The Government spent £167m of taxpayers’ money on buying up homes and land to clear a path for the north eastern leg of HS2 which it has now officially dropped.
Transport Secretary Heidi Alexander announced in the House of Commons this week she had formally lifted safeguarding protections on most of the property which the high speed rail route would have passed through in the now scrapped section from the West Midlands to Leeds.
It means more than 550 properties purchased along or close to the proposed route, which had been bought up to be levelled for the rail link to run through, will now need to be sold off to try and recoup some of the cost.
Alexander said the properties would be offered back to their former owners at the current market value. Those not bought back would be offered on the open market from early 2026.
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “The government is right to begin selling this assets.
“The priority now must be to claw back as much money as possible from this disastrous scheme.”
The original HS2 project was set to connect London with cities in the Midlands and North of England (Photo: Christopher Furlong/Getty)HS2 Ltd has confirmed to The i Paper it spent a total of £169million on purchasing property along the eastern leg.
After the disposal of some property since then through resale, the net spend has come to £167million.
HS2 Ltd is a non-departmental public body, which is wholly funded by the Government via the Secretary of State for Transport and sponsored by the Department for Transport.
These buy-ups were not done through Compulsory Purchase Orders, as Phase 2b East legislation was never introduced.
Instead, the purchases were made under schemes such as Statutory Blight and Express Purchase and Need to Sell.
What’s left of HS2This meant qualifying owner-occupiers of a property along or near to the proposed route could serve a Blight Notice and apply to the Secretary of Statefor Transport to purchase their property.
The Need to Sell scheme was for homeowners who were having to sell a property, as a result of divorce for example, and whose property was on or near the planned rail link.
Some land around Leeds station will also be retained “to allow for potential enhancements to the existing station”, the government has said.
How much has been spent on property purchases for HS2 over all?
Making the announcement on Thursday, the Transport Secretary revealed the up-to-date spending figure for the now cancelled Phase 2 of the project is £2.6bn.
HS2 Ltd has confirmed to The i Paper the amount spent on purchasing property for the now abandoned Phase 2 to date is £633million, with a net figure of £631million after taking into account subsequent disposal of properties.
In 2013, HS2 was estimated to cost £37.5bn (at 2009 prices) for the entire planned network, including the now-scrapped extensions from Birmingham.
In June last year, HS2 Ltd assessed the cost for the line between London and Birmingham would be up to £66bn.
The overall spend on buying up property for the project has come to £3,790million, with a net total of £3,786million after resale.
Former Prime Minster Rishi Sunak announced in October 2023 that Phase Two of HS2 would be scrapped.
Safeguarding restrictions still remain on the western leg of the Phase 2b, between Crewe and Manchester.
Some land around Leeds station will also be retained “to allow for potential enhancements to the existing station”, the government has said.
Transport Secretary Heidi Alexander announced the safeguarding protections had been lifted (Photo: Chris Radburn – WPA Pool/Getty)What has the Department for Transport said?
The Transport Secretary announced safeguarding protections would be lifted for the Phase 2b Eastern leg on Thursday 17 July.
Heidi Alexander said this would “remove uncertainty” for those living along the route and the plan was now to “dispose of land and property in a sensible and sensitive way”.
She said: “I am today formally lifting the safeguarding directions for the former Phase 2b Eastern Leg (between the West Midlands and Leeds), removing the uncertainty that has affected many people along the former route.
“Safeguarding along the former Phase 2b Western Leg (between Crewe and Manchester) is not being changed as part of this, and an update on future plans for safeguarding on this section will be provided in due course alongside broader plans for Northern Powerhouse Rail.
“One small area to the south of the existing station in central Leeds, previously required for the new HS2 station, will remain safeguarded to allow for potential enhancements to the existing station, including for onward travel.
“I have also today closed the Rural Support Zone, Express Purchase, Rent Back, and the Need to Sell property schemes along the former Phase 2b Eastern Leg.
“Existing applications will be reviewed on a case-by-case basis.
“Removing safeguarding along the majority of the former HS2 Phase 2b Eastern Leg means we are now able to initiate a programme to dispose of over 550 properties on the former Eastern Leg that are no longer required.
“We expect disposals on the open market to begin in 2026. Before then, former owners whose property was acquired under statutory blight will have the opportunity to reacquire their former property at the current market value.
“We will dispose of land and property in a sensible and sensitive way, ensuring value for money for the taxpayer and avoiding disruption to local property markets.
“I have deposited the safeguarding directions and relevant documents in the House libraries.”
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