Tag: Compulsory Purchase Order

Kentish Independent – Friday 25 November 1955

[AWH – Why was the “existing use” value relatively low? because of the downturn in the area?]

Eltham housing idea falls through

The L.C.C. lost the right to build homes on a four-acre site at Courtlands Avenue, Eltham, because it was unable to offer a competitive price for it. That was the view expressed at Tuesday’s meeting of the County Council by the chairman of the Housing Committee (Mr. W. G. Fiske).

The question of prices the council was empowered by law to offer for land cropped up when the council was informed that the Housing Minister had refused to confirm a Compulsory Purchase Order for the land at Courtlands Avenue.

Instead, the Minister has decided that private builders should be allowed to build there. The LCC had planned to build about 80 homes

Mr. Fiske declared that local authorities are to press for the right to pay the market value for land they want for housing. At the moment they are permitted to pay only “existing use” value.

This amount varies greatly. If the land is waste and overgrown, local authority can acquire it for a few pounds. If, however, the land is covered by buildings with a high rent value, then the value per acre might run into four figures.

Mr Fiske said he firmly believed that if the council had been able to offer a fair price for the site it would have secured it.

A Housing Committee comment stated: “An interesting aspect of this case is that by a combination of circumstances the maximum compensation that would have been payable if the land had been acquired by the council, wither by agreement or compulsorily, could not have equalled or approached the value of the land on the open market.”