New help for property owners affected by HS2
9 Apr 2014 02:38 PM
Release of HS2 compensation schemes including
the express purchase scheme, rent-back option and exceptional hardship
scheme.
The
government has today (9 April 2014) published an improved
compensation and assistance package for property owners close to the route of
HS2.
After listening to feedback
and suggestions, the measures for people along Phase One of the route
between London and Birmingham have been thoroughly examined and
revised.
Some elements of the improved package will be available
from today (9 April 2014) and others following a further short consultation
later this year.
From today an express purchase scheme is being launched
for owner-occupiers of properties closest to the line, in the area known as the
‘surface safeguarded area’ (generally within 60 metres from the
proposed line). Under this scheme, the government could buy properties at the
full unblighted market value, plus 10% (up to £47,000) and reasonable
moving expenses, including stamp duty. The scheme is designed to be quick,
clear and as straightforward as possible to make it easier for owner-occupiers
to sell their property to the government, if they wish to do
so.
A
‘rent-back’ option will also be available from today (9 April
2014), which will mean that those people who want to sell their properties
(under any of the schemes being announced) but carry-on living where they are,
may be able to do so.
The
exceptional hardship scheme will also continue to be available for those who
have an urgent need to sell their home but are unable to do so because of HS2.
The government has already bought 114 properties at a cost of around £67
million from owner-occupiers living near the route. This is under the
discretionary exceptional hardship scheme for people with a pressing need to
sell.
Following the further short consultation, the government
also intends to introduce a voluntary purchase scheme by the end of this year
for owner occupiers in rural areas outside the safeguarded area and up to 120
metres away from the line. Eligible owner-occupiers would be able to apply to
sell their property for its full unblighted market value.
Alternatively, if these owner-occupiers do not want to
move, they can await the outcome of the further consultation to begin later
this year on a cash payment of 10% of the value of their home (from a proposed
minimum of £30,000 to a maximum of £100,000).
Following the further consultation, the government also
intends to introduce a need to sell scheme and consider applications to buy
properties at full unblighted market value from owner-occupiers who have a
compelling need to sell, such as job relocation or ill health, but who are
unable to do so because of plans to build HS2. This scheme does not have a
boundary. The government hopes to have this scheme available in urban and rural
areas by the end of 2014 when it will replace the exceptional hardship
scheme.
Beyond this compensation package the government will
consult on a homeowner payment scheme which would entitle owner-occupiers to a
cash payment if they live between 120 metres and 300 metres from the line in
rural areas. This could enable people in these areas to share in the benefits
of HS2 as it will run near them but would not provide them with a direct
benefit.
The
payments could be from £7,500 to £22,500, depending on how close
the route is to the property. This would come into effect following
Parliamentary approval of the HS2 route between London and the
Midlands.
Transport Secretary Patrick McLoughlin
said:
I
completely understand the concerns and anxieties of those living near the line
and it is only right that those people are properly looked
after.
I
believe this package of compensation and assistance will enable us to help
people more. But I want to get it absolutely right, so I am asking for further
views on some aspects before we finalise the plans.
HS2
will transform many people’s lives for the better, but where its impacts
are less positive we will do all we can to provide the right help and
assistance.
To
keep improving the way the government and HS2
Ltd works with people and communities, HS2 Ltd will be appointing an
independent Residents’ Commissioner to hold the company to account in its
handling of applications as the various schemes get underway and to ensure it
meets the standards to be set out in a new residents’
charter.
The
government believes this package represents the best possible balance between
properly helping people and providing value for money for the
taxpayer.
More about the new property package of
measures: