HS2 line will see £10bn regional economic boost

Business Correspondent

THE economic impact of the arrival of high-speed railway line HS2 in the West Midlands could be as much as £10 billion over the next decade, according to newly published research.

Data suggests there has been a surge in regeneration and investment near the region’s two new HS2 stations and depot site in Birmingham, known as ‘impact zones’.

It comes despite a later phase to the north of England being scrapped.

It is estimated that 41,000 homes and 7.5 million sq ft of commercial floor space will be generated within a 1.5-mile radius of Curzon Street and Interchange stations, in Birmingham and Solihull respectively, and the depot and control centre in Washwood Heath.

The report also indicated 30,835 new jobs will be created.

Since Royal Assent was granted for the railway in 2017, the number of planning applications seen near these three locations has increased by two-thirds.

Over the same timescale, the area of total planned floor space – including commercial and residential – has increased by 200 per cent and the planned number of new homes has risen by almost 500 per cent, from 10,000 to 55,000 homes.

According to independent research commissioned by HS2 and produced by business consultancy Arcadis, this increase in investment activity far outstrips any rises in planned development outside of HS2 zones, despite the economic impact of Covid-19 and the Ukraine war.

The rate of increase in planned housing within HS2’s impact area

that has been 14 times greater than elsewhere in the region, with the uplift in total planned floor space over four times greater. Since 2017, the construction value of major new projects in HS2’s three impact zones has increased by 240 per cent from £4.5 billion to £15.4 billion.

This building boom is contrary to activity outside of HS2’s impact zones where the construction value of new planned projects has decreased by 16 per cent in the same period – from £19.3 billion to £16.3 billion, the report said.

The numbers and values of projects since 2017 are also much higher compared to an equivalent period before HS2 was given the green light in parliament.

HS2’s chairman Sir Jon Thompson said: “This new research provides evidence that HS2’s future arrival is already driving transformational regeneration and investment in the

West Midlands. It shows that investor appetite, regeneration and investment close to where we’re building our three key assets in the region has surged in the last six years.

“Driven by the promise of enhanced connectivity and heightened investor confidence, HS2’s arrival is spreading prosperity and opportunity to the communities it touches for generations to come.” West Midlands mayor Andy Street added: “This research demonstrates that HS2 has delivered substantial investment and development opportunities in our region in recent years.

“Whether it’s urban regeneration, improved local transport connections, increased housing provision and, of course, new jobs, HS2 is benefitting local people, businesses and our wider economy.”