Skip to content

Owners along new UK rail link advised to take advice over sale and compensation

The announcement of the route gives owners in the area their first glimpse of how they might be affected in terms of having their property compulsory purchased and/or their right to compensation.

‘Any land or property owners who think they may be affected by the second phase of HS2 linking Birmingham to Leeds and Manchester should take action now to find out the extent to which the proposed route will affect their property,’ said James Del Mar, Head of Knight Frank’s HS2 team.

‘Although actual construction of the line, if approved, may seem a very long was off, our experience working with clients along the first phase London to Birmingham leg of the scheme shows the value of good preparation when it comes to putting people in the best position for any potential compensation claims,’ he added.

The Royal Institution of Chartered Surveyors said that the route will be hugely important for economic growth in the country and it backed by cities that will benefit from increased connectivity.

The new route will cut journey times by 30 minutes between London and Birmingham, and is the first part of a scheme which will eventually see trains running at speeds of up to 225mph to Manchester and Leeds.

But concern about disruption caused by the construction of the line, and the ongoing noise caused by the fastest train ever run, has already had an impact on the housing markets in some of the areas affected.

The government says that out of 55,000 responses to a consultation on the plans, 36,036 or 65% mentioned property.

In terms of the first phase the government will serve compulsory purchase orders (CPOs) on affected properties, but it says it will be 2015 at the earliest before they are needed. It will put in place a sale and rent back scheme so that owners can remain in their property until construction begins. Exact details are expected to be announced later this year.

In effect home owners will be paid a sum based on the open market value of their property as if unaffected by the HS2 scheme. On top of this is a home loss payment worth 10% of the property's value up to a current maximum of £47,000, plus reasonable moving costs such as surveyor and legal fees and stamp duty on a new property.

Anyone who has to sell some of their land to make way for the scheme will get the open market value for it, the government says, plus compensation for any loss in value to the part they retain. If the loss will make a big impact, for example if you have to sell half your garden, you can ask the government to buy your entire property.

It will also be possible for home owners to claim for any loss of value on their property resulting from noise, vibration or artificial lighting caused by the operation of the line. But they will have to wait until a year after the link is operating to make a claim.

Related