Compulsory Purchase is the legal process which allows, in some circumstances, privately owned property to be purchased for public use from landowners who are reluctant to sell. Compulsory Purchase powers are an essential tool in the completion of many public infrastructure projects, such as the dualling of the A9 and the construction of the Queensferry Crossing. At times, not all of the property acquired by public authorities at the outset of a project is ultimately required at the end of the day, so what happens to the excess land?
Where property which was acquired through compulsory purchase is surplus to requirements, the Crichel Down Rules dictate how the property should be disposed of. The Rules were created after the Crichel Down affair, a political scandal in 1954 which resulted in Sir Thomas Dugdale, the then Minister of Agriculture, resigning from his post after his department failed to honour an undertaking to offer land back to its former owner.
Although broadly similar, different rules apply in Scotland and England, and the rules can vary depending on who acquired the land in the first place. A number of public authorities must comply with the rules, including all UK and Scottish Government Departments, Local Authorities, Executive Agencies and any bodies or organisations created by statute.
How do the Rules work?
The Rules are detailed and deal with for example (i) who is entitled to have surplus land offered back to them, (ii) on what basis and (iii) how the offer back procedure operates. There are also Rules about who qualifies as the “former owner” and the procedure covers the situation where the former owner has died or does not want the land back.
What terms apply to any land being returned?
The Rules deal with how the price of the land being sold back to the former owner is calculated and what happens if there is no agreement on price. They cover the fact that Public Authorities are required, where the land appears to have development potential, to apply for planning consent before any disposal is made and, if consent is granted, the sale should include a clawback provision.
Time Limits
The Rules to offer back surplus property are subject to strict time limits which vary depending on whether the land is agricultural or not.
For further information and advice in relation to any aspect of Compulsory Purchase of land, please contact a member of the Land and Rural Business Team.
