Compulsory Purchase Reform in Scotland: The Way Forward

Compulsory Sale and Lease Orders

In line with commitments given to the Scottish Parliament, last year’s consultation included a number of high-level questions on Compulsory Sale Orders (CSO) and Compulsory Lease Orders (CLO). The questions were exploratory in nature, reflecting that neither of these mechanisms currently exist and there is no common understanding of how they might operate or when they could be used. The responses to the CSO and CLO questions have been analysed and a report has been published.

The majority of respondents expressed support for the principle of CSO, with local authorities particularly supportive. Those in favour of CSO felt they could be used to tackle vacant or derelict land or buildings, including homes. However, a significant minority of respondents were strongly opposed to CSO and/or questioned the need for them given the scope of existing powers and the CPO reforms being proposed. Support for CLO appears to be less well defined, with concerns about the complexity involved and uncertainty of the added value.

The responses, both those supporting and opposing CSO, raise further questions about the practical benefits of CSO compared with a reformed and modernised CPO system, particularly when consideration is given to the safeguards that any CSO process would need to be subject to. It is notable that the majority of respondents felt that procedures for a CSO would need be similar to CPO, which calls into question whether CSOs would be a simpler, quicker and cheaper option. Some respondents felt that CSO could be just as, if not more, complex than CPO and at least as resource-intensive for local authorities. As the consultation paper noted, it is already possible to acquire property using CPO powers where the intention is to dispose of the property to a third-party developer who finances and/or carries out the works. These are often referred to as ‘back-to-back’ CPOs.

We will continue our exploration of CSO, taking account of the views expressed in the consultation. It is particularly important to determine whether they can offer clear advantages over the use of back-to-back CPO, in order to justify the infringement of property rights under ECHR. This consideration will take account of what is already possible using existing powers, as well as the extensive reforms to CPO that we propose to take forward. The Scottish Government will also engage with Glasgow City Council who are currently piloting the use of CPO powers to acquire empty properties with a view to selling them on as private sector development opportunities. We are interested to understand any lessons learned from this pilot and how these experiences might inform the CPO reform programme and further consideration of CSO.

We will also continue to explore the concept of CLO and how they might operate, with particular regard to the potential impacts of leasing a property without the consent of its owner.