Where work is being undertaken on a scheme under the powers of Compulsory Purchase and property is affected by the scheme, individuals and businesses can claim compensation from the relevant authority. The claims mechanism is set out in various Acts of Paliament and will depend on whether land has been acquired for the scheme or not. Kirkby & Diamond Chartered Surveyors will offer guidance through the process.
Where land has been acquired for the purposes of a scheme, the majority of owners and occupiers will be entitled to claim compensation for the value of their interest and other losses including:
- Severance – the decrease in the value of your retained land due to the loss of the acquired land.
- Injurious Affection – the decrease in the value of retained land due to the input of the scheme.
- Home loss or occupiers loss payments.
- Disturbance
Disturbance claims can vary enormously and are specific to individual circumstances. The claim will include all losses incurred due to dispossession of the land that is a natural consequence of the scheme. This will include solicitor’s fees, surveyor’s costs, time spent in meetings or on the telephone etc. However, there is a duty to mitigate any losses incurred.
Generally losses sustained before the acquiring authority has issued their Notice to Treat to acquire the property are not payable. However, there are limited circumstances where a claim maybe made and professional advice should be sought.
Where there has not been any land acquired for the scheme there may still be a claim for disturbance due to the scheme. There are two types of claims which maybe applicable:
- Section 10 Claim: - compensation for the decrease in the value of property due to the implementation of the scheme. This claim only provides for the physical interference with a right; which the landowner is entitled to make use of and which gives additional value to the property. As the construction period is temporary these types of claims are not often actioned. However it is always worth obtaining professional advice.
- Part I Claim: - compensation for the decrease in the value of property due to the subsequent use of the scheme. Again this claim is limited to any physical factors which decrease the value of the property. For example; noise, vibration, smell, smoke etc. A claim cannot be made until 12 months from the opening of the completed scheme. This is to ensure that the actual impact of the scheme can be assessed and not the perceived impact.