Restrictions preventing the development of land earmarked for a now-scrapped section of HS2 have been lifted, Transport Secretary Mark Harper has announced.
The Cabinet Minister has ended safeguarding for the section known as phase 2a between Birmingham and Crewe. This means land on the route can now be developed in a way that would have previously conflicted with building the high-speed railway.
In October, Prime Minister and Manchester amid promises to funnel the money saved by that decision into local transport projects instead.
At the time, the Department for Transport said safeguarding would be lifted "at the earliest opportunity".
Railway consultant William Barter described the decision as "ludicrous" and an act of "spite", saying it would make it harder for a future government to reverse the decision not to extend the railway.
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It also appears to dash any hopes West Midlands and Greater Manchester mayors, Andy Street and Andy Burnham, had of reversing the decision after it was in a last-ditch attempt to save at least some of the project.
Construction work continues unabated on phase one between Birmingham, Solihull and London whereas the section to the East Midlands was also scrapped by the Prime Minister in October.
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In a written statement to Parliament, Mr Harper said: "By lifting safeguarding, the Government provides certainty to people along the former route of HS2 and makes development easier as HS2 will no longer object to proposed development in the area to which the safeguarding directions had applied."
Mr Harper also confirmed that "work is under way" on lifting safeguarding for phase 2b land between Crewe, Manchester Airport and Manchester city centre which is expected to happen by the summer.
The process of selling properties acquired by HS2 that are no longer needed "will begin shortly", he added.
Safeguarding will continue around the planned Handsacre link, in Staffordshire, where phase one of the high-speed railway will connect with the West Coast Main Line.
Mr Harper also announced the closure of three schemes which provided financial support to homeowners on or near the phase two routes.
The 'Need to Sell' programme will remain open to support residents "until the blighting effect of HS2 has fully receded", the Cabinet minister wrote.
High Speed Rail Group is a body which represents companies with experience and interest in high-speed rail.
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It said in a statement: "The decision to remove the safeguarding of phase 2a land from Birmingham to Crewe is a mistake.
"Our research shows that, if the land currently reserved for HS2 were to be sold, the loss of value to the taxpayer will be as much as £100 million while the HS2 chair told the Select Committee that a further £100 million of costs could be incurred in the process.
"Although we welcome the continued safeguarding of land at Handsacre, protecting the remaining land remains essential."
It added that the cancellation of the Birmingham to Manchester section would require a significant alternative plan for rail investment to avoid worsening existing capacity issues on the West Coast Main Line.
"A viable alternative plan may require some, or all, of this land and a hasty sale of it could make delivering such a plan impossible or at least more expensive," it added.