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Article
Publication date: 19 February 2018

Jyoti Rao, Piyush Tiwari and Norman Hutchison

Property often forms the biggest component of household wealth and assets. Irrespective of landowners’ willingness, the act of compulsory acquisition abruptly ceases the security…

Abstract

Purpose

Property often forms the biggest component of household wealth and assets. Irrespective of landowners’ willingness, the act of compulsory acquisition abruptly ceases the security that this ownership carries. This often induces dissatisfaction among affected landowners over the: loss of “property rights”; loss of commodity, or property; and loss of future opportunities associated with the property. Though there have been attempts in various land acquisition laws and a practice to compensate acquirees for their loss, the dissatisfaction of acquirees has persisted. The persisting resistance of landowners compels deeper insight into the process of compulsory purchase and the compensation mechanism to understand underlying causes for resistance. The purpose of this paper is to investigate the extent of involvement of these different stakeholders, at various stages in the compulsory purchase process, using stakeholder interaction analysis. Results obtained from this research will be helpful in identifying the gaps in the process of compulsory purchase of land for public projects in Australia.

Design/methodology/approach

A survey of ten different stakeholder groups has been conducted to inquire the level of interaction of different stakeholders at various stages of compulsory purchase process. A comparative study was then performed to identify the gaps between the advocated process (suggested in the literature) and the process adopted by stakeholders.

Findings

The results illustrate that: affected landowners seek involvement at the initial stage when the project plan is under preparation and compulsory purchase declaration are not finalised; objectors (from the public) seek opportunities to convey, to the public agency, their views even though the accountability of public agencies towards this stakeholder is nil; and strong interactions are established during negotiation over the compensation amount thus signifying the urge of acquirer and acquirees to avoid monetary losses and time delays.

Originality/value

This research will be useful in identification of pain points in the compulsory purchase process for public projects. This shall help in evolution of fairer mechanism of land acquisition.

Details

Property Management, vol. 36 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 29 July 2014

Richard Grover

– The purpose of this paper is to review the economic theories that lie behind the assessment of compulsory purchase compensation and the issues that arise from them.

1050

Abstract

Purpose

The purpose of this paper is to review the economic theories that lie behind the assessment of compulsory purchase compensation and the issues that arise from them.

Design/methodology/approach

The method has been to review the literature about the theories and the critiques of them and to examine the extent to which they provide guidance in specific cases.

Findings

The Hicks-Kaldor compensation test was developed as a way around certain problems in welfare economics but attempts to use it to determine whether projects involving compulsory purchase increase welfare are subject to a number of problems. Ultimately, there are issues of equity as well as efficiency so that a test that just looks at efficiency issues is problematic.

Practical implications

Understanding the weaknesses in the theoretical models behind compulsory purchase compensation can help policy makers devise alternative approaches in situations in which land has to be assembled for regeneration or infrastructure projects and fairer systems of compensation.

Originality/value

The use of the Hicks-Kaldor test has been challenged in environmental economics but the validity of these criticisms for compulsory purchase has not been recognised to the same extent. The use of some original case studies helps to identify some of the issues and alternatives.

Details

Journal of Property Investment & Finance, vol. 32 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 21 September 2012

Anthony Andrew, Michael Pitt, Ian Murning, Shona Harper and Stephen Jones

The purpose of this paper is to provide an update on the work of the Scottish Government in modernising the Scottish compulsory purchase system by publishing two fresh circulars…

276

Abstract

Purpose

The purpose of this paper is to provide an update on the work of the Scottish Government in modernising the Scottish compulsory purchase system by publishing two fresh circulars to guide acquiring authorities and a number of other measures short of legislation. It is anticipated that this will be the first stage in a programme which will be followed by an examination of primary legislation by the Scottish Law Commission in its eighth programme of law reform.

Design/methodology/approach

The paper explains the current Scottish system with a brief historical review, comments on the new circulars and the intentions and aspirations that lie behind them.

Findings

The Scottish compulsory purchase system has not had the revisions of 1965 and 2004 implemented by its English neighbour. It still relies on the original 1845 legislation and circulars issued in 1976 and 1992. The new circulars are helpful to acquiring authorities, particularly those who use the system infrequently and are a useful updating and reference source for professional practitioners.

Research limitations/implications

This is a professional paper designed to draw attention to two new circulars and the policy thinking and aspirations underpinning them.

Social implications

Compulsory purchase processes strike the delicate balance between the private property rights of individuals and corporations, and the needs of the community to obtain and use land that may lie in private ownership. The paper introduces two circulars that affect that balance.

Originality/value

The paper introduces the new compulsory purchase circulars to practitioners undertaking compulsory purchase work and to those academics involved in this discipline.

Details

Journal of Facilities Management, vol. 10 no. 4
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 9 October 2009

Jonathan Riley

The purpose of this paper is to consider the powers under which compulsory purchase orders (CPOs) are made, including the “well‐being powers” of local authorities, the procedural…

465

Abstract

Purpose

The purpose of this paper is to consider the powers under which compulsory purchase orders (CPOs) are made, including the “well‐being powers” of local authorities, the procedural and policy requirements which must be met for a CPO to be confirmed and how all of those fare in terms of meeting democratic and human rights.

Design/methodology/approach

The paper outlines the key CPO policy tests and process formalities and discusses what the acquiring authority needs to show to be successful, where the balance of power lies and how aspects of the process may be fair or unfair for landowners, particularly those without significant fighting funds. The research moves on to look at the wider issues of how democracy and human rights are represented and held up in the CPO process, concluding that while there are rights to property and a home, the qualifications to these mean that the public interest can often quite easily override these “basic” rights.

Findings

After briefly looking at the related issue of the “privatisation” of city centre road networks, such as in Liverpool, the paper finishes by comparing CPOs under the new nationally significant infrastructure projects regime, suggesting the concept of a new “national well‐being” test in which the national interest in the scheme will be weighed against local impacts. The paper concludes that the lack of clarity around procedure for that regime raises the risk for all involved of delay and further uncertainty from legal challenges.

Originality/value

The paper contains an analysis of the place of democracy in the compulsory purchase of land for well‐being purposes, including a consideration of the balance between national well being and democracy in the Planning Act 2008.

Details

Journal of Place Management and Development, vol. 2 no. 3
Type: Research Article
ISSN: 1753-8335

Keywords

Article
Publication date: 4 July 2016

Gary Sams

The purpose of this paper is to summarise and analyse reforms to the compulsory purchase compensation code which have been published for consultation by the Department for…

515

Abstract

Purpose

The purpose of this paper is to summarise and analyse reforms to the compulsory purchase compensation code which have been published for consultation by the Department for Communities and Local Government.

Design/methodology/approach

To explain each of the proposals and provide a critical assessment of each of them.

Findings

The proposed changes comprise a further small step towards the comprehensive reform of the compensation code which is required.

Practical implications

The proposed reforms are to be welcomed but there are a number of areas in which they need refinement following the consultation process.

Originality/value

As the proposed reforms were published only in March 2016 there will be few other commentaries available.

Details

Journal of Property Investment & Finance, vol. 34 no. 4
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 8 March 2011

Graeme Newell, Nelson Chan and Evan Goodridge

This paper aims to assess all compulsory land acquisition court decisions in Australia over 1985‐2009 to provide a risk assessment and compensation analysis involved in proceeding…

1434

Abstract

Purpose

This paper aims to assess all compulsory land acquisition court decisions in Australia over 1985‐2009 to provide a risk assessment and compensation analysis involved in proceeding to court for compulsory land acquisition cases.

Design/methodology/approach

Using the AustLII legal database, every publicly available compulsory land acquisition court case decision in Australia over 1985‐2009 is assessed. These 58 court cases are assessed for claim, offer and judgment value.

Findings

A total of 91.4 percent of compulsory land acquisition court cases over 1985‐2009 were found to be successful in achieving a judgment value of at least that of the offer. The median judgment value for successful cases was 60 percent higher than the offer value, while for unsuccessful cases it was 68 percent lower than the offer value. Successful smaller judgments (<$2 million) generated more upside compensation (median of 66 percent) than larger judgments (>$2 million) (median 41 percent upside compensation). Appealed cases were found to be only 28.6 percent successful, with only a maximum of 5.6 percent additional compensation achieved.

Practical implications

This paper provides a rigorous empirical risk assessment and compensation analysis for compulsory land acquisition court cases in Australia over the last 25 years. This provides an effective tool for dispossessed property owners, statutory acquirers and their professional legal and valuation advisors for more informed compulsory land acquisition court case decision making.

Originality/value

Using all compulsory land acquisition court decisions in Australia over the last 25 years, this paper is the first attempt internationally to rigorously and empirically conduct a risk assessment and compensation analysis involved with proceeding to court for compulsory land acquisition cases. Given the significance of the compulsory land acquisition process, this empirically validated research enables a more informed and critical understanding of the risk factors and compensation outcomes attached to the compulsory land acquisition court case judgment process.

Details

Journal of Property Investment & Finance, vol. 29 no. 2
Type: Research Article
ISSN: 1463-578X

Keywords

Content available
Article
Publication date: 1 October 2004

488

Abstract

Details

Journal of Property Investment & Finance, vol. 22 no. 5
Type: Research Article
ISSN: 1463-578X

Content available
Article
Publication date: 1 October 2003

161

Abstract

Details

Structural Survey, vol. 21 no. 4
Type: Research Article
ISSN: 0263-080X

Article
Publication date: 26 July 2011

My Bui, Anjala S. Krishen and Kenneth Bates

The purpose of this paper is to assess how regret affects consumer satisfaction levels, extent of rumination, and brand‐switching intention. The paper also seeks to examine any…

7538

Abstract

Purpose

The purpose of this paper is to assess how regret affects consumer satisfaction levels, extent of rumination, and brand‐switching intention. The paper also seeks to examine any mediating effects between regret and rumination that can be found due to consumers' negative emotions.

Design/methodology/approach

A purchase‐decision scenario was presented to 125 undergraduate students. A between‐subjects experimental design was conducted and structural equation modelling was utilized to evaluate the model fit.

Findings

The results indicate that regret decreases consumer satisfaction level and increases brand‐switching intention. Negative emotion was found to demonstrate an indirect effect between regret and extent of rumination. The findings also suggest that negative emotion acts as a partially mediating variable between the effect of satisfaction levels on extent of rumination and the effect of regret on satisfaction levels.

Practical implications

This study emphasizes the importance of post‐purchase consumer satisfaction. Marketers must pay particular attention to both regret and negative emotion toward purchase decisions. By understanding how specific recourse can be taken to mitigate regret, negative emotions, and ruminative thinking, firms can potentially enhance a brand's image and instil brand loyalty.

Originality/value

This research further validates existing research regarding regret and consumption, while introducing the concept of rumination into the marketing literature. Marketers will have a better understanding of how regret, negative emotions, and rumination can play a role in post‐purchase consumption behaviours.

Details

European Journal of Marketing, vol. 45 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 February 1993

R. Pickard

Considers the recent changes in the law and practice of thepreservation of listed buildings, particularly revised legislation whichallows increased protection measures, greater…

Abstract

Considers the recent changes in the law and practice of the preservation of listed buildings, particularly revised legislation which allows increased protection measures, greater willingness to take action against owners, and the division of responsibilities in government between the Department of Environment and the Department of National Heritage. Concludes that the powers to prevent unauthorised work and neglect to listed buildings are now much strengthened.

Details

Property Management, vol. 11 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

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