Creating a Compulsory Purchase Order (UK)

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

CPOs have provided a legal mechanism for public authorities to acquire land for centuries, but the implementation of CPOs remains a contentious issue today. It is important to understand why this process is so important, and how it should be used in an appropriate manner.

At its core, CPOs provide a mechanism for acquiring property for public use. This can include roads, schools and hospitals being built, or private land being purchased for urban regeneration purposes – all of which can improve the local area and create jobs. Crucially, CPOs also ensure that those whose land is taken are adequately compensated at market value with any additional costs accounted for. This helps to prevent them from suffering an unfair financial burden due to their land being bought compulsorily.

It is essential that CPOs are implemented in an accountable and transparent fashion; this ensures that the interests of landowners are not ignored while still serving the greater public interest as intended. They also enable local authorities to respond quickly and effectively when there is a need in the community – be it housing or other services offered as part of a project.

The Genie AI team sees this process as incredibly important; we strive to make sure that CPOs are used fairly and appropriately through our open source legal template library – filled with millions of data points on what constitutes a market-standard compulsory purchase order - allowing anyone to draft high quality documents without paying out lawyer fees. Accessing our library does not require you having an account with us: we just want to help wherever possible! To learn more about how you can access our templates or get step-by-step guidance on creating your own CPO document today, read on below…

Definitions (feel free to skip)

Compulsory Purchase Order (CPO): A legal order issued by the government or a local authority that forces an individual or organization to sell their land to them.
Local Authority: A governmental administrative division, such as a county, city, or district, which is responsible for providing public services in that area.
Public Purpose: A purpose that is in the interest of the public, such as building a road or school.
Proposal: A plan or suggestion that is put forward for consideration.
London Gazette: A British publication which publishes news and legal announcements.
Representations: Statements or opinions expressed in response to a proposal.
Objections: A statement of disagreement or disapproval.
Confirmed: To make official or valid.
Act of Parliament: A law passed by a legislature.
Compensation: Money or other forms of payment given to someone in exchange for a loss or injury.
Valuation: The process of estimating the value of something.
Appeals: A request to reverse a decision or ruling.

Contents

• What is a Compulsory Purchase Order (CPO)?
• What types of land can be subject to a CPO?
• Who can initiate a CPO?
• What is the process of making a CPO?
• Preparation of the CPO
• Publication of the CPO
• Consideration of representations
• Confirmation of the CPO
• What are the legal implications of a CPO?
• What are the rights of the landowner or occupier when a CPO is made?
• What is the compensation process for a CPO?
• Valuation of the land
• Negotiation of the amount of compensation
• Payment of the compensation
• What are the timeframes involved in a CPO?
• What are the appeals and objections processes for a CPO?
• What other considerations should be taken into account when making a CPO?
• Impact on the environment
• Impact on local communities
• Impact on local businesses
• Impact on other stakeholders

Get started

What is a Compulsory Purchase Order (CPO)?

• A Compulsory Purchase Order (CPO) is a legal instrument used by public authorities to acquire land or property, without the consent of the owner, in the interests of the public.
• A CPO must be approved by the Secretary of State and the local planning authority before it can be issued.
• It is usually used for public projects such as roads, railways, new housing or regeneration projects.
• A CPO is an order from the government requiring the owner of the land/property to sell it at market value.

You can check this off your list and move on to the next step when you have a basic understanding of what a CPO is.

What types of land can be subject to a CPO?

• CPOs can be used to purchase land, buildings, and rights over land, including rights of access, rights of way, sporting rights, and mineral rights
• It is possible to purchase a partial interest in land, such as a tenancy or lease
• To be subject to a CPO, land must be needed in order to carry out a project that is considered to be in the public interest
• CPOs can also be used to purchase land from one owner in order to give it to another
• When considering an area for a CPO, the owner of the land must be identified and contacted
• Once the land is identified, the local authority can determine whether it is suitable for a CPO
• If the land is suitable for a CPO, the local authority can then decide whether or not to take the land using a CPO

You’ll know when you can check this off your list and move on to the next step when you have identified and contacted the land owner, determined whether the land is suitable for a CPO, and decided whether or not to take the land using a CPO.

Who can initiate a CPO?

• A CPO can be initiated by a local authority, such as a city or county council, or by a government department, such as the Department of Environment, Food and Rural Affairs.
• If a local authority is initiating the CPO, they will need to provide evidence of their need for the land and that other methods of acquiring it have been explored.
• If a government department is initiating the CPO, they will need to provide evidence that the land is required for a public purpose.
• You will know when you can move on to the next step when you have established who is initiating the CPO and have the necessary evidence to support their claim.

What is the process of making a CPO?

• Contact the local authority or government body that has the power to initiate the CPO.
• Obtain the necessary documents that must be filed in order to begin the CPO process.
• Notify the property owners who are affected by the CPO and obtain any necessary consents.
• Prepare a report that outlines the proposed CPO, its purpose, and the impact it will have on the property owners.
• Lodge the CPO with the local authority or government body.
• Publish the CPO in a local newspaper and other relevant media outlets to ensure the public is aware of it.

You’ll know you’ve completed this step once the CPO has been lodged and published.

Preparation of the CPO

• Research and assess the project - to decide whether a CPO is the most appropriate way to acquire the land
• Draft the CPO and supporting documents - this must include a statement of reasons for making the CPO and a plan of the land
• Seek legal advice on the CPO and supporting documents - to ensure that everything is in order
• Obtain ministerial consent - as the CPO must be approved by the relevant Secretary of State

You can check this step off your list and move on to the next step when you have obtained ministerial consent.

Publication of the CPO

• Publish the CPO in the local newspaper and any other relevant media outlets
• Place a copy of the CPO and accompanying documents in the relevant local authority offices
• Place a copy of the CPO and accompanying documents in the relevant parish offices
• Place a copy of the CPO and accompanying documents in the relevant affected third-party offices
• Publish the CPO and accompanying documents on the relevant local authority and parish websites
• Provide a copy of the CPO and accompanying documents to any third-party affected by the CPO
• You will know when you have completed this step when you have ensured the CPO and accompanying documents are available in all appropriate locations.

Consideration of representations

• Consider any representations made by any parties who may be affected by the CPO
• Check whether any of the representations alter the terms of the CPO
• Request additional information or clarification if needed
• Decide whether to accept or reject the representations
• Make any necessary amendments to the CPO
• Make sure to record your decision and the reasons for it
• Once all representations have been considered, you can move on to the next step of confirming the CPO.

Confirmation of the CPO

• Serve a confirmation notice stating that the CPO is confirmed and will come into force
• Include a statement that the CPO is confirmed and will come into force on a specified date
• Include a statement that the CPO is made under the relevant legislation
• Notify all of the parties involved of the confirmation
• Once the confirmation notice has been served, the CPO is legally binding
• Check that all of the parties have been notified and that the CPO is legally binding before you move on to the next step.

What are the legal implications of a CPO?

• A CPO gives the authority to a public body to compulsorily purchase land without the agreement of the landowner or occupier
• The cost of the land or property is normally determined by a valuation process
• It is important to ensure that the CPO is legally compliant and that the public body has the necessary powers to proceed
• Before the CPO can be made, the public body must publish a notice of its intention and consult with any affected parties
• Landowners and occupiers have certain statutory rights when a CPO is made, and these rights should be respected

You can check this off your list and move on to the next step when you have a thorough understanding of the legal implications of a CPO and have taken the necessary steps to ensure its legal compliance.

What are the rights of the landowner or occupier when a CPO is made?

• The landowner or occupier can challenge the CPO in the High Court.
• They can also challenge the CPO on procedural grounds, such as non-compliance with the regulations, or on the merits of the case.
• They can also challenge the amount of compensation that they would receive.
• The landowner or occupier can also seek a judicial review of the CPO in the High Court.

Once you have reviewed the rights of the landowner or occupier when a CPO is made, you can check this off your list and move on to the next step, which is to understand the compensation process for a CPO.

What is the compensation process for a CPO?

• The compensation process for a CPO is set out in the Compulsory Purchase (Compensation) Regulations 2006.
• The compensation is based on three elements: market value, disturbance and special compensation.
• Market value is the amount the land would fetch if sold on the open market.
• Disturbance compensation is paid for any loss or damage to tangible assets that the landowner or occupier must bear as a result of the acquisition of the land.
• Special compensation is paid for certain losses of intangible assets such as goodwill or loss of a tenancy agreement.
• The landowner or occupier must proceed with a claim for compensation in order to receive any compensation.
• You can check off this step once you have a thorough understanding of the three elements of compensation and the claims process.

Valuation of the land

• Appoint a qualified valuer to assess the value of the land and any structures or buildings on it
• Consider any objections that the landowner may have to the valuer’s assessment
• Get the valuer to provide a written report of their assessment
• Make sure that the report is signed and dated
• When the report is completed, you’ll know that you’ve completed this step and can move on to negotiating the amount of compensation.

Negotiation of the amount of compensation

• The landowner and the acquiring body should come to an agreement on the amount of compensation for the land - this should be based on the valuation determined in the previous step
• Seek professional legal advice during this stage to ensure the best outcome for both parties
• Once the amount of compensation has been agreed upon and the terms of the CPO are accepted, the acquiring body will issue a formal notice confirming the amount of compensation
• This notice should be checked against the agreement made between the landowner and the acquiring body
• When the notice is confirmed and accepted, this step of the CPO process can be marked as complete and the next step of payment of the compensation can begin.

Payment of the compensation

• Pay the agreed compensation to the owner either by cheque, bank transfer or using a method that has been agreed with the landowner.
• Make sure you keep accurate records of the payment.
• You can check off this step and move on to the next step when you have received confirmation of payment from the landowner.

What are the timeframes involved in a CPO?

• The Secretary of State must confirm the CPO within 6 weeks of receiving the authority’s decision.
• The CPO must be served on any affected owners and occupiers within 6 months of the confirmation.
• Affected parties have six weeks after the CPO is served to lodge an appeal.
• Once all appeals are resolved, the acquiring authority must take possession of the land within 3 months after the CPO is confirmed.

How you’ll know when you can check this off your list and move on to the next step:

• Once you have received confirmation of the CPO, served it on the affected owners and occupiers, and all appeals have been resolved, you can move on to the next step.

What are the appeals and objections processes for a CPO?

• Once the CPO is made, the local authority must issue a notice of the CPO to all interested parties.
• Interested parties have the right to lodge an objection to the CPO, which must be sent to the local authority within 28 days of the notice being issued.
• The local authority must consider all objections received within the 28-day period and may decide not to proceed with the CPO if they are not satisfied that the objections have been adequately addressed.
• If the objections are not received within the 28-day period, the CPO is deemed to be confirmed.
• If objections are received and the local authority decides to proceed with the CPO, the objectors have the right to appeal to the Secretary of State.
• The Secretary of State may then decide to confirm the CPO, to modify it or to reject it.

You will know when you can check this off your list when you have sent out the notice of the CPO to all interested parties and have received, considered and acted on any objections received within the 28-day period.

What other considerations should be taken into account when making a CPO?

• Consider the impact of the CPO on the environment, including noise, air quality, and visual impact.
• Consult with advisors and experts to ensure that the CPO is in line with the relevant regulations.
• Consider the potential impact on the local community, including any businesses and people living in the area.
• Consider the potential impact on the surrounding land and its use, such as the habitats of any animals living in the area.
• Evaluate the economic implications of the CPO, including the impact on businesses and employment in the local area.
• Determine whether the CPO is the most cost-effective way of achieving the desired outcomes.

When you have considered all of the above, you can check this step off your list and move on to the next step.

Impact on the environment

• Research any environmental impact assessments that may have already been done
• If an environmental impact assessment has not been done, consider the effects on flora and fauna, air, water and land
• Consider any land contamination that may affect the environment
• Check for any hazardous waste and/or hazardous materials that may be present on the land
• Consult with environmental experts to ensure that any environmental impacts are properly assessed and taken into account
• Document any findings in the CPO and make sure that any potential environmental impacts are addressed

When you have completed the above steps, you can then move on to the next step in the process: Impact on local communities.

Impact on local communities

• Assess the impact of the proposed development on the local community, including the effects on any existing amenities, transport infrastructure, or other services in the area.
• Research and evaluate the potential effects on local residents, including displacement, disruption of community cohesion, and any other potential impacts on the quality of life.
• Consult with local representatives, such as councillors and community groups, to discuss the planned development and identify any potential problems.
• Consider any opinions or objections raised by the local community and take appropriate action to mitigate any potential adverse impacts.
• Record all research, consultation, and assessment activities, and provide a summary of the results to demonstrate compliance with relevant legislation.

Once you have assessed the impact of the proposed development on the local community, you can check this step off your list and move on to the next step, which is to assess the impact on local businesses.

Impact on local businesses

• Assess the potential impact on local businesses in the area of the proposed development, such as increased competition, increased costs, or reduced access to customers
• Consult with local businesses to get an understanding of the potential impact of the proposed development
• Consider any potential mitigation measures to limit any potential negative impacts on local businesses
• When you are satisfied that the potential impact on local businesses has been assessed and any necessary mitigation measures have been considered, check this step off your list and move on to assessing the impact on other stakeholders.

Impact on other stakeholders

• Identify any stakeholders who may be impacted by the Compulsory Purchase Order
• Make contact with any potential stakeholders who may be affected by the CPO
• Discuss with stakeholders the potential impact of the CPO
• Consider any alternative solutions which may be available
• Consult with stakeholders to ensure that their interests are taken into account
• Determine if any compensation is required for any affected stakeholders
• Finalise the CPO and ensure that all affected stakeholders are kept informed
• Check off this step and move onto the next once all stakeholders have been consulted and any compensation arrangements have been finalised.

FAQ:

Q: What is a Compulsory Purchase Order (CPO)?

Asked by Sarah on January 14th, 2022.
A: A Compulsory Purchase Order (CPO) is a government-issued legal order that is used to purchase the land or property of an individual or business. It is typically used when the land or property is needed for public projects such as roads, railways, schools, hospitals and other public works. The CPO can also be used to acquire land for private development projects as well. In the UK, the CPO is issued by an authority such as a local council or other public body and is subject to a number of legal requirements before it can be enforced.

Q: What are the differences between UK and US CPOs?

Asked by John on March 8th, 2022.
A: In the UK, a CPO is issued under the Town and Country Planning Act 1990 and can be made by any local authority or other public body, whereas in the US a CPO is issued under the power of eminent domain and must be authorized by Congress. In addition, while both countries have similar requirements for the issuing of a CPO, there are some differences in the process; for example, in the UK a CPO must be approved by the Secretary of State before it can be enforced, whereas in the US a court order is required before it can be enforced.

Q: What happens if I do not comply with a CPO?

Asked by Emma on April 21st, 2022.
A: If you do not comply with a CPO then you may face legal action from the relevant authority; this could include fines and/or imprisonment depending on the severity of your non-compliance. In some cases, you may also be required to pay compensation to those affected by your non-compliance. It is therefore important to ensure that you fully understand any CPO that has been issued to you and take all necessary steps to comply with it.

Q: How long does it take to create a CPO?

Asked by Noah on May 5th, 2022.
A: The time it takes to create a CPO varies depending on the complexity of the situation and will typically involve several stages; these could include initial consultation with stakeholders, preparation of documents such as plans and maps, public consultation and finally approval from either the local authority or Secretary of State depending on which country you are in. On average it can take anywhere from several months up to two years for a CPO to be fully issued and enforced.

Q: Can I appeal against a CPO?

Asked by Abigail on June 2nd, 2022.
A: Yes, it is possible to appeal against a CPO if you believe that it has been issued unfairly or without due consideration of your rights as an individual or business owner; this could include cases where there has been an abuse of power or where there has been inadequate consultation with affected parties prior to issuing the order. Appeals should be made though your local court system and will typically involve an oral hearing before an appointed judge who will consider both sides before making their decision.

Q: Can I negotiate with the authority issuing a CPO?

Asked by Anthony on July 12th, 2022.
A: Yes, you can negotiate with the authority issuing a CPO in certain circumstances; for example if you feel that the terms of the order are unfair or if there are alternative solutions available that would not require compulsory purchase of your land or property then these can be discussed with the relevant authority prior to them issuing the order. It is important however that you seek professional legal advice before entering into any negotiations as this could have serious implications for your rights as an individual or business owner.

Q: What compensation am I entitled to when a CPO is issued?

Asked by Mia on August 18th, 2022.
A: When a CPO is issued you are typically entitled to compensation for any losses incurred as a result; this could include loss of earnings due to disruption caused during construction works or loss of value due to changes in land use such as residential development instead of commercial use. The amount of compensation awarded will depend upon factors such as the current market value of your land or property at the time of issue, any improvements that have been made since purchase and any additional costs incurred due to disruption caused during construction works carried out as part of enforcement of the order.

Q: Do I need legal advice when dealing with a CPO?

Asked by Daniel on September 1st, 2022.
A: Yes, it is strongly recommended that you seek legal advice when dealing with any type of compulsory purchase order (CPO). A lawyer will be able to advise you on your rights under UK law and provide assistance throughout all stages of dealing with the order including understanding its terms, negotiating with relevant authorities and appealing against any decisions made regarding compensation due for losses incurred due to enforcement of the order.

Q: Is there a difference between UK vs EU vs US jurisdictions when creating a Compulsory Purchase Order (CPO)?

Asked by Jacob on October 16th, 2022.
A: Yes, there are differences between jurisdictions when creating a CPO; in particular there are differences between UK vs US vs EU laws when dealing with compulsory purchase orders (CPOs). In general terms however all jurisdictions have similar requirements which must be met before an order can be enforced; these include obtaining approval from either local authorities or other public bodies in advance plus providing adequate notice periods both before and after issue so that all parties involved have sufficient time to prepare for any changes required as part of enforcement of the order.

Q: What options do I have if I cannot afford compensation awarded under a Compulsory Purchase Order (CPO)?

Asked by Madison on November 22nd, 2022.
A: If you cannot afford compensation awarded under a Compulsory Purchase Order (CPO) then you may wish to consider alternative methods for meeting your obligations; this could include taking out finance from banks or other lenders or negotiating payment plans with relevant authorities so that payments can be spread out over an agreed period of time instead of having to pay in full upfront. You should also speak directly with relevant authorities as they may allow payment plans in certain circumstances which could make it easier for you to meet your obligations without having to worry about large upfront costs associated with compulsory purchase orders (CPOs).

Example dispute

Lawsuit Involving Compulsory Purchase Order

• The plaintiff must have a valid claim that their property or rights have been negatively affected by the compulsory purchase order.
• The plaintiff must provide evidence that their rights have been infringed, such as land ownership documentation or proof of a disruption to their business.
• The plaintiff must show that the compulsory purchase order was issued by an official, such as a governmental body or other relevant authority.
• The plaintiff must demonstrate that the compulsory purchase order was issued in accordance with the relevant regulations and civil law, and that their rights were not respected in the process.
• The plaintiff must demonstrate that the compulsory purchase order has caused them harm, such as the loss of property or business income.
• In the event of a successful lawsuit, the plaintiff may be awarded damages, which can be calculated based on the property value and lost income.
• The plaintiff and defendant may also come to an out of court settlement, in which the plaintiff is compensated for the disruption caused by the compulsory purchase order.

Templates available (free to use)

Indemnity Agreement With Private Developer And Compulsory Purchase Order Cpo
Section 226 Draft Order For Compulsory Purchase Order
Statement Of Case For Section 226 Compulsory Purchase Orders
Statement Of Reasons For Section 226 Compulsory Purchase Order

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