Compulsory Purchase Orders: When Councils Can Take Your Property

Compulsory Purchase Orders allow councils to buy property without the owner's consent. Here's how CPOs work and what rights you have.

Compulsory Purchase Orders (CPOs) give public bodies the power to acquire land or property without the owner's agreement. While relatively rare, they can affect residential and commercial property owners, and understanding the process is important if you're ever affected.

Who Can Use CPO Powers?

• Local authorities - for regeneration, housing, highways, education, and other public purposes
• Government departments - for national infrastructure (HS2, major roads)
• Statutory undertakers - utilities companies, Network Rail, the Environment Agency
• Development corporations - including Homes England

When Can CPO Be Used?

CPO powers can only be exercised where there is a compelling case in the public interest. Common justifications include:

• Major infrastructure projects (roads, railways, flood defences)
• Regeneration and redevelopment of run-down areas
• Assembly of land for housing delivery
• Bringing empty or derelict properties back into use
• Heritage preservation (repairing neglected listed buildings)

The CPO Process

1. Resolution - the acquiring authority resolves to make the CPO
2. Making the Order - the CPO is made and served on affected landowners
3. Objection period - affected parties have at least 21 days to object
4. Public inquiry - if there are objections, an independent inspector holds a public inquiry
5. Confirmation - the Secretary of State (or the authority, if delegated) confirms or rejects the CPO
6. Notice to treat / General Vesting Declaration - the authority formally acquires the land
7. Compensation - the authority pays compensation based on market value plus statutory additions

Your Rights

Right to Object

You can object to the CPO during the objection period. If you do, there will usually be a public inquiry where you can present your case (with legal representation if you choose).

Right to Compensation

Compensation is based on:

• Market value - what the property would sell for on the open market
• Severance and injurious affection - loss in value to retained land
• Disturbance - reasonable costs of moving (removal costs, legal fees, stamp duty on a new property)
• Home loss payment - a statutory payment (currently 10% of market value, capped at £73,000) for owner-occupiers displaced from their home
• Basic loss payment - 7.5% of the value of the interest acquired, capped at £75,000

Right to Challenge

You can challenge a confirmed CPO in the High Court within 6 weeks of confirmation, but only on legal grounds (not on the merits of the decision).

Practical Advice

• Take professional advice immediately if you receive a CPO notice - a specialist CPO solicitor and surveyor can protect your interests
• Don't ignore it - failing to object doesn't increase your compensation
• The acquiring authority must pay your reasonable professional fees for negotiating compensation
• Consider whether negotiating a voluntary sale might achieve a better outcome than resisting the CPO