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 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.