Harinder Kaur Parbakher v Manchester City Council
Decision date: 9 June 2011
Neutral citation: [2011] UKUT 214 (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 appeal concerned the compensation payable for compulsory acquisition of 1221–1225 Ashton Old Road, Openshaw, with valuation date 4 September 2009. The Tribunal preferred the council’s local market evidence, fixed rents and conversion costs between the experts’ figures, adopted a 10.5% yield and assessed the capital value at £135,000, with total compensation payable of £147,125 plus a 7.5% Basic Loss Payment (£10,125) and agreed reinvestment costs of £2,000. No costs order was made under the simplified procedure.
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
The Tribunal gave greater weight to detailed local market evidence from a practitioner with intimate knowledge of the locality over more generalised wider-area analyses, and declined a general uplift for scheme blight where local evidence (including lettings and post-announcement rent movement) did not support a reduction in value; it therefore assessed rents, yield and conversion costs on that local evidence to determine open market value on the existing use basis.
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 indicated that where evidence on refurbishment/conversion costs is incomplete, a mid-point between competing expert estimates may be appropriate, and that informal or incomplete contractor quotes should be treated with caution.