HS2 will hit homes with ‘£11 million loss’

HS2 logo
HS2 logo

Homes blighted by HS2 could lose a combined £11 million in value with the slashed council tax pot ‘impacting all public services’, according to a new report.

The controversial £50 billion train line is set to cut through South Northants and its effect on the area has been outlined in a document put together by South Northamptonshire Council (SNC).

District councillors say compensation packages for families ‘fall short’ of what it would like to see and a plummeting council income will put public services at risk.

Dermot Bambridge, SNC’s portfolio holder for economic development and regeneration, said: “The HS2 proposal will have a huge impact on the district whilst there will be no direct benefits.

“We are already aware of a general reduction in property values and a stagnation of the housing market. In turn, this might impact not only homeowners, but the council’s own income from council tax and business rates, money that assists us to deliver our own services.

“You cannot put a price on tranquility and heritage and we are investigating the possibilities of finding a more equitable way of compensating those affected.”

SNC says there are 450 ‘blighted’ homes outside the compensation zone, with half at risk of losing £50,000 in value and if they drop council tax band as a result, SNC’s hit ‘could be approaching £100,000 per annum’.

The estimated 225 homes could expect a drop from a typical Band F to Band E so the loss in council tax receipts by SNC would be around £74,250 a year with a further £21,000 lost from the demolition of 10 homes to make way for the line.

Across South Northants, 66 buildings fall into a ‘compensation zone’ and of these, only those that are residential and owner-occupied will be eligible.

SNC says this suggests only 50 families across the region – including those in Brackley, Greatworth and Radstone – would be eligible for some form of compensation.

A formal response will be published on Tuesday.