Compensation has always been an area of the ACV legislation which has seen much contention between property owners and the local authorities who are not only charged with decising if a property meets the requirements of the regulations but also to pay the compensation which property owners are entitled.
Why was compensation an important provision of the legislation
As the Localism ACT made it way through parliament it was recognised that the moratorium period imposed on property owners by the ACV regulations would be an interference of the property owners human rights.
This interference under Article 1 of Protocol 1 of the European Convention of human rights was only justified if the owner would be compensated for any loss or expense incured as a direct result of the legislation.
DF v Harrogate Borough Council:  UKUT 288 (AAC)
“Whether diminution in the value of a property listed as an asset of community value is a legitimate head of claim for compensation under regulation 14 of the Assets of Community Value (England) Regulations 2012 Environment—When a loss is “incurred” for the purposes of regulation 14(5)(b). Environment—Whether a local authority has a discretion to extend the thirteen-week time limit in regulation 14(5)(b).”
This upper tier tribunal review is the first case to review ACV compensation and is a key case as it creates a president which lower courts and local authorities must now follow.
The review concerned the Henry Jenkins Public house which was listed as an ACV on the 29th June 2017 by Harrogate Borough Council and the property owners claim for £711,000 for loss of permitted development rights when the property was nominated 3 days before he was allowed under permitted development rights at that time to change the public house into an estate agency.
Although the appeal was dismissed it did give insight into what are valid head of claims.
LOSS OF ASSET VALUE
This has always been a highly contentious issue with the largest claim to date submitted to the local authority being:
Judge Richard Poynter has now confirmed that loss of asset value is a valid claim under the regulations subject to a claim being submitted within 13 weeks of the property being listed as an ACV.
This ruling now gives property owners the right subject to evidential proof to claim compensation directly from the local authority under the regulations.