Town and Country Planning Act 1954

36 Compensation for severance, injurious affection and disturbance

(1) In connection with a compulsory acquisition to which this Part of this Act applies—

(a) any compensation in respect of an interest in land for damage sustained by reason that the relevant land is severed from other land held therewith, or that any other land (whether held with the relevant land or not) is injuriously affected, shall be assessed in accordance with subsections (2) to (7) of this section ;

(b) any compensation for disturbance shall not be assessed at a greater amount than that at which it would have fallen to be assessed if Part V of the principal Act and the preceding provisions of this Part of this Act had not been enacted.

(2) In the subsequent provisions of this section, the following expressions have the following meanings respectively—

• " the compensation " means compensation such as is mentioned in paragraph (a) of the preceding subsection;

• " the interest affected " means the interest in respect of which the compensation falls to be assessed, in so far as that interest subsists in land, other than the relevant land, which is affected by the injurious act or event;

• " the land affected " means the land in which the interest affected subsists;

• " the injurious act or event " means the act or event in consequence of which the compensation falls to be assessed;

• " other interest affected " means an interest other than the interest affected which subsists in the whole or part of the land affected and in respect of which compensation such as is mentioned in paragraph (a) of the preceding subsection is payable by virtue of the injurious act or event;

• " qualified land " means land which immediately before the injurious act or event has an unexpended balance of established development value;

• " the loss of development value " means the amount, if any, by which the value of the interest affected immediately before the injurious act or event, if calculated on the assumption that, until such time as the land affected might reasonably be expected to become ripe for new development, no use whatever could be made of that land, would exceed the value of that interest immediately after that act or event if calculated on the like assumption;

• " the loss of immediate value " means the amount, if any, by which the difference in the value of the interest affected immediately before and immediately after the injurious act or event exceeds the loss of development value.

(3) If neither the land affected taken as a whole nor any part thereof is qualified land, the amount of the compensation shall be the loss of immediate value.

(4) If the land affected taken as a whole satisfies the following conditions, that is to say—

(a) that it is qualified land ; and

(b) that no other interest affected subsists in a part only thereof,

the amount of the compensation shall be the aggregate of the loss of immediate value and whichever is the less of the following amounts, that is to say—

(i) the loss of development value ; or

(ii) the amount of the unexpended balance of established development value of the land affected immediately before the injurious act or event:

Provided that if one or more other interests affected subsist in the whole of the land affected, and the aggregate of the loss of development value of the interest affected and of any such other interest or interests exceeds the amount mentioned in paragraph (ii) of this subsection, that amount shall be allocated between the interest affected and any such other interest or interests in proportion to the loss of development value of each of them respectively, and the amount of compensation payable in respect of the interest affected in addition to the loss of immediate value shall be the sum so allocated to that interest.

(5) If the land affected, taken as a whole, does not satisfy the conditions mentioned in the last preceding subsection, then, for the purpose of assessing the compensation in respect of the interest affected—

(a) the loss of development value of the interest affected and of any other interest affected shall first be ascertained with reference to the whole of the land affected in which the interest in question subsists;

(b) the land affected shall then be treated as divided into as many parts as may be requisite to ensure that each such part consists of land which either satisfies the conditions aforesaid or is not qualified land; and

(c) the loss of development value of each of the interests aforesaid, ascertained as aforesaid, shall then be apportioned between the said parts according to the nature of those parts and the effect of the injurious act or event in relation to each of them,

and the compensation payable in respect of the interest affected in addition to the loss of immediate value shall be the aggregate of the amounts which would be so payable by virtue of the last preceding subsection if each such part had been the whole of the land affected.

(6) If in any case the amount of the compensation attributable to the loss of immediate value is less than the depreciation in restricted value of the interest affected, subsection (3) of the next following section shall have effect with respect to the amount of the difference.

In this subsection, the expression " the depreciation in restricted value " means the amount, if any, by which the value of the interest affected, immediately after the injurious act or event, would be less than the value of that interest immediately before that act or event if both values were calculated on the assumption that planning permission would be granted for development of any class specified in the Third Schedule to the principal Act but would not be granted for any other development.

(7) In calculating value for any of the purposes of this section in its application to compensation for damage to land not held with the relevant land, being damage sustained by reason of the construction or erection of works on the relevant land, no account shall be taken of the use, or the prospective use, of those works.