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The Government has this month announced its plans to go ahead with the £33 billion HS2 High Speed Rail link between London and Birmingham, despite widespread public opposition.  It is important therefore that those homeowners who may be affected by this new rail network - directly or indirectly - seek detailed legal advice as soon as possible.

Compulsory purchase - will it affect you?

As the Department of Transport’s own website explains,“We are writing to all owners of properties that are very close to the proposed line of the route to inform them of the Government’s decision, and the potential need to compulsorily purchase their property.” There is already in place a statutory code for compulsory purchase of property required for major public infrastructure schemes which sets out the right to compensation and other arrangements. 

There is also a set of booklets published by the Department for Communities and Local Government which provide clear advice on this complex area.

Loss in value to home

Residential conveyancing solicitors will be advising home owners and prospective home owners near the proposed track line about the implications for a reduction in the value to their properties.  It is estimated that up to 10,000 properties will be affected by the potential noise and vibration from HS2.  In addition, although to date most public objection has come from country villages close to or on the route, the area with the largest number of properties affected will in fact be London.

Existing local authority searches only identify whether a property is within 200m of HS2.     Raising additional enquiries (and perhaps undertaking a specialised HS2 search), checking with your surveyor and generally keeping yourself aware of the evolving information relating to the proposed route will therefore be essential for anyone thinking of undertaking property transactions in the vicinity of the route corridor.

What next?

The impact of the route will be extensive and not just limited to properties in its immediate vicinity.  Whether the route can be altered, its impact mitigated or compensation secured will depend on a complex set of circumstances and early advice is therefore recommended before the route becomes immovable or before the opportunity for securing compensation is lost.

In spring 2012, the Government will receive advice from HS2 Ltd, the organisation developing and promoting the project, on how to proceed with phase 2 (the extension of the line to Manchester and Leeds) and consultation on compensation will begin.  A hybrid Bill will be introduced into Parliament in late 2013 to provide the necessary powers to construct and operate phase 1, with construction of the new line commencing in 2016.   Phase 1 will be completed by 2026 whilst phase 2 will not be completed until 2033.

In reality, however, house prices are likely to start suffering now and many home owners may have to face years of uncertainty and anxiety, without compensation.

Sarah Reynolds
Solicitor