Picture this, a high-speed train in Europe connecting London and Birmingham, travelling up to speeds of 250mph, loading up more than 1,000 people per train and reaching its destination in 45 minutes. By 2026, that will be High Speed 2 (HS2), a rail link between the capital and the second city. HS2’s Central Station will be located on Curzon Street in the Eastside Birmingham in Digbeth.
This extension will eventually lead to Edinburgh, Glasgow, Newcastle, Leeds and Manchester. HS2 is aiming to become the backbone of the UK rail network, a plan that has been initially divided into three stages over a 15-year development timeline.
Anticipation for the rail link is already creating an impact, attracting investment opportunities in Eastside Birmingham.
The Halo Effect of HS2
The immediate area around Curzon Street, the HS2 hub, will experience a ‘halo effect’ because of large investment and excellent travel links nearby and it’s forecasted that HS2 will put Birmingham as the biggest business, professional and financial hub in the UK outside of London.
The retail and leisure sectors will benefit from increased profitability thanks to local travel link improvements as well as HS2 making the city more accessible to areas further away. While HS2 is a massive infrastructure project, it’s joining a line of other regeneration that’s contributing to the enormous rise of Eastside Birmingham.
HS2 will also contribute greatly to the many businesses and corporations in Eastside Birmingham. With HSBC, PWC and Deutsche Bank having headquarters in the second city, HSBC has moved 1,000 jobs from London to Birmingham. Employees will enjoy going to and from their workplace with efficient and convenient travel links.
Thanks to these economic factors and developments, Birmingham has fast become a key UK destination for residential property investment, with a chronic undersupply of residential units not meeting the soaring demand. If you’re looking to invest in UK property, Birmingham is forecasting growth across the residential, commercial and hospitality sectors, all of which is helped by HS2.
Why will HS2 make a financial impact for Birmingham?
So how will HS2 impact Birmingham property? The initial plan of the line will circle around Curzon Street Station in Eastside Birmingham, which is being transformed to become the main hub for HS2 in the city. This transformation alone will bring an abundance of new jobs to the city. It’s also an indicator of commitment from the government to build up a thriving Birmingham, with excellent infrastructure and investment opportunities.
As part of the Big City Plan, HS2 will join new and contemporary developments such as the Birmingham Smithfield Project, Paradise Birmingham and Arena Central, a collection of projects that represent an unrivaled level of internal investment.
Centro & Future Travel believe the boost in investment, as businesses head over to Birmingham, could even see 22,000 permanent jobs and a Gross Value Added (GVA) impact of £1.5bn by 2026, creating a stronger West Midlands economy.
Forecasts for HS2 and Property Prices
As foreseen, HS2 is also having a significant effect on Birmingham property prices. With the average Birmingham house price up by 8% since 2017 and only set to rise further, buyers are jumping at the opportunity to purchase in a location which is seen as up-and-coming, connected and affordable.
This is reinforced by increases all across the city, for example, the average house price in Ladywood, Birmingham has risen from £147,121 to £172,498 (17%) in a year.
At the same time, there is also a huge increase in tenant demand from renters looking to vacate the capital, where the property is cheaper and more available. With young professionals and new families seeking better rental opportunities, demand is hitting records highs as waves of tenants look to Eastside, Birmingham.
HS2 represents a key development for London commuters, effectively turning Birmingham into a premier commuter hotspot overnight. Cutting down the commute between the two cities to just 49 minutes, Birmingham will become accessible for a whole new working market. London alone has 300,000 workers that commute there for work.
Read more about our Eastside Birmingham Property Investment Hotspot series below or if you’re interested in running through our local Eastside new build developments chat with the team on 02079236100 or book a time.