The Government has confirmed a controversial urban-rural split in the amount of compensation available for homeowners close to the route of HS2.

It means people living close to the line in Camden will be offered less generous deals than those in the countryside.

And thousands of "blighted" residents in the west London suburbs will receive no compensation because the line is in a tunnel.

The Department for Transport wants to demolish 308 inner city homes and small businesses, mostly around Euston.

Residents living within 60 metres of the new line will be paid "unblighted market value" plus 10% compensation, capped at £47,000.

But in rural areas, the compensation zone extends 300 metres from the line.

HS2 says it will buy any home between 60 and 120 metres at market value or will offer a cash sum based on 10% up to a maximum of £100,000.

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Sir David Higgins is the head of the controversial HS2 scheme. Credit: PA Wire

Residents living a distance of 120 metres to 300 metres from the line will be eligible for payments ranging from £7,500 to £22,500.

The Government has agreed to move the urban/rural boundary from the M25 to West Ruislip.

It expects to spend £600 million buying properties before construction work starts in 2017.

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