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2017 - What's in store for Infrastructure and Compulsory Purchase?

2016 has set the stage for a whole host of interesting developments to take place in the year ahead. For those who have an interest in infrastructure and/or compulsory purchase here are a few things to look out for in 2017…..

1 - The hybrid Bill for HS2 Phase 1 will finally achieve Royal Assent (and construction will begin)

The stage preparation for this has been ongoing for quite some time, but finally Royal Assent will be achieved in January. It’ll be a nice early boost for the infrastructure sector, although it’s worth noting that when the Bill was originally published in October 2013 the Government of the day anticipated Royal Assent occurring prior to the 2015 General Election. So the consenting process has taken 19 months longer than expected, but on a more positive note construction should commence within months of consent being obtained.

2 – Neighbourhood Planning Bill to be enacted

This was originally called the Neighbourhood Planning and Infrastructure Bill, but the word ‘Infrastructure’ was dropped. Perhaps the words ‘and Compulsory Purchase’ ought to have been added, given that 23 of the 42 sections of the Bill relate to that subject. I suppose, given the Government’s piecemeal and generally unsatisfactory approach to making compulsory purchase ‘clearer, fairer and faster’ it should be no real surprise that they haven’t bothered to make it easy for laypersons to find the new provisions that this Bill will introduce.

The Bill, as unsatisfactory as it is in many ways, passed through the House of Commons unscathed and is due for its second reading in the House of Lords on 17th January. Expect it to be enacted in March, and a whole load of case law to follow as we all scramble to interpret the wide-ranging changes it introduces to the Compensation Code.

3 – The remaining sections of the Housing and Planing Act 2016 to come in to force

We’ve had Commencement Regulations 1, 2 and 3 so far, with 4 and 5 likely to bring the remaining sections of the Act in to force during the first half of 2017. Section 160, which will enable up to 500 houses to be included within DCOs, is potentially the most interesting section yet to come in to force as far as infrastructure professionals are concerned.

Additionally, the majority of the sections relating to compulsory purchase are still to be introduced; it is expected that most of those sections will be brought in to force prior to land being acquired for HS2, so by April.

4 – The RICS Professional Statement for Surveyors advising in relation to Compulsory Purchase will be published

This is something I've had a personal involvement with and it's an important one for Surveyors. After the Compulsory Purchase Association took the lead in seeking to improve standards across the compulsory purchase profession the RICS has recognised the need for the level of professionalism to be increased among surveyors, particularly with the significant increase in the frequency with which powers are now being used. The Professional Statement was consulted on in Q4 2016 and is expected to be introduced as a mandatory document in early 2017.

5 – Consultation to commence on National Policy Statement for Airport Capacity

Back in October Chris Grayling announced that the Government will back plans to build a third runway at Heathrow. However, as I told BBC 5 Live's Wake up to Money at the time, that announcement was the equivalent of the starting gun for a marathon. The next major challenge in the great race for flight capacity is the requirement for a National Policy Statement for Aviation, which needs to be in place before Heathrow prepare and submit their DCO.

Expect challenges from Gatwick, Friends of the Earth, Windsor and Maidenhead Council and Greenpeace among many others, making for a potentially long-winded and messy process.

6 – A few other things to keep an eye on:

Crossrail – The first section of the new line is scheduled to open in May, between Liverpool Street Main Line and Shenfield.

Crossrail 2 – Expect consultation to ramp up through 2017. The plan remains for a hybrid Bill to be submitted in 2019 or early 2020, with Royal Assent targeted before the end of 2021. Construction should then start at the earliest in 2022 with the railway opening in 2033.

HS2 Phase 2a – This is the section between Fradley (north-east of Birmingham) and Crewe. Sir David Higgins is determined that this section will open at the same time as Phase 1, in 2026. To do so will require a quicker consenting process than that which Phase 1 has endured. Consultation on the route, the draft Environmental Impact Assessment and the draft Equality Impact Assessment (EQIA) is ongoing, with a view to a hybrid Bill being deposited before the end of the year.

HS2 Phase 2b – The route was safeguarded in November and further consultation is ongoing through to Spring 2017, as explained in a recent blog post. HS2 will hope to submit a hybrid Bill before the end of 2018 with the expectation that work might commence in 2021, enabling the full network to be operational by 2033.

Aylesbury CPO decision – In the world of compulsory purchase one of the biggest stories of the second half of 2016 was Sajid Javid’s rejection of London Borough of Southwark’s CPO for the regeneration of the Aylesbury Estate. In his decision letter Javid stated, among other reasons, that he ‘considers that the proposed purpose of the order will have considerable economic and social dis-benefits in terms of consequences for those leaseholders remaining on the order land’; in effect, the CPO failed the human rights test.

The story continued with the Council seeking a judicial review of the decision, but that was rejected just before Christmas when the Honourable Mr Justice Dove ruled that the Council’s case is unarguable. Almost without doubt that installment won’t be the last in the Aylesbury saga and it will be interesting to see how it pans out and how the decision affects other CPOs up and down the country.

Looking back on 2016, it's fair to say it has been a year of laying foundations for the future, with a whole host of major projects and new legislation preparing to step on to the stage and create headlines over the forthcoming 12 months. Here's to a busy and successful year for all of us involved in this increasingly exciting sector!

Author: Jonathan Stott, Managing Director, Gateley Hammer

30 January 2017