With 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?
- Reduce 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
*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
- Excellent 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 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.
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