Guide to HS2 property schemes: Phase 2a - Gov.uk
PROPERTY SCHEMES Guide to HS2 property schemes Phase 2a
CS858/08-17
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Contents Introduction
3
Useful terms
5
Timeline
8
HS2 property schemes
10
Express Purchase
12
Rural Support Zone (including the cash offer and the voluntary purchase scheme)
16
Need to Sell
21
Rent Back
25
Homeowner Payment
27
Atypical properties or special circumstances
30
Residents’ Charter and Residents’ Commissioner
32
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Introduction This guide summarises the property schemes available to people whose land or property may be affected by the construction or operation of the HS2 railway. Phase One of HS2 is the railway between London and the West Midlands. Phase 2a is between the West Midlands and Crewe. Phase 2b is between Crewe and Manchester and the West Midlands and Leeds. This version is specifically for Phase 2a. If you are affected by Phase One or Phase 2b, please refer to the appropriate guide.
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Statutory compensation is available to people with a qualifying interest directly affected by major infrastructure projects. In addition to the compensation requirements set out in law, the Government is offering further discretionary property measures to help you to make decisions that best suit your circumstances. These are the measures that are set out in this guide. Furthermore, we recognise that in certain specific cases it may be desirable to supplement the discretionary schemes for those with special circumstances (see p30). When applying for any HS2 property scheme, you are entitled to clear communication. Our Residents’ Charter sets the standards by which we will communicate with you. We will be held to account on these standards by the Residents’ Commissioner. You can read more about the Residents’ Charter and Residents’ Commissioner in this guide. We hope you find the overviews in this guide helpful. However, please do not make a decision without reading the guidance and application forms, which can be found at www.gov.uk/hs2
Our Helpdesk is here to help at any time. You can contact us on 08081 434 434 (or Minicom 08081 456 472 for callers with hearing or speech difficulties). Alternatively, you can email us at [email protected] You can also contact us to ask for help and information in a different format or language.
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Useful terms We have tried to make this guide as straightforward as possible, but there are a number of technical terms that we need to use – these are explained below. Fuller explanations are found in the guidance documents. Term
Explanation
compensation code
A collective term for the principles, derived from Acts of Parliament and case law, relating to compensation for compulsory acquisition.
deed or contract A legal document under which the cash offer of receipt and Homeowner Payment will be paid, with conditions on repayment under specific circumstances (for more information, please see the guidance documents at www.gov.uk/hs2). extended homeowner protection zone
The areas that were previously safeguarded by the Secretary of State, which are no longer, but which have on a discretionary basis retained the benefit of being able to apply for Express Purchase or serve a Blight Notice for a period of five years from the date of being removed from safeguarding.
line of route
The proposed route of the railway. Distances from the route are measured from the centre line – on a typical track layout, this is between the two sets of tracks.
owner-occupier
Anyone who has the property as their principal residence or place of business.
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Term
Explanation
Part 1 compensation
Compensation which may be claimed under the Land Compensation Act 1973 if the value of your property goes down because of the physical effects of the use of the railway. This can be claimed after the railway has been in public use for one year.
reluctant landlord
A person who has been forced to let the home they own, where letting the property provides only a temporary solution, and they do not own another home.
Royal Assent
The point at which the HS2 Bill for the relevant phase becomes an Act of Parliament.
safeguarding
Safeguarding is an established part of the planning system, designed to protect land which has been earmarked for major infrastructure projects from conflicting developments which might otherwise occur. From the date Safeguarding Directions are issued, Local Planning Authorities must consult with the authority which issued the Directions on planning applications they receive that fall within the safeguarded area. Safeguarding also triggers ‘Statutory Blight’. This means that property owners within the safeguarded area may be eligible to serve a Blight Notice asking the acquiring authority to buy their property in advance of any compulsory purchase.
Statutory Blight
A statutory mechanism under which an owneroccupier in safeguarding can ask the Government to buy their property.
Term
Explanation
Statutory Blight Notice
A formal application by the owner of a property in safeguarding, asking the Government to buy the property.
surface safeguarding
In locations subject to surface safeguarding, Local Planning Authorities must consult on all planning applications they receive that fall within this area. For HS2, the land that is identified for surface safeguarding typically involves surface works and structures associated with the railway.
subsurface safeguarding
In locations subject to subsurface safeguarding, applications for planning permission are generally exempt from the requirement on Local Authorities to consult, unless the proposed development would extend below ground level. For HS2, subsurface safeguarding is typically put in place when the proposed HS2 line of route is in a bored tunnel.
un-blighted open The market value of a property as if there were market value no plans to develop HS2.
If you would like further guidance, please call our Helpdesk on 08081 434 434 or visit www.gov.uk/hs2
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Timeline The timeline on the next page shows important timespans for property schemes, alongside indicative key points in the HS2 project.
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2017
Phase 2a hybrid Bill in Parliament
2019
Royal Assent for Phase 2a
Homeowner Payment discretionary scheme launches
2026
Phase One railway opens for public use
2027
Phase 2a railway opens for public use
Phase 2a discretionary schemes close 2028
Phase 2a Part 1 claims available
2033
Phase 2b railway opens for public use
All dates subject to Parliamentary process
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HS2 property schemes You may be eligible for more than one scheme, depending on the distance of your land or property from the line of route. The schemes are shown on p11. To view maps showing which zone applies to you, please go to www.gov.uk/hs2 and search for HS2 property schemes.
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11
yyNeed to Sell scheme yyRent Back
Part 1 compensation (where there is no land take)
Part 1 compensation (where there is no land take)
Usually 60m in rural areas. 2 Surface safeguarding only. 3 Compensation for any reduction in the value of property as a result of the physical effects of the
300m
yyHomeowner Payments5 yyZone 1: 120m to 180m – £22,500 yyZone 2: 180m to 240m – £15,000 yyZone 3: 240m to 300m – £7,500 yyNeed to Sell scheme yyRent Back
Part 1 compensation (where there is no land take)
Part 1 compensation (where there is no land take)3
Available once line in public use for a year
to rural areas only and does not extend to areas beyond deep tunnels.
operation of the railway. 4 Applies to rural areas only and does not extend to areas beyond deep tunnels. 5 Only available after Royal Assent of the Bill. Applies
1
Beyond
Homeowner Payment zone
yyCash offer OR voluntary purchase4 yyNeed to Sell scheme yyRent Back
Rural Support Zone (RSZ) 120m
yyExpress Purchase2 yyExtended Homeowner Protection Zone yyRent Back
Safeguarded area and extended homeowner protection zone1
LINE OF ROUTE
Express Purchase This applies to properties in the surface safeguarding area. People living in this area with a qualifying interest can serve a Blight Notice on the Government. If a Blight Notice is accepted, the Government will buy the property at its un-blighted open market value, as if there were no plans for HS2. Express Purchase is an offer under which the Government relaxes some of the rules that normally apply to Statutory Blight, making it easier for owner-occupiers to sell their property to the Government.
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Where does Express Purchase apply? Express Purchase applies to properties in the surface safeguarded area. Properties in this area may qualify for compensation under Statutory Blight, a process that enables you to ask the Government to buy your house (see ‘How do I apply?’, on p14). Express Purchase is not available in areas classified as being in subsurface safeguarding – for example, properties over deep bored tunnels. If you are not sure whether your property is within the safeguarded area, please call our Helpdesk on 08081 434 434.
Am I eligible? To qualify for Express Purchase, you will need to show that: yyyour property is (or was*) within surface safeguarding (i.e. where the route is above ground); yyyou have a qualifying interest, which means that (1) you are an owner-occupier, and (2) you have either a freehold of the property or a lease with over three years unexpired; and yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18. If only part of your property is in the safeguarded area, you may still be eligible. To be eligible, you must have any part of your dwelling house or over 25% of the total area of your property (generally the house and garden but also other land included in the property) within the safeguarded area. To check your eligibility, please read the full guidance available online, or call our Helpdesk.
*see ‘extended homeowner protection zone’ in useful terms on p5.
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What will I receive? If you are eligible, you can ask the Government to buy your property at its un-blighted open market value – that is, the value on the open market, as if there were no plans for HS2. You will also receive additional payments that are set out in the compensation code: yyreasonable costs of moving – for example, stamp duty on a replacement property of similar value, reasonable surveyors’ and legal fees, and removal costs; and yya home loss payment, equal to 10% of the property’s open-market value (up to £58,000), subject to meeting the qualifying criteria.
How do I apply? You will need to fill in a form – called a Blight Notice – and send it to the Government. You can find the form(s) on our website (www.gov.uk/hs2), along with a Guide to Statutory Blight and Express Purchase that contains further information. We will make a decision within two months of receiving your Blight Notice. If we accept the notice, it means that we will agree to buy your property as per the compensation code. You can accept our offer to purchase at any time within three years of the acceptance of your Blight Notice. For more information on renting back your property, please see ‘Rent Back’ on p25.
Do I need professional advice? If you are considering submitting a Blight Notice, we recommend that you take professional advice from a suitably qualified chartered surveyor (see ‘Where can I get help?’ on p15). Advisors should also read our guidance. If we agree to buy your property, you can include the reasonable cost of professional advice in your claim for additional costs. You and your advisor can find Blight Notice forms and detailed guidance online at www.gov.uk/hs2 14
Where can I get help? Having applied for a scheme, you will be allocated an HS2 Ltd case officer as your main point of contact. If you have any additional queries, please ring our Helpdesk on 08081 434 434. Property specialists are available to anyone who needs advice on Statutory Blight or Express Purchase. The Royal Institution of Chartered Surveyors (RICS) has a helpline (024 7686 8555), and will put you in touch with a RICS member near you who can provide up to 30 minutes of free consultation and advice. The Central Association of Agricultural Valuers (CAAV) also offers an initial free consultation, and can refer you to a firm in your area. The CAAV contact number is 01452 831 815.
Useful information To see the safeguarding maps, please go to www.gov.uk/hs2 and search for HS2 property schemes. For guidance and an application form, please go to www.gov.uk/hs2 and search for HS2 express purchase.
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Rural Support Zone The Rural Support Zone (RSZ) is the area outside the safeguarded area and up to 120 metres from the centre line of the HS2 railway in rural areas. A discretionary scheme is available in the RSZ with two options. The application process is the same for both. You do not need to choose an option until your property has been valued.
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Two options The cash offer is designed to help people who do not want to sell their home and would prefer to stay within their community. Under the discretionary voluntary purchase scheme, owneroccupiers can ask the Government to purchase their property for its full un-blighted open market value.
Am I eligible? For either option, you will need to show evidence that: yyyou have a qualifying interest, meaning: (1) you are an owner-occupier of the property; and (2) you have either the freehold of the property or a lease which has more than three years left to run; yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18; yyyour property is wholly or partly in the RSZ (if partly in the RSZ, either your dwelling or 25% of the whole area of your land must be in the zone); and yyyou were not aware of the proposed HS2 route in your area when you purchased your property.
What will I receive? Cash offer: The cash is a lump-sum payment equal to 10% of the un-blighted open market value of your property (from a minimum of £30,000 to a maximum of £100,000). Voluntary purchase scheme: Under the voluntary purchase scheme, the Government will buy your property for 100% of the un-blighted open market value, as assessed by two independent valuers. The Government will not cover additional costs, such as legal fees or removal costs.
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How do I apply? Step One – Take time to consider your options The scheme will be open until one year after the HS2 line is open for public use. This gives you time to consider your circumstances and apply when the time is right for you. Step Two – Complete an application form Complete the form and submit it with your supporting evidence. Please submit as much evidence as you can. Step Three – HS2 Ltd processes your application We will acknowledge receipt of your application, and review it to ensure that it is complete. A case officer will write to you and will be your main point of contact throughout the process. He or she will progress your application to the next stage. Step Four – Notification of valuation We will notify you that your application has been accepted or declined. If it has been accepted, the next stage is to arrange two independent valuations of your property – these are to establish its un-blighted open market value. Step Five – Valuations Two independent valuations of the un-blighted value of your property will be made. You can choose the first valuer; they must be Royal Institution of Chartered Surveyors (RICS) registered and abide by RICS ‘Red Book’ principles. The other valuer will be from the HS2 Ltd panel of RICS valuers. HS2 Ltd pays for both. If the valuations are within 10% of each other, the agreed value will be the average of the two (calculated by taking the differences between the two values as a percentage of the higher value). If they differ by more than 10%, an additional valuation will be obtained and we will take the average of the two closest valuations. The third valuer will consider the evidence of the two previous valuations, but will not be advised of the values provided to HS2 Ltd to ensure independence. 18
Step Six – Offers We will write to you with a formal offer showing the value of the cash offer, and how much we would buy your property for under the voluntary purchase scheme, both based on the evidenced un-blighted value of your property. You will have one year from the offer date to choose whether to opt for the cash offer or voluntary purchase scheme. Step Seven – Choice of options If you choose the cash offer, we will pay you 10% of the value of your property (minimum £30,000, maximum £100,000). You will need to instruct a solicitor as we will need you to sign a deed or contract of receipt in order to make the payment. We will pay up to £500 (plus VAT) towards these costs. If you choose the voluntary purchase scheme, we will buy your house under a normal conveyancing process. You will need to instruct a solicitor at your cost, as you would normally do when selling your property. Step Eight – Further valuations If you do not wish to choose either option yet, there is no pressure to accept either offer. Although the offer will expire after a year, you can reapply if you wish. However, you would be asked to pay a contribution towards the cost of new valuations.
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If I accept payment, can I still apply for other schemes? Accepting the cash offer will prevent you from applying for the voluntary purchase scheme at a later date. However, you can still apply for the Need to Sell (NTS) scheme on p21. If you successfully apply for NTS, the value of the cash offer will be deducted from the purchase price. The cash amount would be reclaimed, increased by the ‘statutory interest rate’, which is currently set at 0.5% below the Bank of England base rate. We will also reclaim the value of the cash offer if you sell to us under Statutory Blight/Express Purchase or any other compulsory purchase. Accepting the cash offer will not affect property owners’ ability to claim for statutory loss of value due to physical factors under Part 1 of the Land Compensation Act 1973.
Do I need professional advice? No. The application process is designed so that it does not require a third party to act on behalf of the applications. Having applied for a scheme, you will be allocated an HS2 Ltd case officer as your main point of contact. If you want to ask a third party to help you, you are welcome to do so. Some applicants may wish to ask a friend, relative or a professional. The application must clarify the relationship between the applicant(s) and any representative receiving correspondence. Please note that any professional fees incurred in the application process will not be reimbursed by the Department for Transport (DfT) or HS2 Ltd.
Useful information To see the Rural Support Zone on maps, please go to www.gov.uk/hs2 and search for HS2 property schemes. For guidance and an application form, please go to www.gov.uk/hs2 and search for HS2 RSZ. 20
Need to Sell This scheme is available to 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.
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Am I eligible? The Need to Sell scheme (NTS) is available in urban and rural areas. Applicants will be expected to have been in occupation for at least six months prior to the point of applying; or if the property is empty, to have been in occupation for at least six months in the last 18; and submit evidence to meet all of the following five criteria: Property type – applicants should demonstrate that they have a qualifying interest, meaning: (1) the property in question is owner-occupied; and (2) they have either the freehold of the property or a lease with over three years left to run. Alternatively, they may be acting as a ‘reluctant landlord’. Mortgagees or personal representatives may also be eligible – please refer to the NTS guidance at www.gov.uk/hs2 Location – the scheme is for properties likely to be substantially affected by HS2’s construction or operation. However, there is no fixed distance within which a property must be situated. Effort to sell – the property must have been marketed without success for at least three months, with no offers within 15% of its realistic un-blighted asking price. No prior knowledge – applicants must have bought their property before the initial preferred route for each phase was announced: For Phase 2a, this is 28 January 2013. Compelling reason to sell – evidence of a compelling reason to sell your property now, or that you would be placed under an unreasonable burden in the next three years, if you were unable to sell your property.
What will I receive? If your application is successful, the Government will agree to buy your property for 100% of the un-blighted open market value. The Government will not cover additional costs, such as legal fees or removal costs. 22
How do I apply? Step One – Completing the application Complete the application form and submit it with as much supporting evidence as possible. Step Two – HS2 Ltd reviews your application The NTS Secretariat will acknowledge your application by email or letter. If information is missing, or there is an obvious lack of evidence provided, you will be asked if you would like to provide it. In most cases, the estate agent(s) marketing the property will also be contacted. Step Three – Consideration by the panel Three professionals who are independent of HS2 Ltd and the Department for Transport will make a recommendation. Step Four – Decision A senior civil servant or minister will consider the panel’s recommendation and make a decision on your application. If your application is successful, the NTS Secretariat will write to you to confirm that you have been accepted on to the NTS scheme. If you are unsuccessful, the NTS Secretariat will write to you to explain why. You can re-apply if there is a material change in your circumstances, or if you can provide new evidence that is relevant to the reason(s) that your application was unsuccessful.
The NTS and the exceptional hardship scheme The NTS has now replaced the exceptional hardship scheme (EHS). If you have an open EHS application your application will be transferred to the NTS scheme.
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Do I need professional advice? No. The application process is designed so that it does not require a third party to act on behalf of the applications. Having applied for a scheme, you will be allocated an HS2 Ltd case officer as your main point of contact. If you want to ask a third party to help you, you are welcome to do so. Some applicants may wish to ask a friend, relative or a professional. The application must clarify the relationship between the applicant(s) and any representative receiving correspondence. Please note that any professional fees incurred in the application process will not be reimbursed by the Department for Transport (DfT) or HS2 Ltd.
For guidance and an application form, please go to www.gov.uk/hs2 and search for HS2 need to sell.
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Rent Back Renting back is a way of continuing to live in your home, having sold it to the Government under a HS2 property scheme. All homes that the Government agrees to purchase can be considered for Rent Back.
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Am I eligible? There are three conditions: yythe costs of the property, once assessed, must make maintaining the property a reasonable use of taxpayers’ money; yythe Government must follow its own regulations on rented properties, ensuring they are safe and suitable for tenants. The standard for renting a property is higher than for a normal landlord or property owner; and yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18. Rent Back is voluntary, so you decide whether it suits your circumstances, and whether you are happy with the tenancy agreement being offered.
How do I apply? When arranging to sell your property, ask your HS2 Ltd case officer to explain the options. Your property would be assessed to determine: yythe cost of any repairs, improvements or testing of service installations; and yyits open-market rental value, once the necessary changes are made, compared to similar properties.
What happens then? If you want to take up the Rent Back option, you will need to sign a tenancy agreement. For guidance, please go to www.gov.uk/hs2 and search for HS2 rent back.
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Homeowner Payment The Homeowner Payment scheme is for owneroccupiers of rural properties near the line of route. The aim is to ensure that people who live near the line of route receive an early share in the benefits of HS2. The scheme will be implemented only once the HS2 hybrid Bill becomes law. We expect this to be in 2019 for Phase 2a, but we will contact people living in eligible areas when the scheme is available.
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What will I receive? Eligible owner-occupiers will be able to claim from £7,500 to £22,500. yyFor properties between 120 metres and 180 metres from the line of route – £22,500. yyFor properties between 180 metres and 240 metres from the line of route – £15,000. yyFor properties between 240 metres and 300 metres from the line of route – £7,500. We expect that most people who receive money under this scheme would not have to pay tax on it. HS2 Ltd will contribute up to £500 (plus VAT) to legal fees for a contract of receipt.
Am I eligible? You are eligible if: yyyou have a qualifying interest, meaning: (1) you are an owner-occupier of the property; and (2) you have either a freehold of the property or a lease with over three years unexpired; yyyour property is wholly or partly in the Homeowner Payment Zone (if partly in this zone, either your dwelling or 25% of the whole area of your land must be in the zone); yyyou were an owner-occuper of the property by 30 November 2015. This is the date when proposals for the Homeowner Payment was first outlined; and yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18.
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If your land is covered by more than one Homeowner Payment band, you will be eligible for the band in which your residential dwelling sits. If your dwelling is outside the bands, but your land is within them, you may also be eligible. If the dwelling itself is in more than one band, you will be eligible for the higher payment. In order to qualify for the Homeowner Payment, agricultural units must include a dwelling that acts as a main residence. Applications will not be considered until the respective HS2 hybrid Bill becomes law.
If I accept payment, can I still apply for other schemes? If you claim the Homeowner Payment, you will need to sign a contract of receipt. If you decide to apply for the Need to Sell scheme (see p21), you may do so. If your application is successful, the value of the Homeowner Payment you received will be deducted from the purchase price. This would be increased by the ‘statutory interest rate’, which is set at 0.5% below the Bank of England base rate. Accepting the Homeowner Payment will not affect property owners’ ability to claim for statutory compensation for loss of value due to physical factors under Part 1.
Useful information To see the Homeowner Payment zones on maps, please go to www.gov.uk/hs2 and search for HS2 property schemes.
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Atypical properties or special circumstances The Government has recognised that in certain specific cases, it may be desirable to supplement the discretionary schemes with further assistance for owner-occupiers living in atypical properties or special circumstances.
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The measures in the discretionary property schemes are designed with flexibility and inclusiveness in mind, however, there will inevitably be some instances where it is appropriate for the Government to go further. We intend to avoid unfairly disadvantaging certain individuals and to ensure that all those who take advantage of discretionary measures for HS2 are given the assistance or support needed. HS2 Ltd will make a recommendation for decision to the Department of Transport on a case-by-case basis.
Additional information If you are an owner-occupier in an atypical property or in special circumstances please contact the Helpdesk on 08081 434 434 or at [email protected]. There is also a freephone Minicom number for callers with hearing and speech difficulties. This number is 08081 456 472.
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Residents’ Charter and Residents’ Commissioner HS2 wants to ensure that we treat residents in a fair, clear, competent and reasonable manner. We have published our Residents’ Charter, which sets the standards by which we must communicate with people affected by HS2. We will be held to account on these standards by our Residents’ Commissioner.
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Our key commitments to you Clear communication We promise to: yycommunicate in the plainest, most non-technical language possible; yyrespond to enquiries about property schemes quickly and efficiently, and in particular to: yyacknowledge all enquiries within five working days; and give a full reply within 20 working days if we cannot answer your enquiry straight away; and yypromote awareness of our property schemes so that anyone who may be eligible knows about them. Personal support We guarantee that: yyhaving applied for a scheme, you will be allocated an HS2 Ltd case officer as your point of contact; and yyyou will be offered the opportunity to meet privately with our property specialists who can explain your options and the eligibility criteria for each of the statutory and discretionary measures. Access for all We pledge to: yyengage effectively with any minority groups or more vulnerable individuals who may need additional support, where we are made aware of such needs; and yymake information available on request in other languages, as well as in Braille, audio and large print.
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We will: yydisplay the Residents’ Commissioner’s contact details on all relevant literature and on the gov.uk website so that you can write to the commissioner about any issues that affect you and that relate to HS2 Ltd’s communication about the property schemes; yyhelp property owners to direct their issues to the correct complaints procedure, making a clear distinction between issues with property schemes and general service complaints; and yykeep this charter and our engagement with residents under review, making updates and improvements as needed. Clear responsibilities The Residents’ Commissioner: yyproduces a quarterly report, published online; yyoversees and monitors communication standards with regard to property measures; and yyprovides a mechanism by which people’s concerns can be put directly to the chairman of HS2 Ltd. The Residents’ Commissioner does not: yyact as an arbitrator for individuals regarding the scope of property measures, eligibility, or the amount of compensation or assistance to which they may be entitled; yyadvise on disputes about the validity of any blight notice counter-notice. Such disputes are dealt with by a specialist property court, known as the Upper Tribunal (Lands Chamber); yyadvise on matters relating to petitioning; or yyreplace the formal complaints procedure. People who wish to complain about the service received from HS2 Ltd should follow the formal complaints procedure. Details are available at www.gov.uk/hs2
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How can I find out more? If you have any questions or you would like to find out more information, please contact us: yy08081 434 434 (24/7 freephone Helpdesk) yy08081 456 472 (Minicom) [email protected] Please contact us if you would like a free copy of this leaflet in: yyLarge print yyBraille yyAudio yyEasy read
High Speed Two (HS2) Limited Two Snowhill Snow Hill Queensway Birmingham B4 6GA
CS858 / 08-17
You can also contact us for help and information in a different language.
High Speed Two (HS2) Limited Two Snowhill Snow Hill Queensway Birmingham B4 6GA
www.gov.uk/hs2
CS858/08-17
1
Contents Introduction
3
Useful terms
5
Timeline
8
HS2 property schemes
10
Express Purchase
12
Rural Support Zone (including the cash offer and the voluntary purchase scheme)
16
Need to Sell
21
Rent Back
25
Homeowner Payment
27
Atypical properties or special circumstances
30
Residents’ Charter and Residents’ Commissioner
32
2
Introduction This guide summarises the property schemes available to people whose land or property may be affected by the construction or operation of the HS2 railway. Phase One of HS2 is the railway between London and the West Midlands. Phase 2a is between the West Midlands and Crewe. Phase 2b is between Crewe and Manchester and the West Midlands and Leeds. This version is specifically for Phase 2a. If you are affected by Phase One or Phase 2b, please refer to the appropriate guide.
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Statutory compensation is available to people with a qualifying interest directly affected by major infrastructure projects. In addition to the compensation requirements set out in law, the Government is offering further discretionary property measures to help you to make decisions that best suit your circumstances. These are the measures that are set out in this guide. Furthermore, we recognise that in certain specific cases it may be desirable to supplement the discretionary schemes for those with special circumstances (see p30). When applying for any HS2 property scheme, you are entitled to clear communication. Our Residents’ Charter sets the standards by which we will communicate with you. We will be held to account on these standards by the Residents’ Commissioner. You can read more about the Residents’ Charter and Residents’ Commissioner in this guide. We hope you find the overviews in this guide helpful. However, please do not make a decision without reading the guidance and application forms, which can be found at www.gov.uk/hs2
Our Helpdesk is here to help at any time. You can contact us on 08081 434 434 (or Minicom 08081 456 472 for callers with hearing or speech difficulties). Alternatively, you can email us at [email protected] You can also contact us to ask for help and information in a different format or language.
4
Useful terms We have tried to make this guide as straightforward as possible, but there are a number of technical terms that we need to use – these are explained below. Fuller explanations are found in the guidance documents. Term
Explanation
compensation code
A collective term for the principles, derived from Acts of Parliament and case law, relating to compensation for compulsory acquisition.
deed or contract A legal document under which the cash offer of receipt and Homeowner Payment will be paid, with conditions on repayment under specific circumstances (for more information, please see the guidance documents at www.gov.uk/hs2). extended homeowner protection zone
The areas that were previously safeguarded by the Secretary of State, which are no longer, but which have on a discretionary basis retained the benefit of being able to apply for Express Purchase or serve a Blight Notice for a period of five years from the date of being removed from safeguarding.
line of route
The proposed route of the railway. Distances from the route are measured from the centre line – on a typical track layout, this is between the two sets of tracks.
owner-occupier
Anyone who has the property as their principal residence or place of business.
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6
Term
Explanation
Part 1 compensation
Compensation which may be claimed under the Land Compensation Act 1973 if the value of your property goes down because of the physical effects of the use of the railway. This can be claimed after the railway has been in public use for one year.
reluctant landlord
A person who has been forced to let the home they own, where letting the property provides only a temporary solution, and they do not own another home.
Royal Assent
The point at which the HS2 Bill for the relevant phase becomes an Act of Parliament.
safeguarding
Safeguarding is an established part of the planning system, designed to protect land which has been earmarked for major infrastructure projects from conflicting developments which might otherwise occur. From the date Safeguarding Directions are issued, Local Planning Authorities must consult with the authority which issued the Directions on planning applications they receive that fall within the safeguarded area. Safeguarding also triggers ‘Statutory Blight’. This means that property owners within the safeguarded area may be eligible to serve a Blight Notice asking the acquiring authority to buy their property in advance of any compulsory purchase.
Statutory Blight
A statutory mechanism under which an owneroccupier in safeguarding can ask the Government to buy their property.
Term
Explanation
Statutory Blight Notice
A formal application by the owner of a property in safeguarding, asking the Government to buy the property.
surface safeguarding
In locations subject to surface safeguarding, Local Planning Authorities must consult on all planning applications they receive that fall within this area. For HS2, the land that is identified for surface safeguarding typically involves surface works and structures associated with the railway.
subsurface safeguarding
In locations subject to subsurface safeguarding, applications for planning permission are generally exempt from the requirement on Local Authorities to consult, unless the proposed development would extend below ground level. For HS2, subsurface safeguarding is typically put in place when the proposed HS2 line of route is in a bored tunnel.
un-blighted open The market value of a property as if there were market value no plans to develop HS2.
If you would like further guidance, please call our Helpdesk on 08081 434 434 or visit www.gov.uk/hs2
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Timeline The timeline on the next page shows important timespans for property schemes, alongside indicative key points in the HS2 project.
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2017
Phase 2a hybrid Bill in Parliament
2019
Royal Assent for Phase 2a
Homeowner Payment discretionary scheme launches
2026
Phase One railway opens for public use
2027
Phase 2a railway opens for public use
Phase 2a discretionary schemes close 2028
Phase 2a Part 1 claims available
2033
Phase 2b railway opens for public use
All dates subject to Parliamentary process
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HS2 property schemes You may be eligible for more than one scheme, depending on the distance of your land or property from the line of route. The schemes are shown on p11. To view maps showing which zone applies to you, please go to www.gov.uk/hs2 and search for HS2 property schemes.
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11
yyNeed to Sell scheme yyRent Back
Part 1 compensation (where there is no land take)
Part 1 compensation (where there is no land take)
Usually 60m in rural areas. 2 Surface safeguarding only. 3 Compensation for any reduction in the value of property as a result of the physical effects of the
300m
yyHomeowner Payments5 yyZone 1: 120m to 180m – £22,500 yyZone 2: 180m to 240m – £15,000 yyZone 3: 240m to 300m – £7,500 yyNeed to Sell scheme yyRent Back
Part 1 compensation (where there is no land take)
Part 1 compensation (where there is no land take)3
Available once line in public use for a year
to rural areas only and does not extend to areas beyond deep tunnels.
operation of the railway. 4 Applies to rural areas only and does not extend to areas beyond deep tunnels. 5 Only available after Royal Assent of the Bill. Applies
1
Beyond
Homeowner Payment zone
yyCash offer OR voluntary purchase4 yyNeed to Sell scheme yyRent Back
Rural Support Zone (RSZ) 120m
yyExpress Purchase2 yyExtended Homeowner Protection Zone yyRent Back
Safeguarded area and extended homeowner protection zone1
LINE OF ROUTE
Express Purchase This applies to properties in the surface safeguarding area. People living in this area with a qualifying interest can serve a Blight Notice on the Government. If a Blight Notice is accepted, the Government will buy the property at its un-blighted open market value, as if there were no plans for HS2. Express Purchase is an offer under which the Government relaxes some of the rules that normally apply to Statutory Blight, making it easier for owner-occupiers to sell their property to the Government.
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Where does Express Purchase apply? Express Purchase applies to properties in the surface safeguarded area. Properties in this area may qualify for compensation under Statutory Blight, a process that enables you to ask the Government to buy your house (see ‘How do I apply?’, on p14). Express Purchase is not available in areas classified as being in subsurface safeguarding – for example, properties over deep bored tunnels. If you are not sure whether your property is within the safeguarded area, please call our Helpdesk on 08081 434 434.
Am I eligible? To qualify for Express Purchase, you will need to show that: yyyour property is (or was*) within surface safeguarding (i.e. where the route is above ground); yyyou have a qualifying interest, which means that (1) you are an owner-occupier, and (2) you have either a freehold of the property or a lease with over three years unexpired; and yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18. If only part of your property is in the safeguarded area, you may still be eligible. To be eligible, you must have any part of your dwelling house or over 25% of the total area of your property (generally the house and garden but also other land included in the property) within the safeguarded area. To check your eligibility, please read the full guidance available online, or call our Helpdesk.
*see ‘extended homeowner protection zone’ in useful terms on p5.
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What will I receive? If you are eligible, you can ask the Government to buy your property at its un-blighted open market value – that is, the value on the open market, as if there were no plans for HS2. You will also receive additional payments that are set out in the compensation code: yyreasonable costs of moving – for example, stamp duty on a replacement property of similar value, reasonable surveyors’ and legal fees, and removal costs; and yya home loss payment, equal to 10% of the property’s open-market value (up to £58,000), subject to meeting the qualifying criteria.
How do I apply? You will need to fill in a form – called a Blight Notice – and send it to the Government. You can find the form(s) on our website (www.gov.uk/hs2), along with a Guide to Statutory Blight and Express Purchase that contains further information. We will make a decision within two months of receiving your Blight Notice. If we accept the notice, it means that we will agree to buy your property as per the compensation code. You can accept our offer to purchase at any time within three years of the acceptance of your Blight Notice. For more information on renting back your property, please see ‘Rent Back’ on p25.
Do I need professional advice? If you are considering submitting a Blight Notice, we recommend that you take professional advice from a suitably qualified chartered surveyor (see ‘Where can I get help?’ on p15). Advisors should also read our guidance. If we agree to buy your property, you can include the reasonable cost of professional advice in your claim for additional costs. You and your advisor can find Blight Notice forms and detailed guidance online at www.gov.uk/hs2 14
Where can I get help? Having applied for a scheme, you will be allocated an HS2 Ltd case officer as your main point of contact. If you have any additional queries, please ring our Helpdesk on 08081 434 434. Property specialists are available to anyone who needs advice on Statutory Blight or Express Purchase. The Royal Institution of Chartered Surveyors (RICS) has a helpline (024 7686 8555), and will put you in touch with a RICS member near you who can provide up to 30 minutes of free consultation and advice. The Central Association of Agricultural Valuers (CAAV) also offers an initial free consultation, and can refer you to a firm in your area. The CAAV contact number is 01452 831 815.
Useful information To see the safeguarding maps, please go to www.gov.uk/hs2 and search for HS2 property schemes. For guidance and an application form, please go to www.gov.uk/hs2 and search for HS2 express purchase.
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Rural Support Zone The Rural Support Zone (RSZ) is the area outside the safeguarded area and up to 120 metres from the centre line of the HS2 railway in rural areas. A discretionary scheme is available in the RSZ with two options. The application process is the same for both. You do not need to choose an option until your property has been valued.
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Two options The cash offer is designed to help people who do not want to sell their home and would prefer to stay within their community. Under the discretionary voluntary purchase scheme, owneroccupiers can ask the Government to purchase their property for its full un-blighted open market value.
Am I eligible? For either option, you will need to show evidence that: yyyou have a qualifying interest, meaning: (1) you are an owner-occupier of the property; and (2) you have either the freehold of the property or a lease which has more than three years left to run; yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18; yyyour property is wholly or partly in the RSZ (if partly in the RSZ, either your dwelling or 25% of the whole area of your land must be in the zone); and yyyou were not aware of the proposed HS2 route in your area when you purchased your property.
What will I receive? Cash offer: The cash is a lump-sum payment equal to 10% of the un-blighted open market value of your property (from a minimum of £30,000 to a maximum of £100,000). Voluntary purchase scheme: Under the voluntary purchase scheme, the Government will buy your property for 100% of the un-blighted open market value, as assessed by two independent valuers. The Government will not cover additional costs, such as legal fees or removal costs.
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How do I apply? Step One – Take time to consider your options The scheme will be open until one year after the HS2 line is open for public use. This gives you time to consider your circumstances and apply when the time is right for you. Step Two – Complete an application form Complete the form and submit it with your supporting evidence. Please submit as much evidence as you can. Step Three – HS2 Ltd processes your application We will acknowledge receipt of your application, and review it to ensure that it is complete. A case officer will write to you and will be your main point of contact throughout the process. He or she will progress your application to the next stage. Step Four – Notification of valuation We will notify you that your application has been accepted or declined. If it has been accepted, the next stage is to arrange two independent valuations of your property – these are to establish its un-blighted open market value. Step Five – Valuations Two independent valuations of the un-blighted value of your property will be made. You can choose the first valuer; they must be Royal Institution of Chartered Surveyors (RICS) registered and abide by RICS ‘Red Book’ principles. The other valuer will be from the HS2 Ltd panel of RICS valuers. HS2 Ltd pays for both. If the valuations are within 10% of each other, the agreed value will be the average of the two (calculated by taking the differences between the two values as a percentage of the higher value). If they differ by more than 10%, an additional valuation will be obtained and we will take the average of the two closest valuations. The third valuer will consider the evidence of the two previous valuations, but will not be advised of the values provided to HS2 Ltd to ensure independence. 18
Step Six – Offers We will write to you with a formal offer showing the value of the cash offer, and how much we would buy your property for under the voluntary purchase scheme, both based on the evidenced un-blighted value of your property. You will have one year from the offer date to choose whether to opt for the cash offer or voluntary purchase scheme. Step Seven – Choice of options If you choose the cash offer, we will pay you 10% of the value of your property (minimum £30,000, maximum £100,000). You will need to instruct a solicitor as we will need you to sign a deed or contract of receipt in order to make the payment. We will pay up to £500 (plus VAT) towards these costs. If you choose the voluntary purchase scheme, we will buy your house under a normal conveyancing process. You will need to instruct a solicitor at your cost, as you would normally do when selling your property. Step Eight – Further valuations If you do not wish to choose either option yet, there is no pressure to accept either offer. Although the offer will expire after a year, you can reapply if you wish. However, you would be asked to pay a contribution towards the cost of new valuations.
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If I accept payment, can I still apply for other schemes? Accepting the cash offer will prevent you from applying for the voluntary purchase scheme at a later date. However, you can still apply for the Need to Sell (NTS) scheme on p21. If you successfully apply for NTS, the value of the cash offer will be deducted from the purchase price. The cash amount would be reclaimed, increased by the ‘statutory interest rate’, which is currently set at 0.5% below the Bank of England base rate. We will also reclaim the value of the cash offer if you sell to us under Statutory Blight/Express Purchase or any other compulsory purchase. Accepting the cash offer will not affect property owners’ ability to claim for statutory loss of value due to physical factors under Part 1 of the Land Compensation Act 1973.
Do I need professional advice? No. The application process is designed so that it does not require a third party to act on behalf of the applications. Having applied for a scheme, you will be allocated an HS2 Ltd case officer as your main point of contact. If you want to ask a third party to help you, you are welcome to do so. Some applicants may wish to ask a friend, relative or a professional. The application must clarify the relationship between the applicant(s) and any representative receiving correspondence. Please note that any professional fees incurred in the application process will not be reimbursed by the Department for Transport (DfT) or HS2 Ltd.
Useful information To see the Rural Support Zone on maps, please go to www.gov.uk/hs2 and search for HS2 property schemes. For guidance and an application form, please go to www.gov.uk/hs2 and search for HS2 RSZ. 20
Need to Sell This scheme is available to 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.
21
Am I eligible? The Need to Sell scheme (NTS) is available in urban and rural areas. Applicants will be expected to have been in occupation for at least six months prior to the point of applying; or if the property is empty, to have been in occupation for at least six months in the last 18; and submit evidence to meet all of the following five criteria: Property type – applicants should demonstrate that they have a qualifying interest, meaning: (1) the property in question is owner-occupied; and (2) they have either the freehold of the property or a lease with over three years left to run. Alternatively, they may be acting as a ‘reluctant landlord’. Mortgagees or personal representatives may also be eligible – please refer to the NTS guidance at www.gov.uk/hs2 Location – the scheme is for properties likely to be substantially affected by HS2’s construction or operation. However, there is no fixed distance within which a property must be situated. Effort to sell – the property must have been marketed without success for at least three months, with no offers within 15% of its realistic un-blighted asking price. No prior knowledge – applicants must have bought their property before the initial preferred route for each phase was announced: For Phase 2a, this is 28 January 2013. Compelling reason to sell – evidence of a compelling reason to sell your property now, or that you would be placed under an unreasonable burden in the next three years, if you were unable to sell your property.
What will I receive? If your application is successful, the Government will agree to buy your property for 100% of the un-blighted open market value. The Government will not cover additional costs, such as legal fees or removal costs. 22
How do I apply? Step One – Completing the application Complete the application form and submit it with as much supporting evidence as possible. Step Two – HS2 Ltd reviews your application The NTS Secretariat will acknowledge your application by email or letter. If information is missing, or there is an obvious lack of evidence provided, you will be asked if you would like to provide it. In most cases, the estate agent(s) marketing the property will also be contacted. Step Three – Consideration by the panel Three professionals who are independent of HS2 Ltd and the Department for Transport will make a recommendation. Step Four – Decision A senior civil servant or minister will consider the panel’s recommendation and make a decision on your application. If your application is successful, the NTS Secretariat will write to you to confirm that you have been accepted on to the NTS scheme. If you are unsuccessful, the NTS Secretariat will write to you to explain why. You can re-apply if there is a material change in your circumstances, or if you can provide new evidence that is relevant to the reason(s) that your application was unsuccessful.
The NTS and the exceptional hardship scheme The NTS has now replaced the exceptional hardship scheme (EHS). If you have an open EHS application your application will be transferred to the NTS scheme.
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Do I need professional advice? No. The application process is designed so that it does not require a third party to act on behalf of the applications. Having applied for a scheme, you will be allocated an HS2 Ltd case officer as your main point of contact. If you want to ask a third party to help you, you are welcome to do so. Some applicants may wish to ask a friend, relative or a professional. The application must clarify the relationship between the applicant(s) and any representative receiving correspondence. Please note that any professional fees incurred in the application process will not be reimbursed by the Department for Transport (DfT) or HS2 Ltd.
For guidance and an application form, please go to www.gov.uk/hs2 and search for HS2 need to sell.
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Rent Back Renting back is a way of continuing to live in your home, having sold it to the Government under a HS2 property scheme. All homes that the Government agrees to purchase can be considered for Rent Back.
25
Am I eligible? There are three conditions: yythe costs of the property, once assessed, must make maintaining the property a reasonable use of taxpayers’ money; yythe Government must follow its own regulations on rented properties, ensuring they are safe and suitable for tenants. The standard for renting a property is higher than for a normal landlord or property owner; and yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18. Rent Back is voluntary, so you decide whether it suits your circumstances, and whether you are happy with the tenancy agreement being offered.
How do I apply? When arranging to sell your property, ask your HS2 Ltd case officer to explain the options. Your property would be assessed to determine: yythe cost of any repairs, improvements or testing of service installations; and yyits open-market rental value, once the necessary changes are made, compared to similar properties.
What happens then? If you want to take up the Rent Back option, you will need to sign a tenancy agreement. For guidance, please go to www.gov.uk/hs2 and search for HS2 rent back.
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Homeowner Payment The Homeowner Payment scheme is for owneroccupiers of rural properties near the line of route. The aim is to ensure that people who live near the line of route receive an early share in the benefits of HS2. The scheme will be implemented only once the HS2 hybrid Bill becomes law. We expect this to be in 2019 for Phase 2a, but we will contact people living in eligible areas when the scheme is available.
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What will I receive? Eligible owner-occupiers will be able to claim from £7,500 to £22,500. yyFor properties between 120 metres and 180 metres from the line of route – £22,500. yyFor properties between 180 metres and 240 metres from the line of route – £15,000. yyFor properties between 240 metres and 300 metres from the line of route – £7,500. We expect that most people who receive money under this scheme would not have to pay tax on it. HS2 Ltd will contribute up to £500 (plus VAT) to legal fees for a contract of receipt.
Am I eligible? You are eligible if: yyyou have a qualifying interest, meaning: (1) you are an owner-occupier of the property; and (2) you have either a freehold of the property or a lease with over three years unexpired; yyyour property is wholly or partly in the Homeowner Payment Zone (if partly in this zone, either your dwelling or 25% of the whole area of your land must be in the zone); yyyou were an owner-occuper of the property by 30 November 2015. This is the date when proposals for the Homeowner Payment was first outlined; and yyyou must have been in occupation for at least six months prior to the point of applying; or if the property is empty, you must have been in occupation for at least six months in the last 18.
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If your land is covered by more than one Homeowner Payment band, you will be eligible for the band in which your residential dwelling sits. If your dwelling is outside the bands, but your land is within them, you may also be eligible. If the dwelling itself is in more than one band, you will be eligible for the higher payment. In order to qualify for the Homeowner Payment, agricultural units must include a dwelling that acts as a main residence. Applications will not be considered until the respective HS2 hybrid Bill becomes law.
If I accept payment, can I still apply for other schemes? If you claim the Homeowner Payment, you will need to sign a contract of receipt. If you decide to apply for the Need to Sell scheme (see p21), you may do so. If your application is successful, the value of the Homeowner Payment you received will be deducted from the purchase price. This would be increased by the ‘statutory interest rate’, which is set at 0.5% below the Bank of England base rate. Accepting the Homeowner Payment will not affect property owners’ ability to claim for statutory compensation for loss of value due to physical factors under Part 1.
Useful information To see the Homeowner Payment zones on maps, please go to www.gov.uk/hs2 and search for HS2 property schemes.
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Atypical properties or special circumstances The Government has recognised that in certain specific cases, it may be desirable to supplement the discretionary schemes with further assistance for owner-occupiers living in atypical properties or special circumstances.
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The measures in the discretionary property schemes are designed with flexibility and inclusiveness in mind, however, there will inevitably be some instances where it is appropriate for the Government to go further. We intend to avoid unfairly disadvantaging certain individuals and to ensure that all those who take advantage of discretionary measures for HS2 are given the assistance or support needed. HS2 Ltd will make a recommendation for decision to the Department of Transport on a case-by-case basis.
Additional information If you are an owner-occupier in an atypical property or in special circumstances please contact the Helpdesk on 08081 434 434 or at [email protected]. There is also a freephone Minicom number for callers with hearing and speech difficulties. This number is 08081 456 472.
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Residents’ Charter and Residents’ Commissioner HS2 wants to ensure that we treat residents in a fair, clear, competent and reasonable manner. We have published our Residents’ Charter, which sets the standards by which we must communicate with people affected by HS2. We will be held to account on these standards by our Residents’ Commissioner.
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Our key commitments to you Clear communication We promise to: yycommunicate in the plainest, most non-technical language possible; yyrespond to enquiries about property schemes quickly and efficiently, and in particular to: yyacknowledge all enquiries within five working days; and give a full reply within 20 working days if we cannot answer your enquiry straight away; and yypromote awareness of our property schemes so that anyone who may be eligible knows about them. Personal support We guarantee that: yyhaving applied for a scheme, you will be allocated an HS2 Ltd case officer as your point of contact; and yyyou will be offered the opportunity to meet privately with our property specialists who can explain your options and the eligibility criteria for each of the statutory and discretionary measures. Access for all We pledge to: yyengage effectively with any minority groups or more vulnerable individuals who may need additional support, where we are made aware of such needs; and yymake information available on request in other languages, as well as in Braille, audio and large print.
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We will: yydisplay the Residents’ Commissioner’s contact details on all relevant literature and on the gov.uk website so that you can write to the commissioner about any issues that affect you and that relate to HS2 Ltd’s communication about the property schemes; yyhelp property owners to direct their issues to the correct complaints procedure, making a clear distinction between issues with property schemes and general service complaints; and yykeep this charter and our engagement with residents under review, making updates and improvements as needed. Clear responsibilities The Residents’ Commissioner: yyproduces a quarterly report, published online; yyoversees and monitors communication standards with regard to property measures; and yyprovides a mechanism by which people’s concerns can be put directly to the chairman of HS2 Ltd. The Residents’ Commissioner does not: yyact as an arbitrator for individuals regarding the scope of property measures, eligibility, or the amount of compensation or assistance to which they may be entitled; yyadvise on disputes about the validity of any blight notice counter-notice. Such disputes are dealt with by a specialist property court, known as the Upper Tribunal (Lands Chamber); yyadvise on matters relating to petitioning; or yyreplace the formal complaints procedure. People who wish to complain about the service received from HS2 Ltd should follow the formal complaints procedure. Details are available at www.gov.uk/hs2
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How can I find out more? If you have any questions or you would like to find out more information, please contact us: yy08081 434 434 (24/7 freephone Helpdesk) yy08081 456 472 (Minicom) [email protected] Please contact us if you would like a free copy of this leaflet in: yyLarge print yyBraille yyAudio yyEasy read
High Speed Two (HS2) Limited Two Snowhill Snow Hill Queensway Birmingham B4 6GA
CS858 / 08-17
You can also contact us for help and information in a different language.
High Speed Two (HS2) Limited Two Snowhill Snow Hill Queensway Birmingham B4 6GA
www.gov.uk/hs2
