UT Neutral citation number: [2013] UKUT 421 (LC)

UTLC Case Number: ACQ/51/2013

TRIBUNALS, COURTS AND ENFORCEMENT ACT 2007

COMPENSATION – compulsory purchase – bungalow in poor condition – value – comparables – compensation determined at £95,000

IN THE MATTER OF A NOTICE OF REFERENCE

BETWEEN THE EAST RIDING OF Acquiring Authority

 YORKSHIRE COUNCIL

and

STEPHEN NORMAN SMITH Potential Claimant

Re: 8 Tornville Crescent

Rawcliffe Bridge

 East Riding of Yorkshire

 DN14 8PF

Determination on basis of written representations

by N J Rose FRICS

DECISION

Introduction

1.           This is a reference by The East Riding of Yorkshire Council, the acquiring authority, to determine the compensation which it must pay, arising from the compulsory acquisition of the freehold interest in a bungalow known as 8 Tornville Crescent, Rawcliffe Bridge, DN14 8PF (the subject property).  The property was compulsorily acquired under The East Riding of Yorkshire Council (8 Tornville Crescent, Rawcliffe Bridge) Compulsory Purchase Order 2012 (the CPO).  The CPO was confirmed by the acquiring authority on 15 November 2012 and notice of such confirmation was published on 22 November 2012.

2.           The acquiring authority made a general vesting declaration in respect of the subject property on 8 February 2013 and the vesting date was 10 March 2013, which is the date of valuation.

3.           The owner of the freehold interest in the subject property was Mr Stephen Norman Smith.  The acquiring authority was unable to make contact with Mr Smith in order to negotiate a sale by agreement and therefore acquired the property compulsorily.  The last communication from Mr Smith was on 18 May 2009, when he was in Berlin.  I am satisfied from information supplied by the acquiring authority that diligent enquiries have been made since then in an attempt to find Mr Smith and that these have been unsuccessful.

4.           The acquiring authority submitted a statement of evidence by Ms Rachel Urwin MRICS, who is employed by the acquiring authority in their Valuation and Estates Service.  After I had read that report and the accompanying documents the acquiring authority was informed that I was minded to make a decision without a hearing and that they should inform the Tribunal if they had any objection to this course.  No such application has been received.  Accordingly, this decision has been based solely upon the written material submitted by the acquiring authority.  I did not consider it necessary to inspect the subject property or the comparables to which Ms Urwin referred.

Facts

5.           From the evidence I find the following facts.  The subject property comprises a single storey semi detached bungalow, constructed of brick external walls under a timber framed pitched concrete tiled roof.  It is approximately 40 years old.

6.           Rawcliffe Bridge is a small village in the East Riding of Yorkshire.  It is approximately 3 miles south west of Goole and 3 miles east of Snaith.  It lies just south of the M62 motorway, midway between junctions 35 and 36.

7.           The accommodation comprises an entrance hall, one double and two single bedrooms, lounge, kitchen and bathroom/wc.  Apart from the bathroom/wc, all rooms are fitted within uPVC double glazed windows.  There is a gas fired central hearing system.

8.           Externally there are front and rear gardens and a prefabricated concrete garage.

9.           In September 2009 a schedule of condition was prepared by Mr Ian Adams MRICS and Mr Ian Cook MRICS of UKBS Plc.  They advised that:

“The property falls below the current minimum standard for housing and currently is unfit for habitation.  It is in a serious state of disrepair, lacking modern facilities and presenting a health and safety risk in several categories”. 

Accompanying the schedule of condition was a schedule of the repairs considered necessary “to make the building wind and watertight, to a habitable condition and to meet the decent homes standards.”  The cost of these repairs was estimated to be £23,568.07.

Ms Urwin’s valuation

10.        Ms Urwin considered that the works of repairs which were costed in 2009 would only bring the subject property to a minimum habitable condition.  In her opinion a reasonable purchaser would expect to spend in the region of £30,000 to bring the property to a good standard.  Examples of additional work to be undertaken included replacing the windows, doors, and bathroom and kitchen fittings; the latter two items would be to a higher specification than those existing at the property.

11.        Ms Urwin said that there was a limited amount of transactional evidence relating to similar semi-detached bungalows in Rawcliffe Bridge.  The most recent sales evidence in Tornville Crescent dated back to 2005 and 2006.  No other street in the village contained properties of the same type as the subject property.  It was therefore necessary to take comparable evidence from the next closest area.  Ms Urwin looked into areas such as Rawcliffe, East and West Cowick, Airmyn and Drax, but decided that the most relevant comparable evidence available was in Goole and Snaith.  Both these areas had seen recent sales of properties of a similar age and style to the subject property.  Ms Urwin adjusted the sale prices to reflect differences in location.  From the analysis of the sale prices of the comparables around 2005 and 2006 she concluded that values in Goole were not significantly different from those in Rawcliffe Bridge, but that in Snaith they were approximately 5% higher.

12.        Ms Urwin concluded that the market value of the subject property at the valuation date was £90,000.

Conclusions

13.        Ms Urwin based her valuation on the sales on various dates between September 2012 and May 2013 of seven semi detached bungalows, of which two were in Goole and five in Snaith.  She adjusted the sale prices to reflect differences in date, location, size and condition and the presence or absence of a conservatory, and arrived at the following equivalent values for the subject property.

Value by reference to £

17 Churchill Walk, Goole   89,775

2 Attlee Drive, Goole   73,349

1 Hall Close, Snaith   93,160

7 Hall Close, Snaith   86,720

12 Lodge Gardens, Snaith 107,640

6 Park Gardens, Snaith 109,064

9 Court Gardens, Snaith   95,700

14.        In the absence of any evidence on behalf of the claimant these adjusted figures seem to me to be reasonable and I accept them.  There was no evidence to suggest that there was any difference in reliability between the seven comparables.  I therefore attach equal weight to each.  I calculate that the average of the adjusted prices is £95,058, say £95,000 and I find that figure  reflects the market value of the subject property at the valuation date.

15.        I determine the compensation payable for the freehold interest in 8 Tornville Crescent to be £95,000 (ninety five thousand pounds).  I make no order as to costs.

Dated:  30 September 2013

N J Rose FRICS