Infrastructure was a huge factor in getting Mr. Trump moving from Trump Towers and into the White House, his campaign slogan “make America great again” was focusing on rebuilding the crumbling infrastructure, the roads, bridges, hospitals, and schools the list is endless but you get the idea.
Infrastructure always attracts great interests from investors especially overseas investments in the form of sovereign funds, so when a big infrastructure project is planned it is always good news.
Britain has a number of large infrastructure projects that are deemed to be good for the wider economy, such as the Battersea power station and the HS2, HS2 is the one that could have a monumental impact on the UK’s economy.
High Speed2 (for those of you who may have been living in a cave the past few years) is a placed high-speed railway that will link London, Birmingham, East Midlands, Leeds, and Manchester.
If the project gets off the ground this will be the second high-speed railway in the UK, the first being HS1 that links London to the channel tunnel. Work is set to commence in 2017 with the project expected to be completed in 2033.
The cost to build HS2 is an estimated 56 Billion GBP.
Apart from the obvious jobs that will be created in the construction industry and the ongoing maintenance of the railway, many believe this will have a positive effect on the UK property market which is good news for investors.
A poll by Development Finance today reveals 67 % of their readers believe this is good news for the UK property markets and its investors.
This opinion is not shared by Michael Dean, principal at Avamore Capital who said: “If you want my personal opinion, the government would be better placed upgrading the existing infrastructure of the North by creating a ‘Crossrail North’, linking Liverpool, Leeds and Hull more effectively.”
Rico Wojtulewicz, policy advisor for the House Builders Association (HBA) added: “HS2 will unlock new city development and advance regional connectivity by freeing up existing commuter rail networks.
“Planners must do all they can to strategically enable this development, as housebuilders and homeowners are already getting excited about the opportunities HS2 will bring.”
However, Rishi Passi, CEO of Oblix Capital said:
“[In the] short-term, HS2 has been very detrimental to those who are unfortunate enough to be living on and close to the proposed routes.
“Many properties are now unsellable and, although the government is offering compensation and buyout schemes, not all will qualify and will face years of living near the construction and possibly experience a drop in home values.
“[In the] long-term, HS2 could bring an abundance of good benefits to the housing market.
“It’s a well-known fact that any locations with good transport links to the major cities attract more people, which in turn creates better opportunities which ultimately lead to higher property values, so by connecting more locations we can expect to see towns and cities along the line prosper.
“This should, in the long-term, reduce the pressure on house prices and demand in London and its surrounding commuter belt.”
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