Land Compensation Act 1961

5 Rules for assessing compensation. E+W

Compensation in respect of any compulsory acquisition shall be assessed in accordance with the following rules:

(1) No allowance shall be made on account of the acquisition being compulsory:

(2) The value of land shall, subject as hereinafter provided, be taken to be the amount which the land if sold in the open market by a willing seller might be expected to realise:

(3) The special suitability or adaptability of the land for any purpose shall not be taken into account if that purpose is a purpose to which it could be applied only in pursuance of statutory powers, or for which there is no market apart from F1 . . . the requirements of any authority possessing compulsory purchase powers:

(4) Where the value of the land is increased by reason of the use thereof or of any premises thereon in a manner which could be restrained by any court, or is contrary to law, or is detrimental to the health of the occupants of the premises or to the public health, the amount of that increase shall not be taken into account:

(5) Where land is, and but for the compulsory acquisition would continue to be, devoted to a purpose of such a nature that there is no general demand or market for land for that purpose, the compensation may, if the [F2 Upper Tribunal] is satisfied that reinstatement in some other place is bona fide intended, be assessed on the basis of the reasonable cost of equivalent reinstatement:

(6) The provisions of rule (2) shall not affect the assessment of compensation for disturbance or any other matter not directly based on the value of land:

and the following provisions of this part of this Act shall have effect with respect to the assessment.

Textual Amendments

F1 Words in s. 5(3) repealed (25.9.1991, subject to the restrictions referred to in S.I. 1991/2067, art. 4, Sch. 2 Pt. I para. 4) by Planning and Compensation Act 1991 (c. 34, SIF 28:1), ss. 70(a), 84(6), Sch. 15 Pt. I para. 1, Sch. 19 Pt. III (with s. 84(5)); S.I. 1991/2067, art. 3

F2 Words in s. 5 substituted (1.6.2009) by The Transfer of Tribunal Functions (Lands Tribunal and Miscellaneous Amendments) Order 2009 (S.I. 2009/1307), art. 1, Sch. 1 para. 40 (with Sch. 5)

Modifications etc. (not altering text)

C1 S. 5 applied (with modifications) by Acts listed in Chronological Table of the Statutes; and s. 5 modified by: Agriculture Act 1967 (c. 22), s. 50(8); Leasehold Reform Act 1967 (c. 88), ss. 29, 30, Sch. 4 para. 3(5); S.I. 1976/1218, art. 4; and Highways Act 1980 (c. 66), s. 261(6)

C2 S. 5 applied (with modifications) by National Heritage Act 1983 (c. 47, SIF 3, 78), s. 36(10), Water Act 1989 (c. 15, SIF 130), s. 155, Sch. 20 para 8(7) (with ss. 58(7), 101(1), 141(6), 160(1)(2)(4), 163, 189(4)–(10), 190, 193(1), Sch. 26 paras. 3(1)(2), 17, 40(4), 57(6), 58), Town and Country Planning Act 1990 (c. 8, SIF 123:1), s. 136(1)(a) and Aviation and Maritime Security Act 1990 (c. 31, SIF 39:2), s. 43(5), Sch. 2 para. 4(a)

C3 S. 5 applied (with modifications) (1.12.1991) by Water Industry Act 1991 (c. 56, SIF 130), ss. 167, 180, 223(2), Sch. 11 para. 8(7), Sch. 12 para. 3(2) (with ss. 82(3), 186(1), 222(1), Sch. 14 para. 6)

S. 5 applied (with modifications) (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 61(6), 177, 225(2), Sch. 7 para. 5, Sch. 21 para. 3(2) (with ss. 16(6), 179, 222(3), Sch. 22 para. 1, Sch. 23 para. 6)

S. 5 applied (with modifications) (30.10.1994) by S.I. 1994/2716, regs. 91(5), 96(4)

S. 5 applied (with modifications) (1.4.1999) by S.I. 1999/481, reg. 7(2)

S. 5 applied (29.4.1999) by S.I. 1999/1006, reg. 7, Sch. para. 5

S. 5 applied (with modifications) (1.8.2000) by S.I. 2000/1973, reg. 12(13), Sch. 6 para. 6(2)

S. 5 applied (1.4.2000) by S.I. 2000/227, reg. 6, Sch. 2 para. 5(2)

S. 5 applied (with modifications) (W.) (1.7.2001) by S.I. 2001/2197, reg. 6, Sch. 2 para. 5(2)

C4 S. 5 applied by 1985 c. 68, s. 584B(5) (as substituted (6.4.2006 for E., 16.6.2006 for W.) by Housing Act 2004 (c. 34), s. 270(4)(5)(f), Sch. 15 para. 31; S.I. 2006/1060, art. 2(1)(d) (with Sch.); S.I. 2006/1535, art. 2(b) (with Sch.))

C5 S. 5 applied (with modifications) (E.) (4.8.2006) by Contaminated Land (England) Regulations 2006 (S.I. 2006/1380), reg. 1(1), Sch. 2 para. 5(2)

C6 S. 5 applied (with modifications) (W.) (10.12.2006) by The Contaminated Land (Wales) Regulations 2006 (S.I. 2006/2989), reg. 1(1), Sch. 2 para. 5(2)

C7 S. 5 applied (with modifications) (E.) (1.3.2009) by Environmental Damage (Prevention and Remediation) Regulations 2009 (S.I. 2009/153), reg. 1(1), Sch. 6 para. 6(1)

C8 S. 5(2)(4) applied (5.11.1993) by 1993 c. 42, s. 21, Sch. 7 para. 16(2)(a)