The ‘HS2 effect’ is expected to trigger a rapid growth in property prices surrounding Sheffield train station, according to experts.
High Speed 2 (HS2) is a rail network that will connect London to Birmingham and continue to Manchester, the East Midlands, Leeds and Sheffield through its Y-shaped route.
Each city is expected to see an immediate rise in property prices. Cities across Yorkshire such as Bradford, Harrogate and York are already beginning to see impressive growth, according to Oliver Ramsden, managing director at Aspen Woolf, a property investment company.
Oliver said: “The rise in house prices has already started and will be continuous. Even during construction, prices will continue to rise in anticipation, which is what we call the ‘HS2 effect’.
“Any negative impact from building works and the running of the train service will be far outweighed by the huge benefits of being near a station.”
HS2 was initially announced in 2010. In July 2017, the Government released plans for Phase 2b of the project, stating that the route from the West Midlands to Leeds would also run through Sheffield via a new spur and existing lines. The scheme is due to be fully operational by 2033.
The rail network could reach top speeds of 360kph and will provide an 87-minute connection from London to Sheffield, a half-hour reduction from the current time. This will make commuting to the South each day for work viable for Sheffield residents.
“We believe the greatest impact on house prices will be seen in the North,” Oliver added. “With journey times reduced to the capital, the northern cities suddenly become valid destinations for new businesses and commuters.
“We are witnessing this already, the northern cities are showing some of the highest forecasted capital growth in the country. London, on the other hand, is starting to slow.”
Sheffield was recently cited as one of the strongest cities in the UK for house price growth, reaching the top 10. London was placed at the bottom of the list.
Oliver said: “The stations on the HS2 line will attract investment through new commercial and residential developments. This will lead to job growth.”
It has been reported that the HS2 project, which has a budget of £56bn, will deliver a £92bn boost to the UK economy.
“This economic regeneration and development is already happening,” Oliver continued. “Since HS2 was announced, we’ve already witnessed new residential and commercial developments around the potential stations.”
However, the HS2 scheme has faced criticism due to its cost, damage to the environment and the disruption it will cause for residents living near the line.
Katie Bacon, conveyancer at Graysons Solicitors said: “So far, we haven’t seen any property growth due to HS2. Instead, we have experienced people being cautious of how the scheme will affect homes close to the train lines.
“However, people may be interested in living near the affected stations once the rail network is complete and the benefits it can offer residents becomes clear.”
Homeowners affected by HS2 may be entitled to compensation through a variety of government property schemes. Just over 110 properties in South Yorkshire have already been bought by HS2.