Purchase Notices Served under the Town and Country Planning Act 1990

How the system works

3. The purchase notice system-in sections 137 to 148 of the 1990 Act-is often referred to as "reverse compulsory purchase". These are its main features.

• A notice may only be served after one of the following kinds of decision-
  
  
  
  1. refusal of planning permission;
  
  
  
  2. conditional grant of planning permission;
  
  
  
  3. revocation of planning permission-by a "revocation order" made under section 97 of the 1990 Act;
  
  
  
  4. modification of planning permission by the imposition of
     conditions-through a "modification order" made under section 97;
  
  
  
  5. requirement to discontinue a use of land, or remove buildings or works from it, or imposition of conditions on its future use-by a "discontinuance order" made under section 102 (or under paragraph 1 of Schedule 9 for mineral workings).
• Generally, only the land owner may serve a notice. But if the notice is based on a discontinuance order, any person entitled to an interest in the land may serve.
  
• The owner must claim that the land in question is incapable of reasonably beneficial use before he can serve.
  
• The notice must be served on the local planning authority or statutory undertakers.
  
• If no authority or statutory undertakers are prepared to accept the notice, the council will refer it to the National Assembly for Wales, in the form of a counter notice. The National Assembly deals with the preparation of the proposed and final decision, and all procedural work is carried out by the Planning Inspectorate.
  
• The law requires the National Assembly to weigh up the conflicting claims of the server and council. The Secretary of State must refuse to confirm the notice if he considers the server's case to be unfounded. But otherwise he must take one of the following courses-
  
  
  1. confirm the notice on the most appropriate body;
  
  
  
  2. grant planning permission for the development originally proposed;
  
  
  
  3. revoke or amend the conditions of a planning permission, including conditions imposed by a "modification order";
  
  
  
  4. cancel a "revocation order";
  
  
  
  5. revoke or amend a "discontinuance order";
  
  
  
  6. direct that planning permission be granted for some other specified development, if an application for permission is subsequently made.
• Before the National Assembly reaches its final decision, it must first give the server and the council written notice of its proposed decision. Both parties have the right to be heard if they wish to contest its proposal. If they exercise this right, a local inquiry is held by a Planning Inspector. He will make a written report to the National Assembly. When the National Assembly has reached its final decision, it will notify the parties in writing. Its letter will give the reasons for its decision-and a copy of the Inspector's report will be enclosed with the formal decision letter.
  
• If the notice is accepted or confirmed, the authority or statutory undertakers are deemed to be authorised to acquire the land compulsorily and to have served "notice to treat". Compensation is then assessed under the normal compulsory purchase rules, based on the market value of the land. Those rules are in the Land Compensation Act 1961.

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