- Mandatory purchase orders are used if a property is required for infrastructure
- Estate agents warn that the number of orders placed will increase
Imagine being forced to sell your home against your will to make way for future growth in your area.
This seems far-fetched in a country where property rights are firmly enshrined in the law, but it does so when homeowners have what is called a mandatory purchase order.
Mandatory purchase orders are used when all or part of your property is required to regenerate an area for new infrastructure, such as roads, railways, or utilities, or to provide new housing and facilities. be necessary.
Do you know where to start if you are faced with a mandatory purchase order?
The most high-profile use of mandatory purchase orders in recent times has been for the construction of the High Speed 2 rail link. This has been controversial and some owners feel that they are not being paid enough for the homes they have been forced into.
Estate agents have warned that as the pressure for more housing and development mounts, so will the number of these mandatory purchase orders.
Paul Astbury, an estate agent and member of the Royal Institution of Chartered Surveyors, said: ‘Compulsory purchases are an essential tool to deliver much needed housing and infrastructure, but it inevitably takes a toll on the lives of those who lose their homes or businesses. makes a big impact. Premises to make way for development.’
Rick suggests that many homeowners are not always aware of the options when faced with a potentially mandatory purchase order.
This includes how to engage with the process and ensure that adequate compensation is provided.
Rick has issued some guidance, including how to engage with the process and how to ensure that those affected are properly represented.
Property owners may find themselves ‘bambooed’ by this process, it said. This can result from not knowing the difference between the many different types of commands, or from not understanding the lengthy process that takes place before the shovel hits the ground.
The principles behind compensation are set out in law, with any payment intended to reflect the market value of the property or land concerned. Some orders in England and Wales may also offer onward ‘damage pay’.
NS New rec guide gives advice to those affected On the entire mandatory purchase order process. For example, it highlights that those seeking mandatory procurement should contact anyone affected by all information about their project and the initial purchase or mitigation options they wish to offer.
This can be in the form of an invitation to meet the developer directly or through a written letter.
The guide outlines steps affected homeowners can take, including seeking an independent appraisal, raising objections quickly, and keeping records of expenses. These are the main points.
Seek an independent appraisal
Homeowners are advised to obtain an independent appraisal to ensure that they are properly compensated as the order proceeds.
Rick also recommends asking those behind such an order whether they would cover the cost of seeking professional advice, as the process should not leave the developer out of pocket.
raise objections early
In addition, any person affected may make an objection or representation as to whether the order should be authorised.
There are limited grounds on which an objection can be filed, says Rick, so it’s important to seek proper professional advice. And it pays to be quick too – as the time to submit representations is limited.
keep records of expenses
Rick recommends keeping all expenses logged and documented as necessary to provide evidence to support any compensation claim involving moving a home, purchasing a replacement premises, disturbance in your daily life and any removal expenses. Is.
The publication of Rick’s Guide follows his research from earlier this year that suggested that infrastructure projects – such as new roads, railways and power stations – are expected to increase next year as the government plans to ‘get better out of the pandemic’. ‘ of.
As these major projects, along with plans for housing delivery and town center regeneration, the number of mandatory purchase orders sought to facilitate these plans is also expected to increase, according to Rick.
Virginia Blackman of the CPO Working Group said: ‘Members of the Ricks CPO Expert Working Group are focused on best practice in the use of mandatory procurement for housing, regeneration and infrastructure facilities.
‘A key part of this is ensuring that those affected have reliable, independent information on how the proposals will affect them, and how to obtain professional advice and representation.’