New research indicates that house prices near the three regional sttion for the HS2 rail network have yet to receive a boost from the proposed lines - and are trailing other areas
The findings, from AJ’s sister company Groundsure, revealed that property prices within 5km of the new stations planned for Birmingham, Manchester and Leeds had risen at a pace significantly below the national average since 2009.
Sold prices of properties near the stations also rose proportionately more slowly than those of properties close to the proposed new lines.
The figures stand in stark contrast to the ‘Crossrail effect’, which is seen as driving up house prices in parts of London and the Home Counties expected to benefit most from the under-construction trans-capital line.
Groundsure’s use of Land Registry data found that between 2009-14 the price of homes in the Birmingham footprint rose by just 0.8 per cent, properties in Leeds 7.9 per cent, and those in Manchester 10.4%.
Over the same period, homes within 5km of the proposed HS2 route – but outside of the terminus zones – rose by an average of 15 per cent. The national average rise for homes outside of London was 17 per cent.
Groundsure said the data showed – in housing terms at least – that HS2 was so far not living up Chancellor George Osborne’s assertion that it would be “the engine for growth in the North and the Midlands”.
Managing director Dan Montagnani said it the argument that areas to be linked by the project needed the development to boost local economies remained valid as house prices near the HS2 city railway stations were not keeping up with the rest of the country.
‘When starting our research, we had expected Birmingham to be one of the first cities to benefit economically with a faster connection to the capital, which is expected to be operational by 2023,’ he said.
‘But instead, we’ve found that house prices near the Birmingham HS2 station have remained relatively static. This suggests that any equivalent of the Crossrail effect, which has seen significant house price rises near to new stations along the new route across London, is some way off as yet.’
One of the biggest beneficiaries of the Crossrail effect outside of London is expected to be Maidenhead, which will see a 40%-plus increase in house prices between now and 2020 in part because of the arrival of the route, according to recent research by consultants JLL.