The high speed rail network (HS2) was finally given the green light last week. The go-ahead on the network, which will see the first stage between Birmingham and London completed by 2026, was met with a warm welcome by those who expect the values of their properties to increase with the new train line, but despair by others whose properties will be directly affected by the proposals.
The Department for Transport has already written to all owners of properties that are very close the proposed line of the route to inform them that the government may need to compulsorily purchase their property.
As the rules currently stand if you are affected your position is as follows:
1. If your home is compulsorily acquired you would receive:
- The open market value of your property (as if unaffected by HS2);
- A home loss payment of 10% of the value of your property (up to a maximum of Â£47,000); and
- Reasonable relocation costs (e.g. legal fees, stamp duty and removal costs)
2. If you lose only part of your land you would receive the unblighted open market value of that land, plus the amount of any reduction in value of your retained property. If you stand to lose a significant part of your land you can ask the government to buy the whole of your property.
3. If you rent as a residential tenant you may be entitled to a Â£4,700 flat rate home loss payment plus reasonable moving costs.
4. If you are a business tenant or owner you may receive an occupier’s loss payment and disturbance costs.
5. If your property is not compulsorily purchased but is affected (by noise or vibration for example) you can claim compensation for loss of value, after the railway has been open for a year.
The government has also announced plans to make additional compensation measures available for property owners and tenants who may be affected and these are due to be confirmed later this year.
If you have received correspondence from the Department for Transport informing you that your property may be directly affected then please contact us and we would be happy to assist.
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