A Compulsory Purchase Order, or CPO, is a legal process that enables specific official bodies, such as councils and government organisations, to acquire land or property without the owner’s consent. In essence, it’s the authority to compel a sale. This blog covers all you need to know about CPOs. For more on what happens to unoccupied properties, see our report on Empty and abandoned Houses in the UK.
The Main Objective of a Compulsory Purchase Order
The land must be required for a purpose deemed to be in the “public interest” or “greater public good.” This is the crucial requirement.
Typical justifications for hiring a CPO include:
- Infrastructure includes the construction of new highways, railroads (such as HS2), airports, and utility lines.
- Regeneration is the process of removing run-down regions to create space for new homes or town centre projects.
- Purchasing property for hospitals, schools, or flood protection.
see how HS2 uses compulsory purchase powers HS2 Compulsory Purchase: General Vesting Declarations for more detail.
What is an Example of a CPO? – The Process
A CPO is a legal application that goes through a formal, regulated process; it is not an instant eviction notice.
- The acquiring authority must first demonstrate and justify the necessity of the purchase and the strength of the public interest argument. Usually, they must first attempt to negotiate a voluntary sale.
- After drafting the CPO, the authority notifies all impacted owners and occupiers by publishing a notice, usually in local media.
- Affected parties may formally object to the CPO. The necessity of the project, its location, or a legal error in the process are frequently the subjects of legitimate objections.
- A public inquiry is typically conducted if there are unanswered objections. A Government Minister (Secretary of State) or an appointed independent inspector makes the ultimate decision over whether to accept, reject, or alter the CPO.
- The owner is entitled to just recompense if the CPO is verified. The objective is to return the impacted party to their pre-CPO financial situation.
A CPO is a legal application that goes through a formal process. You can learn more on the UK Government guidance on compulsory purchase and compensation.
Owner Rights and Compensation
The most crucial element for a property owner is this:
Market value – The entire market value of the land or property you are purchasing is yours to keep.
Disturbance – You are entitled to reimbursement for reasonable expenses associated with the mandatory relocation, including removal charges, professional fees (such as those for a surveyor and a lawyer to assist with the claim), and other losses.
Principle of equivalence – According to the law, you shouldn’t be in a worse or better financial situation following the acquisition.
Although being forced to sell may make a CPO seem intimidating, the law is designed to ensure you receive just compensation for your loss.