Grants and compensation

General principles

The compulsory purchase system is based on the general principle that an owner of land or rights compulsorily acquired or interfered with is entitled to compensation and should be no worse or better off in financial terms following the acquisition.

The assessment of compensation will take into account the value of the property, disregarding the influence of the compulsory purchase order (CPO) and the value of related effects.

The amount of compensation cannot exceed the total financial loss. The claimant has a duty to mitigate its loss. See Practice Note: Compulsory purchase—compensation.

Compensation Code

The Compensation Code is the collective term used to describe the legislation and case law governing the procedures for compensation following compulsory purchase.

The main statutes are the Land Compensation Acts and the Compulsory Purchase Act 1965 (CPA 1965).

Basis for compensation

There are five principal potential elements of a claim for compensation:

1. •

   the value of the land taken

2. •

   severance and/or injurious affection

3. •

   disturbance and other losses not directly based on the value of the land

4. •

   home loss payments, and

5. •

   fees