The completion of the controversial HS2 train link project may seem a long way down the track. However, for the many people whose homes will potentially be swallowed up by the new routes, the impact of HS2 is very real and pressing. Given the green light last year, HS2 will eventually connect the ‘Northern Powerhouse’ to London, cutting journey time and transforming the landscape in the process.
However, plans for the proposed routes are subject to change, leaving some householders and business owners uncertain as to the risk to their properties being compulsorily purchased under the project. A prime example is the brand-new Shimmer housing estate in Mexborough, South Yorkshire, which may be compulsorily purchased under the project and thus placing up to 200 new homes at risk.
So, what exactly is a compulsory purchase and how should you respond if notice arrives in the post?
What exactly is a compulsory purchase?
Certain statutes allow public bodies, including government departments such as the Department for Transport, to acquire property to enable them to carryout public development projects (within their statutory functions) where the landowner is not willing to sell by agreement. Such projects could be anything from a new motorway to an airport runway, a new hospital, or, as in this case, a new train line. However, the purpose must be ‘for the public good’ and not for personal profit or gain.
Does a compulsory purchase force you to sell?
In short, yes. However, you don’t have to rush out and sell your property immediately, and the long and complicated process could take years, not weeks. Even then the application may be rejected. For instance, the HS2 project is governed by several pending hybrid Acts of Parliament which means the power for compulsory purchases first requires such Acts to obtain Royal Assent. This could take as long as 10 years to complete. Often, however, the homeowner is offered a compensation package and encouraged to sell their property voluntarily by agreement.
How much will you get?
If you are forced to sell your property then you must be paid the current market value, assessed without regard to any increase or decrease in value arising from the proposed project, plus an additional 7.5-10% in compensation. You may also be able to claim compensation for connected issues, such as disturbance, that can recoup some of your costs of purchasing a new property. The general principle of compensation being that an owner should not be left worse off than if the land had not been acquired but, by the same token, the owner should not gain any undue advantage.
What if I just ignore it?
If you simply ignore any correspondence concerning the compulsory purchase of your property, you could compromise your legal rights and entitlements under the law. This could include affecting your ability to challenge the legal authority of the proposed compulsory purchase (and the proposed project) through to disputing the value of the assessed compensation by the acquiring authority. It is important to respond in all cases and to seek legal advice to guide you through the process, either through the Institute of Chartered Surveyor’s CPO helpline, or your legal representative.
Objecting to a compulsory purchase
Whilst you can object against a compulsory purchase, and importantly the specific project for which such powers arose, be prepared for a long and potentially expensive battle. The organisation seeking to acquire your property must disclose all contact details of the appropriate government minister in charge of the process.
You can also object in person, or even try to negotiate a better price for your property but, again make sure you have legal representation and advice available before entering any negotiations.
