With the recent RICS announcement on updates to its Standard on Compulsory Purchase and Statutory Compensation, Andrew Entwistle, Partner and Head of Valuations at GFW, explores the implications for both landowners and public authorities. Drawing on over 24 years of experience at GFW and 11 years serving on the RICS Valuation Standards Board, Andrew offers expert insights into navigating the complexities of Compulsory Purchase Orders (CPOs) to ensure a successful outcome for all involved.

GFW is a specialist property consultancy operating throughout the UK with offices in the North of England and Yorkshire.

What is a Compulsory Purchase Order?

A Compulsory Purchase Order is a legal tool that allows public authorities, such as local councils or government bodies, to acquire private land or property without the owner's consent. This is typically done when the land is needed for projects which are deemed to be in the public interest such as roads, railways, or urban redevelopment.

The process involves offering compensation to the property owner, reflecting the market value of the property, and while property owners can object to a CPO, their objections may be overruled if the acquisition is considered necessary for the greater public good.

What are the new updates to the RICS Standard?

The most recent update highlights key issues within previous processes and provides guidance for surveyors and other likeminded professionals to deliver a successful experience for their clients.

The updated guidance comes into effect from 23^rd December and outlines 21 mandatory professional conduct and competency expectations for RICS members, ensuring adherence to best practices across the board. This second edition of the standard also reinforces the connection between this area of practice and the requirement for anyone involved in valuation-related tasks to comply with RICS valuation standards.

What does the latest Standard update mean for landowners?

The updated Standard highlights the importance of professionals providing timeliness and clarity in CPO work, and presents clear guidance on CPO matters, which need to be handled very carefully, in particular understanding value and valuation.

For landowners, this means they can expect clearer, more structured information on the valuation of their property and the steps involved in the CPO process. Understanding value and valuation is crucial, as any missteps could affect compensation outcomes. The overall aim of these changes is to provide a smoother, more transparent experience to help owners better navigate the complexities of compulsory acquisition.

As CPO transactions can be extremely complex, it is also important for landowners to seek support from experts in the field. There are many elements involved in a CPO transaction which is why there is great value in engaging with a multidisciplinary team who have designated experts across planning, valuation and negotiation. This can support landowners to ensure that their interests are protected.

What do the updates mean for public authorities?

For public authorities, these new regulations create a heightened need to demonstrate best practices in managing CPOs, particularly around accurate valuation, timely engagement with landowners, and compliance with updated professional conduct standards.

The updates also place greater responsibility on public bodies to ensure transparency and consistency throughout the CPO process. By adhering to the new standards, public authorities must proactively address potential challenges, such as unrealistic expectations around compensation or prolonged negotiations. This approach not only helps foster trust between public bodies and landowners but ensures that projects move forward without unnecessary disruptions.

The aim of the revisions is to create a fairer, more collaborative process that balances public interest with the rights of property owners, ensuring that all parties benefit from CPOs.

How will these changes impact the future of CPO transactions?

With the shift to a Labour government back in July, and its plans to make positive change with regards to meeting the increasing need for new property and development, the emphasis will be on speeding up projects by leveraging powers enacted in the Levelling-up and Regeneration Act 2023, which make a number of changes to Compulsory Purchase Procedures.

As a result, we can expect a sharp increase in the urgency to advance projects that may have faced significant delays under the previous Conservative government. While the Labour government's ambitious housing and infrastructure plans are intended to drive positive change, they will also place added pressure on advisors.

The changes made in the Levelling-up and Regeneration Act and RICS updating their Compulsory Purchase Standard highlight the need for more professionalism and competency in the valuation and negotiation process. As the pressure on property development continues to rise, it’s critical for landowners and public authorities to remain agile, well-prepared, and aligned with best practices.

Engaging a multidisciplinary team of experts and staying ahead of regulatory changes will be key to navigating the increasingly complex landscape of CPO processes, ensuring successful outcomes for all parties.

To find out more about how GFW can support both landowners and public authorities across the country with compulsory purchase orders visit: https://georgefwhite.co.uk/compulsory-purchase