New Discretionary Compensation Packages Announced
Following consultation over the course of 2014, the Government and HS2 Limited finally announced details on Friday of their latest property compensation packages for those occupiers within Phase 1 of the route.
As highlighted within our newsletter in October HS2 Limited have now established the Voluntary Purchase Scheme which is available to home owners and occupiers of commercial (subject to a Rateable Value of no more than £34,800) and agricultural units located within 60-120m of the line within the Rural Support Zone. Successful claimants will be entitled to the un-blighted Market Value of their property, but unlike those occupiers within the Safeguarded Zone will not receive disturbance compensation (such as removal costs etc) or a loss payment.
Alternatively should an eligible occupier not wish to move, they have the option of accepting a Cash Offer which equates to 10% of the un-blighted Market Value of the property subject to a minimum of £30,000 and a cap of £100,000.
In addition to the Voluntary Purchase Scheme, HS2 Limited have announced the Need To Sell Scheme which now replaces the Exceptional Hardship Scheme which was introduced in 2010. Under the Need To Sell Scheme an occupier living any distance from the line can apply, provided they meet the residency test and locational criteria as established under the Exceptional Hardship Scheme, and that they can demonstrate they have a compelling reason to sell but have not been able to do so as a consequence of HS2. The Need To Sell Scheme is slightly more relaxed as it will consider applications from those who may not need to move immediately. It is also open to a new class of occupier, the “reluctant landlord”.
Finally the Homeowner Payment will be introduced once Royal Assent to the Hybrid Bill has been granted, which is expected in late 2016. The payment is available to those parties within the Homeowner Zone which runs from 120 to 300m from the line and comprises a sliding scale of payments from £7,500 to £22,500 dependent upon proximity. Interestingly those owners within the Homeowner Zone may still qualify for the Need to Sell Scheme.
Click here for a useful chart prepared by HS2 Limited which sets out who is entitled to what compensation, with full details available on the HS2 website. As always we at Roger Hannah & Co are happy to discuss how HS2 will affect you and which scheme may be best suited for your particular circumstances.
For further details on other compensation packages available please click here.