House prices haven't increased in the areas around the three regional HS2 stations and may have been negatively affected despite the arguments for growth generating prospects.


Property data consultancy Groundsure argue that property prices in the areas surrounding the new stations planned for Birmingham, Manchester and Leeds have increased at a significantly slower rate than the national average since the announcement of HS2.


The impact of HS2 also saw property prices near the proposed HS2 lines have also been depressed by the speculation and consultation over the development.


These regional figures are in stark contrast to the “Crossrail Effect” in London and the Home Counties which have seen house prices increased around the area expected to benefit from the construction of the new trans-capital infrastructure.

 

Groundsure’s research indicated that Birmingham house prices remained almost flat since 2009, despite a huge move of industry into the area including the anticipated shifting of the centre of the construction industry to the West Midlands ahead of HS2’s development. Manchester has increased by around 10% whilst Leeds property prices have increased by almost 8%. Prices closer to the three terminuses increased more rapidly by around 15%, however this is below the national average of 17% and lower than would be anticipated if an “HS2 Effect” was being generated along the route.


It doesn't appear that HS2 is so far living up to the government assertions that the line would be an engine for growth for the North and the Midlands.


HS2 could prove to be a huge benefit to the economy and it’s important the government continues to make the case for the development, promoting the potential advantages to those living in the areas close to the lines and terminuses.


This is especially important for the construction industry to understand the potential property price increases in the region as this will be a driving factor in their ability to commit to building more homes in the area, and which types of homes should be built, whilst ancillary industries to construction (including building supplies) determined the anticipated levels of demand so investments can be made in manufacturer and acquisition ahead of the increased demand.