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HS2 & Property Values: 3 Possible Outcomes

Friday 14th November 2014

High Speed 2 (HS2) is hugely controversial, but with high powered backing at the top echelon of government, it looks like it will be going ahead. They’re even planning for an additional HS3 spur to service the ‘northern powerhouse’ cities, which have languished with poor interconnectivity by rail and road for decades. While HS2 will undoubtedly improve the lives of commuters, it will wreak havoc on others in its path. HS2 is expected to displace some property owners while others are expected to lose a portion of their property altogether. Many families affected by the program can expect one of three possible outcomes: compulsory purchase, lost value or modification.

Compulsory purchase

In the first scenario, a property in the line of HS2 will be purchased under a compulsory purchase order. This is very contentious, particularly in areas of outstanding natural beauty where rural properties have been passed down through generations of family.

Displaced

Many homeowners will be displaced from their homes as the prospect of a high speed railway in their vicinity dawns on them, resulting in a scramble for the exit. Many residents are expected to have to begin moving as early as 2015 as construction gets underway. Which leads us on nicely to…

Lost value

In the final scenario, family members will be able to permanently remain on the property, which may now be uncomfortably close to passing trains, causing noise levels to increase dramatically. Statutory noise insulation assistance will be available to a limited number of property owners. Those remaining on their property will have to resell their property and lose approximately 30 percent of the property value.

Uncertainty

The climate of uncertainty is really expected to affect the sales. Some forecasters predict properties to remain unsellable amid the steep price reductions. Others expect the properties to move slowly even with the steep reductions.

The real challenge will be able to figure out how up to 200,000 homes will be affected during the process. Currently, only 2,000 property owners are expected to be compensated, particularly those landlords with difficult tenants who may not be able or willing to move to a different area. It is unknown how other property owners will be compensated. Homeowners planning to relocate will ultimately have to settle for far less if they are even able to actually sell their property. As legislators aim to work through their legal challenges, many property owners are bracing for whatever is to come their way if their property is affected.
 





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Editorial Contact Details - Conor Shilling
conor.shilling@angelsmedia.co.uk
0845 672 6000
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