Section 5 Assessment of compensation: assumptions as to planning permission.

England and Wales

(1)

The following assumptions shall be made in assessing the value of the interest in respect of which the claim is made.

Subject to subsection (3) below, it shall be assumed that, in respect of the land in which the interest subsists (“the relevant land”) or any part of it, planning permission would be granted—

(a)

subject to the condition set out in Schedule 10 to the Town and Country Planning Act 1990, for any development of a class specified in paragraph 1 of Schedule 3 to that Act; and

(b)

for any development of a class specified in paragraph 2 of Schedule 3 to that Act.

(3)

Notwithstanding subsection (2) above—

F2(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

where an order has been made under F3section 102 of or paragraph 1 of Schedule 9 to the said Act of 1990, in respect of the relevant land or any part thereof, requiring the removal of any building or the discontinuance of any use, and compensation has become payable in respect of that order under section 115of that Act, it shall not by virtue of the said subsection (2) be assumed that planning permission would be granted, in respect of the relevant land or any part thereof, as the case may be, for the rebuilding of that building or the resumption of that use.

(4)

It shall be assumed that planning permission would not be granted in respect of the relevant land or any part thereof for any development other than such development as is mentioned in subsection (2) above; and, if planning permission has been granted in respect of the relevant land or any part thereof for such other development, it shall be assumed that the planning permission has not been granted in so far as it relates to development that has not been carried out.

(5)

In this section any expression which is also used in F4the said Act of 1990has the same meaning as in that Act and references to any provision of that Act include references to any corresponding provision previously in force.

(6)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5

Annotations

Textual amendments

F1: S. 5(2) substituted (25.7.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:1, 123:1), s. 31(4), Sch. 6 para. 5(1)(a) (as applied retrospectively by para. 5(2)) (with s. 84(5))
F2: S. 5(3)(a)(b) repealed (25.7.1991) by Planning and Compensation Act 1991 (c. 34, SIF 28:1, 123:1), ss. 31(4), 84(6), Sch. 6 para. 5(1)(b), Sch. 19 Pt. II (as applied retrospectively by para. 5(2)) (with s. 84(5))
F3: Words substituted by Planning (Consequential Provisions) Act 1990 (c. 11, SIF 123:1, 2), s. 4, Sch. 2 para. 29(2)(b)(iii)
F4: Words substituted by Planning (Consequential Provisions) Act 1990 (c. 11, SIF 123:1, 2), s. 4, Sch. 2 para. 29(2)(c)
F5: S. 5(6) repealed by Land Compensation (Scotland) Act 1973 (c. 56), Sch. 2 Pt. I

Modifications

C1: S. 5(2)(3)(4) applied by Town and Country Planning Act 1990 (c. 8, SIF 123:1), ss. 146(7), 147, 157(3)
C2: S. 5(2)-(5) applied (5.11.1993) by 1993 c. 42, s. 21, Sch. 7 para. 16(2)(e) (with s. 30(1), Sch. 2 para. 9).

Notes on Part I

Modifications

C1: Pt. 1 (ss. 1–19) modified by Channel Tunnel Act 1987 (c. 53, SIF 102), ss. 6, 45, Sch. 2 Pt. III para. 27(1), Sch. 7 Pt. VI para. 2
C2: Pt. 1 amended by Local Government, Planning and Land Act 1980 (c. 65), s. 113
C3: Pt. 1 applied (with modifications) (1.3.2010) by Planning Act 2008 (c. 29), ss. 152(7), 241(8) (with s. 226); S.I. 2010/101, art. 3(h) (with art. 6)
C4: Pt. 1 applied (with modifications) (15.12.2025) by Infrastructure (Wales) Act 2024 (asc 3), ss. 101(7), 147(2) (with s. 84(5)); S.I. 2025/698, art. 3(h)