The Government's decision to approve a £32.7bn national high speed rail network that will link London to Birmingham, Manchester and Leeds (the Y network) was much heralded and was probably inevitable.
The Government argues that HS2 will enhance rail capacity and performance on key north-south corridors. The project will comprise two phases. Phase one will deliver the London to West Midlands line with a link to Europe via HS1. A second phase will extend the line to Manchester and Leeds and include a spur to Heathrow airport.
The Government's decision, and the impact it will have on property owners, businesses and communities in the areas surrounding the proposed route, is clearly controversial. Those most impacted by the scheme will argue they will see the least benefit, whilst those speeding from the Midlands to London in 20 years time will have experienced little of the disruption that construction of such a project will inevitably bring.
But for the cradle of the world's railways to lag behind Morocco in terms of high speed rail mileage tells its own story - if modern rail networks are essential for a modern economy, then the case for HS2 is obvious.
The debate will rage in many homes, pubs and eventually in Parliamentary Committee over the next five years - including, it appears, in the Prime Minister's own family gatherings.
Fit For Purpose?
As well as questioning whether the country's rail network is fit for purpose, necessitating HS2, the scheme raises the question of whether the processes for determining major infrastructure provision and resultant compensation for landowners is fit for resolving compensation in the 21st century.
On the question of major infrastructure decision making, this Government has spent time refining the new process for delivering consents, including abolishing the Infrastructure Planning Commission. For HS2 though, even the new processes for considering major project consents is not enough. There will be no Development Consent Order for HS2 but instead a new Act of Parliament.
This mirrors the Channel Tunnel Rail Link and Crossrail, both of which were the subject of Bills before Parliament. It is the only process for a project of the size of HS2, and in some senses means the scheme reaches the height of democratic accountability. But many affected by the scheme would feel more comfortable appearing before a locally convened inquiry or hearing, with relatively informal processes, than having to battle with the majesty and bureaucracy of Parliamentary procedure. Most consideration of the Bill will be in committee, by MPs unlikely to have any direct accountability to the communities affected by the scheme and whose loyalty will be along party lines.
But more scrutiny should perhaps be applied to the fitness of the principles of compulsory purchase compensation that will be applied. Much as the existing West Coast Main Line some of the principles on which compensation will be assessed can be traced back to the early Victorian era. Several reports over the last decade called for fundamental reform, but the reaction of Government was to either tinker at the edges or to put the reports urging reform on the "too difficult" pile. It will be interesting to see if radical solutions to the more obvious faults in the compensation code are remedied (on a scheme specific basis) for the HS2 Bill. Indeed the Country Land and Business Association has now added its voice to the campaign for a reform to the compensation code. The RICS has also warned that "adequate compensation procedures" need to be in place for HS2 and has offered to work with the government.
What is essential is an approachable open and respectful attitude from the promoters of HS2. Parties affected deserve time, clarity and an appreciation that the project is putting great strain on them, for which they will receive little or no compensation.
Blight
Blight is always the most difficult issue for schemes such as HS2. Claims for blight under the existing statutory regime will inevitably be hard to prove and also are still some way from being capable of being launched. In reality though, house prices are likely to start to suffer now and many owners will have to face years of uncertainty and anxiety, without compensation.
HS2 is probably the most progressive project in terms of recognising the deficiencies in the current law relating to blight. Following a national consultation, the Government is offering assistance and support to affected property owners with the introduction of a number of compensation measures over and above the statutory minimum, including:
- streamlined purchase schemes to simplify the statutory blight process
- the introduction of streamlined small claims scheme for construction damage
- hardship based property purchase scheme
- a sale and rent back scheme to provide owners the ability to remain in their properties as tenants, paying the market rent until construction begins.
Will HS2 affect you?
Those considering buying property in the vicinity of the proposed route will also need to carefully consider the impact of the proposals and whether the property will be affected.
Existing local authority searches only identify whether the property is within 200m of HS2. Raising additional enquiries, checking with your surveyors and generally keeping yourself aware of the evolving route information will be essential for anyone thinking of undertaking transactions in the vicinity of the route corridor.
If you are concerned that your property might be affected, please view the route maps here.
The impact of the route will be extensive and not just limited to properties in its immediate vicinity. Whether the route can be altered, impacts mitigated or compensation secure will depend on a complex set of circumstances and early advice is recommended, before the route becomes immovable or before the opportunity for securing mitigation is lost.
Timetable
There is still much to be done before HS2 will commence and there will be further opportunities for consultation and engagement as the project progresses. 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 and a consultation on compensation will begin. A hybrid Bill will be introduced to Parliament in late 2013 to provide the necessary powers to construct and operate phase 1 with construction commencing in 2016. Phase 1 will be completed by 2026 whilst phase 2 will be completed by 2033.