Part 9: Compulsory Purchase Compensation Section 189: Prospects of planning permission for alternative development Background
This section amends sections 14, 17, 18, 19, 20 and 22 of the 1961 Act.
	The 1961 Act provides the basic framework for the payment of compensation to an owner of an interest in land for the compulsory acquisition of their interest or its acquisition in certain other situations where there is deemed compulsory acquisition.
	Section 5 of the 1961 Act provides the rules for assessing compensation. This includes rule 2 that the value of the land shall, subject as further provided in the Act, be taken to be the amount which the land if sold in the open market by a willing seller might be expected to realise. This is to be assessed in light of the no-scheme principle set out in section 6A of the 1961 Act.
	Section 14 of the 1961 Act contains specific provisions for taking into account actual or prospective planning permission including the effect of establishing appropriate alternative development.
	Section 17 of the 1961 Act provides a mechanism whereby parties involved with the acquisition of land may in certain circumstances (set out in section 22(2) of the 1961 Act) apply to the local planning authority for a certificate of appropriate alternative development which will confirm whether planning permission for appropriate alternative development could reasonably have been expected to be granted in the absence of the scheme.
	Section 18 of the 1961 Act provides a mechanism to appeal against a certificate of appropriate alternative development to the Upper Tribunal.
	Section 19 of the 1961 Act extends the application of sections 17 and 18 to special situations involving absent or unknown owners of an interest.
	Section 20 of the 1961 Act provides a power to prescribe certain matters related to sections 17 and 19 of the 1961 Act.
	Section 22 of the 1961 Act makes provision for the interpretation of sections 17 to 20 of the 1961 Act.
	The changes are being made to put more onus on the owner of the interest in land to evidence development value associated with that interest. They also streamline the process for obtaining a certificate of appropriate alternative development and change where the burden of costs fall. This reduces the administrative burden on the local planning authority, reducing the cost burden on acquiring authorities and ensures the outcome of the certificate is relevant to the valuation exercise it informs.