Thursday 20 July 2017

People on estate facing demolition for HS2 could struggle to find new homes

By Helen Pidd

Government report finds that residents of Shimmer estate may not receive adequate compensation to acquire similar properties in light of shortage

Opponents of HS2 say engineers did not even realise that the newly built Shimmer estate, Mexborough, existed when they planned the route. Photograph: Christopher Thomond/for the Guardian
The government has said that residents of a brand new housing estate facing demolition to make way for the HS2 railway could struggle to find replacement homes nearby.

More than 130 families living on the Shimmer estate in Mexborough, South Yorkshire, may have to leave their homes after the government decided that the HS2 train line should go right through their neighbourhood. Some only moved in days before the route was proposed in July last year.


They are among 540 homeowners within 100 metres of the new Yorkshire leg of the line who potentially face being forced out of their homes, according to research by the Yorkshire HS2 action groups, who oppose the route. The campaigners argue that an earlier proposal, which would have seen the line go to Meadowhall shopping centre, north-east of the city centre, rather than follow the M18 motorway to the city centre, would have resulted in only 296 residential demolitions.

Opponents to HS2 claim that engineers didn’t even know that Shimmer existed when they planned the route, chosen by transport secretary Chris Grayling on Monday. Construction of the estate began only in 2011 and it doesn’t appear on Google Maps or most satellite navigation systems.

Grayling said only 16 homes would have to be demolished to make way for a viaduct to carry the high-speed line, but residents believe the whole estate is doomed. Many feel that they are not being offered a fair price by the government to sell up and fear that they will find themselves in negative equity.

On Tuesday, the government published a report by property specialists Carter Jonas which found that the compensation package offered may not allow some Shimmer homeowners to acquire a similar property in the local area.

House prices on the estate have already dropped by an average of 10% of their original purchase prices, according to Carter Jonas. Consultants found that a shortage of similar new-build properties in the surrounding area could lead to price inflation as ousted Shimmer residents bid against each other.

“The value of properties on the Shimmer estate, together with a low supply of affordable housing in Mexborough and its surrounding areas, could therefore make it difficult for homeowners to buy a local equivalent property with statutory compensation they would receive from the government,” the report concluded.

According to Carter Jonas, 130 houses have been sold on the estate, with a further 90 properties either built and unsold or yet to be built. All homeowners can now apply for the government to buy their properties at the “HS2 unblighted” market rate, plus 10% compensation and moving costs.

Peter Douglas, 63, and his wife Sue, 66, bought their house on the Shimmer estate for £165,000 in 2014 and spent two years doing it up for their retirement. Their home is only five metres from the proposed viaduct, so is not included in the 16 definitely facing the bulldozers, but they have applied for the government to buy their home. “Who in their right mind would want to buy or rent a house next to a railway line running 200mph trains?” said Peter.

They are preparing for “hard negotiations” to secure a fair price, fearing that because the estate has never been finished (because of uncertainty over HS2), they will be undervalued.

Andrew Weaver, chief executive of Strata, which built Shimmer, said: “Our thoughts are with the homeowners, who like us, have had to live through over 12 months of uncertainty for a decision to be made. The residents remain our priority and we now need to understand what this decision means for the development and the Strata business as a whole.”

Grayling said on Tuesday: “Britain’s new railway line will bring huge economic benefits across the country and help ensure this government delivers on its promise to spread wealth beyond London and the south-east.

“We will now press ahead with building the line, while continuing to ensure affected communities get appropriate support and are treated with fairness, compassion and respect.”

https://www.theguardian.com/uk-news/2017/jul/18/people-on-estate-facing-demolition-for-hs2-could-struggle-to-find-new-homes

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