Supreme Court ruling on HS2 compulsory purchases is ‘a blow to landowners’

A Supreme Court judgement today (10 August) on compulsory purchase may have a negative effect on landowners and could lead to legislation, according to lawyers watching the case. The ruling, in Secretary of State for Transport v Curzon Park Ltd and others [2023] UKSC 30, relates to four adjoining parcels of land in Birmingham compulsorily purchased by the government to build a terminus for the HS2 rail project. When assessing how much landowners should be compensated when land is compulsorily purchased, landowners can apply to the local planning authority for a certificate of appropriate alternative development, detailing what could have been built on the land under other circumstances. The CAAD is used to determine value. In this case, all four landowners separately applied to Birmingham City Council for CAADs, stating that the land could have been used for accommodation and retail purposes. The CAADs were granted. Although the issues in the dispute have shifted as it has progressed through the court system, the issue at the heart of today’s ruling was whether the government should consider each parcel of land separately when determining value, or whether it was allowed to consider the cumulative effect of all the applications. Considering each parcel in isolation could lead to higher compensation for landowners. The Upper Tribunal found that, subject to certain conditions, the government could consider the cumulative effect of all four developments. The Court of Appeal said that each parcel of land should be considered separately. The Supreme Court has now backed the decision of the Upper Tribunal, which means that the government can take into account the other CAADs when determining the value of each parcel of land. Richard Flenley, a partner at law firm Charles Russell Speechlys, said the decision was “a blow to landowners”, adding: “It could have far-reaching consequences, not only in respect of HS2 but other compulsory acquisition schemes.” He said the government is currently considering reforming the rules around compulsory purchase, and this case might influence their approach. “This case challenges the current approach that is taken when assessing development potential of land subject to compulsory acquisition, and we will now wait to see if the decision will lead to any legislative change in this area of compensation and planning law,” he said. Secretary of State for Transport (appellant) v Curzon Park Ltd and others (respondents) [2023] UKSC 30 Supreme Court (Lord Kitchin, Lord Sales, Lord Hamblen, Lord Leggatt, Lady Rose) 10 August 2023