#HS2 – High Speed 2 implications on the UK Property Market

UK property market HS2With the announcement of the HS2 today, there has been much in the media, with a lot of criticism. We at PropVestment want to focus on the implications of HS2 on the UK property market.

Economically this will create jobs and provided technology is sourced within the UK will benefit us in the long run.

In terms of the thousand or so homes effected, we believe they have been offered 110% the market value of their property prior to plans announced. Home owners have got a good deal, especially in some northern reaches where the UK property market is almost non existent as UK potentially drops into a “triple dip” recession.

How does HS2 effect the UK Property Market?

  •   HS2 impact on UK Property MarketReduce Pressure on London
    As commuting becomes easier with journeys under an hour from Birmingham to London, similar to a journey from Zone 4/5 to Zone one within London. Therefore many will choose to locate outside London. Benefiting from lower property prices and potentially larger homes.
  • Revival of Northern Property Markets
    As from locations will be commutable to the major cities and London. Hence more people will choose to locate in those towns, boosting house demand and rentals too. Landlord’s and investors will find these areas as more attractive places to invest. First time buyers and young professionals out priced by London have the option of settling in Manchester, Sheffield, Leeds or Birmingham and able to travel more easily.
  • Revival of UK Construction
    It is inevitable that there will be need for new home and in the areas surrounding the HS2. Primarily for the construction workers and secondary for the end users who look to make use of the HS2 rail link.

 

Where to buy UK Property Top Tip: Totan, Nottinghamshire

About Toton

Where to invest in UK Property Toton

Toton, Nottinghamshire

*facts sourced from BBC

  • Toton is about 7 miles from Nottingham city centre by road.
  • It is about 10.5 miles from Derby city centre by road.
  • The nearest railway station is Attenborough.
  • Toton is south of the A52, which links Derby and Nottingham, and west of the M1 (1mile).
  • Postcode: NG9
  • Previously well known as a train spotting location
  • Borough of Broxtowe, East Midlands
  • Population of only 8000

 Why invest in Toton

  •  Toton Property MarketExcellent Transport Links
    1 mile to the M1
    HS2: Toton to London = 51 mins
    Toton to Leeds = 29 mins
    Toton to Birmingman = 19 mins
  • Proximity to Derby & Nottingham
    Bustling cities in their own right. Extenuated by a buzzing student population. Brilliant for location for young professionals to settle with transport to London and Birmingham for jobs. Easy access to Nottingham and Derby for local and social ammenities
  • Almost 20,000 jobs to be created around the Nottinghamshire region due to HS2.

Why you shouldn’t invest in Toton

  •  Completion 2026 – 2032
    With so many years till the final user population settle in the area your money may stay idle for years. However currently a 3 bed house typically is around £200k, this may sky rocket. Easy returns could be made.
    Government projects often run late with delays, furthering the delay on returns for a property investor.
  • Already priced in?
    On our research we were a little surprised at the pricing. Maybe locals have been ahead of the game and have partly priced in this expected good news.

PropVestment Concludes

PropVestment believes any large infrastructure project is beneficial to the UK property market and economy as a whole. It is up to the smart property investor to take full advantage of such opportunities and smartly invest in and around these areas. Get there early before prices correct.

PropVestment provides property investment sourcing and consultancy services for the UK property market. Experienced investors and First Time Buyers are invited to call us for a FREE consultation.

Call today its FREE 

 

Nirav

About PropVestment UK

Nirav Shah, LSE Graduate turned Property professional
This entry was posted in First Time Buyer, House Prices, Property, Property Investment, Real Estate and tagged , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Showing 3 comments

  • Nirav Nirav says:

    Our readers have also suggested looking at Long Eaton, Sandiacre and Stapleford.
    These are not hitting the headlines so will be more price competitive and attractive.

    • Nirav Nirav says:

      A quick update on the #HS2

      From the BBC:

      Homeowners living near the route of the HS2 high-speed rail link will now be able to ask the government to buy their property.

      It follows the transport secretary’s announcement that the route for the first phase of the £42.6bn project has been protected from future development.

      Homeowners will get the “unblighted” market value of their property, plus 10% (up to £47,000) and moving costs.

      Ministers said HS2 was “moving from the drawing board towards construction”.

      The new high-speed railway line is intended to link London to Birmingham by 2026, with branches to Manchester and Leeds, via Sheffield, planned by 2032.

      As part of the first phase of constructing the line from London to Birmingham, Transport Secretary Patrick McLoughlin has announced the “safeguarding” of the route.

      ‘Future prosperity’
      This means local authorities will now have to consult with the company overseeing construction, HS2 Ltd, about any development within the safeguarded area.

      Mr McLoughlin said: “Safeguarding is an important milestone for homeowners and for planning purposes.

      “It shows we are determined to deliver this once-in-a generation opportunity to drive growth, generate jobs, and secure our country’s future prosperity.

      Continue reading the main story

      Start Quote

      I understand the distress of those who live along the line of route and can assure people that we will process claims to purchase their property swiftly.”

      Patrick McLoughlin
      Transport Secretary
      “The purpose of safeguarding is not to prevent development along the route of HS2, but to ensure that any development that does take place is consistent with our plans for the railway.” ….. READ MOREhttp://www.bbc.co.uk/news/uk-23245252

  • HS2madness says:

    You haven’t got your facts correct. There are many many more home affected by HS2 than “the thousand or so”. Anyone living within a few hundred metres of the line will be affected, as will their property.

    We live 300 metres of the line and are not eligible for compensation until the after the line is built by which time we will be dead or deaf. In the meantime, we can’t sell (we planned to downsize in the next 3 years so we can retire), no estate agent can sell it for us because as soon as people hear about the proximity to the line, they won’t even come and view it. Same with the rental market – no-one wants to know. We are not alone . There are thousands more affected, up and down the country.

    If we sought compensation now we’d
    a) have to prove that we have to sell now under the exceptional hardship scheme,
    b) would have to have been trying to sell for a year,
    c) we hadn’t rejected an offer of 15% less than we were asking

    Most people reading this will have the right to move house when they want to, We have lost that right. We can’t retire. We can’t downsize to put money into our pension. Our house was once our haven. It’s become a millstone around our neck.