Late running judicial process gives rise to HS2 blight

HS2
Published on: 20th August 2015

What is the timescale?

The period for submitting petitions against the additional provisions to the High Speed Two (HS2) Hybrid Bill closed on 14 August 2015. Current estimates are that the Bill is likely to be formally approved in late Autumn 2016, and therefore the Powers of Compulsory Acquisition are unlikely to be implemented until early 2017.

Rights to compensation 

The assessment of compensation for those affected by the scheme is based on the principle of equivalence, meaning that the Claimant should be in no better nor no worse position than if they had not been affected by the Scheme.

Whilst achieving equivalence can be complex, there is a substantial body of statute and case law to provide guidance, and an expert judicial body in the form of the Upper Tribunal (Lands Chamber) to determine compensation if the parties find themselves in dispute.

Impact on owners and occupiers

The recent election of David Cameron and the Conservative Government has removed any uncertainty as to the delivery of HS2, and completion of the judicial process is some 18 months away.

In the interim, many property owners and occupiers find themselves ‘blighted’ – unable to sell or let their properties, or start the relocation of their business.

A discretionary compensation scheme operated by HS2 does exist, but it is focussed on residential owner occupiers. Owners and occupiers of commercial properties can qualify, but only if the rateable value of their property is less than £34,800, and tenants must have a fixed term lease with a minimum of 3 years remaining.

Landlords have the option of serving a Blight Notice, but to be successful they must satisfy a number of statutory tests, the most limiting being that the rateable value of the property must not exceed £34,800.

Typical owner and/or occupiers who find themselves in a state of ‘blight’ include:

  • Tenants of commercial properties – many such parties require certainty and financial stability to facilitate a relocation of their businesses, which may, particularly in the manufacturing sector, take between 1 and 2 years to achieve;
  • Landlords of buildings with a rateable value in excess of £34,800, who find they have unmarketable properties which are accruing holding costs, not least empty rates;
  • Owners of development sites, particularly ‘brownfield’ housing land – this category is particularly affected in respect of the Birmingham to Manchester and Leeds section, as the final decision with regard to the route has not been made.

Discretionary scheme 

HS2 Ltd only has a budget for acquisitions under the discretionary scheme. They are open to discussion with all affected parties and consider exceptional case of hardship, or cases where relocation require an extended period of time. However, each case is considered on its merits and requires ministerial sign off.

The Government and HS2 should be encouraged to reconsider the limitations they have applied to their discretionary compensation scheme with a view to easing the burden on owners and occupiers.

In the interim, if you occupy a property within the safeguarded area and are suffering financial loss as a consequence, you should maintain a detailed record of all events with supporting evidence in order that you have a robust claim for pre-scheme losses for inclusion in the compensation package.

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HS2 advice

Although the HS2 rail link may seem years away at the moment, this is an issue that property owners and tenant occupiers should be planning for now. We have a specialist team of compulsory purchase experts who are currently working with owners and occupiers of affected sites.

Read More....

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Although the HS2 rail link may seem years away at the moment, this is an issue that property owners and tenant occupiers should be planning for now.

We have a specialist team of compulsory purchase experts who are currently working with owners and occupiers of affected sites.

[fulltext] =>

Please contact us if you think you might be affected by the scheme.

What is HS2?

High Speed 2 (HS2) is a planned high-speed railway proposed to link The Midlands and Northern England with London Euston and other destinations such as destinations Lille, Brussels, Paris, and London Heathrow Airport.

The aim of HS2 is to reduce journey times and increase the volume of seats available. It is argued that reduced journey time will help to stimulate economic growth in UK and also increase the country’s rail usage.

The project is being developed by High Speed Two Ltd, a company established by the UK Government. The line is to be built in two phases with the section between London and Birmingham being the first phase, and on to Manchester and Leeds for the second phase.

The route would take a complex form of a "Y", with a trunk between London Euston and Birmingham Curzon Street. The route would then split into two spurs, one continuing to Manchester Piccadilly via Crewe and Manchester Airport. The other route is proposed to Leeds via Sheffield Meadowhall and East Midlands.

Click below to view the route:

Phase 1 - London to West Midlands

Phase 2 - West Midlands to Leeds

What are the timescales for HS2?

It is expected that the HS2 line will be operating by 2033.

The first phase, between London and Birmingham, was given Royal Assent in February 2017, giving the green light for work to begin on the route.

The second phase is expected to be given Royal Assent at a later date, but plans for the route are in their final stages and valuers will begin contacting land owners and occupiers during 2017.

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Services for the claimant

We know compulsory purchase orders can be stressful for businesses and individuals. Our dedicated team are highly skilled in acting for claimants, and will give you support and honest advice throughout the process. The services we provide include: Advice on planning objections to Compulsory Purchase Orders Expert evidence to public enquiries Advice on Certificates of Alternative Development Acquisition of alternative premises including accommodation works Estimation of compensation, values, disturbance, value of goodwill Negotiation of Claims Expert evidence of Lands Tribunal   Claimants are guided on the objection process, pre scheme losses, compensation, extinguishment of business, ransom and development value, relocation, certificates of alternative use. Claims are written, negotiated and expert evidence given in the Upper Tribunal (Lands Chamber). When promoting schemes for promoters, we provide the calculation of compensation budgets compliance with Circular 06/04, presentation of expert evidence at Public Inquiry, negotiation of all aspects of compensation and expert witness in the Upper Tribunal (Lands Chamber). Contact Us

Read More....

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We know compulsory purchase orders can be stressful for businesses and individuals.

Our dedicated team are highly skilled in acting for claimants, and will give you support and honest advice throughout the process.

The services we provide include:

  • Advice on planning objections to Compulsory Purchase Orders
  • Expert evidence to public enquiries
  • Advice on Certificates of Alternative Development
  • Acquisition of alternative premises including accommodation works
  • Estimation of compensation, values, disturbance, value of goodwill
  • Negotiation of Claims
  • Expert evidence of Lands Tribunal

 

Claimants are guided on the objection process, pre scheme losses, compensation, extinguishment of business, ransom and development value, relocation, certificates of alternative use.

Claims are written, negotiated and expert evidence given in the Upper Tribunal (Lands Chamber). When promoting schemes for promoters, we provide the calculation of compensation budgets compliance with Circular 06/04, presentation of expert evidence at Public Inquiry, negotiation of all aspects of compensation and expert witness in the Upper Tribunal (Lands Chamber).

Contact Us

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Compulsory Purchase

Our industry leading team have a wealth of experience in dealing with compulsory purchase cases and we provide our first class services across the UK. If you have received a compulsory purchase order then we will guide you through the complicated process. Our team has experience dealing with a wide range of compensation claims and we will work with you to ensure you receive a fair compensation settlement. If you are applying powers, we will work with your team to provide advice throughout the project lifecycle to ensure that your scheme finishes on time and with minimal delays.

Read More....

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Our industry leading team have a wealth of experience in dealing with compulsory purchase cases and we provide our first class services across the UK.

If you have received a compulsory purchase order then we will guide you through the complicated process. Our team has experience dealing with a wide range of compensation claims and we will work with you to ensure you receive a fair compensation settlement.

If you are applying powers, we will work with your team to provide advice throughout the project lifecycle to ensure that your scheme finishes on time and with minimal delays.

[fulltext] =>

Have you received a compulsory purchase order?

We know that dealing with the complex area of compulsory purchase can be challenging and time consuming for property owners.

Our industry leading team have a wealth of experience in dealing with compulsory purchase orders, and by providing support and honest advice throughout the process we ensure that you receive a fair compensation deal with minimal disruption to your business.

Read more about our work on behalf of claimants by clicking here.

Are you making a claim?

We understand that compulsory purchase is an important part of project delivery and at the heart of many infrastructure schemes.

Our team has previous experience working on a number of major infrastructure projects as well as redevelopment and regeneration schemes so are well equipped to work with your team from the inception of a scheme.

Read more about our work on behalf of the acquiring authority by clicking here.

Contact Us

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