Construction BUSINESS

New research commissioned by HS2 Ltd reveals that the upcoming high-speed HS2 railway is poised to inject a significant £10 billion economic boost into the West Midlands over the next decade. The study, conducted by consultancy firm Arcadis, focuses on the impact within a 1.5-mile radius of key HS2 locations, including Curzon Street in central Birmingham, Interchange in Solihull, and the planned Network Integrated Control Centre and maintenance depot in Washwood Heath. Projections include the creation of 41,000 new homes, nearly 31,000 job opportunities, and 700,000 square metres of additional commercial floor space in these areas.

Since the approval of Phase One of HS2 between London and the West Midlands in 2017, the targeted locations have experienced a surge in investment activity. The number of planned new homes has skyrocketed to almost 55,000, a notable increase compared to the less than 10,000 planned during the equivalent period before receiving Royal Assent. The research highlights a staggering rate of growth, with the planned housing increase around HS2’s three West Midlands hubs being 14 times greater than in other regions. Additionally, the total construction value of major projects in these areas has risen from £4.5 billion to an impressive £15.4 billion.

Sir Jon Thompson, Executive Chair of HS2 Ltd, emphasized the transformative impact evidenced by the research, stating that HS2’s impending arrival is driving regeneration and investment in the West Midlands. Mayor of the West Midlands, Andy Street, echoed this sentiment, pointing out the tangible benefits, including urban regeneration, improved local transport connections, increased housing provision, and new job opportunities. Despite these positive prospects, concerns have been raised about the estimated cost of Phase One, soaring to as much as £66.6 billion, attributed to various factors such as low original budgets, changes in scope, lower productivity, weak contractual models, and inflation. The first phase of HS2 is scheduled to open between 2029 and 2033.

Article and Image Source: The Irish News