S.52 CPA 1965 Advance Payment and Interest Provisions
S.52 Compulsory Purchase Act 1965 advance payment: 90% of the acquiring authority's own estimate of the compensation payable; must be requested in writing; the authority must pay within 3 months of the written request or 3 months from the date of entry (whichever is later); who can claim: landowners, freehold owners, long leaseholders, AST tenants with a disturbance claim, and business tenants; when the right arises: from the date of entry (physical possession following a notice of entry) or the general vesting declaration vesting date (whichever is earlier); the 90% is of the authority's estimate (often conservative) — the balance to 100% of the final assessed compensation is paid when the claim is settled or determined; an advance payment is not an admission of liability for the full amount. Interest provisions (LCA 1961 s.32A; Treasury Order rate currently 8% p.a.): (i) on advance payment: if the authority fails to pay within the 3-month period, interest accrues at 8% on the unpaid amount from the end of the 3-month period; (ii) on the full compensation: interest accrues at 8% on the full compensation (less any advance payment made) from the date of entry until final payment; the authority cannot avoid interest by delaying the compensation process. Claim promptly: make the advance payment request in writing as soon as the authority enters the land; this starts the 3-month payment clock. Notice to treat (s.5 CPA 1965) vs general vesting declaration (Compulsory Purchase (Vesting Declarations) Act 1981): notice to treat is the traditional mechanism — the authority negotiates compensation and takes possession by notice of entry; a GVD vests the land in the authority on the vesting date automatically.
Home Loss, Basic Loss, Disturbance Payments, and Upper Tribunal
Additional statutory payments beyond compensation and advance payment: (1) Home loss payment (LCA 1973 ss.29–32): payable to any person displaced from their only or main residence as a result of compulsory acquisition who has been in residence for at least 1 year; 10% of the open market value of their interest; minimum £7,100; maximum £71,000 (2024 rates; adjusted annually by inflation index); payable in addition to full land value compensation; (2) Basic loss payment (LCA 1973 ss.33A–33K): 2.5% of the value of the interest acquired for freehold owners and long leaseholders (maximum £75,000); distinct from and in addition to full compensation; (3) Disturbance payment (LCA 1973 s.37): payable to persons displaced without a legal interest in the land (licensees; statutory tenants; persons in occupation without title); covers reasonable costs of moving — removal costs, temporary accommodation, higher costs of alternative premises; no fixed cap but payments must be reasonable and directly caused by the displacement. Accumulated entitlement: a displaced owner-occupier may be entitled to full land value compensation + advance payment (90%) + interest at 8% + home loss payment + disturbance costs; all must be claimed. Interaction with blight notice: where an owner-occupier initiates acquisition via a blight notice (Part VI TCPA 1990), the advance payment and home loss payment rights apply once the authority enters or the GVD vests the land. Upper Tribunal (Lands Chamber): determines disputed compensation; specialist compulsory purchase solicitors and RICS-registered CPO surveyors are essential from the outset; interest accrues throughout proceedings, incentivising the authority to settle. Scotland: Land Compensation (Scotland) Act 1963; Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947.