Third party purchasing land for nominal sum in return for grant of planning permission — Claimant failing to implement planning permission within required time limit — Whether claimant’s legitimate expectation outweighing changes in planning policy in intervening period — Claim allowed
The claimant’s predecessor in title sold land to the third party local authority for a nominal sum on the basis that the authority would grant outline planning permission for the erection of seven bungalows on the site. The subsequent permission required development to be commenced within five years. No approval had been obtained by the relevant date, and, in 2001, the claimant applied, under section 73 of the Town and Country Planning Act 1990, to carry out the development without complying with the time limit for the reserved matters. The application was refused and the claimant appealed.
The inspector refused the appeal on the ground, inter alia, that he could find no obligation upon the authority to look favourably upon the proposed development in perpetuity. The claimant challenged the decision under section 288 of the Act, arguing, inter alia, that it would be inequitable for the authority to disregard the quasi-contractual nature of the agreement entered into by the parties.
Held: The claim was allowed.
There had been some change in the local authority’s planning policy to which the inspector was entitled to have regard. However, the claimant had a legitimate expectation that the agreement between the parties would be fulfilled, and it would be inequitable to deny that expectation.
Harry Wolton QC and Robin Green (instructed by North Yorkshire Law, of Scarborough) appeared for the claimant; Timothy Mould (instructed by the Treasury Solicitor) appeared for the defendants.
Vivienne Lane, barrister
