Professional Support Lawyer Jennifer Chappell of law firm Bircham Dyson Bell LLP believes the out of court settlement in the Heaney right of light appeal is yet another nail in the coffin for property developers in what remains a challenging economic climate.
"Previously, developers would have relied on the fact they would be ordered to pay damages if the building had already been constructed; it was more difficult to obtain an injunction once the building was completed," explains Jennifer Chappell.
"However, the Heaney case has created uncertainty for developers as they can no longer assume that damages are the only means of recompense, and that removal of the structure may now be possible. What's really surprising is that Heaney was granted an injunction despite failing to take any action for 18 months, during which time the works were commenced and finished."
"The knock on effect will be that many more people will object to buildings in the first place. Developers can expect to have to negotiate earlier and pay more in order to secure the releases necessary to permit their development. Neighbouring land owners will use the Heaney case to increase their bargaining strength and obtain compensation in situations that previously would have been ignored. "
"The only other alternative is for local authorities to exercise more powers under the Town and Country Planning Act 1990 in order to facilitate development and limit unwarranted compensation."
"This has really come at the worst possible time for property developers - it's an extra layer of complication and potentially an extra layer of cost."
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