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Compulsory Purchase

Question for Department for Communities and Local Government

UIN 30437, tabled on 9 March 2016

To ask the Secretary of State for Communities and Local Government, if he will bring forward legislative proposals to offer compulsory purchase payments at 150 per cent of market value.

Answered on

16 March 2016

No. The Compensation Code is based on the principle of equivalence, which says that the owner of the land taken should be paid neither less nor more than his loss. Paying compensation at more than market value would make public development more expensive and some schemes would become unviable. Offering such payments would not necessarily speed up negotiations or remove the need for compulsory purchase.

The Department issued guidance on the compulsory purchase process on the 29 October 2015 (web address: https://www.gov.uk/government/publications/compulsory-purchase-process-and-the-crichel-down-rules-guidance ) which encourages acquiring authorities to consider all of the costs involved in the compulsory purchase process when assessing the appropriate payments for purchase of land in advance of compulsory purchase.