Compulsory purchase: what landowners need to know

5th May 2026

Author: Michael Bracegirdle

For many farmers and landowners, land is far more than a line on a plan. It supports the day-to-day running of the farm, future family plans and often the long-term value of the business as a whole. That is why the prospect of a compulsory purchase order can feel so unsettling.

In this blog, Mike Bracegirdle explains what a compulsory purchase order is, why early advice matters and the steps landowners can take to protect their position if their land may be affected.

A compulsory purchase order, usually called a CPO, is the legal process by which certain public bodies can acquire land without the owner’s consent where there is a sufficient public interest case for doing so. It is a power used for schemes linked to development, regeneration and infrastructure.

What is a compulsory purchase order?

In simple terms, a CPO allows an acquiring authority to take ownership of land needed for a scheme. Local authorities are often involved, but they are not the only bodies with these powers. CPOs can arise in relation to roads, rail, utilities, redevelopment projects and, in some cases, housing-led schemes.

For rural owners and occupiers, the issue is rarely just the loss of the land itself. The real concern is usually what that loss does to the wider holding and to the farming business that depends on it.

That is why this is not simply a valuation exercise. If part of a farm is taken, the effect can extend to access, drainage, field layout, grazing patterns, cropping, buildings and the practical efficiency of the land left behind. In some cases, the retained land may become less valuable or less workable even though only part of the holding is acquired.

Why early advice is so important

If you receive notice of a proposed CPO, timing matters. The notice must explain how objections can be made and the period for doing so. That is not a long window in which to understand the documents, assess the effect on the holding and decide how to respond.

If objections are made and remain unresolved, the order may go forward to a public inquiry or, in some cases, written representations. The process is formal and can feel daunting, which is why it helps to understand your position early rather than waiting for matters to escalate.

Early advice is also important because the first questions are not always obvious. Who owns the land? Is it all registered correctly? Is any part occupied under a tenancy, grazing licence or other arrangement? Are there rights of way, drainage rights or service rights which may be affected? These are the points that can shape how the matter should be approached from the outset.

In practice, many cases are resolved through negotiation rather than a fully contested hearing, but that does not make the early stages any less important. The decisions made at that point can have a real effect on the outcome.

Compensation is about more than land value

A common assumption is that compensation is simply based on the acreage being taken. In fact, the legal starting point is the principle of equivalence. Broadly speaking, the aim is that the landowner or occupier should be left no better and no worse off financially as a result of the compulsory acquisition.

That can mean a number of different factors need to be considered, depending on the facts.

Market value

The value of the land or rights being acquired will be central, but that is only one part of the picture.

Severance

If part of a holding is taken and the remainder becomes less useful, less accessible or less viable, that may need to be reflected in the compensation claim.

Injurious affection

This covers the loss in value caused to retained land because of the acquisition or the use of the land taken. Again, on a farm this can be highly significant.

Disturbance and practical losses

There may also be losses linked to disruption, relocation, changes to working practices or the impact on the farming business more generally. Agricultural owners and occupiers may have separate points to raise depending on their position.

There are also rules around advance payments of compensation. In many cases, an acquiring authority must make an advance payment, usually 90 per cent of either the agreed compensation or its estimate of the compensation due. Even so, questions often remain over timing, evidence and whether the valuation properly reflects the effect on the holding.

Where we can help

This is an area where legal advice and valuation advice need to work together. At Butcher & Barlow, we can help you understand what the notice means, review title and ownership, consider tenancy and occupation issues, advise on procedure and deadlines, deal with access and survey documentation and support negotiations as the matter develops.

We can also work closely with your land agent, rural surveyor, valuer and any other specialist advisers needed so that the legal and practical issues are properly joined up from the outset. That can be particularly important where the proposed acquisition affects not just ownership, but also access, farm structure, the future use of the land and the wider viability of the holding.

Bringing the right people together at an early stage can help you understand your position more clearly, respond within the relevant timescales and make informed decisions as the matter progresses.

Do not overlook the Crichel Down Rules

There is another point which can matter greatly in the right case. If land acquired by or under threat of compulsion later becomes surplus, the Crichel Down Rules may mean that former owners are given the first opportunity to buy it back, provided the character of the land has not materially changed. The rules are not automatic in every situation and there are exceptions, but they can be highly important where land is later found not to be needed after all.

This is one reason large infrastructure projects have kept the issue in the public eye. Projects such as HS2 have brought renewed attention to the question of what happens when land acquired for a scheme is later reviewed to decide whether it is still required or should be disposed of.

A practical first step

If you see a notice that may affect your farm or rural property, the most sensible first step is to take advice early. Even if the matter never reaches a full hearing, the early stages can shape the outcome in a very real way. Understanding the impact on the holding, protecting your position and making sure the legal and valuation advice are working together can make a significant difference.

If you have received notice of a proposed compulsory purchase order, or you are concerned that your land may be affected, taking advice early can make a real difference. We can help you understand the legal position, review the documents involved and work alongside your land agent, valuer and other advisers where needed.

To speak to Mike Bracegirdle or a member of our Agricultural Property Team, please get in touch with on 01606 334309 or email agriculture@butcher-barlow.co.uk

The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.