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19.01.15

DfT announces compensation package for HS2 phase 1

The final package of compensation and assistance for those property owners along phase 1 of HS2 has been announced by the Department for Transport.

Owner-occupiers of homes and small businesses between generally 60 metres and up to 120 metres from the line in rural areas can now submit an application to HS2 Ltd to purchase their property at the full, un-blighted value under the voluntary purchase scheme. This is the value of the property as if there were no plans for HS2.

As an alternative to the voluntary purchase scheme, these eligible property owners will also have the option to accept a cash offer of 10% of that same value and stay in their homes and businesses. This is intended to support people who want to remain in their community.

Those beyond the 120-metre boundary but within 300 metres of the line in rural areas will, following Royal Assent of the Phase One HS2 Hybrid Bill, be able to apply for a homeowner payment ranging from £7,500 to £22,500, which will enable them to share early in the benefits of the railway.

Eligible owner-occupiers living any distance from the line of route can now apply to the need to sell (NTS) scheme, which also pays the un-blighted value to people with a compelling reason to sell their property, but who have been unable to do so – other than at a substantially reduced price – due to HS2. The criteria for the NTS scheme is more relaxed than the exceptional hardship scheme (EHS) it replaces and, unlike the EHS, will consider applications from those who may not need to move immediately.

Over 2,500 dwellings are within the express purchase area, rural support zone and homeowner payment bands.

The government also announced a new Residents Charter that sets out how HS2 plans to deal with residents in a “fair, clear, competent and reasonable manner”.

Transport secretary Patrick McLoughlin said: “This comprehensive package of compensation and assistance is looking after those people who live along the HS2 route while balancing our responsibilities to the taxpayer. People at the heart of this vital new railway will also benefit from HS2 Ltd’s new residents’ charter and the appointment of the Residents’ Commissioner, who will ensure that the commitments in the charter are upheld. Building HS2 will create extra space on our rail network, create jobs and support business and is a vital part of the government’s long-term economic plan.”

Today’s package supplements the express purchase scheme which has been available to those within the safeguarded zone (generally within 60 metres from the proposed line) since April 2014. This existing scheme gives those people a streamlined process for selling their property to the government at the un-blighted value, plus 10% (up to a maximum of £49,000) and reasonable moving costs, including stamp duty and legal fees. As of end of December 2014, 60 properties have already been bought under this scheme at a total cost of £54.2m.

(Image source: Rui Vieira/PA Wire)

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