Government says it will compensate for HS2 losses
The government has confirmed it will compensate farmers for losses incurred by the HS2 rail line proposals.
The Queen’s Speech last Wednesday (8 May) recognised the need for compensation for farmers and other landowners affected by the phase one of the plans between London and the West Midlands.
Land in these areas is already becoming difficult to sell, despite the fact the HS2 line is still only in proposal stage, said Andrew Shirley, the Country Land and Business Association’s chief surveyor.
While the CLA welcomed the recognition that compensation was needed, the “exceptional hardship scheme” designed to compensate those whose land and property values have plummeted due to the proposals, has come under a mass of criticism from those it has turned down.
HS2 said the scheme is for those who “have an urgent need to sell but have not been able to, except at a substantially reduced price.”
However, farmers can only apply if the land includes a house, and the applicant is living in the house, or has lived there for at least six months before it was empty, as long as it has not been empty for more than 12 months.
With only a quarter of the total 455 applications up to 1 May accepted, locals have complained that the rules are too strict.
Louise Staples, NFU rural surveyor, said farmers who do not live on their land would not be eligible to claim on the scheme. This is likely to leave them forced to sell land for less or claim recompense years later when the statutory compensation kicks in after work starts on the route.
“There might be a case for farmers who don’t live on the land to claim exceptional hardship under certain circumstances. But this will be maybe one instance on the whole line,” she said.
Other criteria to get compensation include:
- the proximity to the planned route (although there are no guidelines as to how close the land needs to be to satisfy this criterion)
- whether there has been a reasonable effort to sell the property. For example, properties which have received offers within 15% of the market value will not be accepted
- the land or property must have been bought before 11 March 2010
- change of circumstances for reasons such as: a need to move to a larger or different house, relocating for a job, financial pressure, such as splitting assets after divorce, a medical condition such as a disability
- death of the owner would also represent a need to sell.