The Officer Key Decision meeting on Friday 10 January 2025 approved an increase to the budget for compensation related to rights of light claims stemming from the Plashet Road development. This decision will see the total budget for these claims, including legal and surveyor fees, rise to £845,400.

Plashet Road Compensation Budget Increase

The meeting approved an increase to the budget for compensation related to rights of light claims arising from the Plashet Road development. The original budget, set in May 2023, has been increased to cover revised compensation estimates, legal and surveyor fees, and a contingency for unforeseen claims.

The total revised budget now stands at £845,400. This includes:

• An increase in the compensation budget from £277,630 to £361,400.
• An allocation of £204,000 for legal and surveyor fees for properties with validated claims.
• A contingency fund of £280,000 for any future validated claims.

These costs will be funded from the Plashet Road capital budget, which has been confirmed to have sufficient capacity. The decision to increase the budget was made because initial studies by the Right of Light consultants were provisional, based on desktop research. Subsequent physical inspections and additional claims have led to revised estimates. The compensation is calculated based on the extent of light loss, likely rent, and applicable yield, with recommended compensation ranging from three to five times the amount of light loss.

The council has opted for a deed of release approach to manage these claims, rather than indemnity insurance, as quotes for insurance were deemed not financially viable. This approach involves negotiating with affected property owners to release their right to light in exchange for compensation. The council has the power to override these rights under Section 203 of the Housing and Planning Act 2016, following the appropriation of the land for planning purposes.

The decision was made by Paul Kitson, Corporate Director of Inclusive Economy & Housing. The report detailing this decision can be found in the Decisions 10th-Jan-2025 Officer Key Decision.pdf. Further background information is available in the Public reports pack 10th-Jan-2025 Officer Key Decision.pdf and the Printed minutes 10th-Jan-2025 Officer Key Decision.pdf. The agenda for the meeting was published in the Agenda frontsheet 10th-Jan-2025 Officer Key Decision.pdf.