The Department for Transport (DfT) has published details of the compensation schemes for those affected by Phase 1 of the high speed rail link, HS2.
The proposed high speed rail link, HS2 will be delivered in two phases:
- Phase 1 will comprise the London to West Midlands line
- Phase 2 will extend the line to Manchester and Leeds
The Government has launched an express purchase scheme. It will accept blight notices from all eligible property owner-occupiers whose properties are entirely within the "surface safeguarded area". The surface safeguarded area is generally land within 60 metres from the proposed line.
"Eligible owner-occupiers" refers to residential owner-occupiers, owner-occupiers of small business premises with an annual rateable value not exceeding £34,800 and owner-occupiers of agricultural units.
If the surface safeguarded area covers more than 25 per cent of the property, the owner-occupier is eligible for compensation. If less, the owner-occupier is not eligible for compensation unless land is required for construction of the railway. If that is the case, DfT will assess the effect of the construction on the particular property.
Amount of compensation under express purchase scheme
Under the express scheme, an eligible property owner-occupier will be entitled to:
- Sell their property to the Government at its full unblighted value (as if HS2 did not exist)
- A home loss payment equal to 10% of the property's open market value (of a minimum of £4,700 and maximum of £47,000)
- Reasonable moving costs, such as stamp duty land tax on a replacement property of similar value, reasonable surveyors' and legal fees, and removal costs
The Government proposes to launch a voluntary purchase scheme by the end of 2014 for eligible owner-occupiers whose properties are located up to 120 metres from where the route runs above ground, but that are outside the safeguarded area.
The Government proposes to introduce a long-term hardship scheme to help people living outside the safeguarded area who have strong personal reasons for selling their home, but who are unable to do so due to HS2.
The Government has launched a rent back option with immediate effect, allowing owner-occupiers who sell their homes to the Government to rent them back under a Crown tenancy agreement, subject to property suitability checks.
The Government is considering two other schemes and intends to consult on them:
- As an alternative to the voluntary purchase offer, the Government is proposing a cash payment of 10% of the value of their home (with a minimum of £30,000 and a maximum of £100,000) for owner-occupiers in rural areas outside the surface safeguarded area and up to 120 metres away from the line who do not wish to sell
- The Government proposes that owner-occupiers in rural areas with properties between 120 metres and 300 metres from the HS2 route would be eligible for a flat payment based upon their proximity to the route. This would enable people in these areas to share in the benefits of HS2, which will run near them but will not provide them with a direct benefit
