Guidance

Guide on compulsory purchase compensation, land compensation disputes and other references (T604)

Updated 1 May 2024

Introduction

Contact the Upper Tribunal (Lands Chamber) if you are unable to find the information you need in this guide or other documents on the tribunal’s website.

The tribunal’s administrative staff can answer questions about the procedures relating to tribunal cases. They are not trained or permitted to give general legal advice or to advise about the law relating to a particular case.

You can find more information on how to apply or appeal to the Upper Tribunal (Lands Chamber) to help you with your case, including procedures which show the steps to be taken depending on the type and complexity of your case. The forms you will need to make or respond to an application or appeal are also available.

If you do not have access to the internet, you can request a copy of any of the documents from the tribunal office. Your local library may offer free assistance in gaining access to the internet. You will need to follow the tribunal’s rules and practice directions.

The tribunal also publishes its decisions.

The Lands Chamber deals with certain matters in respect of land in England and Wales. The equivalent bodies for Scotland and Northern Ireland are The Lands Tribunal for Scotland and The Lands Tribunal – Department of Justice.

1. Glossary of terms

Acquiring authority

A local council, government department, or other organisation against whom a claim for compensation has been made for the compulsory acquisition of land.

Alternative dispute resolution (ADR)

Ways of resolving or settling a dispute outside the court or tribunal process. ADR includes mediation, adjudication, arbitration, conciliation, early neutral evaluation and ombudsman schemes.

Claimant

A person who makes a claim for compensation against an acquiring or compensating authority.

Compensating authority

A local council, government department or other organisation against whom a claim for compensation has been made for reasons other than the compulsory acquisition of land, such as ‘disturbance’ or ‘injurious affection’ to land.

Court of Appeal

The Court of Appeal hears appeals on points of law from final determinations of the tribunal.

Help with fees

The waiving of all or part of a fee normally payable because of financial hardship.

Member

One of the specialist chartered surveyors appointed to hear Lands Chamber cases.

Practice directions

The Lands Chamber’s own procedural documents, available on its website, which explain how its rules and procedures will be implemented.

Registrar

A legally-qualified officer of the Lands Chamber exercising certain judicial powers and functions in relation to case management and costs.

Statement of case

A statement setting out the basis of a party’s case.

Stay of proceedings

An order made by the tribunal in a case suspending (creating a pause or break in) a case for a specified period of time to allow negotiations or for another good reason.

2. About this guide

This guide provides basic information concerning disputes referred to the tribunal that it has jurisdiction to determine. It is not a substitute for professional advice or attention when necessary to the tribunal’s rules and practice directions.

2.1 The Lands Chamber

The Lands Chamber is a specialist chamber of the Upper Tribunal, established to determine disputes concerning land in England and Wales and its valuation, and to hear appeals against decisions of certain other tribunals.

Amongst its jurisdictions, the Lands Chamber determines:

• disputed compensation for the compulsory acquisition of land and the injurious affection of land
• coal mining subsidence compensation disputes
• disputed compensation relating to tree preservation orders
• the validity of blight and purchase notices
• the disputed valuation of land for capital gains and inheritance tax purposes
• appeals against certificates of appropriate alternative development
• other land valuation disputes where the parties have agreed to refer the matter to the Lands Chamber where it acts as arbitrator

Procedure in the tribunal is governed by the Procedure (Upper Tribunal) (Lands Chamber) Rules 2010 and practice directions.

The Lands Chamber has no power to overturn a compulsory purchase order. Such matters are dealt with by the Administrative Court (a division of the High Court) by way of judicial review.

3. General information

3.1 Fees

The Lands Chamber is required by law to charge fees.

The fee for lodging a notice of reference is £303.

The fee for hearing or determining a reference varies according to the type and size of the case, ranging from £275 to £16,500.

Certain other fees will be charged during the proceedings. For example, you will need to pay a fee of £121 if you make an application for an extension of time or for complying with any of the tribunal’s directions. Further information is available in the fees order with its schedule of fees.

If you think you may be entitled to a reduced fee, the help with fees guidance outlines how you can submit an application for a fee remission. You must submit the help with fees form with your notice of reference form or let the tribunal know the reference number if you complete the application online.

3.2 Alternative dispute resolution

Once you have lodged a reference, or you have been served with one, if you are willing to try to settle your dispute without a tribunal hearing and the other party agrees, the tribunal will allow a short stay in the proceedings while you try to settle the case by means of alternative dispute resolution.

There are a number of less formal and less expensive methods of resolving disputes, known as alternative dispute resolution (ADR) because they offer an alternative to the courts and tribunals.

Mediation is a way of resolving or narrowing disputes by agreement. It is voluntary and works outside the tribunal process. An independent person (the mediator) helps the parties look for a solution they both find acceptable. Together the mediator and parties develop and explore options for settling the dispute.

Mediation is simple, quick and less expensive than legal proceedings. It has a high success rate and parties tend to be satisfied with it. The Court of Appeal has strongly encouraged parties to consider mediation.

Many different organisations provide mediation and other ADR services. To find a mediator, read the guidance on civil mediation.

The tribunal will allow a six week stay of proceedings where the parties agree to ADR. The tribunal will not charge the £121 fee that a party applying for a stay of proceedings must usually pay. The fees charged by mediation or other ADR providers are in addition to and separate from the fees charged by the tribunal.

3.3 Court hearings

If the parties do not settle the case, a tribunal hearing will usually take place to consider the reference. At the hearing each party puts forward their arguments and evidence, usually under oath, and each witness may be cross-examined by the opposing side. Hearings are open to the public. If the simplified procedure is followed, the hearing will be more informal. If both parties agree (or if the reference is unopposed), and the tribunal considers it appropriate, the case may be decided without a hearing.

3.4 Time

The tribunal seeks to determine appeals as quickly as possible and aims to deal with 75% of all references within 90 weeks. The tribunal is able to hear and decide a reference most quickly if the dispute is relatively simple or straightforward, and if the parties have provided all the relevant documents promptly and can attend a hearing at an early date.

Some references, especially if they are large, complex or have many parties, may require many months before they are ready for hearing. If you are ready to proceed to hearing, you may apply to the tribunal for the earliest available hearing date.

3.5 Instructing lawyers and expert witnesses

You may conduct your own case and appear on your own behalf at the hearing. However, as the law and facts may be complex, you may wish to have professional representation from a lawyer or surveyor. When a professional representative is instructed to act, the tribunal will correspond directly with them, rather than with the party they represent.

Given the nature of the cases, very often surveyors and or other professionals need to be engaged to appear as expert witnesses. The tribunal considers that experts should not act both as advocate and as expert witness unless the case is dealt with under the simplified procedure.

3.6 Site inspections

When necessary, the tribunal will view the land or building in question and may also view other sites. This may be before or after the hearing. Notice is given to the parties who are entitled to be represented at the inspection. For an inspection inside any building and for entry on any land, the permission of the occupier is required. An accompanied inspection will not usually take place if the occupier does not consent to the other party or their representative attending the inspection.

At an inspection neither party may make submissions or arguments about the case. However, the parties may point out any features of the land or building to which they wish to draw the tribunal’s attention and may answer specific questions raised by the tribunal.

3.7 Return of documents

The tribunal is not able to return documents to you. This applies both during the case and after the end of the case, so it is very important for your own records that you keep a copy of every application, notice or document that you send to the tribunal.

3.8 Extensions of time

When the tribunal directs that a step must be taken by a specified date, that direction must be complied with. If you cannot comply with a time limit, you can apply to the registrar for an extension of time, but it will only be given if they consider it appropriate. You must explain why you require the extension and for how long. You must also pay a fee of £121 with your application.

Before sending in the application, you should see if the other party will consent to the extension. If they do agree, a joint application signed by both parties may be submitted, or each of you may send a letter to the tribunal confirming what has been agreed. If the other party does not agree, you need to serve a copy of your application for an extension of time on the other party. You also need to explain to them that if they wish to object to your application, they must send a letter giving the reasons for their objection to the tribunal so that it arrives within 10 days of the date you served the application on them.

3.9 Stay of proceedings

You can also apply for a stay of proceedings (a pause or temporary break in the proceedings) in exactly the same way as applying for an extension of time. The process is the same as that for extensions of time.

3.10 Statement of case

A statement of case is a statement setting out the basis of your case. The purpose of a statement of case is to enable the other party and the tribunal to easily identify the issues to be determined. Your statement of case must therefore set out the facts and the law on which you rely. It must be in summary form and must contain particulars or details that are sufficient to tell the other party the case that you are making. Section 6 of the practice directions deals with statements of case in more detail.

Regardless of whoever it was that referred the dispute to the tribunal, the claimant will be required to file a statement of case first and the acquiring or compensating authority will have to file one in reply.

3.11 Expert witness evidence

An expert witness is a witness instructed by one or both of the parties who provides a professional opinion on the matters in dispute. You do not have to call an expert witness in support of your case, but it may be the only or best way to establish the merits of your case. The type of expert witness most commonly called is a surveyor or valuer. For some large or complex cases, architects, planners, civil engineers, accountants or other experts are called. Only one expert witness may be called by a party unless they have been given permission to call more, except where the claim includes a claim for either business disturbance or minerals, where two experts may be called.

Each expert witness who is to give evidence to the tribunal is required to file a report setting out that evidence, accompanied by any relevant plans, valuations, lists of comparable properties and other supporting information. Copies of these documents must be sent to the tribunal and the other party well in advance of the hearing.

Before and again after the exchange of the experts’ reports, the tribunal requires experts to meet in order to:

• identify the issues to be resolved
• reach agreement as to facts
• agree any relevant plans and photographs
• settle as many issues as possible

The experts will normally be required to prepare a statement for the tribunal, showing the facts and issues on which they agree and disagree and a summary of their reasons for disagreeing.

Witnesses of fact may also be called to give relevant evidence of facts known to them, but such witnesses do not give professional opinions.

3.12 Costs

The tribunal has the power to order a party to pay all or part of another party’s costs of a reference where land has been compulsorily acquired or injuriously affected. It may not make costs orders in relation to other types of reference. The general rule is that claimants whose land is compulsorily acquired are awarded their costs, as long as they have delivered a notice of claim to the acquiring authority. This general rule will not apply if the authority has made an admissible offer of compensation that is more than the tribunal’s determination, in which case the claimant will normally be ordered to pay the authority’s costs incurred after the date of the offer. The general rule will also not apply if the claimant’s conduct has unnecessarily increased the costs incurred by the authority. In an appropriate case the tribunal may also make an order limiting a party’s liability in respect of costs subsequently incurred.

The tribunal may also order that a representative personally pay the whole or part of costs it considers to have been wasted as a result of any improper, unreasonable or negligent act (or failure to act) by that representative.

The tribunal may also order a party to reimburse fees paid by another party to the tribunal.

4. Procedure

4.1 Notice of reference and statement of case

To start a case, you must file a notice of reference (Form T371) and include your statement of case. The process is different for blight notices, purchase notices, tax appeals and absent owner cases.

For references relating to the validity of a purchase order or a blight counter-notice, use Form T374. For references relating to absent owners, use Form T362, unless the property was acquired by a general vesting order, in which case use Form T371.

4.2 Response to a notice of reference and statement of case

The response to a reference form is available on the tribunal’s website or may be requested from the tribunal’s office. The form must be sent to the tribunal and a copy sent to the other party within one month of service. You must also include your statement of case.

4.3 Standard, special, simplified and written representations procedures

The tribunal will decide which procedure to adopt for the reference.

The standard procedure is used for the majority of references. The compulsory purchase and land compensation procedure on the tribunal’s website will show you the steps that are followed under this, and the other procedures.

Cases that are complex, of high value, or of wider importance are dealt with under the special procedure. Such cases are case-managed by a judge or member of the tribunal from the beginning. An early case-management hearing is usually fixed to ensure that appropriate directions are given and that a timetable is set.

In limited value, simple or straightforward cases, time and costs may be saved by use of the simplified procedure. Under this procedure, a date for the hearing (usually about three months ahead) will be fixed early in the proceedings. Under the simplified procedure:

• all necessary documents must be sent to the tribunal and other parties one month, or for some types of document, 14 days prior to the hearing
• a chartered surveyor may act both as advocate and as expert witness
• the hearing will be less formal
• usually no costs order will be made
• the usual tribunal fees, such as the hearing fee, are payable

The written representations procedure is available in cases in which the parties do not need to test each other’s evidence with cross-examination, and the tribunal considers it possible to deal with the reference fairly without a hearing. Instead, the tribunal makes a determination based on the written representations and evidence submitted by the parties.

4.4 Blight notices, purchase notices, tax appeals and absent owner cases

For blight and purchase notice cases, use the appropriate form from tribunal’s website. Specific directions will be issued in respect of your case.

For tax appeals there is no standard form for making an appeal. To commence an appeal, you must write to the tribunal stating that you wish to appeal and enclose a copy of the notice of determination made by His Majesty’s Revenue and Customs (HMRC). In the letter you must state your name and contact details, and those of your representative if you have one. If you do not have a representative, you must also give your address for service of documents by the tribunal and HMRC. The tribunal will send a copy of your letter to HMRC. The tribunal may order that statements of case be filed and served by you and by HMRC. This will only be done if the case concerns a complex hereditament (building or other property). The parties are however almost always directed to file and exchange expert’s reports on the valuation of the property.

When land of an owner who is absent, unknown or untraceable has been acquired under a compulsory purchase order, the acquiring authority is obliged to pay compensation into court. The tribunal has jurisdiction to determine the amount that should be paid. Form T362 should be completed and two copies of it and all the required plans and other documents filed with the tribunal. If the land was acquired by a general vesting declaration then, due to legislative constraint, the absent owner procedure is not available. In such a case, the authority needs to make a standard reference using Form T371 accompanied by a witness statement setting out details of its attempts to trace the missing owner, and an application to waive service on the owner (see rule 14).

5. Hearings

5.1 Venue

The tribunal hears most cases at its courts in London and holds hearings in other local courts if necessary. If the parties request a hearing to take place locally and the tribunal agrees, the tribunal will try to arrange suitable courtroom accommodation.

5.2 Length of hearing

Parties are required to tell the tribunal how long the hearing is expected to take, whether several hours or one or more days. Parties should consult with each other about this and try to agree time estimates. If the time estimate is too short, there may have to be an inconvenient and possibly expensive adjournment part-way through the case until more available days can be found. If parties overestimate the time, the scheduling of other hearings is delayed. It is in the interests of all litigants that the resources of parties and of the tribunal are not wasted either by unnecessary adjournments or by overestimates of the hearing time required.

5.3 Lawyers

A party is not obliged to instruct lawyers and individuals are always entitled to appear on their own behalf. However, as the law or facts can be complex, lawyers are often instructed. If you instruct a lawyer or surveyor to represent you, they must inform the tribunal which will then communicate with you through your representative.

5.4 Reasonable adjustments

When the tribunal is arranging a hearing date, you should inform them if you, your representative or any of your witnesses require any reasonable adjustments.

5.5 Arranging a hearing date

Under the simplified procedure, a hearing date is set as soon as possible and before the parties have filed and exchanged all their documents. In all other cases, the hearing date is not normally set until after the parties have filed their statements of case, witness statements and any experts’ reports.

5.6 Preparing for the hearing

Neither party may take their opponents by surprise at the hearing by withholding material until the last minute. You must provide the tribunal and the other party with a witness statement for each witness you are planning to call to give evidence, as well as copies of all documents, plans, valuations and reports which you wish to refer to during the hearing well before the hearing takes place.

5.7 Procedure at the hearing

Participants are advised to arrive a little before the appointed time on the day of the hearing so they can:

• make themselves known to the court clerk
• familiarise themselves with the courtroom layout
• meet their witnesses
• get the documentation in order
• discuss the case with their opponents

When the hearing begins, the claimant usually starts first by setting out their case, then calling evidence and presenting documents. Each witness gives evidence on oath or affirmation (unless the simplified procedure is used), and is liable to be asked questions by the tribunal and cross-examined by the other party. The other party then introduces its case and calls evidence. Each party has an opportunity to set out any legal arguments it relies on in support of its case.

Proceedings will be less formal if the simplified procedure is used.

Wigs and gowns are not worn in tribunal proceedings. Judges and surveyor members are addressed as ‘Sir’ or ‘Madam’.

6. Decisions

6.1 Written decisions

The tribunal usually reserves its decision rather than giving a decision immediately at the end of the hearing. Decisions are given in writing and sent to the parties. The tribunal will also invite the parties’ submissions on costs at this stage, where appropriate.

7. Challenging decisions

7.1 Appealing a decision

The tribunal’s decision on all matters of fact is final. There is a limited right of appeal to the Court of Appeal on points of law for which permission to appeal is required. An application for permission to appeal must be received by the tribunal within one month of the date that the decision was sent to the parties.

If the tribunal refuses permission to appeal, it will send the decision to the parties setting out the reasons for its refusal. The applicant may then apply in writing to the Court of Appeal for permission to appeal within 21 days of the date that the tribunal’s decision refusing permission was sent to the parties. Three copies of an appellant’s notice and a copy of the decision of the tribunal refusing permission to appeal must be filed at the Court of Appeal.

If you are given permission to appeal by the tribunal, you will need to file three copies of an appellant’s notice together with the decision giving permission to appeal with the Court of Appeal within 21 days of the date of the tribunal’s decision giving permission to appeal.

You can find more information on the Court of Appeal’s website.

7.2 Review of a decision

The tribunal may only review or reconsider its own decision in two circumstances:

• if it overlooked a legislative provision or binding authority which could have made a difference to the decision
• if, since the tribunal’s decision, a court has made a decision which is binding on the tribunal and which, had it been made before the tribunal’s decision, could have made a difference to the decision

If you believe the tribunal should review its decision, you must apply to the tribunal for permission to appeal to the Court of Appeal and also at the same time ask the tribunal to review its decision. If the tribunal decides not to review the decision or not to vary it, it will consider whether to give permission to appeal.

8. Standards and complaints

8.1 Standards

The tribunal has certain standards of service and performance which it is committed to reaching. It aims to:

• respond to any requests via email or letter within five working days
• answer phone calls within five rings
• register and acknowledge new cases within five working days (if all necessary documents and fees are sent with the case)
• complete 75% of all references within 90 weeks of the date of registration

8.2 Comments and complaints

If you have any comments or complaints about the service you have received from the Lands Chamber, you should follow the HMCTS complaints procedure.

The administrative team cannot deal with complaints about judicial decisions.

9. Legal advice

Find legal advice and information.

If your case relates to compulsory purchase compensation or other land compensation, you may also contact the Compulsory Purchase Association who can help you to find a solicitor, surveyor or barrister that deals with these types of cases.

You can also get free and independent legal information, advice or assistance from Citizens Advice.