Form

Purchase Notices Served under the Town and Country Planning Act 1990

Updated 12 April 2024

Applies to England and Wales

This note relates only to purchase notices served in England.

1. Purpose of purchase notices

Planning control is intended to regulate the development of land in the public interest. For this reason, planning decisions may conflict with the private interests of land owners. There is no entitlement to compensation for adverse planning decisions (except in limited circumstances where “permitted development” rights under a Development Order are withdrawn by direction or planning permission is revoked etc). This is because owners usually have some continuing benefit from current uses. But occasionally there may be no reasonably beneficial use for the land. To remedy this situation an owner has the right, in certain circumstances, to serve a “purchase notice” requiring a local authority to purchase his/her interest in land.

2. How the system works

The purchase notice system, as referred to at sections 137 to 148 of the 1990 Act is often referred to as “reverse compulsory purchase”. These are its main features.

A notice may only be served within 12 months of the one of the following kinds of decision:

• refusal of planning permission by a Local Planning Authority (LPA);
• conditional grant of planning permission;
• revocation of planning permission-by a “revocation order” made under section 97 of the 1990 Act;
• modification of planning permission by the imposition of conditions-through a “modification order” made under section 97;
• requirement to discontinue a use of land, or remove buildings or works from it, or imposition of conditions on its future use-by a “discontinuance order” made under section 102 (or under paragraph 1 of Schedule 9 for mineral workings).

Generally, only the land owner may serve a notice. But if the notice is based on a discontinuance order, any person entitled to an interest in the land may serve.

The owner must claim that the land in question is incapable of reasonably beneficial use before he can serve.

The notice must be served on the relevant local planning authority (LPA) but may be subsequently accepted by another local authority (such as a county council) or by a statutory undertaker.

If the LPA (or any other relevant authority) are not prepared to accept a valid purchase notice they should issue a timely counter-notice and refer the matter to the Secretary of State for Communities and Local Government (CLG) to consider. All referred English purchase notices are processed by the Planning Inspectorate (the address is given below). There are different arrangements for Wales.

The law requires the Secretary of State to weigh up the conflicting claims of the server and LPA. The Secretary of State must refuse to confirm the notice if he considers the server’s case to be unfounded. But otherwise he must take one of the following courses:

• confirm the notice on the most appropriate body (usually the LPA);
• grant planning permission for the development originally proposed;
• revoke or amend the conditions of a planning permission, including conditions imposed by a “modification order”;
• cancel a “revocation order”;
• revoke or amend a “discontinuance order”;
• direct that planning permission be granted for some other specified development, if an application for permission is subsequently made.

Before the Secretary of State reaches his final decision, he must first give the server and the LPA written notice of his proposed decision. Both parties have the right to be heard if they wish to contest his proposal. If they exercise this right, a hearing or local inquiry is held by a Planning Inspector. He/she will make a written report to the Secretary of State. When he has reached his final decision, he will notify the parties in writing. The formal decision letter will give the reasons for his decision and will enclose a copy of the Inspector’s report.

If the notice is accepted or confirmed, the relevant authority (usually the LPA) are deemed to be authorised to acquire the land compulsorily and to have served “notice to treat” . Compensation is then assessed under the normal compulsory purchase rules.

3. The Crown

A purchase notice may not be served or confirmed on the Crown.

4. Listed buildings and conservation areas

There are similar provisions for the service of “listed building purchase notices” and “conservation area purchase notices”-in sections 32 to 37 and 74(3) of the Planning (Listed Buildings and Conservation Areas) Act 1990 and regulation 12 of the Planning (Listed Building and Conservation Areas) Regulations 1990. These may be served where listed building consent or conservation area consent is refused, granted subject to conditions, revoked or modified.

Only owners may serve listed building or conservation are purchase notices.

5. Further information

Further information on purchase notices is contained, at pages 116 to 126, of the following DCLG publication (October 2015): Guidance on Compulsory process and The Crichel Down Rules for the disposal of surplus land acquired by, or under the threat of, compulsion.

Anyone considering service of a purchase notice should first contact their local planning authority if they need further advice.

Referred purchases notices are dealt with by the Planning Inspectorate.  LPA’s should preferably send all the required documentation by email to:

SM-costsanddecisionsteam@planninginspectorate.gov.uk

If it is not possible to send by email, the documents can be posted to:

The Planning Inspectorate
Costs and Decisions Team
Temple Quay House
2 The Square
Temple Quay
Bristol
BS1 6PN

Tel: 0303 444 5601