What does the start of HS2 construction mean for buy-to-let investors?

September 24, 2020

A decade since the proposals to build HS2, the UK’s new high-speed railway, were first made public, construction on the controversial scheme has finally begun. HS2’s cost and environmental impact have both attracted criticism, but its potential economic impact has seen the government push ahead with it. This has created plenty of potential in terms of economic uplift and jobs creation. It also spells good news for property prices in certain locations. 

“A major new transport system of this nature can have a huge impact on property prices, so HS2 creates some exciting opportunities for property investors. Each of the key cities along the route looks set to benefit over the next 20+ years, as construction of HS2 continues.”

Dale Anderson, Managing Director, Fabrik Invest

HS2 will provide a number of key UK cities with a much faster rail connection to London. Birmingham will be the first city to benefit, with journey times between the two cities reduced to 45 minutes (from a current fastest time of 1 hour 22 minutes). 

The Birmingham-London section of HS2 is due for completion around 2028-31, according to Transport Secretary Grant Shapps’ report to Parliament in September 2019. Once complete, it will make Birmingham to London a viable daily commute. 

One look at wages and property prices and the benefits of this becomes clear. According to the Office for National Statistics (ONS), the average weekly wage in London stands at £727, while Hometrack reports that the average property price there is an eye-watering £475,100. In Birmingham, while average weekly wages are somewhat lower, at £527, the vast difference in property prices more than makes up for it. According to Hometrack, the average Birmingham property costs just £167,700 (as at July 2020). 

Someone living in Birmingham but commuting to London for work could therefore enjoy wages that were 38% higher than in their home city. At the same time, their property purchase cost in Birmingham would be around one third of what it would be if they bought in London. 

“Homes within easy reach of Birmingham’s Curzon Street Station are going to be in much demand once HS2 opens. Owner occupiers and investors will both play a key role in driving up property prices as we move closer to that point. Construction beginning on HS2 is a significant step forward in that process.”

Dale Anderson, Managing Director, Fabrik Invest

New School House in Birmingham’s Jewellery Quarter, which is seven minutes by road from the city’s Curzon Street HS2 station is precisely the kind of investment opportunity that stands to benefit from the high-speed railway line over the coming years. Capital growth of 18% is projected by 2024, with excellent potential for further increases as the opening of HS2 draws nearer. The 22 apartments will provide characterful homes for working professionals looking to get the best out of living in Birmingham now, with the added bonus of providing easy access to Curzon Street in order to harness the full potential of HS2. 

To find out more, call Fabrik Invest on 020 8175 9891, email enquiries@fabrikpropertygroup.com or visit www.fabrikinvest.com

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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