HS2 compensation packages announced to help homeowners sell property

Written on:October 26, 2012
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Train in Clapham station

Houseowners near HS2 rail link unable to sell their properties

Houseowners near the HS2 rail link which will be joining London with the north of England, are facing difficulty in selling their properties along the HS2 rail link as some properties are rumoured to become unsaleable due to factors such as disruptions caused due to construction of the line, and due to the continuous noise that the trains on the HS2 rail link would cause.

The government has introduced a compensation scheme for these homeowners whose properties are affected by the proposed HS2 rail link. Under the compensation scheme, the government will introduce a streamlined system of voluntary purchase for people whose homes are in a “safeguarded area” within 60 metres of the HS2 rail link.

There will be a sale-and-rent-back scheme for those whose homes will be demolished to complete the scheme. They can sell their property but continue to live in it until it is demolished. The government has also announced a hardship scheme to help those between London and the West Midlands who live outside the safeguarded area but are still unable to sell their home as result of the construction.

Applicants to the HS2 hardship scheme will need to show they have made “all reasonable efforts” to sell the property, which includes proving that the property has been on the market for at least 12 months prior to an application being made, with no offer received within 15% of the price it would have fetched without HS2 going ahead. The homeowners will also need to show that they have no other option other than moving. If they can, the government will buy their property at the normal market price.

The HS2 rail link is touted to 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.

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