Gascoigne Estate regeneration scheme

Specialist compulsory purchase solicitor, Catherine Hibbert, takes a look at the regeneration scheme currently underway at Gascoigne Estate, and how compulsory purchase orders may be used by the Council.

Gascoigne Estate regeneration

Barking and Dagenham Council and its development partners are making progress with their regeneration of the Gascoigne Estate. This ambitious project to deliver 2,945 of new homes through the phased demolition of the existing housing blocks and their gradual replacement with modern new homes is well underway, with 1,575 homes due to have been delivered by 2024, together with other infrastructure and facilities.

The Council needs to have acquired the title to all necessary property interests and vacant possession before construction can start on each phase. Approximately 80% of the old estate was occupied by Council tenants and it is understood that such tenants will have already been approached by re-housing coordinators to discuss their options. The remaining 20% of occupiers are leasehold owners and will be approached in phases with a view to the acquisition of their properties by agreement. If agreement cannot be reached then the Council will almost certainly pursue powers of compulsory purchase.

Compensation Code

Where an authority resorts to exercise of powers of compulsory purchase to acquire property, an affected landowner will be entitled to a compensation package calculated by reference to a set of legal principles known as the Compensation Code, the aim of which is to put the dispossessed landowner into a position of equivalence, i.e. no better or worse than if the compulsory acquisition had not taken place. The compensation claim will be broadly based on:

• Market value of property (unaffected by the underlying scheme)
• Compensation for injurious affection/severance (to the extent that part only of a property is required)
• Statutory loss payments (if applicable)
• Disturbance (those costs which are the natural consequence of dispossession from the property including removal costs, utility reconnections and professional and other costs associated with the sale and purchase of a replacement property).

A leasehold owner being encouraged to sell by agreement but ‘under shadow of compulsory purchase’ should expect to recover a financial package worth at least as much as would be recoverable were the sale to go ahead through exercise of powers of compulsory purchase.

Holmes and Hills LLP has a dedicated team of specialist compulsory purchase order solicitors who specialise in compulsory purchase and compensation claims. We advise landowners affected by infrastructure schemes and housing regeneration projects nationwide and are experienced in ensuring that landowners secure the best level of compensation available to them within the parameters of the Compensation Code. If you have been approached by the Council to sell your leasehold interest on the Gascoigne Estate for the purpose of the regeneration scheme, please call either Catherine Hibbert or Mel Francis for a free no-obligation discussion about your particular circumstances. Holmes and Hills LLP aim to ensure their input is cost neutral for landowners affected by such schemes whilst at the same time ensuring that any claim for compensation captures the full extent of a claimant's statutory entitlement.