The controversial railway network that will link Britain's south and north could be worth more than £40bn to the economy, say economists.
Researchers from Ernst & Young (EY) predict the boost will come from thousands of new homes and office buildings expected to be built in the communities surrounding the nine HS2 stations dotted across the Midlands and the North.
Also forecast is the rise in construction employment as the industry embraces the surge of building projects along the railway line.
€1bn annual revenue from housing projects to 2035
EY undertook research on the first three stations on the route – Birmingham Curzon Street, Old Oak Common in West London and Manchester Piccadilly – and found that residential and commercial schemes around these sites will generate £1bn every year until the project is scheduled for completion in 2035.
HS2 is intended to link the north and south of England with high speed travel
The data suggests that these hubs will delivery approximately 7,000 new homes and almost 40,000 extra jobs, not taking into account the remaining seven stations in locations such as Leeds.
According to EY, 80,000 square metres of new office space will be created around those three sites like the work taking place in the centre of Birmingham. The regeneration of Curzon Street has been spurred on by the nationwide project.
HS2 controversial with conservation groups and environmentalists
HS2 is one of the most important infrastructure projects to date, designed to spread wealth and connect Britain's major cities with fast journey times. However, the project has been surrounded by controversy, particularly from environmentalists fearing it will plough through rural England.
Manchester's Piccadilly Station before regeneration
Manchester on track to boost jobs and economy on 'Olympic scale' with HS2 project
Conservation groups and those living near the proposed route have opposed the development, with homeowners fearing a decrease in value of their properties. In March, Mayor of London Boris Johnson joined the chorus of criticism claiming there were better ways to spend taxpayer's money.
The HS2 committee and the London and Communities Railway (LCR), a government-owned company that operates the UK arm of the Eurostar International train service from St Pancras, have teamed up to put in place new agreements between central and local governments to drive urban regeneration around the stations which are to be built.
Investment to focus on areas close to HS2 stations
An illustration of such a deal is that between the government and Greater Birmingham & Solihull Local Enterprise Partnership, which will see £357.3m invested in the area. The project will help to create up to 19,000 jobs, allow as many as 6,000 homes to be built and generate in the region of £110m in private investment.
Manchester's Piccadilly Station after regeneration
The first phase of the railway network, running between London and Birmingham is expected to open in 2026. The HQ for this section of the line will be housed in the West Midlands city.
Chinese invested a significant contribution to cost
Birmingham has seen substantial investment into its manufacturing industry from Chinese companies over the last two years, with HS2 increasing its appeal.
These new figures on the economic impact of HS2-related property construction have come to light ahead of the UK version of the international MIPIM real estate conference, to be held in Britain for the first time on Wednesday 15th October.
IPIN Global will be at the event and would welcome the opportunity to meet with Members and industry professionals alike.
- Monday 13 October 2014