HS2 – What Will Happen Now?

HS2 is a 250-mile high-speed railway line between the Northwest and Southeast, stopping at Manchester, Birmingham and London, with trains continuing the existing network to Scotland and beyond. It aims to address three key problems facing our current railway network: capacity, carbon, and connectivity. 

On 4th October 2023, Rishi Sunak announced that the planned HS2 rail from Birmingham to Manchester had been cancelled.

The announcement caused a wave of shock, confusion and anxiety across the Midlands and the Northwest after years of anticipating the construction of a huge railway track. 

The cancellation of the ‘northern leg’ has had a huge impact on the property sector.

Thousands of residential properties were affected by the proposed route, and therefore, homeowners are keen to understand the next steps. 

The amount of compensation depended on the location of the property. 

Those living in a ‘HS2 Safeguarded Area’ could submit a ‘Blight Notice’ application. If successful, the prospective compulsory purchase would be brought forward. 

Only the following individuals could apply: 

• A resident owner-occupier of a private property
• An owner-occupier of any business property where the Rateable Value did not exceed £36,000 (£44,200 within Greater London)
• An owner-occupier of an agricultural unit with at least six months of occupation
• Certain mortgagees and personal representatives

The list did not include an owner of an investment property. 

Alternatively, homeowners with properties located in a ‘HS2 Rural Zone’ were faced with the following options: 

• Receive a cash offer of 10% of the value of the property up to a maximum of £100,000
• Apply under the Voluntary Purchase Scheme, where HS2 could purchase your property at the full un-blighted market value of the property. 
• Apply under the Need to Sell Scheme, which had several conditions, but the property must have been marked for three months and received no offers within 15% of the unblighted market value. 

Conversely, homeowners with properties located within the ‘HS2 Homeowner Payment Zone’ could receive a lump sum payment depending on their proximity to the train line. Please see below: 

• Properties 120 to 180 metres from the line – £22,500
• Properties 180 to 240 metres from the line – £15,000
• Properties 240 to 300 metres from the line – £7,500