Some properties aren’t blighted by what’s happened. They’re blighted by what might.
A road scheme is proposed. A compulsory purchase power exists but hasn‘t been used. The property sits in limbo – too affected to sell at a fair price, not yet acquired by anyone. The blight notice exists for exactly that gap, and it works in a direction most people don’t expect: it lets the owner force the authority to buy.
Here’s how it works, and why it’s sometimes called “reverse compulsory purchase.“
What is a blight notice?
Sections 149 to 171 of the Town and Country Planning Act 1990 allow a person with a qualifying interest in certain categories of land to require the relevant authority to purchase that interest. Rather than the authority initiating acquisition, as it would under a compulsory purchase order, the owner initiates it themselves. That reversal of the usual sequence is why the mechanism is commonly described as reverse compulsory purchase.
It exists to relieve a specific kind of hardship: land can become effectively unsellable, or only sellable at a heavily discounted price, once a planning or highway proposal makes clear that it may eventually be acquired or affected – long before any actual scheme, or any CPO, materialises. Without the blight notice route, an owner could be left in limbo for years, unable to sell at a fair price and with little certainty about when the position will be resolved.
What counts as “blighted land”?
Not every property near a proposal qualifies. The land has to fall within one of the specific categories set out in Schedule 13 of the Act – a list significantly amended by the Planning and Compulsory Purchase Act 2004 – which covers things like land allocated in development plans for public authority functions, land affected by highway schemes at defined stages, land within new town or urban development designations, and land where compulsory purchase powers exist but haven’t yet been exercised.
Being near a general area of planned change isn’t enough. The land has to sit within one of the defined statutory categories, which is a narrower test than it might first appear.
Who can serve one?
The right is limited to owner-occupiers, not investors or landlords generally. In practice that means: an owner-occupier of a private dwelling, an owner-occupier of business premises below a set rateable value threshold, an owner-occupier of an agricultural unit, a mortgage lender with the power to sell and give immediate possession, or the personal representative of someone who would have qualified before their death.
What do you have to show first?
Beyond the property falling within a blighted land category and the claimant holding a qualifying interest, the owner generally has to show they made reasonable efforts to sell the property and could only do so, if at all, at a price substantially lower than it would fetch without the blight. That “reasonable endeavours to sell” test sits at the heart of most claims.
There’s an exception. Where the relevant compulsory purchase powers remain exercisable over the land, the owner doesn’t need to demonstrate a failed sale attempt at all – the notice can proceed on that basis alone.
What happens once a notice is served?
The authority can accept the notice, or serve a counter-notice objecting to it on specified statutory grounds within two months. If the owner disagrees with a counter-notice, or with a rejection, they can refer the matter to the Upper Tribunal (Lands Chamber) within a further two months. Where a blight notice takes effect – whether by acceptance, tribunal determination, or the authority simply not responding in time – the authority becomes bound to purchase the interest, and compensation is assessed broadly as if the land had been compulsorily acquired.
How is this different from a Part 1 Land Compensation Act claim?
The two sit at opposite ends of the same problem. A Part 1 claim is made after public works are built and in use, for depreciation caused by their operation – noise, vibration, and the like – with no land changing hands. A blight notice is available before anything is built, in some cases before any scheme is even confirmed, and forces the outright purchase of the land itself rather than compensating for a fall in value while ownership continues.
Put another way: Part 1 compensates you for staying put next to something that now exists. A blight notice gets you out from under something that might.
Why does this matter for a transaction?
For a seller, a blight notice may be the only realistic route to a fair sale if a proposal has made the property genuinely unsellable on the open market. For a buyer, it’s worth knowing whether a seller has already served, or is eligible to serve, a blight notice on a property affected by a nearby scheme – because the availability of a blight notice can depend heavily on who owns and occupies the property at the relevant time, making timing an important consideration
Blight notices are a narrow, procedural remedy – but where a genuine Schedule 13 designation applies and a sale has failed because of it, they can be the difference between years in limbo and a fair, timely purchase.
Anywhere a planning or highway proposal has cast a long shadow over a property without yet delivering a scheme or a CPO, it’s worth asking whether that shadow meets the statutory test.
