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Introduction

Section 326 of the Local Government Act 1974 requires Territorial Authorities (TAs), under certain circumstances, to collect betterment from landowners receiving value from improvement works(external link).

Where betterment applies

Betterment applies where:

  • a council acquires property to construct or widen all or part of a road, and
  • the owners of the remaining property that adjoins the improved road gain an increase in property value that exceeds the compensation due to be paid to them for the property by the council.

Then the council shall be paid the amount that exceeds the compensation.

Betterment also applies where:

  • a council acquires property on one side of an existing road to widen it
  • the owners of the property on the other side of the road gain an increase in their property value, and
  • then the owners of the property on the other side of the road that adjoins the improved road may be required to pay betterment to the council.

Sharing of betterment

Where relevant, the proceeds shall be apportioned between the Transport Agency and the Approved Organisation at the rate of funding assistance applying to the work in question and will be applied as supplementary funding against the cost of the road improvement work.

Exclusions

Exclusion include:

  • legal and valuation costs incurred in establishing the financial value of betterment are not eligible for funding assistance.
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