S237 - Compulsory Purchase Association

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What is the Problem

Compensation is only payable for the diminution in value of an interest in land. The compensation provisions therefore preclude the recovery of compensation for loss of business and for any other loss suffered by an occupier, which loss is not reflected in the value of the interest in land.


To enable fair compensation to be paid.


What we seek

Widen the scope of the legislation to allow for compensation to be assessed in the same manner as other claims for compensation where an interest in land is terminated by S237.

Notes from discussion

Concern was expressed that this could widen substantially the scope for claims from those having no land acquired. It was emphasised that reform was aimed only at ensuring that once it was established that there had been diminution in the value of an interest in land which situation would attract compensation  in any event, that compensation was then payable for all direct consequential loss, e.g loss of profit in the case of a business, rather than compensation being restricted to loss of land value, only is the present case.

Next Step/Actions

Primary legislation in next major reform package.

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