The Order related to a redevelopment scheme concerning James Riley Point, a block of flats in Stratford, which was sought by the London Borough of Newham (“LBN”). The scheme for James Riley Point was put forward by the Borough as a ‘loss-leader’ (i.e. it was not intended or expected to turn a profit), to encourage a wider regeneration of the overall Carpenter’s Estate.

The Inspector - confirming the order - concluded that the JRP scheme would "bring a number of significant benefits, including comprehensive, transformative change to this site in the Carpenters Estate, contributing to the Second Defendant's ambition to provide mixed-use development with delivery of much needed housing including mainly affordable homes, and economic and environmental benefits" (Judgment, §11).

The Claimants, a family who had previously lived on the top floor and had objected to the scheme at the inquiry, were the last residents who had not reached terms with the Council. They challenged, inter alia, the rationality and lawfulness of the Inspector’s approach to assessing financial viability and his approach in determining whether the Council’s attempts to negotiate before seeking compulsory acquisition were reasonable.

When an acquiring authority seeks to use powers under section 226 of the Town and Country Planning Act 1990, s. 226 for a compulsory purchase order, Government guidance is that the decision-maker will need to consider "the potential financial viability of the scheme". The case explores - amongst many elements - how that element of the guidance applies to authority-led schemes which are not intended to be viable in the commercial sense (i.e. make a profit).

Douglas Edwards KC and Michael Rhimes acted for the successful Second Defendant, instructed by Sharpe Pritchard Solicitors & Parliamentary Agents.

Gregory Jones KC and Armin Solimani acted for the Claimant, instructed by Pamela Chesterman of Irwin Mitchell.

A link to the judgment can be found here.