Nofax Station Road Limited v The London Brough of Barnet

Nofax Station Road Limited v The London Brough of Barnet

The Tribunal held that the appropriate basis for compensation was a 'before and after' valuation reflecting the loss of development opportunity caused by the compulsory purchase, applying the no-scheme principle. The authority's approach failed to reflect the principle of equivalence. The AAD was a 37-unit residential scheme with no affordable housing or commercial space. The residual value of the whole site was £2.1 million; the value of the retained land was £590,000. The compensation for the loss was £1,510,000, plus agreed professional fees and a basic loss payment.

Parties
Claimant: Nofax Station Road Limited; Acquiring Authority: The London Borough of Barnet
Jurisdiction
England and Wales
Judgment Date
28 July 2025
Procedural Posture
Compulsory Purchase Compensation Reference / Final Judgment
Outcome
Claim allowed in part; compensation awarded to claimant.
Legal Topics
Compensation Assessment, No Scheme Principle, Appropriate Alternative Development, Severance and Injurious Affection, Affordable Housing, Valuation Methodology
Compulsory Purchase Land Valuation Planning Law Compensation Assessment No Scheme Principle Appropriate Alternative Development Severance and Injurious Affection Affordable Housing +1 more

Case Brief

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Parties

Nofax Station Road Limited

Claimant

The London Borough of Barnet

Acquiring Authority

Procedural Posture

Compulsory Purchase Compensation Reference / Final Judgment

Legal Issues

  1. 1 What is the appropriate alternative development (AAD) for the site absent the scheme?
  2. 2 How should the site be valued for compensation purposes under the no-scheme principle?
  3. 3 Is the 'before and after' valuation approach appropriate in this case?

Ratio Decidendi

The Tribunal held that the appropriate basis for compensation was a 'before and after' valuation reflecting the loss of development opportunity caused by the compulsory purchase, applying the no-scheme principle. The authority's approach failed to reflect the principle of equivalence. The AAD was a 37-unit residential scheme with no affordable housing or commercial space. The residual value of the whole site was £2.1 million; the value of the retained land was £590,000. The compensation for the loss was £1,510,000, plus agreed professional fees and a basic loss payment.

Court Disposition

Claim allowed in part; compensation awarded to claimant.

Orders

  • Compensation of £1,510,000 awarded to the claimant for loss of value due to compulsory purchase.
  • Professional fees awarded at £62,845.20 including VAT.