Proposed Compensation and Discretionary Assistance Schemes
We understand a number of residents have asked for further clarification on the compensation zones which have been published by HS2 Ltd and which we handed out at the meeting in Newton Village Hall. Apologies for the limited numbers available but these were the only copies sent to us by HS2 Ltd. If you look at the map you will note that the zones are made up of a number of colours, starting with grey in the middle, followed by orange, pink, green and finally lime green. Each colour represents a proposed compensation scheme calculated by the distance between your home or land, to the railway line. It is imperative that you attend the HS2 meeting on Thursday 2 February where a HS2 representative will show you exactly how far away you are from the line and therefore what zone you are in. To help you before you attend, here is a summary of the zones and what they mean.
Grey Zone
This is the Safeguarded area (usually 60 metres) in rural areas and the extended homeowner protection zone. Safeguarding aims to ensure that new developments, which may conflict with the HS2 scheme, do not affect the ability to build or operate the scheme or lead to excessive additional costs. The Safeguarding also triggers Statutory Blight and allows owners within the safeguarded area to serve a blight notice. By doing so the homeowner can sell their property through the Express Purchase scheme.
The Express Purchase scheme is an offer under which the Government streamlines some of the rules that normally apply to Statutory Blight claims in the safeguarded area, making it more straightforward for eligible owner-occupiers to sell their property to the Government under a blight notice. The scheme has been introduced with immediate effect and will continue subject to the outcome of the consultation result. However the eligibility criteria is not straight forward and you are again advised to speak to one of the representatives at the HS2 meeting or at the one to one meeting at Newton Methodist Chapel on 4 March. (Phone HS2 Helpline to book an appointment.)
The Extended Homeowner Protection zone is a scheme to protect a property which may have been originally within the safeguarding area but due to moderate changes the property is now outside the zone but is protected for 5 years to apply for purchase under the Express purchase scheme. This measure does not apply if the line of route changes significantly or is put into a deep tunnel.
Orange
This is called the Rural Support zone where property or land is outside the safeguarded area and up to a fixed distance of 120m from the centre line of the railway. Within the RSZ, eligible owner-occupiers would have the option of two schemes:
• Cash offer – the option of a lump-sum payment equal to 10 per cent of the un- blighted open market value of their property (from a minimum of £30,000 to a maximum of £100,000); or • Voluntary purchase scheme – under which eligible owner-occupiers can require the Government to purchase their property for its full un-blighted open market value.
Who can apply: - Your house or 25% of the total area of your property must be in the rural support zone (generally 60 to 120 metres from the route). You must be the owner-occupier of a residential, agricultural or commercial property. Mortgage lenders (e.g. banks and building societies) can also apply for the Voluntary Purchase Scheme. Your commercial property won’t qualify for Cash Offer or Voluntary Purchase Scheme if it has a rateable value of £34,800 or more. An owner-occupier must: ◦ be the freeholder or a leaseholder with at least 3 years left on the lease ◦ be living in or running a business from the property, or have done so for at least 6 months in the last 18 months if the property’s currently empty ◦ have bought or entered into a lease of the property before the initial preferred route of Phases 1 or 2a was announced - or show why they could not have known about it, e.g. if the searches relating to the purchase were undertaken before this date, but the purchase itself was completed afterwards.
Homeowner Payment Scheme
The remaining 3 colours are all part of the Homeowner Payment Scheme which will be available following the date of Royal Assent to the legislation that authorises the Phase 2b project, currently anticipated to be in 2021/2022. It will be available to eligible owner-occupiers between 120m and 300m from the centre line of the railway in rural areas, with the exception of those in an area where the line will run in deep tunnels. The scheme will pay lump-sum cash payment of £7,500 (Lime Green), £15,000 (Green) or £22,500 (Pink), depending on proximity to the route. Where dwellings are in more than one band, then the higher payment is available. The scheme includes a ‘no prior knowledge’ and the government will consider whether a purchase has been made with foreknowledge of the proposals. Again you can get further information from HS2 by attending the meeting on 2 February at South Normanton
Need to Sell Scheme
The Government is extending the Need to Sell scheme to apply to the Phase 2b route on an interim basis; and withdrawing the Exceptional Hardship Scheme. Depending on the outcomes of the preferred Phase 2b property consultation, the Need to Sell scheme will be in place until one year after the Phase 2b railway is fully operational, which is
currently expected to be 2034. This scheme will be available to eligible owner- occupiers who can demonstrate that they have a compelling reason to sell their property, but have been unable to do so – other than at a substantially reduced price, as a direct result of the announcement of the route of HS2. You are well advised to attend the HS2 meeting where you can explore the criteria in more detail.
The Need to Sell scheme has no geographic boundary, and for successful applicants, the Government would agree to buy their property for its full un-blighted market value.
The scheme currently includes a 'no prior knowledge' criterion which is in place in order to avoid abuse of the Need to Sell scheme by individuals buying a property at its blighted value in order to sell it to the Government at an un-blighted value later, profiting from the difference. This protects the interests of taxpayers.
When assessing eligibility under the Need to Sell scheme, the Government will consider whether a purchase was made with foreknowledge of the proposals for the preferred Phase 2b route.
Rent Back
This is a scheme for people who, having sold their homes to the Government under any of the HS2 property schemes, would find it helpful to remain in residence as tenants, subject to a commercial letting suitability assessment. It will provide those wishing to remain in their community in the short term with the option to do so. It will also help those seeking to buy a property elsewhere to be well placed to do so quickly. Rent Back is designed to provide flexibility and reassurance, and to benefit both individual homeowners and the wider community.
Decisions on whether a Rent Back agreement can be made will depend on a value-for- money test, and a satisfactory credit referencing check. The applicant must also meet the following two conditions:
• The costs of the property, once assessed, must make maintaining the property a reasonable use of taxpayers’ money; and • The Government must follow its own regulations on rented properties, ensuring they are safe and suitable for tenants. The Government applies a ‘lettable standard’ that is higher than for a normal landlord or property owner.
Part 1 Compensation
Not to be confused with the previous compensation payments. Once the railway has been open to passengers for one year (as it is only at this stage that the actual impact can be assessed), the Compensation Code allows owner-occupiers to claim for loss of
value on their property resulting from the noise, vibration or artificial lighting caused by the operation of any new high-speed line.
