HS2 is a continual debate. The confusion among the public is at an all-time high and there are more will there won’t there’s than a year’s worth of soap operas.
What that has done to the property market in particular has been quite significant.
On the one hand, many experts are convinced it will see the value of property rise, as links to the likes of London, Manchester and Leeds become better, while others believe it will have entirely the opposite effect, with disruption causing prices to lower.
So, what impact is HS2 actually having on our homes?
The Negative Impact HS2 Is Having On House Prices
The truth is, HS2 is seeing house prices fluctuate and there are both positive and negative effects the high speed line is having on our property.
One of the main negative effects is due to the sheer disruption it is causing. Those properties located within half a kilometre of the HS2 line are most likely to see a drop in property value, with the building works causing, or likely to cause, major disruption in the area, whether that be through higher traffic levels, noise pollution and even air pollution.
This was also the case in the building of HS1, with property prices sinking dramatically as building work began. However, once complete they did recover and the negative impact was only short term.
That is predicted to be the case once again and it is certainly worth noting that most negative effect the disruption has on home prices close to the HS2 line will only be temporary, although those homes directly next to the line may continue to suffer.
The Positive Effects Of HS2 On House Prices
For the most part, news outlets and experts have singled out the positive effects that HS2 will have on property prices, and that is largely true.
There are a number of reasons that people will reap the rewards of high speed train travel, and commuting is certainly the main one. Being able to reach various cities in a matter of minutes rather than hours means people can relocate out of a city and across the nation.
Once HS2 opens, we’ll see Leeds to London accessible in 90 minutes, Manchester to London in just over an hour and Birmingham to the capital in just over 45 minutes.
With property prices in those cities outside the capital much cheaper, many will look to move, thus increasing demand and then, of course, house prices.
Birmingham is one city expected to benefit more than most as not only will house prices increase, but it’s estimated that more than 90,000 new jobs will also be created in the city because of HS2.
That again means more people living there, and it’s likely we’ll see whole new communities develop over time.
House prices in the city have risen 8% since 2017 and in some cases across the city, where the HS2 station will be close by, prices have risen as high as 17%.
Naturally, it’s a similar story in Manchester and Leeds too. In Leeds the council have announced 4,000 new homes will be built around the station, with companies such as Channel 4 beginning to find new homes there.
Crossrail in London is a good example the new train line had a positive effect on property in the area. When announced in 2009, a number of people looked to by property close to stations. It was considered a gamble at the time, but in the eight years that followed the price of property within a mile of a station rose by 66%. In Abbey Wood that was as high as 71%.
Back in Birmingham, businesses are already starting to arrive and with property prices already on the move we could see similar statistics.
HSBC have announced they will move 1,000 of their staff out of London and into Birmingham, while the interest from developers wanting to build office space and apartments close to the proposed Curzon Street station is staggering.
Of course, with the government continuing the back and forth with HS2 and it’s development, the definitives into when, where and how much property prices will increase is less than certain.
That in itself is causing some disruption within the property market and one of the main reasons in the fluctuations as it stands.
Once the market has answers, it seems almost certain that HS2 will follow a similar pathway to HS1 and Crossrail and over the long term prove fruitful for property owners within the HS2 catchment areas.