HS2 Ltd spent £53m on Midland homes to make way for rail line

Ninety-two homes worth £53 million across the Midlands have been snapped up to make way for HS2 - even though the project is yet to be given the go-ahead.

HS2 Ltd, the government-owned company behind the high-speed rail line, has bought 43 properties in Staffordshire worth £26.29 million, 14 in the West Midlands worth about £10 million, and 35 in North Warwickshire worth nearly £18 million.

And they have also agreed to purchase another 68 homes across the region under deals that do not have to completed until construction on the line starts.

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MPs have yet to give the £50 billion scheme final approval and thousands of petitions are currently being heard by a special committee. Bosses are HS2 Ltd are working to a start date in 2017.

HS2 is set to carve a 45-mile swathe of Staffordshire countryside, with residents concerned over the falling value of their homes, the noise created by trains travelling at 225mph, environmental damage, and blighting unspoilt countryside views.

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Prices of homes within 500 metres of the route have fallen an average 6.9 per cent a study by estate agents Hamptons International, Countrywide, and Lambert Smith Hampton found. By contrast, average house prices across the country rose 5.5 per cent in the same period.

The most expensive house bought up is Cuttle Mill Fishery next to the Belfry golf course bought for £1,745,000 in January 2013. The former mill is converted into five bedroomed property, out-buildings and offices was advertised on the open market for more than £2 million.

Among the cheapest house the government has bought was a semi-detached home in Birchmoor in Staffordshire for £104,000.

The Government currently rents out some of the properties, including to some of their former owners.

HS2 Ltd said the buy-up means residents affected by the line are getting compensation quicker.

Owner-occupiers of homes and small businesses between 60 metres and up to 120 metres from the line in rural areas can submit an application to HS2 Ltd to purchase their property at the full, un-blighted value under a voluntary purchase scheme. This is the value of the property as if there were no plans for HS2.

As an alternative to the voluntary purchase scheme, these eligible property owners also have the option to accept a cash offer of 10 per cent of the un-blighted value and stay in their homes and businesses. This is aimed at supporting people who want to remain in their community.

Those beyond the 120 metre boundary but within 300 metres of the line in rural areas will be able to apply for compensation ranging from £7,500 to £22,500, if HS2 goes ahead.

And owner-occupiers living any distance from the line of route can now apply to the need to sell scheme, which also pays the un-blighted value to people with a compelling reason to sell their property, but who have been unable to do so – other than at a substantially reduced price – due to HS2.

Those who live on the proposed line or within 60 metres can sell their property to the government at the un-blighted value, plus 10 per cent - up to a maximum of £49,000 - and reasonable moving costs, including stamp duty and legal fees.

At the end of December 2014. HS2 Ltd had acquired 233 properties nationally costing £157.4 million.

Transport Secretary Patrick McLoughlin, a former Cannock miner and Staffordshire county councillor, said: This comprehensive package of compensation and assistance is looking after those people who live along the HS2 route while balancing our responsibilities to the taxpayer. Building HS2 will create extra space on our rail network, create jobs and support business and is a vital part of the government's long-term economic plan."

Simon Crowther, HS2 Ltd's Land and Property Director said: "This new transport link will bring significant benefits for the whole country but it is important that those living near to the railway are able to easily access the financial assistance that the government is offering."