Lloyds Banking Group Plc v Burnley Borough Council
[2024] UKUT 20 (LC)
Andrew Fraser v Hertsmere Borough Council
11 May 2023
[2023] UKUT 94 (LC)
Upper Tribunal
The government took a run-down house. Experts argued about its worth. The judge looked at similar houses and decided it was worth £345,000, plus extra money for the trouble of losing the house.
Key Facts
- •Compulsory acquisition of a house at 111 Strafford Gate, Potters Bar, by Hertsmere Borough Council in March 2018.
- •House unoccupied since 2010 and in disrepair.
- •Council obtained planning permission for conversion into two flats post-acquisition.
- •Valuation date: 9 March 2018.
- •Claimant's valuation: £545,000.
- •Acquiring authority's valuation: £286,575.
Legal Principles
Compensation for compulsorily acquired land is determined by its open market value, as if sold by a willing seller.
Land Compensation Act 1961
Emergency Prohibition Orders (EPOs) can be made under section 43 of the Housing Act 2004 for residential premises with Category 1 hazards.
Housing Act 2004
A Certificate of Appropriate Alternative Development can be applied for under section 17 of the Land Compensation Act 1961 to determine compensation if development potential is considered.
Land Compensation Act 1961
Outcomes
Compensation determined at £345,000.
Based on comparable property analysis, adjustments for plot size, lack of garage/driveway, proximity to town centre, and a detailed assessment of repair costs.
Basic Loss payment of £25,875.
Standard calculation based on the determined compensation value.
Statutory interest payable at the prevailing rate.
Standard practice in compulsory purchase cases.