TheFeature


disruption, noise and disturbance in Camden for many years to come, and we are already beginning to see examples of sites and investment being blighted.” The statement says, “Although the


construction on Euston Station may take 10 to 15 years to complete, given the complexity of the HS2 decision-making process it could be significantly longer before any scheme is realised. “Noise and disturbance will also impact


areas close to Euston station, tunnel and vent shaft locations resulting from prolonged construction activity.” In addition to the demolition of local


homes, the council claims that the Maria Fidelis Convent School site on North Gower Street will be significantly impacted, due to its proximity to the line. At least 20 business premises, a variety of listed buildings and a number of Camden's open spaces are also expected to be affected, while around 60 per cent of St James’ Gardens is expected to be destroyed. Lending is also becoming an issue.


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The group is also calling for an accurate assessment of the compensation implications of the project.


COMPENSATION The government plans to introduce a series of measures aimed at compensating homeowners affected by property 'blight'. However, the details of these measures remain unknown until the proposed route is safeguarded. Until now, affected homeowners have been able to submit a claim only to the Exceptional Hardship Scheme, a voluntary purchase scheme designed to help vendors who genuinely need a speedy sale. To qualify for the scheme, vendors need to


prove that their property has been on the market for at least three months and that they have not received firm offers of 85% or more of its market value. Only then will their application will be considered by an independent panel of adjudicators. To date, government statistics claim that 306 applications have been received


“This is the most important transport infrastructure project since the building of the motorways. We in Britain can’t simply wait and hope for a better, more successful future – we


need to build it.” Justine Greening, Secretary of State for Transport


Member of Parliament for Aylesbury, David Lidington, has written an open letter to government outlining lending constraints allegedly resulting from HS2. In his letter, he claims that he has been contacted by a constituent struggling to secure a home improvement loan from lenders, who cite their proximity to the proposed HS2 route as the reason for them declining or limiting a loan. Meanwhile, a group of 18 councils calling themselves 51m, to represent the cost of HS2 to each affected parliamentary constituencies across the UK, is concerned about the blighting impacts of the HS2 proposals on residents, businesses and local communities. It claims that the Department for Transport's estimate of blight for the next 14 years is conservative at best. In its consultation document, 51m states, “It will last much longer than that, given inevitable delays in the project. There is therefore a very realistic prospect that communities will be faced with a huge swathe of blighted properties for 20 to 30 years.”


22 l March 2012 l TheNegotiator


through the EHS, with 64 reapplications recorded and seven withdrawn by applicants. There have been just 59 applications accepted and 41 purchases completed, with the total value of purchases currently at £23.6m. In addition to the EHS, the government


originally proposed three compensation schemes for affected homeowners who did not qualify for the hardship fund. These included a bond-purchase scheme, designed to enable the government to purchase affected homes, which lose value because of the development of HS2; a compensation bond approach, which would not have kicked in until the line had been running for a year; and a Hardship- based Property Purchase Scheme, a scheme based on applicants' circumstances rather than property. These three schemes have since been


replaced with five alternative compensation schemes: a streamlined purchase scheme to simplify the statutory blight process for property owners; a sale and rent back


scheme to give homeowners in the safeguarded areas more flexibility; a streamlined small claims scheme for construction damage, which will allow individuals and businesses who are entitled to compensation under existing law to claim it more quickly; a package of measures to reinforce confidence in properties above tunnels; and a refreshed hardship scheme. However, little information is currently available for any of the schemes. The 51m consortium argues that any


compensation scheme should aim to ensure that as far as possible, the property market continues to operate normally in the affected areas. This should cover not merely people who wish to move property, but also those who wish to remortgage. It adds that schemes should have the support of relevant financial institutions, and that they should make commitments that they would honour the principles of such a scheme.


OUTCOME The downside of the proposed HS2 route for agents is that it requires a major re-think of their marketing literature in areas where communities may become less tranquil than their current claims, which will inevitably incur additional costs. Further, it may well involve an overhaul of agents' terms and conditions, to avoid any future claims by buyers, who claim they weren't informed about the potential disruption caused by the construction of the line. Peter Ambrose, director of conveyancing firm The Partnership, is currently reviewing his own T&Cs to address this issue, warning agents to similarly treat all HS2 cases with due care and attention to avoid future claims.


On the upside, increased commuter times to nearby cities and, eventually, countries, could be just the boost a struggling agent needs to attract new business. Aylesbury is a case in point, which one agent claims could become the next Hemel Hempstead, attracting interest from city workers in both London and Birmingham, who can't afford to live in town. Whichever view you take, it's business as


usual for Graham Robson of Michael Graham. “We need viewings to prove to HS2 that we have tried to sell the property. We wouldn't turn instructions away. Yes, we have to spend an awful lot of money away to achieve a sale, but we still need to sell the properties.” For affected agents yet to consider the impact of HS2, such a positive take on the politically sensitive line is perhaps the best route forward. What better time than now, in this austere market in which you are being forced to operate, to reposition yourself and reap the benefits of an increasingly, albeit slow-developing, international rail network.


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