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Compulsory purchase: how much compensation are farmers and landowners entitled to?

Thu 21 February 2019

Lydia Cox MRICS FAAV of Stags Professional Services department raises the issue of rural infrastructure and offers her advice on how much compensation farmers and landowners might be entitled to.

When it comes to compulsory purchase powers and the statutory basis changes, legislation is complex and the need for a professional advisor is imperative. 

The legalities behind each scenario dictate the notice period that is required to give the landowner and the basis for compensation but there are many other points that require due consideration. These include negotiating the route of the scheme and access to the route and working area, considering the impact of timing on the farming business, the recompense to tenants and their legal interest, plus other mitigating works that could be carried out to help the farmer.

On the subject of compensation, Lydia highlights, “there are many nuances around how much a landowner should be paid when rights are given away, or when land is physically taken. While there is a statutory basis of compensation, there are many points for negotiation along the way to protect the landowner’s position and a well-informed advisor will be able to capitalise on that.”

One of the key principles of compensation is that the landowner should be reverted back into the position they would have been in previously and this typically includes covering agents and legal fees incurred as a result of the scheme. As such, there is no financial cost to a landowner or tenant who seeks and obtains this essential advice.

For more information and bespoke advice on compulsory purchase and compensation, contact your local professional today.

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