The Royal Institution of Chartered Surveyors (RICS) has recently released a key update to its compulsory purchase standards, titled ‘Surveyors Advising in Respect of Compulsory Purchase and Statutory Compensation, 2nd Edition’.
Alongside this, RICS has introduced a new infrastructure policy paper, both of which were presented at the recent Labour and Conservative Party conferences.
The updated compulsory purchase orders (CPO) standard builds on its 2017 predecessor, with refinements focused on improving clarity around professional conduct and competency expectations for RICS members.
This is relevant for professionals involved in property development and large-scale infrastructure projects, where compulsory purchases play an important role.
Why this matters for commercial property transactions
CPOs are a vital tool in commercial property and infrastructure development, especially as the Government continues to push ambitious targets for housing and large-scale projects.
They allow public authorities to acquire land for development but bring complexities in terms of valuation, compensation, and legal responsibilities.
The updated RICS standards are designed to address these complexities, ensuring that surveyors offer high-quality, consistent advice during CPO transactions, which can be contentious.
Developers and investors, need to be aware of these new standards to work with the CPO process and protect their interests.
The key points of the RICS infrastructure paper
In addition to the updated CPO standard, RICS has released a new infrastructure policy paper that tackles some of the most pressing challenges facing the UK’s infrastructure.
The paper highlights several key areas that could directly impact commercial property transactions.
Decarbonising the electricity grid
As the UK moves towards renewable energy, opportunities are arising for businesses in the energy sector and developers focused on sustainable projects.
For commercial property, this move may drive demand for green developments with lower environmental impacts.
New town developments
These projects aim to ease the housing crisis while integrating modern infrastructure and sustainability.
For commercial developers, new towns present significant growth opportunities, with demand for services like healthcare, retail, and public transport.
Major rail and road infrastructure
Improving the UK’s transport network is central to the Government’s plan to boost connectivity.
Better infrastructure will not only support construction businesses but also open up new regions for commercial development, making them more attractive to investors.
The updated CPO standard sets a new benchmark for professional advice in compulsory purchases, while the infrastructure paper highlights significant development opportunities in sustainability and connectivity.
If you need advice with implementing your commercial property strategy and making sure it fits in with the latest RICS standards, please contact our legal experts.
