HS2 Rural Support Zones
In July 2017 HS2 released the Rural Support Zone Schemes (RSZ) for those who qualify and own property up to 120 meters from the centre line of the HS2 railway in rural areas.
This is a discretionary scheme and there are 2 choices:
a) Cash offer; and
b) Voluntary purchase scheme
You are able to apply until 1 year after the railway is open.
Cash Offer
Lump sum payment of 10% of the un-blighted open market value of your property. Minimum payment of £30,000 and maximum payment of £100,000
This provides an alternative to owner-occupiers who choose to stay.
Voluntary Purchase Scheme
The Government will buy the property for 100% of the un-blighted open market value.
The acceptance of a Cash Offer will prevent you from applying for the Voluntary Purchase Scheme at a later date. If you have a compelling reason to sell however, you can still apply for the Need to Sell (NTS) scheme whereby HS2 would recoup the Cash Offer payment, plus statutory interest, from the NTS purchase price.
HS2 will also reclaim the value of the Cash Offer, plus statutory interest, if you sell to HS2 under Statutory Blight/ Express Purchase or by Compulsory Purchase. Accepting the cash offer will not affect the property owners’ ability to claim for statutory loss of value due to physical factors under Part 1 of the Land Compensation Act 1973 or under “Injurious Affection”.
Who is Eligible?
• Do you have a qualifying interest as at 17 July 2017? ie owner/occupier of a private residency, business or agricultural unit? Are you living there and have done so for the last 6 months? If empty you must have lived there at least 6 months prior to it being empty.
• Is your property wholly or partly in the RSZ? If partly, either your dwelling or at least 25% of the whole area must be in the zone. If not you may be eligible for the Need to Sell or after Royal Assent, the Homeowner Payment Scheme.
• You were not aware of the proposed HS2 route in your area when you purchased the property.
Valuations
Similar process as the Need to Sell Scheme (refer to previous Miller & Miller articles) ie
2 valuations are undertaken by Registered RICS Valuers, 1 instructed by HS2, the other instructed by you of your choice.
If the valuations are within 10% of each other, the average is taken. If the valuations differ more than 10% an additional valuation will be obtained and the average of the 2 closest will be taken. If equidistant the middle figure will be taken.
HS2 will most likely undertake a building survey of your property.
Costs
HS2 will pay for your valuation.
David Miller of Miller & Miller is an independent Registered RICS Valuer and is heavily involved in settling claims for property owners affected by HS2. He is also a Fellow of the Association of Agricultural Valuers and as such is able to advise on all rural aspects such as Early Access Agreements aswell as those of a residential nature.
David can discuss your circumstances in confidence and assist you in the completion of HS2 Notices and Application Forms to ensure these are submitted correctly. Once Notices have been accepted David will ensure you obtain the best financial outcome possible liaising with you at all times throughout the process.
Please feel free to call David on Tel: 0114 327 0120 who is here to help on any aspect of Compulsory Purchase and compensation.
