HS2 compensation package details announced

COMPENSATION packages for homeowners and businesses whose lives will be disrupted by the HS2 high-speed rail scheme have been announced.

Under the proposals – which relate to phase one of the project between Birmingham and London – the state would buy properties within 60 metres of the line at the full market value plus 10% (up to £47,000). Relocation expenses will also be paid.

Those up to 120 metres away, who do not want to move, would be eligible for a payment of 10% of the home’s value, up to £100,000.

Ministers are also considering relaxing the rules on buying up homes of those living more than 300m from the London to Birmingham route.

Homeowners and small businesses must currently prove they would suffer from “exceptional hardship” from the building of the line.

The company behind HS2, meanwhile, has announced it is a establishing a ‘Residents’ Charter’ and the appointment of an Independent Residents Commissioner to complement the package of compensation measures the Government has unveiled

It says the he charter will embrace the following key principles: property packages and other measures will be communicated clearly; all communication will use plain non-technical language; individuals will be offered a single named case officer with direct contact detail; individuals will be offered the opportunity to meet in private with HS2 property specialists and HS2 Ltd will commit to a reasonable response time for all property compensation-related enquiries.

When appointed, the commissioner will directly report to HS2 Ltd’s chairman, Sir David Higgins, and will be asked to produce a monthly progress report for the HS2 board.

The report will address how HS2 Ltd deals with communities and individuals who are affected by property issues.

Higgins said: “We must be as clear about our compensation policies as we are about the other positives of HS2.

“Fairness, transparency and efficiency have to be at the heart of everything we do. People rightly want to know what they’re entitled to and how quickly we will deal with their claims.

“The new charter and commissioner will provide residents with the confidence that we’ll deal with each case clearly, fairly and as fast as we can.”

But the Government’s new compensation package could have been better, according to Alastair Frew, partner and head of the HS2 advisory group at Stratford-upon-Avon law firm Lodders.

 But, he cautioned, it was hard to see the deal being further improved.

 “The announcement confirms that this long-awaited new compensation scheme will broadly follow the existing one,” said Frew.

“This represents careful use of taxpayers’ money by the Government and is not unduly generous to home owners who in effect are being forced out.”

Frew observed that families affected by HS2 do not really want to move.

“In any other situation it would take a premium of 25% or more to clinch a deal with a seller who did not want to move rather than the 10% uplift earmarked for those in the line’s 60 metre zone,” he said.

“By and large these are really nice houses in lovely rural spots so you can understand the wrench this represents.”

The Birmingham to London phase of HS2 is due to start in 2017 and 225mph trains are expected to be running between the two cities from 2026.