Compulsory purchase in England and Wales

Compulsory purchase is the power to purchase or take rights over an estate in English land law, or to buy that estate outright, without the current owner's consent, in exchange for payment of compensation. In England and Wales, Parliament has granted several different kinds of compulsory purchase power, which can be exercised by various bodies in various situations. Such powers are meant to be used "for the public benefit". This expression is interpreted broadly, but is subject to the test of overriding or compelling public interest.

Local authorities and other statutory undertakers need the power of compulsory purchase because voluntary purchase can be laborious, longwinded, and expensive, particularly if the needed area has many owners. Private owners might not give up land needed for public works for a fair price (holdout problem); they could delay sale and thereby delay meeting a public need for a project; it might not be clear who owns the land; or the owner might not be found.

The compensation paid is meant to put the owner in the same financial position as if their land had not been taken from them.

History

Before the 19th century, government had no general power of compulsory purchase, so such actions needed specific private Acts of Parliament to override property rights. Examples include inclosure acts, and acts for building canals, harbours and railways. Procedures were consolidated by the Land Clauses Consolidation Act 1845 and the Inclosure Act 1845.