In R (Homes and Communities Agency v JS Bloor (Wilmslow) Ltd) [2017] UKSC 12, the Supreme Court confirmed that the “no scheme” disregard does not require planning policies giving rise to significant hope value independent of the statutory scheme of acquisition to be ignored.
The Acquiring Authority (AA) compulsorily acquired grazing land as part of a wider scheme of acquisition for a business park. There was a longstanding history of development potential, culminating in the allocation of the land for business park use with “limited residential development”. The claimant sought compensation on the basis of the hope value (of £2,593,000) regardless of the CPO scheme but having regard to the hope value associated with the planning policies. The AA claimed in the Upper Tribunal that the “no scheme world” principle – disregarding any change in value solely attributable to the CPO scheme (Pointe Gourde Quarrying & Transport Co Ltd v Sub-Intendent of Crown Lands [1947] AC 565) – justified only an (agricultural) value of £50,000. The Upper Tribunal found in favour of the Claimant, awarding £746,000 compensation, on the basis of a 50% chance of planning permission being obtained for residential development ignoring the business part scheme underlying the CPO. The AA challenged the decision and the Court of Appeal remitted the issue for re-determination on an alternative basis (requiring the ‘no scheme’ disregard to cover all planning policies – historic and current – which supported the underlying scheme).
The claimant appealed and the Supreme Court unanimously upheld the Upper Tribunal’s original approach, on the basis that:
■ it was entitled to treat planning policies supporting development of the land (which included the underlying scheme) as potentially relevant, notwithstanding the need to disregard the CPO scheme itself;
■ the significance of those policies in the no scheme world was a judgement call for the Tribunal; and
■ the planning status of the relevant land was not conclusively fixed by the statutory ‘planning assumptions’ (under Section 14-16 of the Land Compensation Act 1961) which assist, but do not constrain, claimants in dealing with hope value.
The judgment underlines need for care in applying the “no scheme world” assumptions and the importance of properly considering pre-existing value when designing CPO schemes. it also reflects the benefits that the clarification of the Pointe Gourde principle that the Neighbourhood Planning Bill will achieve. Given the slew of claims expected under the recently-enacted High Speed Rail (London – West Midlands) Act 2017, it cannot come soon enough.
Roy Pinnock is a partner in the planning and public law team at Dentons
