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Compulsory purchase is the power to purchase or take rights over an estate in
English land law English land law is the law of real property in England and Wales. Because of its heavy historical and social significance, land is usually seen as the most important part of English property law. Ownership of land has its roots in the feudal sy ...
, or to buy that estate outright, without the current owner's consent, in exchange for payment of compensation. In England and Wales, Parliament has granted several different kinds of compulsory purchase power, which are exercisable by various bodies in various situations. Such powers are meant to be used "for the public benefit". This expression is interpreted broadly but is subject to the test of overriding or compelling public interest. Although land may be acquired by consent, or by conduct which raises another party's reasonable expectations, these private methods of acquiring land are often insufficient for adequate public regulation. Building national infrastructure, such as railways, housing, and sewerage, needs
compulsory purchase Compulsion, Compulsive, Compelling, or Compulsory may refer to: Psychology * Compulsive behavior, a psychological condition in which a person does a behavior compulsively, having an overwhelming feeling that they must do so. * Obsessive–compu ...
, because: # private owners might not give up land needed for public works except at an extortionate price; # private owners may unduly delay sale of land (and thereby delay the meeting of the public need for a project); # the owner of land cannot be found; or # the number of ownerships makes voluntary acquisition within a reasonable period unrealistic.


History

Historically, compulsory purchases were carried out under the
inclosure act The inclosure acts created legal property rights to land previously held in common in England and Wales, particularly open fields and common land. Between 1604 and 1914 over 5,200 individual acts enclosing public land were passed, affecting 28,0 ...
s and their predecessors, where
enclosure Enclosure or inclosure is a term, used in English landownership, that refers to the appropriation of "waste" or "common land", enclosing it, and by doing so depriving commoners of their traditional rights of access and usage. Agreements to enc ...
was frequently a method of expropriating people from
common land Common land is collective land (sometimes only open to those whose nation governs the land) in which all persons have certain common rights, such as to allow their livestock to graze upon it, to collect wood, or to cut turf for fuel. A person ...
for the benefit of barons and landlords. In the
Industrial Revolution The Industrial Revolution, sometimes divided into the First Industrial Revolution and Second Industrial Revolution, was a transitional period of the global economy toward more widespread, efficient and stable manufacturing processes, succee ...
, most railways were built by private companies procuring compulsory purchase rights from private acts of Parliament, though by the late 19th century, powers of compulsory purchase slowly became more transparent and used for general social welfare, as with the
Public Health Act 1875 The Public Health Act 1875 ( 38 & 39 Vict. c. 55) is an act of the Parliament of the United Kingdom, one of the Public Health Acts, and a significant step in the advancement of public health in England. Its purpose was to codify previous me ...
( 38 & 39 Vict. c. 55), or the
Housing of the Working Classes Act 1885 The Housing of the Working Classes Act 1885 ( 48 & 49 Vict. c. 72) was an Act of the Parliament of the United Kingdom The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body of the United ...
. Compulsory purchase legislation was significantly extended during the
First World War World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
for military use, and after the war for housing, as certain principles became standardised.


Local authority purchase

Today, the Land Compensation Act 1961 section 5 generally requires that the owner of an interest in land (e.g. a freehold, leasehold or easement as in ''
Re Ellenborough Park was an English land law case which reformulated the tests for an easement (the scope of the law of easements). It found an easement to use a communal garden to be a valid easement in law. There is no requirement for all of the houses to be imm ...
'') receives payment for the "value of the land ... if sold on an open market by a willing seller". Compensation is often also available for losses to a home, or if one's business has to move. The
Compulsory Purchase Act 1965 The Compulsory Purchase Act 1965 (c. 56) is an Act of Parliament of the United Kingdom, which concerns English land law and compulsory purchase. Contents The act sets conditions for a compulsory purchase to be made. See also *Compulsory pur ...
sets conditions for a purchase to be made, and the Acquisition of Land Act 1981 regulates the conditions for granting a "
compulsory purchase order A compulsory purchase order (CPO; , ) is a legal function in the United Kingdom and Ireland that allows certain bodies to obtain land or property without the consent of the owner. It may be enforced if a proposed development is considered one for ...
". Typically, either central government represented by a Secretary of State, or a local council will be interested in making a compulsory purchase. The authority of local councils to make purchases for specific reasons can be set out in specific legislation, such as the
Highways Act 1980 The Highways Act 1980 (c. 66) is an act of Parliament (UK), act of the Parliament of the United Kingdom dealing with the management and operation of the road network in England and Wales. It consolidated with amendments several earlier pieces ...
to build roads when strictly necessary. However the
Town and Country Planning Act 1990 The Town and Country Planning Act 1990c 8 is an act of the Parliament of the United Kingdom regulating the development of land in England and Wales. It is a central part of English land law in that it concerns town and country planning in the U ...
section 226, which allows compulsory purchase to "facilitate the carrying out of development, re-development or improvement" for the area's economic, social, or environmental well being, must be confirmed by the Secretary of State, and similarly the
Local Government Act 1972 The Local Government Act 1972 (c. 70) is an act of the Parliament of the United Kingdom that reformed local government in England and Wales on 1 April 1974. It was one of the most significant acts of Parliament to be passed by the Heath Gov ...
section 121 requires the council seek approval from the government Minister.


Leasehold purchase

The most general power originally appeared in the
Leasehold Reform Act 1967 The Leasehold Reform Act 1967 (c. 88) is an act of Parliament of the United Kingdom, which concerns English land law and compulsory purchase. A government bill, the law remains largely intact. It was passed by both Houses and had been tabled ...
. Under that Act, the Leasehold Reform Act 1987, and the Leasehold Reform, Housing and Urban Development Act 1992, private individuals who are leaseholders have the power in certain circumstances to compel their landlord to extend a lease or to sell the freehold at a valuation. Recompense, under compulsory purchase, is not necessarily a monetary payment of open market value (see '' James v United Kingdom''
986 Year 986 ( CMLXXXVI) was a common year starting on Friday of the Julian calendar. Events By place Byzantine Empire * August 17 – Battle of the Gates of Trajan: Emperor Basil II leads a Byzantine expeditionary force (30,000 me ...
, but in most cases a sum equivalent to a valuation made as if between a willing seller and a willing purchaser will fall due to the previous owner.


Utility companies

Utility companies have statutory powers to secure ownership or easement rights to erect electrical substations or lay sewers or water pipes on or through someone else's land. These powers are counterbalanced by corresponding rights for landowners to compel utility companies to remove cables, pipes or sewers in other circumstances (see for example section 185 of the
Water Industry Act 1991 The Water Industry Act 1991 (c. 56) is an Act of the United Kingdom Parliament consolidating previous enactments relating to the water supply and the provision of wastewater services in England and Wales. It further implemented recommendations of ...
). Compulsory purchase only applies to the extent that it is needed for the purchaser's purposes. Thus, for example, a water authority does not need to buy the freehold in land in order to run a sewer through it. An
easement An easement is a Nonpossessory interest in land, nonpossessory right to use or enter onto the real property of another without possessing it. It is "best typified in the right of way which one landowner, A, may enjoy over the land of another, B" ...
will normally suffice, so in such cases the water authority may only acquire an easement through the use of compulsory purchase.


Procedure

In most cases a
Compulsory Purchase Order A compulsory purchase order (CPO; , ) is a legal function in the United Kingdom and Ireland that allows certain bodies to obtain land or property without the consent of the owner. It may be enforced if a proposed development is considered one for ...
(CPO) is made by the purchasing authority or the Secretary of State. The CPO must unambiguously identify the land affected and set out the owners, where these are known. The order is then served on all owners and tenants with a tenancy with more than a month to run, or affixed to the land if some owners or tenants cannot be traced. A period of at least 21 days is allowed for objections. If there is a valid objection that is not withdrawn, an inquiry chaired by an inspector will take place. The inspector reports to the Secretary of State. If the Secretary of State confirms the CPO, then it becomes very difficult to challenge. Once the CPO is confirmed, the purchasing authority may serve a Notice to Treat within three years, and a Notice of Entry within a further three years. It may take possession of the land not less than 14 days after serving the Notice of Entry. The Notice to Treat requires the land's owner to respond, and is usually the trigger for the land's owner to submit a claim for its value. If no claim is submitted within 21 days of the Notice to Treat, the acquirer can refer the matter to the Lands Tribunal. If the land's owner cannot be traced and does not respond to a Notice to Treat affixed to the land, then the purchasing authority must pay the compensation figure to the Court. An alternative expedited procedure allows the acquiring authority to make a General Vesting Declaration that vests the property in them and formalises the right to compensation. Compensation is then either agreed or (failing which) is set by the Lands Tribunal.


Crichel Down rules

The
Crichel Down The Crichel Down affair was a British political scandal of 1954, with a subsequent effect and notoriety. The '' Crichel Down Rules'' are guidelines applying to compulsory purchase drawn up in the light of the affair. Crichel Down land The case ce ...
principles oblige central and local government, when, having acquired an estate compulsorily, they find they no longer need it for the purpose that it was taken, to offer it in the first instance at its market value to the person from whom they acquired it. However, this only applies where the land has not materially changed in character, and does not withstand the principle that councils may not dispose of land "for a consideration less than the best that can be obtained" under the
Local Government Act 1972 The Local Government Act 1972 (c. 70) is an act of the Parliament of the United Kingdom that reformed local government in England and Wales on 1 April 1974. It was one of the most significant acts of Parliament to be passed by the Heath Gov ...
, section 123. This means that where it is difficult to value land for some reason, the land may need to be sold by tender or auction.


Human rights

Because of property's social importance, either for personal consumption and use or for mass production, compulsory purchase laws have met with human rights challenges. One concern is that (since, for example, the 1980s privatisations of public companies), the use of compulsory purchase powers can benefit private corporations whose incentives may diverge from the public interest. For example, the
Water Resources Act 1991 The Water Resources Act 1991 (c. 57) (WRA) is an Act of the Parliament of the United Kingdom that regulates water resources, water quality and pollution, and flood defence. Part II of the Act provides the general structure for the management of ...
continues to allow government bodies to order compulsory purchases of people's property, although profits go to the private shareholders of UK water companies. In '' R (Sainsbury's Supermarkets Ltd) v Wolverhampton CC'' the Supreme Court held that
Wolverhampton City Council City of Wolverhampton Council is the local authority for the city of Wolverhampton in the West Midlands, England. Wolverhampton has had an elected local authority since 1848, which has been reformed several times. Since 1974 the council has be ...
acted for an improper purpose when it took into account a promise by
Tesco Tesco plc () is a British multinational groceries and general merchandise retailer headquartered in the United Kingdom at its head offices in Welwyn Garden City, England. The company was founded by Jack Cohen (businessman), Sir Jack Cohen in ...
to redevelop another site, in determining whether to make a compulsory purchase order over a site possessed by
Sainsbury's J Sainsbury plc, trading as Sainsbury's, is a British supermarket and the second-largest chain of supermarkets in the United Kingdom. Founded in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company was the largest UK r ...
. Lord Walker stressed that "powers of compulsory acquisition, especially in a 'private to private' acquisition, amounts to a serious invasion of the current owner's proprietary rights. Nevertheless compulsory purchase orders have frequently been used to acquire land that is passed back to a private owner, including in '' Alliance Spring Ltd v First Secretary'' where homes in
Islington Islington ( ) is an inner-city area of north London, England, within the wider London Borough of Islington. It is a mainly residential district of Inner London, extending from Islington's #Islington High Street, High Street to Highbury Fields ...
were purchased to build the
Emirates stadium The Emirates Stadium (known as Arsenal Stadium for UEFA competitions) is a association football, football stadium in Holloway, London, England. It has been the home stadium of Arsenal F.C., Arsenal Football Club since its completion in 2006. ...
for
Arsenal Football Club The Arsenal Football Club, commonly known as simply Arsenal, is a professional association football, football club based in London Borough of Islington, Islington, North London, England. They compete in the Premier League, the top tier of ...
. By contrast, in '' James v United Kingdom'', ECHR 2
/ref> Gerald Grosvenor, 6th Duke of Westminster">986
ECHR 2
/ref> Gerald Grosvenor, 6th Duke of Westminster, the inherited owner of most of Mayfair and Belgravia, contended that leaseholders' right to buy had violated their right to property in ECHR Protocol 1, article 1. The European Court of Human Rights ruled that the
Leasehold Reform Act 1967 The Leasehold Reform Act 1967 (c. 88) is an act of Parliament of the United Kingdom, which concerns English land law and compulsory purchase. A government bill, the law remains largely intact. It was passed by both Houses and had been tabled ...
, which allowed tenants to purchase properties from their private landlords, was within a member state's margin of appreciation. It was competent for a member state to regulate property rights in the public interest.


Cases and statutes

*
Lands Clauses Consolidation Act 1845 Land is the solid surface of the Earth that is not covered by water. Land, lands, The Land, or the Lands may also refer to: Entertainment and media Film * ''Land'' (1987 film), a British television film by Barry Collins * ''Land'' (2018 film), a ...
( 8 & 9 Vict. c. 18), removed the need for special private acts for compulsory purchases driven by the railways *
Inclosure Act 1845 Enclosure or inclosure is a term, used in English landownership, that refers to the appropriation of "waste" or "common land", enclosing it, and by doing so depriving commoners of their traditional rights of access and usage. Agreements to enc ...
, established Inclosure Commissioners to hear petitions for compulsory purchase and development *
Housing of the Working Classes Act 1885 The Housing of the Working Classes Act 1885 ( 48 & 49 Vict. c. 72) was an Act of the Parliament of the United Kingdom The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body of the United ...
* Housing of the Working Classes Act 1890 *'' Attorney-General v Great Eastern Railway Company'' (1880) 5 App Cas 473, 478 *'' Ayr Harbour Trustees v Oswald'' (1883) 8 App Cas 623 *'' Attorney-General v Manchester Corporation''
906 __NOTOC__ Year 906 ( CMVI) was a common year starting on Wednesday of the Julian calendar. Events By place Europe * February 27 – Battle of Fritzlar: The Conradines defeat the Babenberg counts, to establish themselves as duke ...
1 Ch 643 *'' Stourcliffe Estates Co Ltd v Bournemouth Corporation''
910 Year 910 ( CMX) was a common year starting on Monday of the Julian calendar. __NOTOC__ Events By place Europe * June 12 – Battle of Augsburg: The Hungarians defeat the East Frankish army under King Louis IV (the Child), using ...
2 Ch 12 * Defence of the Realm (Acquisition of Land) Act 1916 * Acquisition of Land (Assessment of Compensation) Act 1919 *'' Attorney-General v De Keyser's Royal Hotel Ltd''
920 __NOTOC__ Year 920 ( CMXX) was a leap year starting on Saturday of the Julian calendar. Events By place Byzantine Empire * December 17 – Romanos I has himself crowned co-emperor of the Byzantine Empire. He shares the throne with ...
AC 508 *
Acquisition of Land (Authorisation Procedure) Act 1946 Acquisition may refer to: * Takeover, the purchase of one company by another * Mergers and acquisitions, transactions in which the ownership of companies or their operating units are transferred or consolidated with other entities * Procurement, f ...
*''
Burmah Oil Co Ltd v Lord Advocate ''Burmah Oil Company Ltd v Lord Advocate'' 965AC 75, was a court case, raised in Scotland, and decided ultimately in the House of Lords. The case is an important decision in British constitutional law and had unusual legal repercussions at th ...
''
965 Year 965 ( CMLXV) was a common year starting on Sunday of the Julian calendar. Events By place Byzantine Empire * Arab–Byzantine War: Emperor Nikephoros II conquers the fortress cities of Tarsus and Mopsuestia. The Muslim resid ...
AC 75, 115. Lord Radcliffe: "The Crown has never claimed or sought to exercise in time of peace a right to take land except by agreement or under statutory power." *'' Prest v Secretary of State for Wales'' (1982) 81 LGR 193. Lord Denning MR: "It is clear that no minister or public authority can acquire any land compulsorily except the power to do so be given by Parliament: and Parliament only grants it, or should only grant it, when it is necessary in the public interest. In any case, therefore, where the scales are evenly balanced – for or against compulsory acquisition – the decision – by whomsoever it is made – should come down against compulsory acquisition. I regard it as a principle of our constitutional law that no citizen is to be deprived of his land by any public authority against his will, unless it is expressly authorised by Parliament and the public interest decisively so demands. If there is any reasonable doubt on the matter, the balance must be resolved in favour of the citizen." *
Empty dwelling management order Empty dwelling management orders (EDMOs) are a legal device used in England and Wales, which enable local authorities to put an unoccupied property back into use as housing. EDMOs were created by the Housing Act 2004, with the relevant legislat ...
s, a form of "compulsory leasing" *
Development consent order In England and Wales, a nationally significant infrastructure project (NSIP) is a major infrastructure development that bypasses normal local planning requirements. These include proposals for power plants, large renewable energy projects, larg ...
s *
Channel Tunnel Act 1987 The Channel Tunnel Act 1987 (c. 53) is an Act of the Parliament of the United Kingdom which authorised the construction of the Channel Tunnel between the United Kingdom and France in accordance with the Treaty of Canterbury, which was signed in ...
* Compulsory Purchase (Vesting Declarations) Act 1981
Housing Act 1985
*
Housing Act 2004 The Housing Act 2004 (c. 34) is an Act of the Parliament of the United Kingdom. It introduced Home Information Packs, which have since been abandoned. It also significantly extends the regulation of houses in multiple occupation by requiring s ...
*
Highways Act 1959 Highway Act (with its variations) is a stock short title used in India, the United Kingdom and the United States for legislation relating to highways. India *The National Highways Act, 1956 United Kingdom * The Highways Act 1555 ( 2 & 3 Ph. & ...
*
Highways Act 1980 The Highways Act 1980 (c. 66) is an act of Parliament (UK), act of the Parliament of the United Kingdom dealing with the management and operation of the road network in England and Wales. It consolidated with amendments several earlier pieces ...
*
Land Charges Act 1972 The Land Charges Act 1972 (c. 61) is a UK act of Parliament that updates the system for registering charges on unregistered land in England and Wales. It repealed and updated parts of the Land Charges Act 1925 and other legislation affecting re ...
*
Planning Act 2008 The Planning Act 2008 is an Acts of Parliament in the United Kingdom, Act of the Parliament of the United Kingdom intended to speed up the process for approving major new infrastructure projects such as airports, roads, harbors, and energy facili ...
*
Transport and Works Act 1992 The Transport and Works Act 1992 (c. 42) (TWA) was established by the Parliament of the United Kingdom to provide a system by which the construction of rail transport, tramway, inland waterway and harbour infrastructure could proceed in the UK ...
*
Water Industry Act 1991 The Water Industry Act 1991 (c. 56) is an Act of the United Kingdom Parliament consolidating previous enactments relating to the water supply and the provision of wastewater services in England and Wales. It further implemented recommendations of ...
* Compulsory Purchase by Ministers (Inquiries Procedure) Rules 1967 * Compulsory Purchase by Non-Ministerial Acquiring Authorities (Inquiries Procedure) Rules 1990 * Compulsory Purchase of Land Regulations 1990


References

*Denyer-Green, Barry: ''Compulsory Purchase and Compensation'', 8th edition. London: The Estates Gazette Limited, 2005. *Sydenham, Angela; Monnington, Bruce; and Pym, Andrew: ''Essential Law for Landowners and Farmers'', 4th edition. Chapter 8: Compulsory Purchase and Compensation. pp. 118–135. Oxford: Blackwell Science Limited, 2002.


Notes

{{reflist, 2


External links

* Land Compensation Act 1961br>ss 15-9
* '' Director of Buildings v Shun Fung Ltd'' [1995
UKPC 7
* Acquisition of Land Act 1981 s
2-410-15
* Compulsory Purchase Act 1965]
s 1 ff
* Water Resources Act 1991]
s 154
* '' R (Sainsury's Ltd) v Wolverhampton CC'' [2010
UKSC 20
* '' James v United Kingdom'' [1986
ECHR 2
* '' Alliance Spring Ltd v First Secretary'' [2005
EWHC 18 (Admin)
* ''Grape Bay Ltd v Attorney General of Bermuda'' [1999
UKPC 43
* ''Mariner Real Estate Ltd v Nova Scotia'' (1999
177 DLR (4th) 696
* '' Matos e Silva, LDA v Portugal'' ECHR 37
English land law">996
ECHR 37
English land law Eminent domain