New research indicates the planned arrival of HS2 is spurring investor confidence in the West Midlands, with data pointing to a £10 billion economic boost over the next decade.
Analysis of areas near HS2's three regional hubs in Curzon Street Station in central Birmingham, Interchange Station in Solihull, the Washwood Heath Depot and Network Integrated Control Centre shows increases in regeneration and investment since Royal Assent for the railway was granted in 2017.
Planning applications within 1.5 miles of these hubs have risen two-thirds. Total planned floorspace, including commercial and residential, has jumped 200%. Planned new homes have soared nearly 500% from 10,000 to 55,000.
Sir Jon Thompson, Executive Chair at HS2 Ltd 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.”
This growth far exceeds rises elsewhere locally and occurred despite economic shocks like COVID-19 and the Ukraine war. The rate of planned housing increase near HS2 is 14 times greater than the wider region. Total planned floorspace is over 4 times higher.
HS2 highlighted since 2017, the construction value of major new projects around the HS2 hubs has grown 240% to £15.4 billion, evidencing the investment boom. This contrasts with a 16% decrease to £16.3 billion in zones beyond HS2's impact.
Within its zones, HS2 is estimated to enable 41,000 extra homes, 704,000 square metres of space and 30,835 new jobs.
Andy Street, Mayor of the West Midlands, said: “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.
“It’s vital that local people see the tangible benefits of major schemes like this.”