Compulsory Purchase Orders (CPOs) are one of the more powerful and technical tools available to public bodies, but they play an essential role in delivering new homes, infrastructure and regeneration projects.
Understanding how they work helps buyers, landowners and advisers recognise what a CPO means in practice – and what rights and protections exist along the way.
What Is a Compulsory Purchase Order?
A Compulsory Purchase Order allows certain public authorities, such as Local Authorities, Government departments and utility companies, to acquire land or rights over land without the owner’s consent. This can only happen where the acquiring authority can demonstrate a compelling case in the public interest. In other words, the public benefits of the project must clearly outweigh the private loss to affected landowners.
- Typical schemes that may involve a CPO include:
- Road, rail and transport improvements
- Housing and regeneration schemes
- Major utility upgrades
- Flood and coastal defence projects
- Airport or station expansions
A CPO is always a last resort: authorities must first try to acquire land by negotiation, and only move to compulsion if agreement cannot be reached.
How the CPO Process Works
1. Preparing and submitting the Order
The authority prepares the Order and submits it to the Ministry of Housing, Communities and Local Government (MHCLG). It must set out clearly why the land is required, how the scheme will be delivered, and why compulsory acquisition is justified.
2. Notification and objections
Everyone with a legal interest in the land – owners, leaseholders, tenants and occupiers – must be notified.
While anyone can send a written objection, only “Qualifying Persons” (owners, lessees, tenants and occupiers) have a statutory right to appear and be heard at a Public Local Inquiry.
3. The Public Local Inquiry
If objections are not withdrawn, an independent Inspector holds an Inquiry. Evidence is heard from both the acquiring authority and affected parties. The Inspector then makes recommendations to the Secretary of State.
4. The decision
The Secretary of State may:
- Confirm the CPO
- Confirm it with modifications
- Reject it entirely
If confirmed, the acquiring authority can then move to take possession.
Compensation and the Principle of Equivalence
Landowners impacted by a confirmed CPO are entitled to compensation. This is governed by the long‑established Principle of Equivalence, which states that a person should be no worse off – but also no better off – than if their land had not been acquired.
- Compensation typically includes:
- The market value of the land
- Disturbance and relocation costs
- Fees and professional costs reasonably incurred
- Loss directly attributable to the acquisition
This framework ensures fairness without allowing a windfall gain as a result of compulsory purchase.
Why CPOs Matter for Property Buyers and Professionals
CPO involvement can affect:
- Development potential
- Valuation and lending decisions
- Long‑term regeneration prospects
- Transaction timelines and due diligence
- Search results and planning risk assessments
Even if a property is not being acquired, being near a proposed CPO boundary can influence future surroundings, infrastructure and land use.
Compulsory Purchase Orders sit at the intersection of public need and private rights. They allow major projects to move forward, but only where a compelling case in the public interest can be shown and where landowners are protected through clear rights and fair compensation under the Principle of Equivalence. As planning reforms continue to reshape how land is valued and acquired, CPOs are becoming an increasingly common feature in both urban and rural development.
For property professionals and homeowners, understanding how the process works – and what safeguards apply – is key to navigating any project that may affect land, value or long‑term plans.
