CML response - Council of Mortgage Lenders

High Speed 2 Phase Two (Fradley to Crewe) Safeguarding consultation
Response by the Council of Mortgage Lenders
to the consultation by HS2 and the Department of Transport
Introduction
1. The CML is the representative trade body for the residential mortgage lender industry that
includes banks, building societies and specialist lenders. Our 125 members currently hold
around 95% of the assets of the UK mortgage market. In addition to lending for homeownership, the CML members also lend to support the social housing and private rental
markets.
2. We are grateful for the opportunity to respond to HS2 and the Department of Transport’s
Consultation on High Speed 2 Phase Two (Fradley to Crewe) Safeguarding consultation.
General comments
3. We agree that a safeguarding scheme for development should be introduced as soon as
possible and welcome the fact that the statutory blight process will be triggered at that stage.
4. By and large our members’ interest in this issue occurs when lenders take possession of a
property and seeks to sell as mortgagee. If the value of the property has been affected by a
fall in value because of an infrastructure project such as Phase 2 then the lender’s ability to
recover its loan is affected and the borrower may have more unsecured debt.
5. Also it is important to ensure that there is as little disruption as possible to the property
markets in areas which may form part of the route(s) for Phase 2. To that end the sooner
exact routes can be established the better.
6. We understand that “blight” provisions that will be the triggered once the safeguarding
schemes are implemented are the basic statutory provisions only. Phase 1 introduced an
exceptional hardship scheme, an express purchase scheme and sale and rent back. We
understand further options are being considered at present and think that as a minimum the
outcome in terms of additional anti blight provision for Phase 1 should be mirrored in Phase 2.
7. In previous responses on Phase 1 we have also commented that the housing market affected
by blight from HS2 includes privately rented properties, second homes and properties over
deep bore tunnels and that any extension of assistance regarding blight should include these.
We continue to hold this view.
Consultation Questions
1: What are your views on the proposal to safeguard land between Fradley and Crewe? Please
provide as much detail on your reasoning as possible.
Overall, we believe it is helpful to identify probable routes for the next phase of HS2 and apply
safeguarding measures at the earliest opportunity. See our general comments above.
However, until the route for this phase is finalised there will be an element of doubt even for this
stretch between Fradley and Crewe. Properties close to but not coming within the area identified on
the maps attached to the consultation will be tainted until the precise route is finally agreed.
2: What are your views on the content of the proposed safeguarding directions (Annex A)?
Please provide as much detail on your reasoning as possible.
We do not have any comments on the proposed directions.
address North West Wing Bush House Aldwych London WC2B 4PJ
telephone 0845 373 6771 fax 0845 373 6778 website www.cml.org.uk
3: What are your views on the content of the guidance for local planning authorities on the
directions (Annex B)? Please provide as much detail on your reasoning as possible.
We do not have any comments on the guidance.
4: What are your views on the proposed approach to determining what land is to be
safeguarded (see explanatory notes and plans at
https://www.gov.uk/government/publications/hs2-phase-two-fradley-to-crewe- safeguardingconsultation-maps). Please provide as much detail on your reasoning as possible.
We have no comments on this question.
5: What are your views on the draft Impact Assessment (Annex C)?
Again we have no comments.
Contact
If you have any queries on this response please contact Samantha Barnett [email protected]