If you are looking to invest in the property market or you are keen to know where best to buy your next home, it is advisable to be aware of significant developments. Transport links and improvements have long impacted on the property market, and there is no doubt that high-speed rail connections transform a local area and the local property market.
Therefore, it is perfectly natural that many people want to know more about HS2, the high-speed rail and the potential impact on Birmingham’s property market.
What is HS2?
HS2 is set to transform rail travel in England, with a connection between London and Birmingham that can travel at speeds up to 250mph. This service will be capable of carrying more than 1,000 per train and the journey time between Birmingham and the capital will be less than an hour. This high-speed rail link is expected to be in place by 2026.
HS2 will form the backbone of rail travel in the country and that by 2033, there will be a high-speed link from London through to the north of the country. With the Birmingham to London connection set to be the first concluded, this is the area which will see the most immediate impact.
Why will HS2 make a financial impact for Birmingham?
The improved connection between Birmingham and London is of significant benefit, providing another strong reason for people to live in Birmingham, but there will be a positive impact on local life and the community.
Considerable development work is being carried out at Curzon Street Station, which will become the central HS2 hub for Birmingham. This development brings jobs, and it will also bring new residential developments, positively impacting on the local housing market in two main areas.
Major firms like Deutsche Bank, HSBC and PWC already have hubs in Birmingham, with HSBC moving many jobs close to the HS2 centre. It is likely other firms will follow suit, taking advantage of affordable rates and excellent connectivity in Birmingham.
Birmingham house prices have risen in connection with HS2
Understandably, there was an immediate and positive impact on Birmingham house prices. There was an increase of 8% in the year leading to September 2018, and many experts believe that prices will continue to rise. As an example, the average price of houses in the Ladywood area of Birmingham rose by 17%, from £147,121 to £172,498 in a single year.
With the commute from Birmingham to London taking 49 minutes, there will likely be a significant increase in demand for Birmingham homes. Many areas in and around London cannot offer a commute time as attractive as this, and the cost of property in these areas will be significantly higher. It is not beyond the realms of possibility to think that event tenants will rent in Birmingham while working in London; such is the capabilities of HS2.
With demand for Birmingham property, both to buy and rent, set to increase as HS2 draws closer, it is easy to see why this is a good time for investors to consider the market. If you are keen to learn more about why Birmingham will benefit from HS2 and why it will become one of the most attractive places to buy property in the UK, contact Spot Blue and we will be happy to assist you.