Overview

This bill aims to improve compensation for property owners whose property value decreases (property blight) due to major national infrastructure projects in England and Wales. It introduces a new system of property bonds to address this issue, offering a fairer and more efficient compensation mechanism.

Description

Amendments to the Land Compensation Act 1973

The bill amends the Land Compensation Act 1973 to include provisions for property blight compensation. It adds a new right for eligible property owners to receive a property bond instead of, or in addition to, traditional compensation. This bond protects against depreciation in property value caused by specific blight factors (noise, vibration, smell, fumes, smoke, artificial lighting, reduced landscape visibility, increased traffic, or discharge of substances onto land) resulting from infrastructure projects, including temporary works lasting over 12 months. The bond's value is determined by the open market value before the project's proposal or the depreciated purchase price if already purchased at a reduced value due to blight. The bill also defines key terms such as "major national infrastructure project," "proposal day," and "promoter."

Property Bond Scheme

A new "Property Bond Scheme" is established, detailing application procedures, valuation processes, dispute resolution, and a mechanism for redeeming the bond upon property sale. A key component is the "amalgamated blight map," identifying geographically affected areas. The Secretary of State will set blight factor thresholds and appeal mechanisms. The promoter must publish this map.

Government Spending

The bill states that any increase in government spending resulting from the increased compensation payments will be met from money provided by Parliament. Specific figures are not provided in the bill itself.

Groups Affected

• Property owners in England and Wales: Those whose property values are negatively impacted by major national infrastructure projects may be eligible for property bonds, potentially improving their compensation.
• Promoters of major national infrastructure projects: These entities will be responsible for issuing and redeeming property bonds, incurring additional costs.
• The Secretary of State: Responsible for establishing and overseeing the Property Bond Scheme, including publishing the code of conduct and rules, and the amalgamated blight map.
• Parliament: The bill requires parliamentary approval for any order made by the Secretary of State to implement the scheme.

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