Justine Greening, the Secretary of State for Transport, has revealed the exact route showing that Phase One will pass through open countryside in Buckinghamshire, Oxfordshire, Northamptonshire and Warwickshire including the Chilterns Area of Outstanding Natural Beauty.
‘Since the initial announcement in March 2010, HS2 has had a marked effect on the local property market, creating a significant amount of uncertainty and anxiety leading to many properties being blighted by the proposals. We hope the Government’s announcement of the exact route to be taken will bring confidence back into the market,’ said Nicholas Rudge, head of Savills Residential in Banbury.
To date those unable to sell property lying on, or close to, the Phase One route have had only two options; sit tight or, if eligible, apply to the Government’s property purchase scheme known as the Exceptional Hardship Scheme (EHS).
Savills HS2 team has been actively advising property owners on the application of the EHS criteria to their situation. It expects that the EHS will continue until the government brings in new measures to compensate property owners.
Those with property located on the confirmed route to be taken for the construction of the rail link now face compulsory purchase. The government has announced a package of additional measures designed to help those affected.
‘Savills HS2 team is already advising a number of affected property owners on potential mitigation measures. We aim to ensure that our clients’ properties and businesses are secured in the best possible way by recommending certain actions are taken now in order to ensure minimal future disturbance,’ said Christopher Poole, head of Savills HS2 team.
Other owners could find that their properties will see values rising. The rail link
could add an estimated £9 billion to Birmingham residential property prices, according to property websites, PrimeLocation.
‘There's an inverse relationship between commuting times to central London and property prices. We estimate that every 5% reduction in journey times to the capital increases residential property close to the links outside the capital by an equivalent 5% in sale value,’ said Nigel Lewis, property analyst at PrimeLocation.
‘The 30 minute cut to journey times between Birmingham and London will add an estimated £8.8 billion to the value of Birmingham's property, before considering a host of other economic benefits,’ he added.
According to Jonathan Bramwell, partner and head of the Central region at The Buying Solution the announcement will make the countryside around Banbury and Bicester more popular especially for the school driven buyers who want easy access to the Chiltern Line and it could provide an opportunity for savvy buyers to pick up a good deal.
But many home owners along the route of the line will be faced with years of battling over compensation. More than 400 homes will have to be demolished and thousands more will be affected by increased train noise.
The government said that there are plans for an unprecedented compensation scheme for home owners whose properties are destroyed or blighted by the scheme. Owners will even have the option to sell their home to the State and rent it back on favourable terms, while those living above tunnels will be given permanent indemnity against subsidence.
