ANTHONY KEITH ALLEN v Leicester City Council
Decision date: 4 February 2013
Neutral citation: [2013] UKUT 16 (LC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This was a compulsory purchase reference for 32 Broad Avenue, Leicester, with valuation date 10 January 2006. The Tribunal rejected the council's residual valuation as unreliable, treated the council's September 2006 auction sale of the same property as admissible and, with adjustments for time and clearance, awarded compensation of £105,000; no basic loss payment or costs were payable.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
A subsequent sale of the same property can be admissible evidence of open market value at an earlier valuation date, provided appropriate adjustments are made for timing and other relevant differences; conversely, a residual valuation method must be treated with caution and not relied on where its cost and value assumptions are unsupported, erroneous or double-counted.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal noted that an auction is a recognised method of achieving open market value and that auction bids can be given significant weight absent evidence of distortion. It also indicated that internal agency fees and inappropriate VAT assumptions should not be included in open market valuation costings.