The government announced revised compensation rules for homeowners and small businesses on 16 January 20l5.

 

Distance from the line   Available compensation scheme   Availability
Properties within 60m of the line (safeguarding zone) Express purchase scheme. Government to buy properties at unblighted market value, plus a home loss payment equal to 10% of market value (to a maximum of £53,000) and moving costs.

For larger properties, at least 25% of the total area must fall within the 60m zone in order to be eligible for the express purchase scheme.

Immediately available for owner occupiers of residential, agricultural and commercial properties (the latter with a rateable value of up to £34,800)

Properties 60m - 120m from the line

Rural Support Zone. Those wanting to move can apply to the government to buy their property for up to 100% of the unblighted market value.

Those not wanting to move can apply for up to 10% of the unblighted market value from a minimum of £30k up to a maximum of £100k.
Immediately available
Properties between 120m and 300m from the line bought before 9 April 2014 Homeowner Payment Zone. Tax free cash payments, calculated on a sliding scale depending on the distance from the line, of between £7,500 and £22,500. Available following Royal Assent of Phase One HS2 Hybrid Bill
All affected properties

(no boundary)

Rent back option for those people who want to sell (under any of the compensation schemes announced) but wish to continue living in their house. Tenants will pay an open market rent with a six month tenancy agreement. Immediately available
All affected properties, Phase 1 only Need to sell scheme: government will consider applications (on a case by case basis) to buy properties at unblighted market value for those people with a 'compelling' need to sell. It will replace the current exceptional hardship scheme and is purported to have more relaxed criteria than the EHS for instance people who do not need to move immediately can apply.  Immediately available

The Exceptional Hardship Scheme is only available to properties, bought before 28 January 2013, affected by Phase 2. It applies if you live outside the safeguarding zone, have an urgent need to sell but have not been able to do so because of HS2. For affected properties within Phase 1, the need to sell scheme applies.

A property bond, as advocated by a number of groups including the CLA has been ruled out. In addition to the revised compensation schemes, the government has also announced the creation of a Residents’ Charter and the appointment of an Independent Residents’ Commissioner, Deborah Fazan who will ensure that 'HS2 Ltd meets its commitment to the communication standards and personal support set out in the new charter'.

The Transport Select Committee is continuing to hear petitions from those directly affected by the line. The Stop HS2 website is following the progress of the petitioners.

About the author

Paul Rice Partner

Paul provides legal advice to farmers, rural business owners, equestrian property owners and landowners on buying, selling and leasing farm. He also advises on all aspects of domestic and European legislation as it impacts on farming and rural businesses.