Planning (Wales) Act 2026

152 Compensation for loss or damage caused by stop notice

(1) This section applies where, after a copy of a stop notice has been served—

(a) the enforcement notice to which the stop notice relates is quashed,

(b) the enforcement notice is varied so that an activity prohibited by the stop notice ceases to be a relevant activity (within the meaning given by section 145(2)),

(c) the enforcement notice is withdrawn, or

(d) the stop notice is withdrawn.

(2) In subsection (1)—

(a) paragraphs (a) and (b) do not apply if the enforcement notice is quashed or varied on a ground mentioned in section 131(2)(a) (appeal on ground that planning permission ought to be granted or a condition of planning permission ought to be removed);

(b) paragraph (c) does not apply if—

(i) development to which the enforcement notice relates is authorised by planning permission granted on or after the day the enforcement notice is served, and

(ii) the enforcement notice is withdrawn in consequence of the grant of that permission.

(3) Any person who has an interest in or occupies the land to which the stop notice relates at the time a copy of the notice is first served is entitled to be paid compensation for any loss or damage suffered by the person that is directly attributable to—

(a) the prohibition contained in the notice, or

(b) in a case falling within subsection (1)(b), the prohibition by the notice of the activities that cease to be relevant activities.

(4) The loss or damage for which compensation is payable includes any amount payable in respect of a breach of contract caused by taking action necessary to comply with the prohibition.

(5) Compensation under this section is payable—

(a) in a case where a planning authority issued the enforcement notice to which the stop notice relates, by the planning authority;

(b) in a case where the Welsh Ministers issued the enforcement notice, by the Welsh Ministers.

(6) No compensation is payable under this section in respect of the prohibition of an activity which, at any time when the stop notice has effect, constitutes or contributes to a breach of planning control.

(7) No compensation is payable under this section for loss or damage that the claimant could have avoided by—

(a) providing information that the claimant was required to provide by—

(i) an enforcement investigation notice,

(ii) an information notice (see section 383), or

(iii) a notice under section 16 of the Local Government (Miscellaneous Provisions) Act 1976 (c. 57), or

(b) co-operating with the planning authority or the Welsh Ministers in any other way when responding to such a notice.

(8) A claim for compensation under this section must be made in writing to the planning authority or the Welsh Ministers (as the case may be) within 12 months beginning—

(a) in a case falling within subsection (1)(a), (b) or (c), with the day the enforcement notice is quashed, varied or withdrawn;

(b) in a case falling within subsection (1)(d), with the day the stop notice is withdrawn.