What is a Compulsory Purchase Order (CPO)?
Compulsory purchase powers enable local authorities and other Government agencies to acquire land or property so that it can be used to carry out a public function, such as the building of new roads, schools, town centre developments and urban regeneration.
Compulsory purchase powers are authorised by making a Compulsory Purchase Order (CPO).
More information about CPO can be found within the following guidance documents:
RICS Consumer Guide: Compulsory Purchase
Government Compulsory Purchase System Guidance
What is a Side Roads Order?
A Side Roads Order (SRO) enables a highways authority to change the way that local roads function. This could be by raising, lowering or redirecting the road, stopping up highways; stopping up private access and providing new private access.
If confirmed, the SRO for the Banwell Bypass scheme will authorise the Council to make alterations to the existing highway network, public rights of way and private accesses that would be affected by the construction of the scheme. Where any existing routes would need to be stopped up, the SRO provides for alternative routes to be created.
What is an Order Schedule?
Attached to the CPO is an Order Schedule. This shows the details of the land and rights the Council would like to acquire.
The first part of the schedule (table one) contains the extent, description and location of the land and sets out the names and addresses of its reputed owners, leaseholders, tenants, occupiers. Table one also confirms whether the Council hopes to acquire the whole interest in the land (the freehold) or new rights over the land including the nature of the new rights being acquired.
The second part of the schedule (table two) details anyone who benefits from rights over the land and identifies parties holding interests in the land which may be affected by the CPO.
Who are the other people in the Order schedule?
Table two of the schedule shows everyone who held a qualifying property interest or legal interest (as defined in s.12(2A) of the Acquisition of Land Act 1981) in the land included in the CPO, at the time that it was made. Examples of these interests include mortgages, rights of way and other restrictions or rights recorded on the title of a property.
How has the Council obtained the information included within the Order?
Through a process called land referencing. You may remember receiving letters and questionnaires from a company called Fisher German. Fisher German was appointed by the Council to carry out a land referencing process which involved calling at each property, sending letters, and searching Land Registry documents. All of the people named in the Order schedule were identified during the land referencing process.
How do I check what land and rights I hold are included in the Order?
As explained above, the CPO is broken down into two parts:
• Table one identifies all known or reputed owners, leaseholders, tenants and occupiers of the land included in the CPO.
• Table two identifies all persons with a right over the land or a qualifying legal or property interest (e.g. a mortgage or right of way).
To check what interests are relevant to you, you should identify your plot reference number(s) by locating your property on the Order maps. An example would be plot ‘2/12a’. The maps will show the extent of any land or rights which the local authority would like to acquire through the CPO.
You should then check what information has been recorded against that plot in both table one and table two to understand what the Council is proposing to acquire (and any rights/interests you benefit from which may be affected).
If none of your land is included on the CPO maps, this is likely because you have been identified as having a right or interest in other property which is affected by the CPO.
You should review table two to find your name (this can be done using by pressing Ctrl+F and searching for your name on the electronic version of the CPO documents), the description of the rights/interests affected and the associated CPO plot reference number. You can then review the information contained in the Schedule against the CPO maps by using the plot reference number.
Care has been taken to ensure that all information included in the Schedule is accurate. However, if you believe that any of the information is inaccurate, please get in touch with the Council at banwell.bypass@n-somerset.gov.uk.
What is a ‘subsoil’ interest?
You may see that your land has been included in the CPO “in respect of subsoil”. Where this is the case, the CPO plans will show that the land affected is within existing public highway.
Subsoil interests have been included in the CPO on the basis of a legal presumption that the subsoil beneath a public highway is held as part of the ownership of the adjacent land, where the ownership position is not otherwise known. The subsoil interest will usually be owned up to the mid-point of the public highway.
The presumption can be disputed if new evidence comes to light as to the ownership of the subsoil, but where a subsoil interest has been included in the CPO this is because ownership has been assumed based on the Council’s land investigations and referencing to date.
Subsoil interests have been included because the Council is seeking to acquire the whole plot (including subsoil) of the land on which the existing public highway is located, prior to carrying out any construction works.
What is the CPO process?
The CPO powers can only be authorised by the relevant Secretary of State. Once the CPO is confirmed by the Secretary of State, notice of its confirmation must be given by the acquiring authority (in this case, North Somerset Council). It is only after confirmation of the CPO that the Council can serve notice to acquire the land or rights.
If there are relevant objections made to a CPO, and those objections are not withdrawn, the Secretary of State will direct the objections to a public inquiry where they will be considered before the CPO is confirmed.
Once the CPO is confirmed, the Council has three years to implement CPO powers. The authority can do this by making what’s called a general vesting declaration, or by serving what’s called a notice to treat and notice of entry.
If the order is confirmed, the authority will advise affected owners, lessees, tenants and occupiers how it intends to exercise CPO powers and will be required to serve notices relating to the making of a general vesting declaration, or notices to treat and notices of entry, as part of it acquisition process.
Compensation will be paid for the CPO, in accordance with the statutory compensation code, to parties from whom land, property and interests are being acquired.
What circumstances make a CPO/SRO viable?
The Council must demonstrate that the taking of land is justified and that there is a ‘compelling case in the public interest’ for its acquisition. The Council has prepared and issued a statement of reasons for the making of the order with the CPO and SRO. This explains the reasons and justification for the orders. Any objections made (which are not withdrawn) will be considered by the inspector at the inquiry.
Who authorises a Compulsory Purchase Order and Side Roads Order?
North Somerset Council has made the CPO and SRO but approval is required from the Secretary of State by way of confirmation (after a public inquiry if objections to the order are made and not withdrawn).
CPO powers cannot be exercised until after the order has been confirmed by the relevant Secretary of the State.
Can I object to a CPO/SRO?
Yes. Owners, lessees, tenants and occupiers can object to a CPO/SRO. Members of the public and others may also object.
The objection period must last for a minimum of 21 days for the CPO and 6 weeks for the SRO. In this case the objection period is six weeks for both (last until 25 November) as specified in the notices given to owners, lessees, tenants and occupiers and to published in the press.
As explained above, if relevant objections are made and those objections are not withdrawn, the Secretary of State will direct a public inquiry to consider those objections before the CPO is confirmed.
Objections relating to compensation may be disregarded by the confirming Secretary of State, since there is a separate procedure for resolving disputes regarding compensation through the Upper Tribunal (Lands Chamber).
Once a CPO is confirmed how long will I have before you acquire the land?
The Council has a three year period to exercise its powers. We will notify you of our requirements and the timescales for this. We will also serve formal notices when we intend to exercise the CPO powers.
An estimated timeline of the CPO and SRO process is outlined below:
| October 2022 | CPO and SRO papers served |
| October/November 2022 | Objection period |
| Spring 2023 | Potential public inquiry date |
| Spring/Summer 2023 | Expected decision on public inquiry from Secretary of State |
| Summer 2023 | CPO/SRO powers to be exercised |
| Autumn/Winter 2023 | Access to land required |
How can I respond and how long do I have?
Any objection to the order must be made in writing to the Secretary of State for Transport at Tyneside House, Skinnerburn Road, Newcastle Business Park, Newcastle upon Tyne, NE4 7AR or via email at nationalcasework@dft.gov.uk before 11:59pm on the 25 November 2022.
Do I lose my land if I receive notice that a CPO is being served on my land?
No, not immediately.
Land and other interests (including new rights) can only be acquired after the CPO has been confirmed by the Secretary of State. Owners, lessees, tenants and occupiers have been given notice of the making of the Compulsory Purchase Order by North Somerset Council. This notice provides details of how and to whom an objection to the order may be made. A similar notice was published in the Weston Mercury on 13 October 2022 and London Gazette on 14 October. A second notice will be published on 20 October in the Weston Mercury, these also state how an objection to the CPO can be made.
Further notices will be served to notify landowners that the CPO has been confirmed by the Secretary and State (if the Secretary of State determines that the CPO can be approved).
What are my rights for compensation?
Compulsory purchase compensation generally seeks to place the affected party in no better or worse position than prior to the compulsory purchase. Compensation is assessed and paid in accordance with the statutory compensation code which applies to the compulsory acquisition of land, property and other interests.
We can provide you with information about the code and how you claim compensation. The nature and amount of compensation payable will depend on your specific circumstances. Typical heads of claims may include: market value of property, disturbance costs, basic loss and occupiers loss payments, professional fees and cost of reinvestment where relevant and appropriate.
In addition, you may also claim reasonable costs incurred as a consequence of the CPO, including surveyors or agents’ fees for negotiating compensation and legal costs incurred as a consequence of the purchase by the acquiring authority.
Can I claim for the effects of the CPO on my business?
Yes, if appropriate and justified. The statutory compensation code makes provision for this. Information regarding what may be claimed can be provided to you by the acquiring authority. If you appoint a surveyor or agent, they will negotiate compensation with the authority on your behalf and advise you on your entitlement.
Who will pay for my professional costs arising from a compulsory acquisition?
The statutory framework for payment of compensation typically provides for reimbursement of reasonably incurred professional fees upon the compulsory purchase of land or rights, as part of a compensation claim. This would include situations where the Council serve legal notices to enter for survey purposes or to acquire land/rights by compulsion.
Where the Council approach affected parties to agree licences for surveys, undertake engagement as to the impact of the scheme or acquire land (or rights) by agreement, they will consider reimbursement of reasonably incurred professional fees. In these situations, professional representatives should contact the Council or their appointed surveyors, to agree the basis of fee reimbursement before undertaking any work.
The contractual arrangement for the provision of professional services is between the surveyor and their client. The surveyor should agree their fee arrangements with their client and, in some cases, there may be a shortfall between the surveyor’s fees and those that are eligible for reimbursement by the Council. Surveyors are expected to advise their clients of any anticipated shortfall.
The Royal Institution of Chartered Surveyors introduced a Professional Statement in April 2017 that is mandatory for chartered surveyors advising in respect of compulsory purchase and compensation. Anybody instructing surveyors to advise them on potential compulsory purchase and/or compensation matters is recommended to familiarise themselves with the professional statement and what they should expect from their surveyor. A copy can be found here.
This guidance applies whether the Council has served statutory notices, made a compulsory purchase order or are in contemplation of doing so, as is the case with the Banwell bypass.
If compensation is not agreed, it may be determined by the Upper Tribunal (Lands Chamber) who may make an award of costs in favour of the claimant or the acquiring authority. We would not be responsible for your costs in objecting to the Compulsory Purchase Order unless the inspector at inquiry rules this following a successful objection.
How long will it be before compensation is paid for a compulsory acquisition?
Once compensation is agreed with the Council then this will be paid at the earliest opportunity. Once possession of land is taken, it is possible to seek an advance payment of compensation under the provisions of the Land Compensation Act 1973.
How can I obtain professional representation by a chartered surveyor?
Parties directly affected by the scheme may find it useful to seek professional advice from practitioners experienced in compulsory purchase and compensation, given that the Council may consider it appropriate or necessary to use statutory powers to acquire land/rights.
The Royal Institution of Chartered Surveyors offers a telephone helpline (02476 868 555) which will put you in contact with someone who can provide a free 30-minute consultation. Alternatively, you can find firms in your area by visiting http://www.ricsfirms.com/ or emailing contactrics@rics.org.