DfT consults on additional property compensation schemes for Phase One of HS2

DfT consults on additional property compensation schemes for Phase One of HS2

The proposed high speed rail link, HS2, will be delivered in two phases. Phase One will comprise the London to West Midlands line.

In April 2014, the Department for Transport (DfT) published details of the compensation package for rural owner-occupiers affected by Phase One of HS2 (April 2014 document).

"Owner-occupiers" refers to residential owner-occupiers, owner-occupiers of small business premises with an annual rateable value not exceeding £34,800 and owner-occupiers of agricultural units (section 168, Town and Country Planning Act 1990).

The April 2014 document stated that the DfT would also consult on two further schemes:

  • An alternative cash offer.The government proposed to make an alternative cash offer to rural owner-occupiers who qualifed for its voluntary purchase scheme, but did not wish to sell. For information on the voluntary purchase scheme.
  • A homeowner payment scheme.The government proposed that owner-occupiers in rural areas with properties between 120 metres and 300 metres from the HS2 route could apply for payment based upon their proximity to the route

Proposals

On 8 July 2014, the DfT launched a consultation on the alternative cash offer and homeowner payment scheme. The consultation closes on 30 September 2014.

Alternative cash offer
The government proposes making an alternative cash offer to rural owner-occupiers who qualify for the voluntary purchase scheme but do not wish to sell. The key points are:
  • Owner-occupiers can apply for a lump-sum payment equal to 10% of the full, un-blighted market value of their properties.
  • Payments would be for a minimum of £30,000, and a maximum of £100,000.
  • The scheme would be launched by the end of 2014 and end one year after the opening of the railway.
Homeowner payment scheme
The government proposes that rural owner-occupiers located between 120 and 300 metres from the railway can apply for payment under this scheme. Payment would be tapered depending upon proximity to the line as follows:
  • £22,500 for properties between 120 and 180 metres from the railway.
  • £15,000 for properties between 180 and 240 metres from the railway.
  • £7,500 for properties between 240 and 300 metres from the railway.
The government would start to make payments from the date on which the High Speed Rail (London-West Midlands) Bill receives Royal Assent. The scheme would end one year after the opening of the railway.


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