Compulsory Purchase Reform in Scotland
Chapter 10 - Compulsory Sale and Lease Orders
Chapter 10 of the consultation paper considers the issues around possible compulsory sale orders and compulsory lease orders.
In recent years a number of stakeholders have expressed an interest in the idea of compulsory sale orders (CSO). The idea is that they would empower local authorities to require the sale of long-term vacant or derelict land and buildings where they negatively impact commmunities.
As set out in chapter 3, local authority CPO powers can already be used to bring vacant and derelict properties back into active use. However, the perceived benefits of CSOs are that they would be more straightforward, quicker and cheaper for local authorities, in part because they would not have to spend the money to purchase the properties.
We are interested in exploring whether those suggested benefits are likely to be realised in practice, especially noting the proposed changes to the CPO process set out in this consultation. A compulsory sale, like a compulsory purchase, interferes with a person's property rights under ECHR. Any new CSO process would therefore need to be subject to similar safeguards to ensure their use is justified and proportionate - and compensation would need to be fair.
A report by the Scottish Empty Homes Partnership (link opens in new window) commissioned by the Scottish Government, indicates that the procedural steps involved in preparing a CSO are likely to be equivalent to those for CPO. In other words, provisions similar to those set out in chapters 4 to 7 of this consultation paper would need to apply to the preparation of a CSO. There are also complex issues to resolve, such as who is "the seller", and how to control the use of a property by the new owner.
Some stakeholders have also mentioned Compulsory Lease Orders (CLO). We consider that these are likely to involve more work than CPO, or potentially CSO, as there would be an ongoing duty on the local authority to monitor and manage that lease. The owner of a property subject to CLO would also become a landlord and would have to fulfil the statutory duties and obligations that apply to landlords.