(1) Persimmon Homes (Midlands) Limited (2) St Albans Diocesan Board of Finance (3) Old Road Securities Plc v The Secretary of State for Transport
Decision date: 22 December 2009
Neutral citation: [2009] UKUT 126 (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 Tribunal considered compensation for compulsory acquisition of 2.4515 ha at Clapham Folly for the A6 bypass, principally whether in the no‑scheme world residential planning permission would have been granted and, if not, what hope value existed. It found no sustainable highways objection and concluded condition 22 would likely have been removed, giving an 85% chance at the valuation date that permission would have been granted for the reference land (60 dwellings identified), with modest additional hope value for further land. The Tribunal also held no deduction for betterment under s.261 was payable because contiguous retained lands did not receive a direct benefit referable to the purpose of acquisition.
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
Where certainty that planning permission would have been granted cannot be established, compensation should reflect the hope value as assessed at the valuation date on a “cancellation” assumption (the scheme discounted but other circumstances taken as at the valuation date). Further, section 261(1)(a) requires that any benefit to contiguous retained land be directly referable to the purpose for which land is acquired before betterment may be set off.
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 discussed House of Lords authority on assumption of planning permission and noted practical difficulties in treating references to “certainty” as unqualified; it commented that assessing hope value across changing policy periods is practicable only by reference to the prospect existing at the valuation date unless prospects were constant.