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It is well known that failing to take account of a material consideration can invalidate a decision taken in respect of a planning application and make it susceptible to judicial review.
A recent government ombudsman decision, however, emphasised that it is not only the applicant who may suffer loss.
In a case involving East Devon District Council (01/B/14467)*, outline planning permission had been granted in 1988 for residential development. The permission had then been renewed on various occasions, effectively extending the time for submitting the application for approval of reserved matters. Reserved matters were eventually approved in 1998.
The complainants argued that the construction of a block of flats close to their cottage adversely affected the property, caused a loss of amenity and eroded their privacy. The ombudsman agreed that the council had failed properly to assess the effect of the flats when considering the application for approval of reserved matters. He therefore awarded £37,500 to the complainants, that being the loss in value of their property associated with the effect of the new development.
This case demonstrates that, from a local planning authority’s point of view, a decision that is improperly made by a local authority has potential adverse implications for the authority as well as the applicant. If a complainant is able to prove that an application has been improperly considered, the ombudsman will intervene. It is also important to note that the compensation award in this case was not a token one: the council themselves had instructed an independent valuer to access the loss in value caused to the cottage by the new flats, and this figure formed the basis of the award.
Gill Castorina is an associate at Paul, Hastings, Janofsky & Walker (Europe) LLP
* Editor’s note: To order a copy of this case, call the local government ombudsman office on 020 7217 4683.

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