If your property is adjacent or in close proximity to the proposed development work you might be able to claim for compensation.
The acquiring authority will still have to serve a Compulsory Purchase Order to homeowners even though their property may not lie on the land where the proposed development is to take place.
This kind of Compulsory Purchase Order occurs when the acquiring authority do not need to possess your land, but due to the close proximity between the development scheme and your land, the acquiring authority has to give notice that they have concluded that the use of the development scheme by the public would bring negative implications to you and your land. Therefore, by being served a Compulsory Purchase Order, you would be entitled to claim for compensation.
What Are The Grounds For Compensation?
Homeowners are able to claim for compensation for losses incurred on the basis that some right in property (as opposed to the actual property itself) is taken away or has been interfered with. To claim for such compensation, the loss or injury must:
- Be authorised by statutory power;
- Arise from that which would, if done without the statutory authority, have been actionable at law, for example as a nuisance;
- Arise from a physical interference with some right, public or private, which attaches to the land;
- Arise solely from the execution of the works and not as a result of their subsequent use
You can only claim compensation based on the use of the development scheme which has caused depreciation of your land.
What Are The Factors Determining The Amount Of Compensation You Receive?
The amount of compensation received depends upon the amount of depreciation in the value of your land accrued from the seven ‘physical factors’ caused by the use of the proposed development:
- Artificial light
- Discharge onto the land of any solid or liquid substance
For example, if a motorway was constructed in close proximity to your property, you would be able to claim compensation to make up for the depreciation of your land caused by the noise and other physical factors relating to traffic use on the motorway, rather than the physical existence of the motorway.
Any other factors which are not listed above cannot be compensated, for example, the loss of a view from the construction of the development scheme.
When negotiating compensation terms there are various elements to consider. It is advisable to seek legal advice before agreeing to any compensation offer by the acquiring authority to ensure you are fully aware of your rights and legal position.