HS2 and the Manchester 2040 Transport Strategy

HS2 and the Manchester 2040 Transport Strategy

We have already covered the ways in which the high speed HS2 rail plans will impact the towns, cities and regions along its route. If you missed this article, you can read it here. But how do the HS2 plans relate to the ambitious Manchester 2040 Transport Strategy?

The plans for HS2 link into the long term plans for the Manchester 2040 Transport Strategy, which seeks to further optimise the city for public transport. The HS2 is set to run from two stations in Manchester: Manchester Piccadilly in the city centre, and Manchester Airport. Journey times to London will be just an hour.

As well as the obvious benefits to commuters, and northern residents in general, another priority of the 2040 Transport Strategy will be the improvements to freight transport. This is an aspect that is seen as absolutely key to economic growth, providing sustainable commercial capabilities across the region.

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2040 Transport Strategy Aims To Create Idyllic Manchester

At the heart of the Manchester 2040 Transport Strategy is a move to a cleaner, greener city. Less traffic congestion, and more cycling and walking paths, for example, will reduce air pollution. Leisure and rental facilities, public parks and green spaces, and a thriving, increasingly mobile workforce, are all promised by the work going into Manchester.

Particular industries are being beckoned to the city: financial and professional services, academic research, scientific innovation, and creative and technological industries, are all being targeted as key areas of the global economy expected to generate the highest levels of economic growth.

What’s more, the city seeks to devolve powers from central government. Powers to legislate and fund the city’s transport, its housing, and its regeneration plans, are being brought under the domain of the Greater Manchester authorities. Power to the Powerhouse, as it were.

It feels like the Manchester 2040 Transport Strategy, of which HS2 (and HS3 for that matter) are a part, are being seen as central to the creation of a near-Utopian Manchester.

What Will the Manchester 2040 Transport Strategy Do For Property Prices?

Where HS2 is accompanied by regeneration plans, as well as the wider approach to community transport offered by the Manchester 2040 Transport Strategy, history demonstrates favourable results for property.

Though homeowners may be understandably concerned about the impact on property prices, examples from recent years demonstrate positive reactions. In fact, experience shows us that towns and cities along the route will outperform the rest of the UK.

One of these examples is the case of both Ebbsfleet and Ashford, two towns which have been served by high-speed rail networks since 2007. Striking figures show both towns to have demonstrated better resilience, and quicker recovery, from the recession than the UK average.

As well as demonstrating the positive effects of new stations and high-speed rail networks, and the urban regeneration which comes with them, the figures also demonstrate the positive effect that reduced journey times have on property prices. The high-speed rail network serving the towns has cut the Ebbsfleet-London commute to 19 minutes, and Ashford-London to 38 minutes.

Basically, sustained analysis of property prices correlated against high-speed rail networks highlights a trend towards increased region and town desirability in those areas served by high-speed rail.

By placing integrated transport hand-in-hand with urban regeneration plans and pumped-up industry, property markets can expect to flourish throughout the Northern Powerhouse, as well as the Midlands, and all areas right along the HS2’s route.

With increased productivity (expected to generate gains of £8bn by 2037), and reduced journey times as a result of the Manchester 2040 Transport Strategy will allow people both higher wages and more time to spend on leisure activities. Of course, this will also pump more money into the local economy.

To conclude, all of these many factors point to serious opportunity for property investors, particularly in areas in or close to Manchester. As we at The House Crowd already know, the region is absolutely ripe for the picking, and will only become all the more desirable in coming years.

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HS2 and Its Role in Powering the Northern Powerhouse

HS2 and Its Role in Powering the Northern Powerhouse

HS2 is the biggest expansion of the UK’s rail network since Queen Victoria was on the throne. The project aims to bring cities and regions closer to one another, as well as stimulate economic growth, catalyse investment, and create jobs. Combined with urban regeneration plans across the North West, and industry advancing throughout the region, HS2 promises to be one of the leading driving forces powering Manchester, as well as other midland and northern cities, such as Birmingham and Leeds.

Once all the planning and consultation has taken place, and work finally begins, the first phase of linking London and Birmingham is set for completion in 2026. This will be followed by a section running between Manchester and Birmingham, due to be completed in 2033. Clearly, it’s a long term strategy, but one that will ultimately have a significant effect on the evolution of regional economies as the plan comes to fruition.

As well as reducing travel times, another factor that promises to transform economic performance is that of reduced costs. Given the extortionate rail prices that commuters are currently subjected to, this would be a welcome development. Travel costs aside, cutting journey times will prove massively beneficial to commuters. The Leeds to Birmingham route will slash the two hour journey down to just 57 minutes, and more than halve the time from Manchester to Birmingham, from 88 to 41 minutes.

What evidence is there that these high speed rail links will really have an effect on economic growth?

Well, if you consider the Paris to Lille link, as well as the InterCity 125 network here in the UK, you’ll notice a trend within the connected towns, cities, and regions of a positive bloom in both economy, and general vibrancy.

The HS2 is also expected to increase the UK’s GDP by at least £15bn a year, as a direct result of increased rail connectivity. Productivity gains are also expected in the region of £8bn by 2037.

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Of course, what we are most interested in is how HS2 will drive property values in and around Manchester.

It’s fairly obvious that the economy is inexorably linked to the property market. With the growing economy catalysed by the new rail routes, come more businesses to move in, which, in turn, as a positive effect on population growth. Clearly, population growth drives housing demand, both in the rental and ownership sectors.

An exceptional increase in the demand for homes is expected all along the HS2 rail route. Where property prices in London have created a housing crisis that is untenable for many, the HS2 will provide a fast, simple transport route for those seeking to relocate to less unaffordable regions and commute into the capital. Not only this, but the already blossoming opportunities for careers and leisure in Manchester continue to make it an appealing option for those choked by the dismal state of London.

HS2 itself will deliver an extra 400,000 long term jobs all along its route and in surrounding areas. Even before its completion, 22,000 jobs will be created merely by its construction. These opportunities for workers will further supercharge the property market along the route – which, of course, is the key to fantastic property investment opportunities!
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