Homeowners affected by the High Speed 2 (HS2) line between London and Birmingham will receive extra financial compensation, the government announced today.

Those living between 60 and 120 metres from the line in rural areas could receive a full, un-blighted value for their property under the voluntary purchase scheme.

Residents wishing to do this can submit an application to HS2 Ltd to purchase their property.

Transport Secretary Patrick McLoughlin made the announcement this morning.

As an alternative to the voluntary purchase scheme, eligible property owners will also have the option to accept a cash offer of 10 per cent of that same value and stay in their homes and businesses.

Those beyond the 120 metre boundary, but within 300 metres of the line in rural areas, will be eligible for up to £22,500 in support.

Mark Hayward, managing director of National Association of Estate Agents, welcomed the news.

He said: “The Department of Transport’s announcement today bringing clarity to provide assistance to owner occupiers along the line of route for Phase One of HS2 will mean those impacted will breathe a sigh of relief.

“It’s only fair that home owners in peripheral areas of the proposed HS2 route are compensated appropriately and these new measures mean that there are now a number of options available to them, including the opportunity to sell their property to government and then rent it back.

“After a long period of uncertainty, this will help people along the route plan for their futures.”

Eligible owner-occupiers living any distance from the line of route can now apply to the need to sell (NTS) scheme, which also pays the un-blighted value to people with a compelling reason to sell their property, but who have been unable to do so – other than at a substantially reduced price – due to HS2.