Skip to main content

Insight article

August 14, 2024

Compulsory purchase – what does this mean?

Owners have a right to peaceful enjoyment of their property. However, there can be occasions when that right is overcome, forcing the owner to sell up and move out. One such occasion is when the owner receives a Compulsory Purchase Order.

photo of land acquired under a compulsory purchase order

What is a Compulsory Purchase Order?

A Compulsory Purchase Order (CPO) allows a public authority to acquire someone else’s property. This mechanism is also available to certain companies that provide public services, such as water or electricity companies.

If you receive a CPO, it means the authority intends to acquire ownership of your property, and you will have to transfer ownership to them.

Why might a Compulsory Purchase Order be created?

A CPO might be created where there is to be a major development, such as land required for a new hospital or a major housing development. It might be served by an electricity company that wishes to create a new substation or a water company that wishes to install a main sewer. Typically, new road and rail works lead to the issue of Compulsory Purchase Orders. One of the recent high-profile instances of the use of CPOs was the HS2 project.

What are the steps taken in creating and issuing a Compulsory Purchase Order?

When a public authority or utility company wishes to acquire land for a project, it goes through a series of steps.

The first step is to determine the extent of land required. They then need to identify the land owners they wish to acquire. Once this has been established, those who are affected are invited to object to the CPO. It then addresses objections either through written representations or a public enquiry. When these steps have been completed, the CPO is confirmed. The authority or company then takes steps to acquire ownership of the property that is subject to the CPO.

Can you object to a Compulsory Purchase Order?

Yes, you can. You should notify the issuing authority if you object to a CPO or make representations at any public enquiry. You will unlikely be recompensed for any expenditure you incur in objecting to the CPO.

Right to compensation

Those affected by a CPO have a right to compensation. However, the right only runs to put you in no worse financial position than before the CPO was served. You will be paid the market value of the land (and buildings), and you may receive additional compensation if other costs are incurred as a direct result of the CPO. An example of this would be removal expenses for moving house. The UK government has issued guidance in relation to making a compensation claim.

Making a compensation claim

You should consider instructing a professional to ensure you receive the correct compensation. Chartered surveyors can represent you in your compensation claim and agree on the amount of compensation you should receive. The UK government has published a Compulsory Purchase model compensation claim form and guidance notes to assist in your compensation claim.

Summary

If you are served with a Compulsory Purchase Order, it is essential you obtain professional advice. Dealing with a CPO can be challenging. A solicitor or surveyor will guide you through the process should you wish to object. They will also ensure your compensatory payment does not leave you out of pocket.

Contact compulsory purchase expert Stuart Jacobs today.

More from Stuart Jacobs on this topic: The Euston Estate: Compulsory Purchase Proceedings

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Stay in touch

Subscribe to our newsletter

Stay in touch

By completing your details and submitting this form you confirm you are happy for us to send you marketing communications and that you agree to our Website Privacy Policy and Legal Notice and to us using Mailchimp to process your data.


Sending

News/Insight

  • When charity shouldn’t begin at home
    The downfall of the Captain Tom Foundation is a cautionary tale of what happens when a charity gets too close to home — highlighting the complexities of charity governance and accountability in the sector. The foundation, created to continue the fu


    Read more
  • Six tips to make things simple for your executors
    An executor is legally responsible for carrying out the instructions set out in a will.


    Read more
  • Staying ahead in a changing legal landscape
    Regularly reviewing employment contracts and policies is essential for legal compliance and risk mitigation. Stay updated on legislative changes, workplace trends, and best practices to protect your business and employees.


    Read more
  • RIAA Barker Gillette (UK) acts for Alexander Nix in Commercial Litigation
    Press Release


    Read more
  • New sexual harassment rules may signal changes to office parties or a decline altogether
    Tomorrow is expected to be one of the busiest nights for office Christmas parties this year. While these celebrations are a staple of the festive season, offering a chance for colleagues to unwind and bond, they also bring unique challenges for emplo


    Read more

What they say...

  • Mikaela, February 2025
    “Martin was brilliant – so professional and personable. He clearly has a lot of expertise, and we always felt were in safe hands. He’s always available to speak on the phone, and is incredibly patient and reassuring. He worked effic

  • Bibiana Farenzena, February 2025
    “Victoria Holland and Evangelos Kyveris I want to thank you for your involvement and efforts on this case. You have been immensely helpful, and I appreciate all your knowledge and advice regarding this matter.”

  • Dabid Shaw, February 2025
    “Excellent , personalised one to one client care. Options laid out in a comprehensible manner. Fees appropriate for service provided.” Herman Cheung

  • Michael, February 2025
    “Martin was great to work with, despite a very difficult first buyer, second time round was the charm! Thanks to Sharon too.”

  • Annette, February 2025
    “We contacted RIAA Barker Gillette to get our wills arranged. Herman was professional & helpful with all aspects of the process. He explained everything clearly, notified in writing everything we discussed & answered the many questions

Read more
Send this to a friend