Neighbourhood Planning Bill - Report (2nd Day)

Part of the debate – in the House of Lords at 6:30 pm on 28th February 2017.

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Photo of Lord Young of Cookham Lord Young of Cookham Lord in Waiting (HM Household) (Whip), Lords Spokesperson (Cabinet Office) 6:30 pm, 28th February 2017

The compensation is based on the existing use value. Sometimes that might have a hope value, and in some of the circumstances he has outlined, it might not be zoned for housing, but the market value might be slightly above agricultural value because of so-called hope value. That gets priced in. The important point is that we pay market value. What the noble Lord wants to do is to acquire it at below market value to facilitate the building of more houses. I understand that, but that is not the principle on which people have been compensated for the last 40 or 50 years; they have always had the market value.

Thirdly, the no-scheme principle says that if the value of your property has suddenly gone up because of something that the public sector is building—a station or whatever—then that is disregarded for the purpose of assessing its value. That is what we do: that is what the no-scheme principle implies, so you do not get the benefit of the public investment that has accelerated the value of your land. I hope that I have satisfied the noble Lord. Although he is smiling, I suspect that I might not have. On the rather slender hook of Amendment 62, he has hung a very substantial debate, perhaps more appropriate to the Second Reading of this Bill many months ago. Of course, however, I would be happy to have further discussions with him if he has any continuing concerns about how land is acquired compulsorily.

Amendment 41 agreed.

Amendments 42 and 43 agreed.

Amendment 44 had been withdrawn from the Marshalled List.

Clause 17: Notice requirements

Amendment 45 agreed.

Amendment 46 had been withdrawn from the Marshalled List.

Clause 20: Compensation

Amendment 47 to 50A agreed.

Clause 21: Advance payments