The arrival of HS2 in west London is creating a new development “hotspot” in the capital and driving a £10 billion boost to the local economy, according to new research.
The study, commissioned by HS2 Ltd, shows that construction of Old Oak Common station is driving a transport-led regeneration of the area, helping to create thousands of new jobs and homes over a 10-year period.
In the report “From trains to cranes: HS2 and the West London development boom” it is shown that planning applications in the 1.5-mile radius around the station site have increased by 22% since Royal Assent for HS2 was granted in 2017.
The total value of the planning applications that have been submitted is a whopping £3.41 billion over seven years – an increase of 325% from the previous seven-year period.
The analysis also projects that HS2 will support the generation of over 22,000 new homes and almost 19,000 new jobs in the local area.
In all, it shows that the volume and value of investment and regeneration projects close to Old Oak Common has grown comparatively quicker since 2017 compared with the seven years previously and the equivalent seen in other parts of west London.
The locality – once dominated by retail, wholesale, and logistics industries – is being transformed into a centre for high-tech jobs, spearheaded by innovation and the creative industries. This influx of skilled roles is reflected in projections of annual salaries increasing by over £1,500 per year in the area around the station.
The study, carried out by the consultancy Arcadis, said that the promise of the new station had “galvanised investors, boosting confidence in the positive legacy high speed rail will create locally.”
HS2’s Old Oak Common station will be a super-hub with unrivalled connectivity, linked to over 100 stations across the UK. The 14-platform station will be served by HS2 services as well as Great Western Mainline, Heathrow Express, and the Elizabeth Line – becoming the 42nd stop on the new London line.
The research underlines the extent to which new infrastructure in the UK can act as a catalyst for economic growth. This follows the publication of an earlier report released last year which showed a similar boost to the local economy in the West Midlands generated by the pending arrival of two new HS2 stations and the railway’s control centre in the region.
Rail Minister Peter, Lord Hendy: “This research demonstrates that the construction of HS2 is driving transformational regeneration around the new station at Old Oak Common, with substantial benefits for local people and new opportunities for businesses.
“This is exactly what investment in major infrastructure projects can do – not only will HS2 improve connectivity between London and Birmingham and beyond, but it’s also creating high-skilled jobs, boosting housing and stimulating long-term economic growth.”
Mark Wild, HS2 Ltd’s Chief Executive, said: “HS2 is designed to increase capacity on Britain’s railways, improve connectivity between our two major cities, and kick start growth in the British economy. This research shows how HS2 is doing just that – boosting economic prosperity locally around HS2’s Old Oak Common station – years before the first trains leave HS2’s platforms.
“It underlines the vital importance of the work I’m now undertaking to reset HS2 and ensure that this railway is efficiently delivered for the lowest reasonable cost to maximise the benefit to the taxpayer.”
The research, conducted by Arcadis, is based on planning applications made both before and after HS2 received parliamentary approval in 2017. Any benefits that would likely have happened without HS2’s arrival, and development that is likely to have displaced from other areas, has been removed from the analysis to give a robust picture of regeneration and investment activity linked to HS2.
HS2’s new station sits within the economic development zone where the Old Oak and Park Royal Development Corporation (OPDC) is delivering its masterplan for a new district in west London. Established by the Mayor in 2015, OPDC covers an area of 650 hectares and is working to maximise the regeneration opportunities, creating a positive legacy for communities.
David Lunts, Chief Executive, Old Oak and Park Royal Development Corporation (OPDC) said: “The delivery of Old Oak Common station ia fantastic catalyst for development and OPDC’s vision for the area will create a new, inclusive urban district for West London. With some 70 acres of development land around the new HS2 station, we have plans for 9,000 new homes and 11,000 new jobs plus new high streets, workspaces, parks and community infrastructure, bringing huge improvements for local communities and substantial growth for the wider London economy.”
Howard Smith, Director of the Elizabeth line, said: “At TfL, we know first-hand that enhanced connectivity is central to delivering positive economic impact, as outlined in this research report by HS2.
“Once complete, Old Oak Common station will become a vital stop on our railway, offering an important interchange with HS2, other services, and local buses, and we are confident it will enable us to continue supporting strong, sustainable growth opportunities in West London and beyond.
“The Elizabeth line has enabled us to demonstrate how the development of world-class infrastructure can unlock several other important benefits, including impactful regeneration through new jobs and homes, and vital economic impact across the whole country via a UK-wide supply chain.”
