Planning and Compulsory Purchase Act 2004
New Compulsory Purchase Rules Issued by Office of Deputy Prime Minister

The Act

The Planning and Compulsory Purchase Act 2004 received Royal Assent on 13 May 2004, and the new legislation will come into force piecemeal on dates to be set by the Secretary of State.

The changes to the compulsory purchase procedures are intended to help acquiring authorities to assemble land more quickly for regeneration, new major infrastructure projects and other schemes.

Some of the changes are procedural and will:

Give statutory objector status to a wider set of people with interests in the land being acquired, so giving them a right to be heard at an inquiry.

Provide for all types of CPOs to be confirmed in stages where appropriate.

Allow procedural rules to be set down for the consideration of CPO objections by written representations.

Enable acquiring authorities to confirm their own orders if they are unopposed.

Extend to all acquiring authorities the power to require information about the people who occupy or have an interest in land they wish to acquire.

Other amendments relate to compensation arrangements. The dates to be used for valuation purposes are defined so removing the uncertainty under the previous regime. Provision is made for advance payments of compensation to be made direct to mortgagees where this is agreed by all relevant parties, irrespective of the amount outstanding on the mortgage. The objective is to reduce the financial hardship which landowners with large mortgages have in the past had to bear while negotiating their final compensation settlement.

The New Compulsory Purchase Crichel Down Rules

The Office of the Deputy Prime Minister has recently published Circular 06/04 - Compulsory Purchase and The Crichel Down Rules (ODPM).

Part 1 of the Memorandum to the Circular sets out updated and revised guidance to acquiring authorities in England on the use of compulsory purchase powers.

ODPM Circular 02/2003, Compulsory Purchase Orders is cancelled except to the extent that it applies to earlier compulsory purchase orders to which the new Circular is not applicable.

Part 2 of the Memorandum sets out the revised Crichel Down Rules, together with new guidance on the rules. The Crichel Down Rules deal with the disposal of surplus government land in England acquired by, or under the threat of, compulsory purchase. The version of the Crichel Down Rules published in 1992 by the Department of the Environment and the Welsh Office is superseded by the new rules in England and for certain land in Wales (land in Wales that was acquired by and is still owned by a UK Government Department).

The “Crichel Down” Rules apply where land has been acquired by the government (by Government Departments, Executive Agencies, non-department public bodies, local authorities or other statutory bodies) under or by threat of compulsory purchase powers. The rules require that where this land is surplus to government requirements it must be offered back for repurchase by the former freeholder. Former leaseholders may also qualify to buy back the land in certain circumstances, as may successors in title and sitting tenants.

October 2004

This newsflash summarises complex legislation and is not intended to be relied upon as a definitive statement of the law.

Carmela Inguanta Partner, 020 7544 5639 carmelai@sghlaw.com