Property No 6 - Adverse Possession

Adverse possession comes about when a neighbour or stranger enters on to land and takes unauthorised possession of it against all-comers. After long period of possession (10 or 12 years) such a person may seek to be registered as having title to the land. The application must be made to and processed by the Land Registry.

The Land Registration Act 2002 and case law govern the rights and obligations of the parties involved in any dispute about a claim for adverse possession.

In essence the "squatter" must show the following for the relevant period:

• no consent to the possession was sought or given;
• no rent has been paid to the owner of the land;
• the land has been occupied and maintained;
• the land was held against others, eg by walls and fences and gates.

Even so there are circumstances which result in title being refused.

Property - Timeline

Generally for taxation see the link: http://www.hmrc.gov.uk/agents/tax-deadlines.pdf for dates which your (if any) tax agent's will need to comply.
The following list of dates and detail has been compiled from several sources - it may not be accurate. You are strongly advised, therefore, not to rely exclusively on this information but be sure to check any relevant dates, etc with your professional advisers before taking action.

2012
January

• 31st        Watch out for particular weekend arrangements, if OK or not relevant, last day for on-line self-assessment for income tax year 2010/2011. (Digital password and other security checks/data should be obtained by a certain last day earlier in month!)

March

• 21st       Budget Day  

April

• 1st            All VAT-registered businesses must submit returns on-line from this date. There are a limited number of exemptions for small businesses.
•                   New  corporation tax year 2012/2013 begins.
•                  Annual invstment allowance (AIA) on company's expenditure on plant and machinery is reduced to £25,000 pa.
•                  If accounting period goes across 1 April, any qualifying expenditure is apportioned - so be aware...?
•                  Seed Investment Entreprise Allowance (SIEA) - Investors get reliefs from income tax and capital gains tax.
•                  Local taxation year begins for both council tax and  rating.
• 6th            New income tax year  2012/2013 begins                                   

October 

• 1st(?)     The energy Green Deal scheme begins.
• 31st        Last date for paper submission of income tax self-assessment for tax year 2011/2012

2013


2014
              2014 to 2019   Prospective plan is to fit 50 million smart meters (for energy monitoring) into dwellings
2015


2016

Property No 5 - Restrictive Covenants No 2 - "Estate" or "Building" Covenants

Restrictive covenants are a complex subject in law and estate practice - it is prudent to know about them and, in particular, whether any affect your property or a property you intend to purchase/sell, redevelop/ adapt, occupy/let, etc. Furthermore, you would probably need the advice of a solicitor and/or professional surveyor in dealing with any restrictive covenant problem which may arise.

Restrictive covenants are often one-off in the sense that they apply between one property and a second property. Post No 1 gave an example of this type. Another type of restrictive covenant applies as a "building" covenant", "development covenant", or "estate covenant". The names refer to the same type of covenant.

With a building covenant the developer-owner of say, a housing estate, imposes one or more restrictive covenants with the intention of binding the vendors of each house. The intention is that upon a breach of covenant(s) by a vendor,  the developer-owner may enforce the covenant(s) in respect of any retained property and that each vendor may enforce any covenant(s) against another vendor.  Should any vendor's successor in title breach covenant(s) it is also intended that the covenants are enforcable against that successor in title.

Finally, the restrictive covenant is be mutually enforcable: if the developer-owner should breach covenant(s) any vendor (or successor) may take action to enforce the covenant(s).

Community Assets No 13 - Community Groups and Social Enterprises (No 1)

In Post No 12 I looked briefly at CPO-ing and funding of the acquisition of a local asset, ie under the Localism Act 2011, one of community value. This post outlines the types of community groups likely to be active in enhancing communities and assets of community value.

Community groups come in many guises and sizes and may be distinguished from social enterprises. Most are regulated under a particular statute which will provide the framework of a body's regulation. Several have particular ways of raising funds, ie ways which relate to their status (see a later post).

A partial list of the bodies involved in a community might carry such descriptions or tags (in the sense the terms are used colloquially) as the following:

• a "charitable trust";
• a "charitable company";
• a "cooperative society";
• a "community group";
• a "community interest company";
• a "community benefit society";
• a "development trust"
• a "housing association";
• a "housing trust";
• a "industrial and provident society"
• a "social company".

Each of the above (and others) will fit into one of two broad categories as social enterprises and community or national groups. The latter, for instance, may be national charity with some local invlovement. The inclusions in a category denote a commonly held functional status, eg charitable, but the "name" say, "community interest group" denotes a legal status . The two broad types are:

1. social enterprises, eg a) industrial and provident society; b) community interest company; c) partnership; and
2. community or "national" groups, eg a) unincorporated (membership) associations; b) charitable bodies, such as charitable trusts/ companies/ incorporated organisations.

Property No 4 - Restrictive Covenants No1 (Update No1 - 24 December 2011)

A restrictive covenant burdens a parcel of land owned by say, A for the benefit of another parcel of land which is owned by B.

Example: A's land is a small house on a large plot. It is subject to a restrictive covenant that its use shall be limited to being a plot for one house. A obtains planning permission to build two more dwellings on his land. His contractor puts up a sign and begins to clear the site for the first new house. B immediately calls A and tells him of the restrictive covenant. The builder is instructed by A to cease work. The builder does so and sues A for breach of contract!

Firstly,  note that these matters are being described in very general and straightforward terms. They are not so easy to solve as may be implied. It is therefore strongly advised to seek the advice of a solicitor or specialist professional surveyor before proceeding.

Back to A - if a landowner has A's situation he/she should have perhaps been able to seek the remedy beforehand. Possible "solutions" are:

• Recognising the strength of the neighbour's situation, do nothing.
• Seek to insure for "defective" title - if the restrictive covenant is very old and it is not obvious that anyone nearby benefits from it, an insurance policy might be obtainable;
• Again if the restrictive covenant is old etc, seek to have it discharged or modified under section 84 of the Law of Property Act 1925;
• Negotiate to have the covenant lifted by the owner of the land taking the benefit of the covenant;
• The last (for the imprudent perhaps) is to proceed anyway - the nearby landowner  may not be so alert as the real B above! BUT that is very risky!

Community Assets No 13 - Assets of Community Value

Is it time for those in neighbourhoods to create their own list of community assets?. Yes and no; but we should only be interested in assets which have community value.

Although I cannot claim to be a local authority (see Localism Act 2011, s 106(1) and (3)) I have decided to create my generic list of assets of community value (s.  ). As far as I know no similar list exists - but firstly I need to check or try to interpret the Act so as to know what is wanted on my list.

The Act gives the following pointers:

1. building or other land;
2. the actual current use of;
3. in the recent past the actual current use 
4. not an ancilliary use;
5. furthers the social wellbeing or social interests of the local community;
6. reasonable to expect that in the next five years the actual current use (but not necessarily the same as before) could further...etc;

[Note I intend to expand the "pointers" by updating the post later.]

My list would include:

• village greens and town greens - already registered (listed) and protected uner the Commons Act 2006;
• prospective village or town greens (there is an expectation of a result of a government consultation on this topic) ;
• recreation grounds, parks, and other open spaces;
• footpaths, bridleways, cycleways and other such ways;
• land with protected trees, ancient monuments and the like;
• buildings and other assets of historic or architectural worth;
• village halls, community centres, youth clubs and similar premises;
• libraries;
• public houses;
• post offices and other neighbourhood shops; and,
• almshouses and similar establishments for seniors.

Of course, much depends on the community and the existing quality and extent of the environs for its social wellbeing and social interest. Can that be measured objectively?

Community Assets No 12 - 1 CPO-ing and 2 Funding the Acquisition No 1

Community groups may need to find the finance to acquire an asset of community value when exercising the right to bid provisions of the Localism Act 2011, section 98.

Circular 06/04 (as amended with the addition of Appendix AK, p57) advises that local authorities when seeking confirmation of a CPO to must provide details of funding. The expected sources cited elsewhere in the Circular include:

• full funding by the LA itself;
• full or partial funding by the requesting group; and,
• contribution from the private sector. 

Much of the detail is in paragraphs 20 to 23 of Part 1 of the memorandum to the Circular. The paragraphs also explains the need to give details of  possible "impediments" to the project. (See link below.)

http://www.communities.gov.uk/documents/planningandbuilding/pdf/1918885.pdf

It is pretty obvious that the group will have their work cut out in meeting the deadlines of both:

• the compulsory purchase procedures;
• any moratorium and right to bid (Localism Act 2011, ss 95 to 99) resulting from the owner's intended disposal; and,
• grant application procedures if say, a grant from the National Lottery or other body might be sought.

An important point is that all the details should, it seems, be upfront at the time of preparing the draft CPO; the Minister needs to know!

Community Assets No 11 - Neighbourhood Planning

How does a resident get involved in the planning of his/her area? How does a business get involved the planning of their area? To me the involvement  has always seemed hit-and-miss - that is until quite recently. I remember Mrs Rosencrantz being utterly bewildered by a CPO scheme. All the houses around her were being vacated and the occupiers being sent to tower blocks,  new towns, etc. The vacanted houses were being "re-occupied" for very short periods, ie hours or minutes. To stop the occupations I arranged for the floor boards to be removed. Some weeks later Mrs R was still worrried - she said that the floor boards had been replace by mattresses and the occupations continued!

The site eventually became the cleared gound for a brand new school.  It was built and as far as I know it is still there but if it is as the original, it must be due for a refurbishment or rebuilding. Going back to the questions? Will the Localism Act 2011 make a difference to the planning of local areas?

Part 6 Chapter 3 of the Localism Act 2011 comprises six sections (ss 116 - 121) over two or so pages - a doddle. However the references to schedules abound and a quick looking at schedules 9, 10, 11, and 12 seems to indicate that the basics of plan-making and special development controls, etc in the big planning world will be applied to the little planning world (of neighbourhoods)! This is done by inserting sections and schedules into the former.

Of course, most of us will not need to go into the detail of the legislation but our professional advisors who have not had the opportunity to follow the passage of the Bill in detail will spend some evening burning the candles to get into, of instance, the sets of compensation provisions applying to local development orders. Of course, I have chosen a topic which is, conceivably light-years away. More pressing is the prospect of local residents realising the potential that the  2011 Act gives them to get involved and act accordingly so as to initiate their neighbourhood's plan.

Community Assets No 5 - CIL - Changes under the Localism Act 2011

Section 115 et al of the Localism Act 2011 (November 2011) make significant changes to the community infrastructure levy (CIL).  

CIL was originally conceived as providing (some) funds for new infrastructure to support new development. Now it could be argued that CIL has been adapted to provide (some) funds for supporting old development as well as new development. In past times, it might be argued, that a regime of largely uncontrolled section 106 Agreements provided an opaque, ad hoc way of funding  new infrastructure and support for existing  "fabric" in our communities. With CIL the Agreements were expected to fade away unless on-site or site-specific-but-off-site infrastructure was needed for a particular development project.

The changes seem to address the issue. They include the following:

1  Section 115 (5)(a)(ii) on the use of CIL provides amendments to the Planning Act 2008. Thus instead of just funding infrastructure CIL may be used to support development by funding: 

• provison of (new) infrastructure,
• improvement of (existing) infrastructure,
• replacement of (existing) infrastructure,
• operation of (existing and new) infrastructure, or
• maintenance of (existing and new) infrastructure.

[Note: The words in italics are added by me and four of the five "infrastructure" words are mine and superfluous - the Act's textual layout is more than appropriate.]

2 Section 115 (6) is a (seemingly) wide addition to the Planning Act 2008 (by the insertion of a new section 216A). There is now a duty imposed on the charging authority (by forthcoming regulations) to pass funds to a "person" who will hopefully use the money for things listed above but also:

• concerned with addressing demands that development places on an area

This is the provision widely acclaimed as enabling neighbourhoods to have CIL monies (if any). The terms person does not say "neighbourhood" and area could go much wider than for instance a parish council area.

Property No 3 - "Riot " Damage No 2 - Amelioration of Hardship..?

This post reflects on actions needed to give effect to the Coalition government's approach to dealing with hardship arising from the recent riots and civil commotion. 

Hardship following the the loss, damage and destruction of property will be ameliorated by the actions of national and local government departments and agencies. Over the last few years they have swung into action to support those distressed by flooding: now it is the turn of those distressed by the recent riots and civil commotion.  

Income Taxation:  Businesses and individuals who have faced disruption and/or loss of records and other taxation-related documents will find that there will be a sympathetic understanding  of requests for deferment of:

• submissions of returns; and,
• payments of income tax or corporation tax.

Council Tax and/or Business Rates:  Local taxpayers should see a similar approach by their collection authority whereby payment of council tax or rates (and in some cases both) are likely to be deferred - particularly where buildings have been damaged. (Where a building has been destroyed the following should occur:

• payments should cease; and,
• where payments have been made in advance, remittance to the taxpayer should be speedily dealt with by the authorities.)

Hardship:  In other circumstances, charging or rating authorities have powers to ameliorate the hardship of council tax payers or the ratepayers by foregoing the collection of the taxes due.

Assessment (Valuation) for Local Taxation
Where property has been destroyed or damaged by fire or other perils it may be entirely unuseable or only partly useable.  The payer of council tax or business rates want to ensure that no unnecessary tax will be paid.

Early action by the officers of the Valuation Office Agency (VOA) might be expected to be put in hand to: 

• remove from the valuation lists for council tax and/or business rates the entries for any completely destroyed buildings - at least until they are completely reinstated and re-occupied; and, 
• where a damaged building has to be partly demolished, its speedy revaluation will ensure that adjustments (downwards) of any due payments of council tax and/or rates will not be unnecessaril;y higher than they should be (but see above about deferred payments). 

Vacant Property Rates and Councxil tax:   Hopefully, where re-occupation is delayed after reinstatement, any vacant property rates or council tax which may otherwise be due will be waived.

Small  Business Premises:   Where a business occupies small premises (with reference to the rateable value) the occupier may apply to the council for a reduction in the rates payable. Where a business has been disrupted, a ratepayer may find  that they are:

• forced to move to smaller premises; or
• forced to reinstate a damaged large property as a smaller property.

 In these circumstances the ratepayer may be eligible to small business premises rate relief - a claim should be made accordingly. [Please note : The Localism Bill has a clause providing that the ratepayer will receive the relief "automatically" - but this must await  Royal Assent to the Bill.]

Property No 2 - "Riot " Damage No 1 - Compensation and Insurances Questions..?

The reader is advised that the information in this post is based on the Prime Minister's recent statement and other published information - it is important that anyone needing help should contact their insurer or other advisers. 

A person who has suffered damage to building or property or who has property stolen is likely to be indemnified in some way. Two possible ways are:

• indemnification under a policy of insurance; or
• compensation under the Riot (Damages) Act 1886. 

Where insurance is paid the insurance principle of "subrogation" means that the insurance company will be able to recocover the insurance payments under the 1886 Act. 


No Insurance Policy
Where an owner and/or occupier is not covered by an insurance policy it seems that the only recourse would be to make a claim for compensation to the local police authority under the Riot (Damages) Act 1886  procedures. Speedy action is of the essence.

Insurance Policy - No Valid Cover
In many standard insurance policies "riot and civil commotion" are not covered but may be covered as a "special peril". In all cases the insured should get it touch with their insurance company. Again the 1886 Act is likely to give effect to compensation by direct application.

Insurance Policy - Valid Cover
If the policy covers the loss, a claim will be considered by the insurance company under the policy. It is likely best to proceed on this basis but as noted above the subrogation will apply..

"Riot" Compensation
Here the 1886 Act is likely to apply and a claim should best be made to the police authority for the area in which the property is situated. The period of claim has been extended to 42 days but every endeavour needs to be made to act quickly.

Buildings owned by Bodies in the Public and Voluntary Sectors
The 1886 Act appears to apply to most kinds of urban buildings including churches, hospitals and other buildings owned by bodies in the voluntary and public sectors. 

Burden of Compensation
Although the police are the "compensating authority" the burden of the compensation provisons will be borne by the payers of local taxes and/or the national taxpayers (to the extent that the Coalition government contributes.

Future
It may be that past calls for the remains of the Riot (Damages) Act 1886 to be repealed will be heeded. The Act is a shadow of the original but the effect is that indicated above. The issue is a fourfold question,namely:

• Should the government (taxpayers) bear the brunt of such losses?
• Should the insurance industry take up the challenge make the "special peril" a standard?
• Should the local community (local goverment tax payers) take the brunt?
• Should we all be self-insured? 

Community Assets No 7 - Local Authority Property and community Value (Update 2 - 18 November 2011)

At last the Localism Act 2011 is established in law? The links below describe how local authorities will be required to publish information about their own property - the description gives an aggregate of the open market values of all such property.

However, the 2011 Act provides for some local authorities to make a list of assets (land and buildings) which have "community value" (which is not be the same as "open market value"). I suppose that the list will certainly include assets deemed or nominated as community assets belonging to bodies and individuals who are not local authorities: but will the list include local authority property assets? No doubt the forthcoming regulations will tell us.

Whilst browsing I hit upon a DCLG site which gave a pretty map of the locality with all kind of coloured pointers.  Hitting on the pointers I received some detailed information about the public property on each hit, such as a) name, b) address, c) postcode, d) organisation, e)contact, d) currency (date), e) area,  f) use status,  g) tenure, h)  easting,   i)  northing,  j) reference,  and i)  ID.  Will future such lists indicate public property which has community value?

[Please Note:  Wish I could show you but my viewing was (apparently) for my eyes only (or more complicated words than that)!  Having signed the OSA I felt obliged to resist showing you the many boxes which state "Data Not Available". Nevertheless once it is fully developed it should prove a useful first pointer for residents and others of what is out there in the public domain. However, I am not allowed to copy it and there was hint that it may be shown for a limited time; even if it stays for ever, I may not be able to find it again! It has been an exciting half hour!!! Sad.]
http://www.24dash.com/news/housing/2011-08-05-Pickles-orders-councils-to-publish-assets?utm_source=24dash+newsletter+subscribers&utm_campaign=1c4848811f-UA-31909-1&utm_medium=email

Community Assets No 6 - Compensation Issues No 1 (Update No1 - 18 November 2011)

With the prospect of local land being listed under the Localism Act 2011 (November 2011) as assets of community value there may develop a market "niche" for those who seek to agree claims for compensation upon the compulsory purchase of a such assets. It may, therefore, become appropriate for the stakeholders to get an idea of the following:

• the approaches to compensation which might arise; and,
• the possible pitfalls along the line.

Firstly it may be noted that community value is not really about open market value (OMV) but the view in section 88 (1),(2), and (3) that a property furthers the social wellbeing or social interests of the local community. "Social wellbeing" is not defined in the section but in section 88(6) "social interests" covers
(a) cultural interests;
(b) recreational interests; and,
(b) sporting interests.


The Act is silent as to whether these interests have to be "lawful"!  As an aside - this aspect of the Localism Act 2011 takes my mind to lawful sports and pastimes of the Commons Act 2006 - one of the "measures" of judging land use when determining land as a prospective village green or town green. Will such land be considered as an asset of community value? The 2006 Act suggests that it could be! [At present the government has a consultation out on heritage greens.]

The basics of compensation for assets of community value are likely to be very similar to (if not the same as) that for other property affected by a compulsory purchase order (CPO). However, a CPO for community property is likely to involve only one parcel of land (or land with building(s)). In other words the surveyors involved may have little in the way of current transactions as comparatives for determining the value of the community asset. Here, however, the post is about the legal framework for determining the basis of value.


The law provides that the owner should be compensated in a manner which means that he or she should not be worse off after the event than before the event - the event is the act of acquisition under the CPO but the date at which compensation is assessed is determined in law. If an interest  happens (in the unlikely event) to be unlawful,  it cannot be reflected in the OMV since the six rules of compensation should be used by the acquiring body to exclude it as being immoral etc (see the Land Compensation Act 1961 (as amended).


Cutting to the bone, broadly and briefly there are statutory rules and assumptions which, in effect, allow two bases of compensation; the owner claims the higher of the following:

• open market value of the property assuming it is in the present use, together with "disturbance" (together with, legal fees and costs and surveyor's fees); and,
• open market value based upon development potential (together with legal fees and costs and surveyor's fees).

By way of illustration, a village shop with a large yard might be valued as a shop at say, £490,000 including disturbance and fees etc: as a redevelopment site it for housing it might be valued at say, £900,000 including fees etc. In this instance owner would be entitled to the latter sum.

However, in a case (Greenweb v London Borough of Wandsworth (2008) (similar to a CPO situation) the claimant company had originally paid £30,000 for a small parcel of land. The land was open space - seemingly available to the public. The acquiring authority and the claimant agreed that its market value was a sum of £15,000 but the company argued that under the statutory rules etc, it was entitled to much more - as a result of the Lands Tribunal decision going before the Court of Appeal the company ended up with £1,600,000!

Property No 1 - Land Auctions - Via Local Authorities (Update No 1 - 28 November 2011)

Vague memories of something called the "community land scheme"(CLA) (c 1976) came to mind when I read of misgivings about the policy proposal for land auctions by local authorities.


Briefly, the land auctions scheme is that owners of property with development potential will "offer" their land to the local authority at a sealed-bid price. If the council decides to "buy" the land at that price, it will then obtain planning permission. Subsequently the local authority will sell the land at auction to the private sector for development, ie in the expectation of a price higher than the bid price.


The proposal is (very very loosely) akin to what I imagine might have happened after the "second appointed day" (SAD) of the CLA - that day did not arrive! [If memory serves correctly, aftre SAD the land was bought by the LAs at "current use value" not at a sealed bid price.}Will the same fate await land auctions via local authorities?

Community Assets No 2 - Moratorium on a Disposal (Update No 2 - 23 November 2011)

The Localism Act 2011 requires an owner who has a property which is listed on the local authority's list of assets of community value to give notification of disposal. This will kick in an interim moritorium period of disposal, ie six weeks in which a community group may declare an interest in exercising their right to bid for the property. If one does so a full moratorium  period on the disposal arises, namel six months.

It follows that the stakeholders will all have to be alert to the impact of such a moratorium, namely:

• the owner should be aware that the property is on the list and be concerned that the appropriate "notification of disposal" (see section 96)  is made;
• any owner's estate agent should take into account the timing of the various periods given in the chapter, eg "full moratorium period", "interim moratorium period" and "protected period";
• prospective buyers (both community buyers or private buyers) will need to understand the nature and timings of any possible delays;
• any community interest group (see section 95(6)) wanting the property will need to comply with the procedures;
• the local authority (see section 106 (1), (2), (3), and (4))  will need to be geared up to give effect to the procedures.

Once the Regulations are published (probably in a few months) the full gamut of the legislation will begin to bear!


A point to bear in mind: where the vendor has a "going concern", eg as a branch in a bank and decides to close the bank branch, it may be difficult afterwards to maintain or claim the "community value" in the empty property. The issue is that the "community value" may lie in the continuation of the use, in this case banking: it is not in the property per se.

Community Assets No 1- Glossary - "Assets of Community Value" (Update No 1 -16 November 2011)

"Community asset" is a relatively new term which is being "enclosed" with a new statutory aura of terminology; so this post attempts a short list of the new jargon. I must admit that I have a layman's understanding of such matters so I am pleased at last to delve into the Localism Act 2011 which has just received Royal Assent (16 November 2011). Now we must await the pethora of Regulations!  

To the glossary - where the Bill is lacking in detail it might be expected that forthcoming regulations will fill gaps. Let the hunt begin!


Part 5, Chapter 3 of the Localism Act 2011 (sections 87 to 108) sets out the law of "assets of community value. " Under these provisions new terms we have to deal with include the following:

• community value - (see section 88(1)(a) - This is not a reference to monetary value such as "open market value" but to a quality of the land in its current use in furthering the "social wellbeing or social interests of the local community" [Note tht further detail is given in the section!];
• list of assets of of community value (see section 88) - The lists are to be drawn up by the local authority (see section 106(1) and (3)), eg district council, county council, etc.
• community nomination (see Section 89(2)(a) and (b)) This allows community councils, town councils and parish councils and their ilkies (certain voluntary bodies) to nominate land for the list. [They seem to be in a relatively weak position.];
• land of community value - "land" is widely and interestly defined (see section 108(1));
• owner - (see section 107) is defined in relation to land as to whether the estate held is freehold or a freehold with one or more leases. [In the latter the owner owns the leasehold furtherest from the freehold!]
• list of land nominated by unsuccessful community nominations (see section 93)
• moratorium on disposing of listed land - (see section 95(1)) - here  land on a list cannot be disposed of unless Conditions A, B, and C have been fulfilled (see Section 95 (2), (3) and (4));

My first look excited curiosity and revealed my general "cloud of unknowing" about such matters. A whole new field of interpretation is about to hit me - or so methinks! Later posts will explore these terms and more further.

Community Assets No 8 - Authority and Power to Compulsory Purchase (Update 1 - 18 November 2011)

For competent bodies there are about 150 (at least) separate statutory provisions available to purchase land with the power of compulsory acquisition, ie to buy land using a compulsory purchase order. The powers will cover the likes of:

• land and buildings for schools;
• land and buildings for housing;
• land and buildings for roads;
• etc.

The issue is "What is the nature of the powers which are available to buy a "community asset"?


It may be noted that power to buy property by agreement is usually available under the particular statute - the CPO provisions are there to back up the competent authority's position for the following reasons:

• against say, reluctant owners and/or occupiers;
• to speed up the process; or,
• to ensure approval by a higher authority, ie the appropriate Secretary of State.

A competent authority, eg a local council, is one able to seek powers of compulsory acquisition under a statute. The wording of the Act will or should make this clear. In England's rural areas this is likely to be the district council or the county council. In urban areas it will be the stated local authority. The issue is "What bodies are able to buy by compulsory purchase land and buildings for use as a "community asset"?


Firstly, it is not likely that a parish council or town council has or will have the statutory powers to buy land for community asset purposes by CPO: they may be able to do so by agreement...? Otherwise, it seems that a competant authority may seek to obtain a CPO for a "community asset" provided:

• the community asset is specifically covered by an existing power of compulsory purchase, ie included in the purpose of the enabling Act, say social care purposes;
• the community asset is such that it could be included in a particular scheme of acquisition, eg a regeneration project;
• finally, it may be bought under more general power, eg for planning purposes or economic development purposes.

An hypothetical example might be private land used as allotments. The section references are the Localism Act 2011 (November 2011)

The owner wishes to sell the land but the allotmenteers want the following:

• the land to be an the local authority's list of assets of community value (s 87(1));
• hence, to nominate (s 89) as a voluntary body (s 89(2)(ii)) the land as being of land of community value (s 88);
• once so listed, ensure the disposal of the land is subject to a moratorium (s 90); and,
• to persuade the parish council to persuade the district council to acquire the land by a CPO.

Of course, all of this requires;

• a good measure of time;
• an 'imbuination' of the details of the procedures under Part 5 Chapter 3 of the Localism Act 2011;
• support from the stakeholders;
• etc.

 A government circular, albeit dated, on CPO-ing is Circular 02/03 Compulsory Purchase Orders (see link) is nearly 100 pages of detail.
http://www.communities.gov.uk/documents/planningandbuilding/pdf/156360.pdf

Community Asset No 4 - Initiation of a Compulsory Purchase Order (Update No1 - 17 November 2011)

The references to sections are to those in the Localism Act 2011 (November 2011).

The actions required to obtain a compulsory purchase order need to be carefully planned and executed by the "stakeholders". The initiators are likely to be a small group of local residents who want to see a threatened local asset of community value (s 88(1)(a)).

• supportive local residents who might form themselves into a community group - to contribute ideas and raise funds for the project's immediate progression - they may want to make a community nomination (see s. 109(2) (a) and (b)) that the asset goes on the list;
• the relevant local authority - to be persuaded to make a CPO for what must be a justifiable community scheme;
• the local planning authority - to be consulted and may ultimately decide on the planning merits of the proposal;
• the owner (see s.107)and any occupiers of the property - (assumed for the purposes of this post to be opposed to the project); and,
• immediate neighbours who may be opposed to the project on amenity or other grounds.

Once formed the community group will need to make the case for project - particularly to the CPO-ing body. The main pointers on this score have been outlined by ministerial advice to the local authorities. No doubt further detail will emerge. For the purposes of this post the following is an attempted "interpretation":

• the nature of the worthwhileness or value of the project to the local community - the groups or groups of residents or visitors it will serve, the extent that life in the community becomes more sustainable....;
• the perceived threat to the asset - dereliction to the fabric of the building leading to its loss, retirement of the business owner, inappropriate development...;
• the future project in terms of its purpose, usage, management, and business (perhaps including its restoration, business development plan, funding)....;
• planning issues - the sustainability of the project for the future of the community, impact on neighbours and its amelioration....; and
• financing of the acquisition - local authority financing (if any), community groups financing etc...

Community Assets No 9 CPOs for Community Assets (Update No 1 - 18 November 2011)

The Localism Act 2011 (15 November 2011)) has possibly made it more likely that more than one community group is going to be asking their local authorities (LAs) to compulsorily acquire a private (or public?) asset which the community group regard as a being a land of  community value. [Note: This post assumes that the bits and pieces of the Act are operating - that is as time lordsladies we are in the future after the regulations are approved by Parliament.]

Initial steps before the CPO is likely to be considered are:

• if the LA has not put the asset on its list, a "person"  aka  the community group nominate the land (and buildings) as an addition to the LA's list of assets of community value.
• it then requires a notification of disposal of the owner; and
• a moratorium on the disposal.

In the past such groups have sometimes been able to purchase privately a local post office, shop, pub etc which is threatened with closure and hence cease to exist. At other times they have failed - perhaps for lack of time. It might be expected that a CPO will enable due process (and delays) - if successful, it will lead to the creation of a community-owned asset


The main purpose of this post is only to identify the main steps in the practice and procedures of obtaining a compulsory purchase order in the context of the Localism Act 2011 as they might be applied to creating an asset of community value. (Later posts will examine the steps in more detail.)


In outline the steps involve the following:

1. Initiation and relevant community body in operation;
2. Community body prepares and demonstrates the "case" to the LA and other stakeholders;
3. Relevant public body and authority to obtain powers to acquire land;
4. Making and submitting (if necessary) a compulsory purchase order;
5. Confirmation of the CPO and possible action in the High Court;
6. Notice to treat and possession against the owner (and occupier if different);
7. Assessing compensation for those entitled;
8. Completion and payment of compensation; and,
9. Commissioning as an asset of community value.

Community Assets No3 - Compulsory Purchase (Update No1 17 November 2011)

Communities facing the loss of treasured property-based assets, eg a privately owned pub, post office or a shop, may now feel empowered and emboldened to seek a compulsory purchase order (CPO). They would have to do this "via" the appropriate local authority, ie one with the relevant powers of acquisition.

Local authorities are issued with new guidance (in Appendix KA of Circular 06/04) on the expectation. Once a community group get to hear of the guidance they may feel justified in going for the CPO route - particularly where private treaty negotiations have failed.

All parties in the process will feel the weight or impact of the paper work generated - particularly the private owner who may want to retire quietly from his or her business with a nest egg. It is probable that CPOs still take a minimum of about say, 15 months so the retirement and the prospect of a quick sale for other use may be lost.

Prior to any CPO the owner may face a moratorium on an intended disposal of his or her property (because it is deemed to be an asset of community value). This new procedure under the Localism Act 2011 (November 2011) is intended to give a community interest group a chance to declare an interest in buying the property.

Community Assets No10 Circular 06/04 Compulsory Purchase and the Critchel Down Rules (Update No 1 19 November 2011)

If you have an old copy of Circular 06/04 beware! It has been revised this month with a new Appendix KA on page 57! Otherwise "passage of time" changes are recorded in the Planning Portal (16 June 2011). The new appendix concerns advice for yet more CPOs. (See Community Assests -No 9 - Update No 1.)

Demolition No 1 - Compensation and Demolition

An owner of a non-residential property wanting to demolish it may not get compensation if amendments are made by the government to the current compensation provisions concerning Article 4 Directions. More detail of the prospect of changed legislation is given on the Planning Portal (16/6/2011)