EXHIBIT LIST Reference No: HOC/10001 Petitioner: Phase 2a Teach-ins Published to Collaboration Area: Friday 23-Mar-2018 Page 1 of 47 No Exhibit Name Page 1 P7 Compensation Presentation.pdf (P7) 2 - 47 HOC/10001/0001
Promoter’s Introduction to Land Compensation HS2 Phase 2A Colin Smith FRICS P7 (1) HOC/10001/0002
LandAcquisition Powers and Policy Statutory Compensation – the Compensation Code Generalised Blight – the HS2 non-statutory property package P7 (2) HOC/10001/0003
Land acquisition Powers and Policy P7 (3) HOC/10001/0004
HS2 Phase 2A Bill Incorporates Seeks powers to Incorporates Identifies land existing law on acquire land and existing law on to be acquired assessment of construct Phase compulsory within limits. land 2A works. purchase compensation. processes. P7 (4) HOC/10001/0005
HS2 Land Acquisition Policy – Information Paper C3 P7 (5) HOC/10001/0006
HS2 Land Acquisition Policy Information PaperC3: LandAcquisition, para 3.3 and 3.4: “ The Bill generally includes full land acquisition powers. However, in any individual case, the exercise • of these powers will operate on the basis that the Secretary of State will acquire no greater amount of land than appears to him to be reasonably required following the detailed design of the scheme.” The Bill also confers power to possess and use temporarily all that land which the Secretary of State can acquire • compulsorily (Schedule 15). The Secretary of State has made clear that he will consider exercising those powers to possess and use temporarily • in respect of land which is not required for the permanent needs of the railway (for example, during construction only) provided that to do so would not prejudice the economic delivery of the Bill scheme. Information Paper C3: para 4 P7 (6) HOC/10001/0007
Temporary Possession and Use • A number of scenarios identified as to when the Secretary of State might exercise powers of temporary possession and use: see HS2 ‘Guide for Farmers and Growers’ and Information Paper C2 . • Factors which the Secretary of State will consider include: o Length of time for which the land is required; o Comparative overall cost of temporary use v permanent acquisition; o Likely cost of restoration; o Safeguards required to secure maintenance of mitigation measures (eg earthworks, planting) and future access to railway infrastructure (eg balancing ponds). • Compensation is payable for any loss that results from the exercise of those powers. (Schedule 15) P7 (7) HOC/10001/0008
Guide for Farmers and Growers P7 (8) HOC/10001/0009
HS2 land acquisition An illustration of land acquisition P7 (9) HOC/10001/0010
HS2 Land Disposal Policy – information paper C6 Land acquired under compulsory purchase • Not required for public sector purposes • Becomes surplus • Character retained • Not part of a larger parcel in other ownership • Offered back to the former owner • Price at open market value • P7 (10) HOC/10001/0011
Statutory Compensation: The Compensation Code P7 (11) HOC/10001/0012
Compensation under the Statutory Compensation Code Compensation Compensation Compensation Disturbance assessment where assessment for land where no land is compensation part of a property is acquired acquired acquired P7 (12) HOC/10001/0013
Land Compensation: Full Acquisition P7 (13) HOC/10001/0014
Main rules for assessing land compensation Rule 2 The value of land shall be taken to be the amount which if sold in the open market by a willing seller might be expected to realise. Rule 6 A land owner in occupation may be entitled to additional disturbance compensation not based upon the value of land. P7 (14) HOC/10001/0015
Assessing land compensation Market value is the assessment method for compensation arising from compulsory • purchase for almost all land and buildings but in certain circumstances an alternative approach can be used. The exception rather than the rule • Where land is devoted to a purpose for which there is no general demand or market, • compensation may be assessed on the basis of equivalent reinstatement P7 (15) HOC/10001/0016
Valuation Assumptions Land can be developed in Land can be accordance with a Land is sold in a Hope value for developed for certificate of manner likely to future alternative uses if appropriate obtain the development alternative allocated on a highest price development issued development plan by the Planning Authority P7 (16) HOC/10001/0017
Consistency of approach • A land owner can receive the higher of 1. The value of land, for its current use, plus disturbance compensation OR 2. The value of land for development • Disturbance is not normally payable where compensation assessed on development value because the owner would have to move in any event to achieve that development value P7 (17) HOC/10001/0018
Valuation aspects to be ignored Assume HS2 Any depreciation Any enhancement Scheme cancelled or blight from of land value in assessing Phase 2A of HS2 arising from Phase compensation for 2A of HS2 the value of an interest in land P7 (18) HOC/10001/0019
Disturbance Compensation Principles • Costs or losses arising from compulsory acquisition and dispossession not directly based on the value of land • Direct and reasonable consequence arising from compulsory acquisition • Cost of alternative premises not included – assume value for money • Party dispossessed must act in a reasonable manner and mitigate losses • Land & Property team in HS2 Ltd can discuss plans and issues in advance P7 (19) HOC/10001/0020
Disturbance Compensation: Examples of Heads of Claim Cost of Temporary Loss of crops seeking Costs of fitting and on agricultural suitable out alternative permanent land alternative premises loss of profits premises Close down of Redundancy Stamp Duty business if and other Legal and on new relocation not costs on close surveying fees premises possible down P7 (20) HOC/10001/0021
Loss Payments - an additional statutory allowance Home Loss Basic Loss Occupier’s Payment Payment Loss Payment 10% of market value, 7.5% of market value, 2.5% of market value, • • • currently £61,000 currently £75,000 currently £25,000 maximum, £6,100 maximum maximum minimum Occupier’s Loss Payment • Lawful residential – agricultural land and • occupier entitled to other buildings payment on displacement P7 (21) HOC/10001/0022
Land Compensation – assessment and payment Advanced Payments – 90% of agreed Date of valuation compensation or (in Statutory Interest – and the date claims the absence of prescribed rate arise – date of agreement) of the vesting or entry Promoter’s estimate after Bill enacted P7 (22) HOC/10001/0023
Land Compensation - disputes • StatutoryCompensation disputes o Independent determination o The parties may agree to alternative disputes resolution - IP C8 Compensation Code for Compulsory Purchase o Otherwise disputes resolved by the UpperTribunal (Lands Chamber) P7 (23) HOC/10001/0024
Blight notices • Reverse compulsory purchase • In the corridor of surface land safeguarded for HS2 • The property is acquired in advance • Land compensation is assessed and paid in advance • In accordance with Compensation Code • Qualifying owners- o Residential owner occupier with freehold or with 3 years lease unexpired at valuation date o Business owner occupied with freehold or 3 years lease unexpired at valuation date with rateable value less than £36,000 o Owner occupier of an agricultural unit • Can serve a blight notice if: o In occupation for 6 months, and o Made reasonable but unsuccessful attempts to sell P7 (24) HOC/10001/0025
Part only of land acquired - Severance P7 (25) HOC/10001/0026
Part only of land acquired - Severance Owner can compel the Works to accommodate Promoter to acquire existing activities on Depreciation to Isolated land less • affected land Value of part of land retained land from than 0.5 acres Provision of • Isolated land where acquired – as severed connection • alternative access cost of linkage outlined above is payable in Provision of stock exceeds land value • addition Severed land proof fencing, field • economically drainage unviable to farm P7 (26) HOC/10001/0027
Part only of land acquired - Injurious Affection P7 (27) HOC/10001/0028
Part only of land acquired - Injurious Affection Impact can be Depreciation to reduced through Value of part of retained land due Can be assessed on mitigation (e.g. land acquired – as to impact of Phase a “before” and noise barriers, outlined One of HS2 is “after” basis environmental payable in addition works) P7 (28) HOC/10001/0029
Part only of land acquired - Material Detriment • If part only of a property cannot be acquired without o Material detriment to a house, building or factory o Seriously affecting the amenity of a park or garden o The land or building being less useful or valuable to a significant degree • Then the Promoter can be required to purchase the whole property and pay statutory compensation • Does not apply where subsoil only acquired • Special provisions for agricultural land P7 (29) HOC/10001/0030
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