decisions will be taken by ministers: Commissioners will
recommend based on National Policy Statements
– NPS therefore retained
– April 2012?
– Meanwhile, business as usual for IPC
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Problems with tree roots
Wright v Horsham DC [2011] UKUT319 (LC)
• Compensation for refusal of TPO consent to fell 3 oak
trees
• Claims for underpinning work of £23,253.25 + £750 for
distress etc
• Awarded in full
– Cost of underpinning should be in reasonable
contemplation when consent is refused
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
More tree roots
Halifax Insurance v Teignbridge DC
[2011] UKUT 213 (LC)
• TPO: Refusal of consent to thin
crown on tree in 3rd party ownership
• Compensation awarded £7,602 for
remedial works and preventive
measures
• 3 tests for compensation:
– Cause?
– Compensation reasonably
foreseeable?
– General rules on damages
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Staying underground
O’Donoghue & others v SoS for Transport [2011] UKUT 203 (LC)
• Subsoil beneath 26 properties in North and East London
• £50 each nominal payment for ‘tube’ of subsoil for underground
railway – the St Pancras link to the Channel Tunnel Rail Link
(‘HS1’)
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Bocardo v Star Energy
High Court 2008 • Surrey oilfield
• Bocardo Estate, Oxted
• Star Energy: Petroleum Production Licence
• 1990 – 2007: 1 million barrels +
• 800 feet deep
• Trespass? Value of Wayleave?
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Bocardo v Star Energy
27.8.2008
EWHC 1756 Ch
Bocardo Estate
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
• Trespass
– 17 years without being noticed
– Simple ownership of minerals does not convey right to enter
and remove them
• Wayleave
– 9% of value of the oil (£6.9 million)
– Limitation – deliberate concealment (by Star) would have
prevented a limitation period defence
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Bocardo (2)
The Court of Appeal Supreme Court
Court of Appeal
• Supported finding that oil extraction was a trespass, even though B’s use and enjoyment was not affected ‘one iota’
• Compensation: based on s8(2) Mines (Working Facilities and Support) Act 1966.
• Star proposed £82.50: £50 for a deep tunnel plus special purchaser uplift plus 10%
• CA awarded £1,000
Supreme Court [2010] UKSC 35
• Confirmed trespass: unanimous all 5 judges
• Nominal award of damages only: 3:2 majority
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
And sticking with the Supreme Court
Transport for London v Spirerose Ltd [2009]UKHL 44
• A lengthy case
• Concluded that hope value, rather than full development, value
should be reflected in award
• Lengthy consideration of Point Gourde, value to owner and how
to discount value attributable solely to the scheme
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Ongoing effects of Spirerose
Persimmon Homes (Midlands) Ltd v SoS for Transport [2009]
UKUT126 (LC)
• Four key questions
– Would there be a sustainable highways objection in the ‘no-
scheme world’?
– Would there be a sustainable planning objection in the ‘no-
scheme world’?
– If there was an objection, is there hope of future
development?
– Should betterment be set off against contiguous land?
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Ignoring the effects of the scheme
Are we to imagine
1. That ‘the scheme’ had never been
thought of?
– In other words unravel several
years’ worth of policy development
OR
2. That ‘the scheme’ has been
‘cancelled’ immediately prior to the
valuation date?
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
The Creeping Impact of Localism on Land
Management
• DCLG Circular 06/04: Compulsory Purchase and the Crichel
Down Rules
– Amended in 2011, p57
• Local authorities must consider requests to use CP powers for
community assets that are in danger of being lost, particularly if
they come from voluntary or community organisations
• Link to Assets of Community Value (Localism Bill) and proposed
Local Green Area Designations – (Nat Env White Paper):
Beware!
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
A final thought
Should we be formulating a fourth head of claim?
• Valuation of land taken
• Severance and Injurious Affection
• Disturbance
• Matters not directly based on the value of land?
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Pattle and Pattle v SoS for Transport [2009] UKUT 141 (LC)
• Rule 6, s5, LCA 1961
– Compensation for Disturbance or any other matter not directly
based on the value of the land
• Lost rent not directly based on value of land (???)
– As a disturbance claim, the owner was not in occupation to
qualify for compensation
– But as any other matter, possession is not required in order to
claim
See Jnl of Property Investment & Finance (2011) Vol 29, Issue 6
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Theory Concluded
But a quick plug for
THE FIRST RICS RURAL WEBINAR
Thursday 13 October 2011, 9.00 am to 10.00 am
IHT VALUATIONS: AGRICULTURAL AND
RURAL PROPERTY AFTER GOLDING
https://training.rics.org/course/view.php?id=55
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Charles Cowap MBA MRICS FAAV
Charles Cowap MBA MRICS FAAV
Contact Details
In-house CPD programmes, professional-technical updates, organisational consultancy, and more:
01952 815305
07947 706505
Twitter: @charlescowap
Blog: http://charlescowap.wordpress.com/
Slideshare: http://www.slideshare.net/cdcowap