Q&As

When proceeding with a compulsory purchase order (CPO) for land burdened by restrictive covenants, must the covenants be referred to in the CPO schedule, notwithstanding that those covenants cannot be expunged by the CPO?; Is it correct that in such circumstances, the beneficiaries of such covenants can only claim compensation pursuant to section 10 of the Compulsory Purchase Act 1965?; How in practice does that process sit alongside section 203 of the Housing and Planning Act 2016?; Must an acquiring authority rely on the appropriate section at the appropriate time, depending on the overall progression of the CPO and planning permission?

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Published on LexisPSL on 16/03/2018

The following Planning Q&A provides comprehensive and up to date legal information covering:

  • When proceeding with a compulsory purchase order (CPO) for land burdened by restrictive covenants, must the covenants be referred to in the CPO schedule, notwithstanding that those covenants cannot be expunged by the CPO?; Is it correct that in such circumstances, the beneficiaries of such covenants can only claim compensation pursuant to section 10 of the Compulsory Purchase Act 1965?; How in practice does that process sit alongside section 203 of the Housing and Planning Act 2016?; Must an acquiring authority rely on the appropriate section at the appropriate time, depending on the overall progression of the CPO and planning permission?
  • Restrictive covenants in compulsory purchase orders
  • Compensation for beneficiaries of restrictive covenants
  • Housing and Planning Act 2016 and the Compulsory Purchase Act 1965

Restrictive covenants in compulsory purchase orders

Restrictive covenants burdening land affected by a compulsory purchase order (CPO) should be referred to in Table 2 of the schedule to the CPO.

Persons benefitting from restrictive covenants are considered to constitute a ‘qualifying person’ pursuant to section 12(2A)(b) of the Acquisition of Land Act 1981 (ALA 1981). The Department for Communities and Local Government’s guidance on compulsory purchase process confirms this, stating:

21. Which parties should be notified of a compulsory purchase order?

The parties who must be notified of a compulsory purchase order are referred to as qualifying persons. A qualifying person includes: […]

[…] a person the acquiring authority thinks is likely to be entitled to make a claim for compensation under section 10 of the 1965 Act (compensation for injurious affection) if the order is confirmed and the compulsory purchase takes place, so far as he is known to the acquiring authority after making diligent inquiry; this relates mainly but not exclusively to easements and restrictive covenants’ [our emphasis]

The Compulsory Purchase of Land (Prescribed Forms) (Ministers) Regulations 2004, SI 2004/2595 set out a prescribed form (Compulsory purchase order: Encyclopaedia of Forms and Precedents [7]) at Form 1 of the schedule. This should be used for any CPOs which are subject to confirmation under ALA 1981. Table 2 of the schedule to the prescribed form Compulsory purchase order: Encyclopaedia

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