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Update on HS2 and DfT consultation on compensation for property blight from HS2

Update on HS2 and DfT consultation on compensation for property blight from HS2. Offchurch and Cubbington HS2 Action Groups

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Update on HS2 and DfT consultation on compensation for property blight from HS2

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  1. Update on HS2 and DfTconsultation on compensation for property blight from HS2 Offchurch and Cubbington HS2 Action Groups Important: This presentation is for the purposes of helping you to respond to the HS2 Property and Compensation consultation only. You should not rely legally on anything in this presentation.

  2. Update on HS2 • Mitigation and Community Forums • Key issues – Cubbington Wood Tunnel, Offchurch Green Tunnel, lowering the track • Survey work for the draft Environmental Statement (Spring 2013) • Y Route announcement anticipated this month • Judicial reviews – decisions this month

  3. The Compensation Consultation proposals • Safeguarding/Advanced Purchase/Sale and Rent Back • Voluntary Purchase Zone/Advanced and Voluntary Purchase • Long Term Hardship Scheme • Statutory (Part 1) Compensation • Tunnel Guarantees

  4. Safeguarded Zone • Protects land which may be used to build HS2 from development. • Normally 60m each side of centre line. See maps but provisional. • Advanced purchase or sale and rent back options. • Unblighted price plus 10%. • No properties in this zone in Cubbington and Offchurch.

  5. Voluntary Purchase Zone • Zone in which a) owners can stay or sell and b) government has no statutory obligation to purchase. • Unblighted price. • Normally 120m each side of centre line. See maps but provisional. • No properties in this zone in Offchurch and Cubbington. • Zone should be bigger and less arbitrary; based on loss in value not distance from the line; rented homes should be included

  6. Long Term Hardship Scheme • Outside the SZ and VPZ • Purchase at unblighted price BUT strict eligibility criteria – even tighter than current Exceptional Hardship Scheme, under which most applications have been refused:* Residential owner occupiers* On line or in close proximity* On offer for 12 months, 85% offer must be accepted* No prior knowledge of HS2* Demonstrable hardship if not able to sell • The only part of the proposals relevant to properties in Cubbington and Offchurch until the year after HS2 opens (2027).

  7. What’s wrong with ‘hardship’based scheme? • Only helps a minority: the majority who suffer losses are excluded • Unjust: individuals should not bear a loss from HS2 (‘polluter pays’) • Traps people: loss of freedom to move, re-mortgage • Bakes in blight: ‘No prior knowledge’ clause excludes new purchasers • Paralyses the market for 15/20yrs: need surety of compensation for market confidence eg Property Bond • Precedents don’t give reassurance: EHS rejected 80% cases, rules not transparent, just 60 sold in 2yrs+.

  8. ‘Part 1’ Compensation • Statutory entitlement to compensation but only after HS2 running for 1 year and only for loss of value due to physical effects eg noise, vibration. • Excludes eg views, countryside environment • Not based on market loss in value • Major issue for Cubbington and Offchurch – long term blight for many and inadequate compensation • Press for market-based compensation

  9. Summing up Verdict: • DfT say: it’s ‘generous’; recognises ‘exceptional nature of HS2’; and is ‘comparable with HS1’ • We say: ‘rehash of statutory rules & past failures’; ignores extent of blight, government promises, worse than HS1 • Vast majority of those suffering losses stay trapped for 15yrs+ & get nothing • …….If the Government can’t afford fair compensation, then it can’t afford HS2!

  10. Strategy : twin track approach and mass response to the consultation Twin track approach: Improve current compensation proposals Get an alternative better solution – the Property Bond: • Government/HS2 Ltd becomes purchaser of last resort • No ‘hardship’ criteria, only reduced property value due to HS2 • Bond is transferable to the new owner if the property is sold • Has been used before (Central Railways, BAA at Stansted and Heathrow) but rejected by government (too expensive) • Supported by Council of Mortgage Lenders and British Banking Association • Over 80% support in 2010 consultation • Bond supports the market, reducing the potential cost to the Government

  11. How to respond 1. Do a full response on a response form and send it to the Freepost address given on the form. Or you can e-mail it direct to hs2propertyconsultation@dialoguebydesign.com . Include local detail about Offchurch/Cubbington. 2. Go online and use the DfT consultation website at http://highspeedrail.dft.gov.uk/ 3. Have one family member do a full response with others doing a simple postcard response. 3. Answer any or all of the seven questions and send your response by e-mail or post to the same address ie "FREEPOST, HS2 PROPERTY & COMPENSATION CONSULTATION” 4. Respond by 31 January! We can’t guarantee that the government will listen to us. But we can guarantee that they won’t if we don’t respond!

  12. Find out more Take away: • HS2 documents • Response forms and postcards • Points to make on the 7 questions • Questions to ask at the Roadshow on Tuesday On the web: hs2andtheenvironment.wordpress.com

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