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17 May 2007
Issue: 7273 / Categories: Case law , Law digest
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Land law

Welford v EDF Energy Networks (LPN) Ltd [2007] EWCA Civ 293, [2007] All ER (D) 26 (Apr)

The court considered the effect of the operation of a business on the value of land to be compulsorily acquired.

Held The question is whether the land has a definite and ascertainable special value to the owner of the land over and above that which is reflected in the ordinary market value of the land.

Once the owner of the land has a business in existence, has made the investment in the land on which that business is to be carried out, and has commenced work in connection with the business on it, then the business has a sufficient relationship to the land for the land to have a special value to the owner arising out of that business, and so compensation for the loss occasioned by its disturbance can be recoverable.

This is so even if the land is not yet being used for the business, since it is the coming into existence of the business and the investment in relation to the land that is sufficient, even though

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