Renters' Rights Act 2025, Phase 1 commencement
Transition readiness pack
England

England and Wales · CPO Process: Notice to Treat or General Vesting Declaration · Full Compensation — Market Value + Disturbance + Basic Loss Payment (7.5%; Max £75,000) · 90% Advance Payment on Request · Blight Notice · Upper Tribunal (Lands Chamber)

Compulsory Purchase Orders — BTL Landlord Guide to CPO Compensation 2026

Compulsory purchase order (CPO) guide for buy-to-let landlords: CPO process (CPO made and submitted for Secretary of State confirmation; public inquiry if objections; Notice to Treat or General Vesting Declaration after confirmation); full compensation principle — Pointe Gourde (market value at vesting date without CPO blight effect) + disturbance compensation (loss of rental income for reinvestment period; professional fees from CPO announcement onwards) + Basic Loss Payment (7.5% of freehold value; max £75,000; for freeholders and leaseholders) + Home Loss Payment (10%; max £77,000; for owner-occupiers only — NOT available to BTL landlords who do not occupy); advance payment of 90% of agreed compensation or authority's estimate available on request (must pay within 3 months); blight notice (owner-occupiers and businesses only — non-occupying BTL investors generally not eligible; requires authority to purchase now at unblighted value); Upper Tribunal (Lands Chamber) determines compensation where not agreed; appoint specialist CPO solicitor and RICS surveyor immediately on CPO announcement — fees are compensable; England and Wales.

14 min readUpdated 7 June 2026Last reviewed: 17 May 2026compulsory purchaseCPO compensationnotice to treatgeneral vesting declaration

The CPO process — from announcement to vesting

The CPO process runs from announcement and public consultation, through CPO confirmation by the Secretary of State, to Notice to Treat or General Vesting Declaration — the two mechanisms by which ownership passes to the acquiring authority.

  • Stage 1 — CPO announcement: check CPO boundary plans; appoint CPO solicitor and RICS surveyor immediately (fees are compensable)
  • Stage 2 — CPO submitted for confirmation: acquiring authority submits CPO to Secretary of State; public inquiry held if statutory objectors (owners; lessees with 1+ year remaining; occupiers) object; Secretary of State confirms, modifies, or rejects the CPO
  • Stage 3 — Notice to Treat (NtT) or General Vesting Declaration (GVD): NtT requires owner to submit claim; GVD vests land in acquiring authority on a specified date (minimum 28 days) regardless of whether compensation is agreed
  • Stage 4 — Compensation negotiation and Upper Tribunal referral: negotiations between landlord's RICS surveyor and authority's valuer; Upper Tribunal (Lands Chamber) determines compensation if not agreed; RICS expert evidence on both sides

CPO compensation — full compensation principle for BTL landlords

BTL landlords are entitled to the full market value of their interest plus disturbance compensation and the Basic Loss Payment. The Home Loss Payment is for owner-occupiers only.

  • Open market value (Pointe Gourde principle): freehold/leasehold value at vesting date, assessed as if the CPO scheme did not exist — no account taken of CPO blight on value
  • Disturbance compensation: loss of net rental income for the reinvestment period (typically 1-2 years); professional fees (surveyor; solicitor; planning advice; structural surveys) from CPO announcement
  • Basic Loss Payment: 7.5% of open market value of the interest being acquired (max £75,000) — available to BTL landlord freeholders and qualifying leaseholders (not to residential occupiers claiming Home Loss)
  • Home Loss Payment (10%; max £77,000 England): for owner-occupiers only — BTL landlords who do not occupy are NOT entitled; however, the landlord's tenant (if occupying for 12+ months) is separately entitled to a Home Loss Payment
  • Advance payment: demand 90% of agreed compensation (or authority's estimate if not agreed) at any time after NtT or GVD — authority must pay within 3 months; enables reinvestment while final compensation is negotiated

Blight notices and pre-CPO property sales

Where a CPO announcement has already depressed a property's value, owners may have additional remedies — but blight notices are primarily for owner-occupiers, not non-occupying BTL investors.

  • Blight notice: qualifying owner can require acquiring authority to purchase property now at unblighted value — primarily for owner-occupiers and businesses; non-occupying BTL investors are generally not eligible
  • Selling blighted property on open market: CPO affecting the property is material information — must be disclosed to buyers under Consumer Protection from Unfair Trading Regulations 2008; if sold before vesting date, compensation claim passes to the new owner
  • Practical steps on receiving CPO notice: appoint CPO solicitor and RICS surveyor (fees compensable); check CPO boundary plans; notify tenants (they have independent compensation rights); keep 3 years' rental income records for disturbance claim; demand 90% advance payment promptly; do not accept initial offer without independent surveyor advice

Templates recommended in this guide

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Annual walk-through of every compliance touchpoint: gas, electrical, EPC, smoke/CO, Right-to-Rent, deposit, licensing, database registration.

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