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Neighbourhood Planning Act 2017

Commentary on provisions of Act

Part 1: Planning

Neighbourhood Planning

Section 1: Duty to have regard to post-examination neighbourhood development plan

  1. This section amends section 70 of the Town and Country Planning Act 1990 to require a local planning authority or other planning decision-taker to have regard to a post-examination neighbourhood development plan when dealing with an application for planning permission, so far as that plan is material to the application. The section defines what is meant by a post-examination neighbourhood development plan.
  2. This section extends to England and Wales but applies to England only.

Section 2: Notification of applications to neighbourhood planning bodies

  1. This section amends Schedule 1 to the Town and Country Planning Act 1990 to require a local planning authority, or the Secretary of State, to notify any parish council or designated neighbourhood forum of any future planning applications or alterations to planning applications in their area. This requirement applies when there is a neighbourhood development plan which forms part of the statutory development plan, or when there is a post-examination neighbourhood development plan (as defined in section 1 of the Act) in place, for a neighbourhood area all or part of which falls within the authority’s area. The requirement does not apply where the parish council or designated neighbourhood forum has given notification in writing that they do not wish to be notified of any such application.
  2. This section extends to England and Wales but applies to England only.

Section 3: Status of approved neighbourhood development plan

  1. This section amends section 38 of the Planning and Compulsory Purchase Act 2004 to provide for a neighbourhood development plan for an area to become part of the development plan for that area after it is approved in each applicable referendum (a residential referendum and, where the area is a business area, a business referendum). In the very limited circumstances that the local planning authority might decide not to make the neighbourhood development plan, it will cease to be part of the development plan for the area.
  2. This section extends to England and Wales but applies to England only.

Section 4: Modification of neighbourhood development order or plan

  1. This section amends section 61M of the Town and Country Planning Act 1990 to enable a local planning authority to modify, only with the consent of the qualifying body for the neighbourhood area, a neighbourhood development order or plan if they consider that the modification does not materially affect any planning permission granted by the order or the policies in the plan.
  2. This section also amends the Planning and Compulsory Purchase Act 2004 to insert new Schedule A2 which sets out the process for the modification of a neighbourhood development plan in cases where the proposed modifications would materially affect the policies in the plan but are not so significant or substantial as to change the nature of the plan.
  3. This section extends to England and Wales but applies to England only.

Schedule 1: New schedule A2 to the Planning and Compulsory Purchase Act 2004

  1. This Schedule sets out the procedure for making a modification to a neighbourhood development plan. A qualifying body must submit the proposed modifications to the local planning authority. The procedure for making the modifications largely replicates the existing process for making a neighbourhood development order in Schedule 4B to the Town and Country Planning Act 1990, as applied to neighbourhood development plans by section 38A(3) of the Planning and Compulsory Purchase Act 2004. However, unlike the process for making a new neighbourhood development plan, examiners are expected to hold hearings only in exceptional circumstances and there is no referendum on the proposed modifications. A local planning authority will be required to make the modified neighbourhood development plan if that is what the examiner recommends (including modifications recommended by the examiner).
  2. The local planning authority may only decline to follow the examiner’s recommendation where it considers that would breach or be incompatible with any EU obligations or Convention rights.
  3. This Schedule extends to England and Wales but applies to England only.

Section 5: Changes to neighbourhood areas etc

  1. This section amends the Town and Country Planning Act 1990 and the Planning and Compulsory Purchase Act 2004 to facilitate the modification of a neighbourhood area and provide for what is to happen to a neighbourhood development order or plan that has already been made in relation to that area. This might be necessary, for example, where a community governance review leads to changes to a parish boundary or the creation of a new parish, or where parish councils choose to undertake neighbourhood planning together or to plan for their own area where they have previously acted together.
  2. This section extends to England and Wales but applies to England only.

Section 6: Assistance in connection with neighbourhood planning

  1. This section amends section 18 of the Planning and Compulsory Purchase Act 2004. That section requires a local planning authority to prepare a statement of community involvement setting out the authority’s policy for involving interested parties in the preparation of local development documents. This section requires an authority to also set out their policy for discharging the duty to give advice or assistance to qualifying bodies to facilitate proposals for neighbourhood development plans (including proposals for the modification of neighbourhood development plans) or orders.
  2. This section extends to England and Wales but applies to England only.

Section 7: Engagement by examiners with qualifying bodies etc

  1. This section amends Schedule 4B of the Town and Country Planning Act 1990 as applied to neighbourhood development plans by Section 38C in accordance with section 38A(3) of the Planning and Compulsory Purchase Act 2004. It adds to the existing non-exhaustive list (set out in paragraph 11 of the same Schedule) of matters that regulations on the procedure for the examination of neighbourhood development orders and neighbourhood development plans may address. The section provides for regulations to set out the requirements that the person appointed to examine a neighbourhood development order or plan must follow during the examination process.
  2. This section extends to England and Wales but applies to England only.

Local development documents

Section 8: Content of development plan documents

  1. This section amends sections 19 and 35 of the Planning and Compulsory Purchase Act 2004 (‘the 2004 Act’) to require local planning authorities in England to identify the strategic priorities for the development and use of land in the authority’s area. Each authority must set out policies to address those priorities in their development plan documents unless they are satisfied that these priorities are addressed in a spatial development strategy that covers their area (in Greater London or in the area of a combined authority that has the function of preparing a spatial development strategy). Authorities must make clear in each monitoring report published under section 35 of the 2004 Act the extent to which they are relying on policies in a spatial development strategy to deliver their strategic priorities, and where the relevant policies are to be found.
  2. This section also amends section 34 of the 2004 Act to require the Secretary of State to produce guidance for local planning authorities about how their local development documents, taken as a whole, should address the housing needs of older and disabled people. Local planning authorities must have regard to this guidance when discharging their plan-making responsibilities.
  3. This section extends to England and Wales but applies to England only.

Section 9: Power to direct preparation of joint development plan documents

  1. This section inserts new sections 28A to 28C of the Planning and Compulsory Purchase Act 2004 and makes consequential amendments. New section 28A enables the Secretary of State to direct two or more local planning authorities to prepare a joint development plan document where that will facilitate the more effective planning of the development and use of land in the area of one or more of those authorities.
  2. This section extends to England and Wales but applies to England only.

Section 10: County Councils’ default powers in relation to development plan documents

  1. This Section introduces Schedule 2 to the Act, which enables the Secretary of State to invite a county council to prepare a development plan document for a local planning authority in their area.
  2. This section extends to England and Wales but applies to England only.

Schedule 2: County council’s default powers in relation to development plan documents

  1. Schedule 2 amends Schedule A1 to the Planning and Compulsory Purchase Act 2004. That Schedule enables the Secretary of State to invite the Mayor of London or a combined authority to prepare a development plan document for an authority in their respective areas. Intervention is permitted only where the Secretary of State thinks that a local planning authority are failing or omitting to do anything it is necessary for them to do in connection with the preparation, revision or adoption of the document. The amendment enables the Secretary of State to additionally invite a county council to prepare a document for a local planning authority in their area.
  2. Where a county council accepts the invitation, they are responsible for preparing the document and having it examined. They may then approve the document (or approve it subject to modifications recommended by the inspector) or direct the local planning authority to consider adopting it. The Secretary of State may ‘call in’ or require modifications to be made to a document being prepared by a county council as he or she can in relation to any other development plan document.
  3. This schedule extends to England and Wales but applies to England only.

Section 11: Format of local development schemes and documents

  1. This section amends section 36 of the Planning and Compulsory Purchase Act 2004 to enable the Secretary of State to publish data standards which set technical specifications for local development schemes and local development documents or data contained in them. Local planning authorities must comply with these standards when preparing, publishing, maintaining or revising any such scheme or document.
  2. The section also amends section 15(8AA) of the 2004 Act to enable the Secretary of State or the Mayor of London (in the case of a London borough council) to direct a local planning authority to revise a local development scheme so that it complies with published data standards.
  3. This section extends to England and Wales but applies to England only.

Section 12: Review of local development documents

  1. This section amends section 17 of the Planning and Compulsory Purchase Act 2004 to enable the Secretary of State to prescribe in regulations the intervals at which local planning authorities must review their local development documents. Where an authority reviews a document but decides not to revise it, they must publish their reasons.
  2. This section extends to England and Wales but applies to England only.

Section 13: Statements of community involvement

  1. This section amends section 18 of the Planning and Compulsory Purchase Act 2004 to require local planning authorities to set out in their statements of community involvement policies for involving interested parties in the preliminary stages of plan-making. It also allows the Secretary of State to produce regulations which prescribe matters which local planning authorities must address in their statements of community involvement.
  2. This section extends to England and Wales but applies to England only.

Planning Conditions

Section 14: Restrictions on power to impose planning conditions

  1. This section inserts a new section 100ZA into the Town and Country Planning Act 1990. Section 100ZA provides the Secretary of State with the power to make regulations about what kind of conditions may or may not be imposed on a relevant grant of planning permission, that is any planning permission to develop land granted further to an application made under Part 3 of the Town and Country Planning Act 1990, and in which circumstances. Under this section, the Secretary of State can only make provision in regulations if and to the extent that the Secretary of State is satisfied that such provision is appropriate for the purpose of ensuring that conditions imposed by local planning authorities are necessary to make the development acceptable in planning terms, relevant to the development and planning considerations generally, sufficiently precise to make them capable of being complied with and enforced, and reasonable in all other aspects - in line with the policy tests on conditions in the National Planning Policy Framework. The section also contains a requirement to carry out a public consultation before making any such regulations.
  2. This section further requires a local planning authority to obtain the written agreement of the applicant to the terms of any pre-commencement conditions before granting planning permission subject to any such conditions. A ‘pre-commencement condition’ is a planning condition imposed on a grant of planning permission, which the applicant must discharge before development ( any building or other operations or a material change in the use of any buildings or other land) can commence on site. The Secretary of State can set out in regulations subject to the negative procedure circumstances in which this requirement does not apply. As with any regulations made under subsection (1), there is a requirement to carry out a public consultation in advance of prescribing such exclusions.
  3. This section also requires the Secretary of State to provide local planning authorities with guidance, which he may amend, on section100ZA and any regulations which are made under powers in this section.
  4. This section extends to England and Wales but applies to England only.

Schedule 3: Planning conditions: consequential amendments

  1. This Schedule makes a number of consequential amendments to the Town and Country Planning Act 1990.
  2. This Schedule extends to England and Wales but applies to England only.

Permitted development rights relating to drinking establishments

Section 15: Permitted development rights relating to drinking establishments

  1. This section requires the Secretary of State to bring forward an amendment to the Town and Country Planning General Permitted Development Order (England) 2015, to remove permitted development rights for the change of use and demolition of a drinking establishment.  It also requires the Secretary of State to introduce a new permitted development right allowing the change of use from a drinking establishment to a mixed use drinking establishment and restaurant. 
  2. This section extends to England and Wales and applies to England only.

Development of new towns by local authorities

Section 16: Development of new towns by local authorities

  1. This section enables the Secretary of State to transfer oversight of New Town Development Corporations established under the New Towns Act 1981, to one or more local authorities covering the designated area for the new town.  It provides a power to make regulations prescribing the transfer of functions under the Act from central government to the local authorities and other changes to the Act to enable this to work in practice.
  2. This section will extend to England and Wales and apply to England only.

Planning Register

Section 17: Register of planning applications etc

  1. This section inserts a new section 69A, into the Town and Country Planning Act 1990. It extends the scope of the planning register established under section 69 of the 1990 Act by allowing the Secretary of State to require that information about specified prior approval applications or notifications for permitted development rights is placed on this register. The section enables the Secretary of State to introduce regulations which prescribe the information and prior approval applications and notifications which must be placed on the planning register.
  2. This section extends to England and Wales and applies to England only.

Part 2: Compulsory Purchase Etc

Chapter 1: Temporary possession of land

Section 18: Power to take temporary possession of land

  1. This section gives all those with a power to acquire land compulsorily (e.g. local authorities and certain agencies, and statutory undertakers etc.), the power to take temporary possession of land, or a new right over land, by agreement or compulsorily. Unless there is express provision in another Act (such as a hybrid Act for a major infrastructure project) this is the only power by which temporary possession of land may be obtained.
  2. This section extends and applies to England and Wales only.

Section 19: Procedure for authorising temporary possession etc

  1. This section provides that compulsory temporary possession of land must be authorised in the same way as the compulsory acquisition of land would have been authorised for the same purpose as the temporary possession, for example through a compulsory purchase order. It sets out the information which must be included in the "authorising instrument".
  2. Section 19 permits the authorising instrument to include: both compulsory acquisition of land and temporary possession of other land; temporary possession of land only; and both temporary possession and compulsory acquisition of the same land.
  3. If the authorising instrument would have been subject to special parliamentary procedure had the land subject to temporary possession been taken compulsorily, it will only be subject to special parliamentary procedure if the land proposed to be subject to temporary possession is held inalienably by the National Trust.
  4. Section 19 also sets out the information which must be included in the authorising instrument.
  5. This section extends and applies to England and Wales only.

Section 20: Notice requirements

  1. This section requires acquiring authorities to give at least three months’ notice of intended entry to those with an interest in or a right to occupy the land before taking temporary possession and requires the notice of intended entry to specify the period for which the acquiring authority is to take temporary possession of the land.
  2. The acquiring authority has three years in which to exercise their power of temporary possession by service of a notice of intended entry if the authorising instrument is a compulsory purchase order, or five years in any other case (for example, a development consent order).
  3. This section extends and applies to England and Wales only.

Section 21: Counter-notice

  1. This section provides that an ‘owner’ (defined as a freeholder or leaseholder) of the temporary possession land may serve a counter-notice on the acquiring authority within 28 days of the notice of intended entry being given limiting the period for which the acquiring authority may take temporary possession to either 12 months in the case of a dwelling (or part of a dwelling) or six years in any other case. The acquiring authority may then either accept the notice and limit the period of temporary possession as requested, withdraw the notice of intended entry, or proceed to compulsorily acquire the land and must give notice of its decision to the owner within 28 days of the counter-notice being given.
  2. In addition, a leaseholder can instead opt to give a counter notice preventing the acquiring authority from taking temporary possession of the land. The acquiring authority may then either accept the notice, or proceed to compulsorily acquire the land and must give notice of its decision to the leaseholder within 28 days of the counter-notice being given.
  3. If the owner’s interest is purchased by the acquiring authority, the material detriment provisions in the Compulsory Purchase Act 1965 or the Compulsory Purchase (Vesting Declarations) Act 1981 may apply if only part of the owner’s house, building or factory is taken.
  4. This section extends and applies to England and Wales only.

Section 22: Refusal to give up possession

  1. This section applies the enforcement provisions in section 13 of the Compulsory Purchase Act 1965 (where an owner or occupier of the land refuses to give up land to an acquiring authority) so that references in that Act to taking possession of land are taken to be references to taking temporary possession of land. This means that, where a person refuses to give up possession of the land, an acquiring authority can issue their warrant to a sheriff or enforcement officer to gain possession of the land on its behalf.
  2. This section extends and applies to England and Wales only.

Section 23: Compensation

  1. This section provides that a ‘claimant’ (defined as those with an interest in or a right to occupy the land), is entitled to compensation from the acquiring authority for any loss or injury sustained as a result of the temporary possession.
  2. Compensation is also payable to a ‘beneficial claimant’ (defined as those with land benefitting from a "relevant right or interest" or a restrictive covenant) whose rights are interfered with by the temporary possession of land.
  3. This section clarifies that if a claimant is carrying on a trade or business on the land, compensation includes any loss suffered because of the disturbance of the trade or business due to the claimant having to leave the land during the temporary possession period and sets out the matters to have regard to when estimating the loss.
  4. Interest is payable from the day after the last day on which any particular head of loss or injury occurs, but for the purposes of section 9 of the Limitation Act 1980 only, the cause of action for claiming compensation is treated as accruing on the last day of the temporary possession period. Any disputes about compensation payable may be referred to and determined by the Upper Tribunal (Lands Chamber).
  5. This section extends and applies to England and Wales only.

Section 24: Advance payments

  1. This section provides for the advance payment of compensation due to a ‘claimant’ or ‘beneficial claimant’ (as set out in section 23 of the Act ). Before taking possession of the land, the acquiring authority must give notice of intended entry (under section 20 of the Act) specifying a period after which temporary possession can be taken. Once a notice of intended entry has been given by the acquiring authority, a ‘claimant’ or ‘beneficial claimant’ can make a request in writing for advance payment of compensation. The request must set out the basis on which the ‘claimant’ or ‘beneficial claimant’ is or is going to be entitled to compensation and provide sufficient information to enable the acquiring authority to estimate the amount of compensation in respect of which the advance payment is to be made (under section 23). The process is modelled on the provisions dealing with advance payments of compensation where land is acquired by compulsion.
  2. This section extends and applies to England and Wales only.

Section 25: Interest on advance payments of compensation paid late

  1. This section requires the acquiring authority to pay interest on any outstanding amount of an advance payment of compensation which remains due after the last date on which it should have been paid. The rate of interest payable will be specified in regulations made by the Treasury.
  2. This section extends and applies to England and Wales only.

Section 26: Consequential amendments

  1. This section provides that temporary possession land is included in the list of categories of land which are blighted land.
  2. It also extends the right to enter and survey land in section 172 of the Housing and Planning Act 2016 by making it available in connection with a proposal to take temporary possession under section 18 of the Act. A consequential amendment is also made to the definition of "acquiring authority" in section 172 of the Housing and Planning Act 2016 to clarify its meaning in this context.
  3. This section extends and applies to England and Wales only.

Section 27: Powers of acquiring authority in relation to land

  1. This section allows the acquiring authority to use the land as if it had acquired all interests in it and, in particular, provides the power to remove or erect buildings or other works and remove any vegetation. The acquiring authority may use land even if this involves interfering with a "relevant right or interest" or a restrictive covenant, except those owned by statutory undertakers (including Electronic Communications Code operators) and the National Trust.
  2. But the powers of acquiring authorities in relation to land are limited to the purposes for which temporary possession was required as set out in the authorising instrument and subject to any regulations made under section 29 limiting the ways in which the land can be used.
  3. This section extends and applies to England and Wales only.

Section 28: Impact of temporary possession on tenancies etc.

  1. Where the land taken for temporary possession is subject to a tenancy, this section provides that the tenant is not considered to be in breach of any terms or obligations of the tenancy to the extent that the temporary possession prevents reasonable compliance with them. Any terms or obligations about the length of the tenancy or the payment of rent are not affected by this section, so the tenant must still comply with those.
  2. Particular provision is made for protected tenancies under Part 2 of the Landlord and Tenant Act 1954 (security of tenure of business tenants), which expire during the period of temporary possession. If the protected tenant notifies in writing both the acquiring authority and the landlord prior to the period of temporary possession that they wish to resume occupation of the land after the period of temporary possession, the protected tenant is deemed to be in occupation to preserve their right to apply for a new tenancy under Part 2 of the Landlord and Tenant Act 1954.
  3. This section extends and applies to England and Wales only.

Section 29: Supplementary provisions

  1. This section requires the Secretary of State and the Welsh Ministers to make regulations about the reinstatement of land subject to temporary possession and the resolution of disputes about reinstatement by an independent person. The Secretary of State may also make regulations excluding the application of any of the temporary provisions of this Chapter in relation to an acquiring authority under the Pipe-lines Act 1962, the Gas Acts 1965 and 1986 or the Electricity Act 1989. This will put the acquiring authority on the same footing as bodies who are acquiring authorities under the Harbours Act 1964, the Transport and Works Act 1992, and the Planning Act 2008.
  2. This section also provides the Secretary of State and the Welsh Ministers with the power to make other regulations in relation to the authorisation and exercise of the power to take temporary possession. Regulations may for example make different provision for different types of land to be occupied (such as residential) and may require an acquiring authority to provide specified information relating to the temporary possession period to specified persons. The Secretary of State or the Welsh Ministers are required to carry out a public consultation before making regulations under this section.
  3. This section extends and applies to England and Wales only.

Section 30: Interpretation

  1. This section is self-explanatory.
  2. This section extends and applies to England and Wales only.

Section 31: Application to Crown land

  1. This section is self-explanatory.
  2. This section extends and applies to England and Wales only.

Chapter 2: Other provisions relating to compulsory purchase

Section 32: No-scheme principle

  1. Compensation for land taken by compulsory purchase is assessed in the "no-scheme world". This assumes that the scheme underlying the compulsory purchase was cancelled on the valuation date (the date of entry and taking possession of the land – if not agreed earlier). Compensation for interests in land is its open market value in the "no-scheme world", disregarding both any increase or decrease in the value of the land which is solely attributable to the particular purpose for which it is acquired, and the acquiring authority’s need for the land for that purpose.
  2. The principles and assumptions concerning the no-scheme world and the extent of the scheme to be disregarded are mainly to be found in sections 6 to 9 of the Land Compensation Act 1961 (‘1961 Act’) and around 100 years of case law on these provisions and their predecessors.
  3. This section clarifies the principles and assumptions for the "no-scheme world", taking into account the case law and judicial comment.
  4. Subsection (3) inserts new sections 6A to 6E to replace sections 6 to 9 of the 1961 Act.
  5. New Section 6A sets out the ‘no scheme principle’ that any increases or decreases in value of land caused by the scheme or by the prospect of that scheme must be disregarded in valuing the land which has been compulsorily acquired and lists the five ‘no-scheme rules’ to be followed when applying the ‘no-scheme principle’. Subsection 6A(10) provides a cross-reference to the planning assumptions in section 14 of the 1961 Act.
  6. New section 6D defines ‘the scheme’ for the purposes of establishing the no-scheme world. The default position is set out in subsection (1), being that the ‘scheme’ means the scheme of development underlying the compulsory acquisition. Subsections (2) to (6) provide for special cases.
  7. Subsection (2) clarifies that for urban development areas, new towns and Mayoral development areas, ‘the scheme’ is the development of any land for the purposes for which the area is (or was) designated.
  8. Subsections (3) and (4) provide that where land is acquired for regeneration or redevelopment which is facilitated or made possible by a "relevant transport project" (defined in subsection (4)(a)), ‘the scheme’ includes the relevant transport project subject to the qualifying conditions and safeguards set out in new section 6E.
  9. Subsection (5) provides that disputes as to the ‘scheme’ (the "underlying scheme") to be disregarded can be referred to and determined by the Upper Tribunal. The underlying scheme shall be taken by the Upper Tribunal to be the scheme provided for by the Act or authorising instrument (e.g. compulsory purchase order) unless it is shown that it is part of a larger scheme. Save by agreement or in special circumstances, the Upper Tribunal shall not permit the acquiring authority to advance evidence of a larger scheme to be disregarded unless it is identified in the authorising instrument or any documents made available with it.
  10. This section extends and applies to England and Wales only.

Section 33: Repeal of Part 4 of the Land Compensation Act 1961

  1. This section repeals Part 4 of the Land Compensation Act 1961 and related provisions so that a claimant is no longer entitled to claim additional compensation where, within 10 years of the completion of the compulsory purchase by the acquiring authority, a planning decision is made granting consent for additional development on the land. The claimant used to be entitled to claim the additional amount that would have been payable with the consent.
  2. This section extends and applies to England and Wales.

Section 34: Time limit for confirmation notices

  1. Where a compulsory purchase order is confirmed by the confirming authority (the authority with the power to authorise the acquiring authority’s compulsory acquisition), the acquiring authority is required to serve a confirmation notice upon every owner, tenant and occupier, to affix a confirmation notice on or near the land comprised in the compulsory purchase order, and to publish a confirmation notice in one or more local newspapers circulating in the locality in which that land is situated.
  2. This section amends section 15 of the Acquisition of Land Act 1981 by introducing a six-week statutory time limit for issue of the confirmation notices unless a longer period is agreed in writing between the acquiring authority and the confirming authority. It also provides for the confirming authority to issue the confirmation notices, and recover the costs of doing so, where an acquiring authority fails to do so.
  3. This section extends and applies to England and Wales only.

Section 35: Compensation for disturbance

  1. Persons in lawful possession of, but without any further interest in, land which is to be compulsorily acquired (licensees) are entitled to compensation for disturbance representing the losses caused by reason of losing possession of the land. Where the person is carrying on a trade or business then regard is had, when calculating the losses, to the period for which the land occupied by the person might reasonably have been expected to be available for the purpose of the person’s trade or business.
  2. For protected tenancies (those with the protection of Part 2 of the Landlord and Tenant Act 1954), the right of a tenant to apply for a new tenancy is taken into account in the assessment of compensation for the acquisition of the interest of the landlord or tenant.
  3. Disturbance payments for licensees and secure tenancies is to be contrasted with the historic position for minor tenancies (a tenancy with less than a year left to run, or a tenancy from year to year) and for unprotected tenancies (those without the protection of Part 2 of the Landlord and Tenant Act 1954). Case law (Bishopsgate Space Management v London Underground [2004] 2 EGLR 175) had held that for these purposes it has to be assumed that the landlord would terminate the tenant’s interest at the first available opportunity following notice to treat, whether or not that would happen in reality.
  4. This section brings the assessment of compensation for disturbance for minor and unprotected tenancies into line with that for licensees and protected tenancies. It provides that regard should be had to: the likelihood of either continuation or renewal of the tenancy; the total period for which the tenancy might reasonably have been expected to continue; and the likely terms and conditions on which any continuation or renewal would be granted. For protected tenancies, this section also provides that the right of a tenant to apply for a new tenancy is to be taken into account.
  5. This section extends and applies to England and Wales only.

Section 36: GLA, MDCs and TfL: joint acquisition of land

  1. Transport for London (‘TfL’) can seek compulsory purchase powers only for transport and highways purposes, and the Greater London Authority (‘GLA’) can seek compulsory purchase powers only for housing and regeneration purposes. Mayoral development corporations (‘MDCs’) can seek compulsory purchase powers for the regeneration of their area.
  2. This section applies where the GLA, or an MDC, and TfL agree that the purposes for which they may acquire land compulsorily would be advanced by one or both of them acquiring land for a joint project. Where this is the case, the purposes for which the GLA, or an MDC, may acquire land are extended to include those of TfL. Similarly, the purposes for which TfL may acquire land are extended to include those of the GLA, or an MDC. This therefore enables either body to acquire all the land required for a combined transport and regeneration or housing scheme on behalf of the other. It provides that the acquisition of land by one body on behalf of the other is to proceed under the procedure that applies to that one and provides that the joint project is ‘the scheme’ for the purposes of the no-scheme principle.
  3. This section extends to England and Wales and applies to England only

Section 37: Overriding easements: land held on behalf of GLA or TfL

  1. This section amends the provisions for overriding easements in sections 203 to 206 of the Housing and Planning Act 2016 to ensure they work as intended for the Greater London Authority and Transport for London. The GLA and TfL have land-holding subsidiary companies, and can only carry on particular specified activities for a commercial purpose through a taxable body. These subsidiary companies do not have independent compulsory purchase powers. The provisions in the 2016 Act would therefore not function as intended without the amendments made by section 37.
  2. This section extends to England and Wales and applies to England only.

Section 38: Timing of advance payments of compensation

  1. Section 39 to 40 make a number of technical amendments to the provisions on advance payments of compensation in the Land Compensation Act 1973 ("the LCA 1973") (as amended by Part 7 of the Housing and Planning Act 2016). The amendments ensure the changes made by the 2016 Act work as intended in all cases, in particular where the land is subject to a mortgage.
  2. Section 38 amends sections 52 and 52ZC of the LCA 1973 to ensure that, where an acquiring authority is required to make an advance payment to a claimant or a payment to a mortgagee, the payment does not have to be made before the authority has received any further information required under section 52(2A)(b) (to estimate the amount of compensation) or under section 52ZC(2)(b) (to establish the amount of the mortgage).
  3. This section extends and applies to England and Wales only.

Section 39: Interest on advance payments of compensation

  1. This section makes a technical amendment to section 52A(2B) of the LCA 1973 (inserted by section 196 of the Housing and Planning Act 2016).
  2. Section 52A(2B) is intended to ensure that in respect of any period in relation to which an acquiring authority is required to pay interest under section 52B, it does not have to pay interest under section 52A on the same amount. Section 52A(2B) currently provides that the interest payable under section 52A(2) is limited to the interest which accrues on the difference between the total amount and "the paid amount". The "paid amount" (as defined in section 52A(2A)) may not, however, always equate to the amount which is accruing interest under section 52B. Section 39, therefore, replaces "the paid amount" with "the amount in respect of which the authority is required to pay interest under section 52B".
  3. This section extends and applies to England and Wales only.

Section 40: Interest on payments to mortgagee paid late

  1. This section ensures that where a payment to a mortgagee under section 52ZA or 52ZB of the LCA 1973 is paid late, interest is payable to the claimant (in the same way as when an advance payment to a claimant is paid late).
  2. This section extends and applies to England and Wales only.

Section 41: Compensation for temporary severance of land after vesting declaration

  1. This section amends Schedule A1 to the Compulsory Purchase (Vesting Declarations) Act 1981 to include an equivalent provision to paragraph 28(5) of Schedule 2A to the Compulsory Purchase Act 1965. The amendment makes clear that the Upper Tribunal may require an acquiring authority to pay compensation for temporary severance, under section 7 of the 1965 Act, when, after executing a general vesting declaration, the authority vests in itself the part of a claimant’s land that it needs for its scheme, while a material detriment claim is being considered by the Tribunal: and the Tribunal subsequently determines that the acquiring authority must take additional land from the claimant. The Upper Tribunal may require the authority to pay compensation for the temporary severance of the land it planned to take from the additional land.
  2. This section extends and applies to England and Wales only.

Chapter 3: Consequential Provision

Section 42: Consequential Provision

  1. This section provides that the Secretary of State may update primary legislation through regulations as a consequence of any changes that are required to make the measures in Part 2 of the Act on compulsory acquisition operate effectively.

Part 3

Final Provisions

  1. Sections 43-47 are self-explanatory.

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