Government announces HS2 “Exceptional Hardship” Scheme, but property owners still face years of uncertainty, says head of Knight Frank’s HS2 team
Date : 27 July 2010
Key HS2 points:
- The government has announced this week that it will be introducing an Exceptional Hardship Scheme for people living on the proposed route of the London to Birmingham high-speed rail link (HS2)
- The compensation scheme opens on 20 August and will cover all types of property, but not those over the tunnelled sections of the proposed HS2 route
- The start of the public consultation on HS2 has been pushed back from this autumn to early in 2011
- This delay creates further uncertainty for property owners who will have to wait even longer to find out if their property will be devalued, or even bulldozed to make way for the line
- Knight Frank’s HS2 team can provide specialist advice on valuations and compensation claims to property owners likely to be affected
The decision by Philip Hammond, the new secretary of state for transport, to delay the consultation for the proposed London to Birmingham high-speed rail link (HS2) increases the uncertainty for property owners along the route, despite the introduction of an “exceptional hardship” scheme this week.
The new scheme will compensate those people who have to sell (within strict criteria), but have seen the value of their properties fall since the announcement of the HS2 scheme. However, those not covered by the scheme will now have to wait even longer to find out if their property will be devalued by the line, or even bulldozed to make way for it.
James Del Mar, head of Knight Frank’s specialist HS2 team, said:
“It is good news that the government has agreed to introduce an exceptional hardship scheme for those whose properties lie along the proposed route of HS2, particularly as it covers agricultural and commercial properties with a rateable value below £34,800. It is still not entirely clear who will qualify, so those who are unsure should seek professional advice.
“The delay in the consultation is less welcome as it prolongs the agony for property owners along the route who face years of uncertainty waiting for the line to be built. The most important thing that they need is some certainty as to whether or not it’s going to happen and, if so, when.
“It is a trait of our planning system and of the economy that it takes a very long time between inception and delivery, and that’s tough on some people. Would you buy a house that might be demolished in 12 years time?
“It is intriguing that the date of the consultation has been moved. This could be a signal that the scheme is running out of momentum. It doesn’t read to me like a firm commitment to march on with the intended programme. It could be the beginning of some slippage with a view to putting it on the backburner.”
Anybody affected by HS2 can receive a free initial consultation from Knight Frank’s
HS2 team, which has 90 years of combined experience dealing with large infrastructure schemes, such as the M25, Stansted Airport and the Channel Tunnel Rail Link.
For further information, please contact:
+44 (0) 20 78611 033, +44 (0) 7796 996 154
+ 44(0)1488 688 507
+44(0)1488 688 548
+44 (0) 1179 452 642
Tom Barrow, farm and estate valuations;
+44 (0) 1179 452 641
Mark Bird, residential valuations;
+44 (0)121 233 6493
Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 207 offices, in 43 countries, across six continents. More than 6,340 professionals handle in excess of US$886 billion (£594 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.