HS2’s Scrapped Section and the Cost of Abandonment
The UK government has officially abandoned the northeastern leg of the High Speed 2 (HS2) rail project, which had previously been a major focus of infrastructure development. This decision has led to significant financial implications, with £167 million of public funds spent on acquiring properties and land along the now-canceled route from the West Midlands to Leeds.
Transport Secretary Heidi Alexander recently announced in the House of Commons that safeguarding protections on most of the properties affected by the HS2 route would be lifted. This move paves the way for the sale of over 550 properties that were purchased to make way for the rail line. The government aims to recoup some of the costs by selling these assets back to former owners or through the open market starting in 2026.
John O’Connell, chief executive of the TaxPayers’ Alliance, welcomed the decision to sell off the properties, emphasizing the need to recover as much money as possible from what he described as a “disastrous scheme.”
Financial Breakdown of Property Purchases
HS2 Ltd, the organization responsible for overseeing the project, confirmed that £169 million was spent on property purchases along the eastern leg of Phase 2b. After accounting for the resale of some properties, the net expenditure came to £167 million. These acquisitions were not conducted through Compulsory Purchase Orders, as the necessary legislation for Phase 2b East was never passed. Instead, the government used alternative schemes such as Statutory Blight and Express Purchase and Need to Sell.
Under the Statutory Blight scheme, qualifying owner-occupiers could serve a Blight Notice and apply to the Secretary of State for Transport to purchase their property. The Need to Sell scheme allowed homeowners who needed to sell due to circumstances like divorce to have their properties bought if they were located near the proposed rail route.
Some land around Leeds station will remain under safeguarding to allow for potential enhancements to the existing station. However, the majority of the properties along the former route will be sold off to minimize financial loss.
Overall Spending on HS2
The cancellation of Phase 2 of the HS2 project has resulted in a total spending of £2.6 billion. According to HS2 Ltd, the amount spent on purchasing property for the abandoned Phase 2 is £633 million, with a net figure of £631 million after accounting for subsequent property sales.
Over the years, the cost of the HS2 project has significantly increased. In 2013, the project was estimated to cost £37.5 billion (at 2009 prices), including the now-scrapped extensions from Birmingham. By June 2023, the cost for the London-Birmingham line alone had risen to £66 billion.
The overall spend on buying up property for the entire HS2 project has reached £3.79 billion, with a net total of £3.78 billion after resale. Former Prime Minister Rishi Sunak announced in October 2023 that Phase 2 of HS2 would be scrapped, marking a major shift in the country’s high-speed rail strategy.
Future Plans and Safeguarding Measures
Safeguarding restrictions remain in place for the western leg of Phase 2b, between Crewe and Manchester. The Department for Transport has also indicated that an update on future plans for this section will be provided alongside broader developments for Northern Powerhouse Rail.
Heidi Alexander emphasized that the removal of safeguarding along the majority of the former HS2 Phase 2b eastern leg would allow for the disposal of over 550 properties no longer required. She noted that former owners whose properties were acquired under statutory blight will have the opportunity to reacquire their homes at current market value before the open market sales begin in 2026.
Alexander also mentioned that the government will dispose of land and property in a “sensible and sensitive way,” ensuring value for money for taxpayers while avoiding disruption to local property markets. She added that the safeguarding directions and relevant documents have been deposited in the House libraries.
