Will HS2 Put House Prices Back On The Right Track?
Anyone who is keen to buy a property will, no doubt, have its proximity to convenient transport links at the forefront of their mind. However, for those who commute into cities such as Birmingham, Leeds, Manchester or London, rapid and easy transport options are especially important.
Of course, it is well known that properties located close to good transport links can command higher asking prices, so the prospect of the HS2 rail link on the horizon is an exciting one for home owners in the areas that are set to benefit from the development.
The brand new HS2 trains will cut the commuting time between Birmingham and London from one hour and 24 minutes to just 49 minutes – a substantial and welcome reduction. Not only will this prove popular with workers who want to benefit from the higher salaries that the capital can offer but enjoy the advantages of living in the provinces, but it is also likely to be met with enthusiasm by those who want to have the option to pop into London for the day to take in a show, visit the attractions or simply go shopping.
While the scheme is viewed by many as an unaffordable luxury that will have a serious effect on many communities across rural England, it has stirred up huge enthusiasm among the property investment community who see plenty of excellent money-making potential in the proposed roll out of the plan.
A Rise In Demand For Train Services Leads To House Price Increases
Over the past few years, there has been a massive increase in new properties being built close to train stations that are popular with commuters. As more people are choosing to live outside the city centre yet work inside it, the demand for conveniently located housing is on the rise. It comes as no surprise that the areas closest to commuter stations have also seen the highest increase in property prices. Homes located near to train links have increased in value by around 5% more than other properties in surrounding areas.
A clear example of this in practice can be seen in the area close to Birmingham New Street Station, which recently received an upgrade that has resulted in an increase in passenger footfall of 33% since 2015. Houses within a two-kilometre radius have increased their value by as much as 44% over the last five years – a premium of around 14% when compared to homes in neighbouring areas.
How Will The HS2 Project Have An Impact?
The HS2 rail project, which is set to cost £55 billion, will eventually connect Scotland and London with a high-speed train link. Once in place, the train line will increase the UK’s rail network capacity exponentially while also considerably reducing journey times. It is a win-win situation for both commuters and home owners alike, with those in Leeds, Manchester and Birmingham looking to benefit the most.