High-speed rail links from the capital are set to transform the landscape of Britain’s major regions. But what affect will this new development have on the property sector?
The ultra-fast £55 billion HS2 project – which will eventually link London to Scotland – has been hailed by Transport Secretary Chris Grayling as the “greatest upgrade to our railway in living memory.”
Ministers say the project, which was given Royal Assent in February this year, will vastly increase the capacity of the rail network and slash journey times considerably.
The main winners in the property market will be the key cities of Birmingham, Manchester and Leeds.
But the major rail upgrade will also bring a huge boost to prosperity to the UK regions.
Already, housing developers are snapping up land across the home counties, the Midlands, the North West and Yorkshire, in towns which will undoubtedly prove popular with HS2 commuters.
House prices in Stafford, for example, shot up by 13 per cent on the back of an announcement that HS2 phase one, from London to Birmingham, is due to open in 2026.
Toton Sidings is another town which could be transformed by HS2, as it’s earmarked for the home of the Nottingham area stations for the new line. Currently well connected to Nottingham and Derby via a tram network, HS2 will make the town even more accessible.
The second phase of HS2, which will join Birmingham to Leeds before travelling to Newcastle, will also make the North East region even more attractive to developers.
In addition, Hitachi Rail Europe has bid to build the HS2 trains from its County Durham plant. Should it win the £2.75 billion contract the business could grow its work force by hundreds, creating a greater demand for homes.
Savvy investors are looking closely at these HS2 areas now, despite the long timeframes for the project, which is expected to be completed by 2033. It will be interesting to see how property deals in these areas develop as the HS2 project progresses.
Specialist lender Together provides funding to businesses and property investors nationwide. With over forty years’ experience in the financial services industry, Together offers short-term finance, auction finance, buy-to-let, residential and commercial mortgages and secured loans.
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