Back
Legal

Abbey Homesteads (Developments) Ltd v Northamptonshire County Council and another

Compensation for compulsory purchase — Basis of valuation of land — Appeal from decision of Lands Tribunal in favour of developers on preliminary issues — Essential question, although approached ‘through a tangle of statutory and contractual provisions’, was whether an area of 1.23 hectares, part of land which under an agreement pursuant to section 52 of the Town and Country Planning Act 1971 was to25 be ‘reserved for school purposes’, should be valued as freely available for residential development or as subject to a permanent covenant restricting its use to such purposes only — Lands Tribunal decided that the reservation did not create a restrictive covenant running with the land; that the restriction was of limited duration and did not preclude a valuation under rule (2) of section 5 of the Land Compensation Act 1961; and alternatively that if it did create a restrictive covenant it was one which should be discharged under section 84 of the Law of Property Act 1925 (an application for which had been made by the developers) — Held on appeal to the Court of Appeal that the reservation did create a permanent restrictive covenant running with the land; and that Lands Tribunal was in error in holding that the restriction ought to be discharged — The court rejected submissions that the reservation was not a negative restriction and that it was of temporary effect only — Appeal by district council allowed, the land to be valued as subject to a restrictive covenant — An appeal by the county council from a decision of the tribunal refusing it leave to be joined as an objector to the section 84 application was not challenged in the Court of Appeal, and this appeal was dismissed

This was an
appeal by case stated by the Northamptonshire County Council and the South
Northamptonshire District Council from a decision of the Lands Tribunal (V G
Wellings QC) determining certain preliminary issues in favour of developers,
Abbey Homesteads (Developments) Ltd, respondents to this appeal.

Gavin Lightman
QC, J P Whittaker and Miss Elizabeth Jones (instructed by Shoosmiths &
Harrison, of Northampton) appeared on behalf of the appellants; Martin Graham
QC, M R West and Miss B Schwehr (instructed by Dickins & Batty, of Potters
Bar) represented the respondents.

Start your free trial today

Your trusted daily source of commercial real estate news and analysis. Register now for unlimited digital access throughout April.

Including:

  • Breaking news, interviews and market updates
  • Expert legal commentary, market trends and case law
  • In-depth reports and expert analysis

Up next…