The loss in value of land due to renewed planning restrictions introduced prior to compulsory purchase

The concept of “loss in value” was introduced in the Appraisal discipline to resolve the issue of damage assessment determined by restrictions on the use of property. In particular, case law has used this concept to estimate the compensation of the damage caused by renewed planning restrictions introduced prior to compulsory purchase. Although the definition of loss in value is clear, the discussion about its exact location in the theoretical discipline is discontinued or not conclusive. Likewise, it does not seem that the literature provides a clear interpretation of this concept in the solution to the matter of damage assessment under discussion. The practice concerning the use of loss in value is discussed, highlighting the lack of coherence both in the mutual comparison between the adopted solutions and in the logic of the estimate. This paper also provides two contributions, a theoretical one on doctrinal issues that are still open, and a purely operational one.