What Does HS2 Mean for Birmingham Investment? (2024 Update)

A major catalyst for Birmingham’s ongoing transformation over the last decade, High Speed 2 remains a key infrastructure project for the city despite updates to the scope of the line over recent years.

This high speed rail network between London and Birmingham will deliver a new level of connectivity between two major cities and revolutionise their respective property markets.

As the HS2 project enters a new ‘critical phase’, we’re taking a look at how HS2 Birmingham investment is directly impacting not just the journey time between London and Birmingham but also what it means for Birmingham and the people who are either living or investing in the second city in 2024.

What is HS2?

HS2 is a brand new railway project designed to significantly improve travel between the West Midlands, London and the South East.

Offering higher capacity, reduced travel times and fewer delays, HS2 is a once-in-a-generation infrastructure project that will halve travel times between London and Birmingham.

According to data, HS2 will: 

– Serve 26,000 people per hour across 17 trains

– Reduce travel times between London and Birmingham to 52 minutes

– Deliver an economic uplift of £10 billion over the next decade

Railway stations at Birmingham Curzon Street, Interchange in Solihull, Old Oak Common and Euston (both in London) will serve the HS2 line and ensure that hundreds of new destinations are within easy reach.

HS2’s construction is well underway and there are currently 350 active sites across the planned line. With 30,000 people and 3,200 businesses working on HS2, construction is already occurring across two thirds of HS2’s viaducts and bridges.

Completion is expected between 2029 and 2033, meaning the next decade will be an exciting time for investors in key areas around HS2 as inward investment creates brand new developments and delivers entirely new demographics into rental markets across both cities.

What HS2 stations are in Birmingham?

Across the entire HS2 line there are four key stations being implemented – two in the West Midlands and two in London. The main stations are at Curzon Street and Euston, both of which will act as hub stations for their respective regions.

Curzon Street is the West Midlands terminus at the heart of the HS2 network and will act as a catalyst for four public spaces – two squares and a promenade – whilst integrating with the existing transport network in the city including Midland Metro.

This new station is also the catalyst for the Curzon Investment Plan, a £724 million project that will regenerate the surrounding area over 30 years, creating 4,000 new homes and 36,000 new jobs.

At the same time, Curzon Street will also drive even more foot traffic into Digbeth and significantly accelerate the area’s continued growth.

Just outside of Birmingham city centre, Interchange Station in Solihull will connect HS2 to an already well-connected destination, directly linking the rail line to the NEC and Birmingham International.

Much like Curzon Street, this new station has sparked regeneration in the surrounding area. The Arden Cross Masterplan is the largest scheme – creating mixed-use spaces for residents and businesses on top of a ‘world-leading centre for research and development.’

It’s expected that the Arden Cross Masterplan will directly create 3,000 new homes and six million square feet of commercial space.

How will HS2 benefit Birmingham?

The primary benefit that HS2 offers Birmingham is the accessibility it’ll mean for the city in terms of commuting. Almost overnight, it becomes possible for workers in London to live in Birmingham and use HS2 to commute in just 52 minutes – which will further push the incredible demand for Birmingham property that currently exists.

If supply remains at current levels, this would also naturally lead to an increase in house prices and rental values across the best places to invest in Birmingham, as potential tenants on London wages enter the city’s more affordable market.

For Birmingham businesses, the introduction of an entirely new demographic will also lead to a much larger employee pool. Suddenly Birmingham becomes a much more attractive proposition for businesses of all sizes and potential for economic growth rises exponentially.

Based on the benefits that large businesses such as PwC, Goldman Sachs and Deutsche Bank have already brought to the table, Birmingham’s ongoing transformation would accelerate to new levels.

Even outside of the professional sector, the local economy in Birmingham would benefit from HS2. Instantly we’d see more people across the city with money to spend in coffee shops, restaurants, local stores and utilising public transport. It’s expected that this boost to economic performance wouldn’t be limited to Birmingham – destinations in the surrounding area and throughout the West Midlands would also benefit.

What does HS2 mean for Birmingham investment?

The impact that HS2 has already had on Birmingham – even before completion – has been exceptional. In the seven years since the project was given the greenlight, Birmingham property prices have increased by 31% and world-class businesses have flocked to the city, many directly referencing high speed railways as a reason for moving. There’s been a 240% increase in the construction value of new projects across key HS2 areas, alongside a 484% increase in the number of planned homes. 

In terms of inward investment, the West Midlands has experienced the most outside of London since 2017 and this positive performance is expected to carry on going forward – HS2 is forecast to drive £10 billion in economic growth over the next decade.

With HS2 investment primarily concentrated around three key sites – Curzon Street, Interchange and Washwood Heath – the ripple effect the project has also had on the surrounding area cannot be ignored. HS2 has indirectly supported multiple development projects including The Tea Factory in Digbeth, Digbeth Loc Studios, The Octagon in Birmingham city centre and the Arden Cross Masterplan near Solihull.

Furthermore, these ‘HS2 Impact Zones’ are expected to see 41,000 additional new homes and 30,835 new jobs, creating exciting new destinations across the region. All of this will contribute to a huge boost for the Birmingham property market, particularly for investors interested in the region.

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