hs2 update

HS2 Update Northern Group Conference

18th September, York

Kate Russell BSc(Hons) MRICS FAAV Central Association of Agricultural Valuers

Introduction

• HS2 Phase 2 – where are we now? • HS2 Phase 1 – timetable • HS2 Phase 2 – likely timetable • What should clients be doing now? • Fees • And finally...

HS2 Phase 2: where are we now?

• Proposed route from Birmingham to Leeds and to Manchester announced in January 2013 • Public consultation on proposed route now open, closing on 31 January 2014 • Exceptional Hardship Scheme now open

HS2 Phase 2 Exceptional Hardship Scheme

• Non-statutory: Government under no obligation to offer it. • Very demanding criteria: many apparently worthy claims rejected in Phase 1. • No alternative until Property Compensation consultation completed and new scheme in place.

HS2 Phase 2 Exceptional Hardship Scheme

Criteria: for property owners who • For reasons of exceptional hardship • Have an urgent need to sell • But cannot do so except at a substantially reduced price • As a direct result of the announcement of the HS2 Phase 2 line of route.

HS2 Phase 2 Exceptional Hardship Scheme

• DfT will pay ‘unblighted’ open market value to successful applicants • Only 1 in 4 claims accepted in Phase 1 • 94 properties purchased in Phase 1 • At a cost of £54,281,040 • Average cost per property > £577,000

HS2 Phase 1 timetable

The Phase 1 timetable of events may offer a guide as to what is likely to happen during Phase 2. But note that HS2 are now much better resourced than they were 3 years ago, so some matters may be dealt with more quickly.

HS2 Phase 1 timetable

March 2010 – initial announcement Spring 2010 – Consultation on EHS August 2010 – EHS opens Spring 2011 – Phase 1 route consultation (6 months)

HS2 Phase 1 timetable

Nov 2011 – environmental surveys begin • CLA/NFU/CAAV offer views to HS2 on terms of model licence • Model licence not binding – valuers can seek own amendments • Licence gives rights of access on foot to carry out surveys and install certain monitoring equipment.

HS2 Phase 1 timetable

Surveys were for - Species - Habitats - Ambient noise - Visual impact

Survey results were fed into Draft Environmental Statement

HS2 Phase 1 timetable

2012 – meetings and surveys • Ecological surveys continue • HS2 Farm Impact Assessment survey – fed into Draft Environmental Statement • Owners and agents of properties very adversely affected held early meetings with HS2 Land and Property team to discuss issues

HS2 Phase 1 timetable

2012 – consultations • Safeguarding consultation – more detailed maps emerge • Property Compensation consultation – non-statutory scheme proposals Judicial Review led to delay

2013 – Safeguarding milestone • Safeguarding announcement July 2013 • Triggers statutory blight • Affected property owners can now serve a Blight Notice on HS2 • Planning authorities must consult HS2 on planning applications in safeguarded zone

HS2 Phase 1 timetable

2013 – towards a Hybrid Bill • HS2 Paving Bill before Parliament • Draft Environmental Statement consultation • Hybrid Bill due autumn 2013 • Still no Property Compensation Scheme consultation!

HS2 Phase 1 timetable

2014 and beyond • Hybrid Bill may take 18 months – plus General Election • Land acquisition likely to pick up from 2015 • Construction due to start 2017

HS2 Phase 1 timetable

Phase 2 timetable: the current guess-timate

• 2013 – route consultation • Late 2014 – preferred route announcement • Spring 2015 – General Election • Late 2015 – ecological surveys and a property compensation scheme could start • 2016 – safeguarding? • 2017/18 – Hybrid Bill for Phase 2?

Phase 2 timetable: the current guess-timate

BUT note that the preferred route announcement could be delayed until after the General Election, which could push the timetable back as far as 12 months....

What can clients do now?

Time in hand to plan and prepare: • Align land ownership and occupation

- if a house is close to the route, can you ensure some land is taken? - are the farming partners the same as the landowners? Could it make a difference to a claim?

What can clients do now?

• Maximise asset values - there is no “scheme” until the safeguarding announcement and so no duty to mitigate - secure planning consent for change of use on farm buildings? - formalise any informal planning arrangements

But beware of costs and fees!

What can clients do now?

Fees

• There is no “scheme” until safeguarding • No statutory powers until the Hybrid Bill is passed • Hence fees must be negotiated • Fees paid so far in Phase 1 for

- Survey licence completion / amendment - Farm impact assessment surveys - Advising clients on early deals

• But subject to agreed rates and caps

And finally....

Will it happen at all? • General Election in 2015 • Tory heartlands remain upset • Treasury (and others) concerned about costs • What else could a Government do with £32.7bn (or £42.6bn, or £80bn...) ??

Any Questions?

www.caav.org.uk