Axing HS2 will leave London development ‘in limbo’

The London Property Alliance has called on the government to commit to delivering HS2, claiming it will leave 60 acres of development in the capital “in limbo”. The group, which represents the capital’s leading real estate developers and investors, raised concerns following speculation that the northern leg of the scheme to Manchester could be scrapped, while the London terminus could be in Old Oak Common, not Euston. In a letter to transport secretary Mark Harper, the LPA said the current uncertainty was “leaving up to 60 acres of Euston in limbo for years or decades to come”. The letter argues that Euston’s new terminus forms an essential component of the scheme’s capacity “to deliver on the UK-wide benefits which provided the catalyst for HS1 and HS2 in the first place”. It calls for a “swift conclusion” to the government’s two-year review of the Euston HS2 terminus and demands that it move the project forward “at pace”. It also stresses that linking the UK’s cities to London via high-speed rail will be crucial to meet the prime minister’s priority of achieving economic growth and creating better-paid jobs across the country. LPA chief executive Charles Begley said: “We urge the government to provide the certainty business needs and move forwards with plans for the HS2 Euston terminus and deliver HS2 in full. This is critical if we are to enable economic growth in London and core UK cities served by the line.” He added: “Euston’s new terminus would also bring socially and economically impactful regeneration across 60 acres of central London, an area yet to realise its potential despite its proximity to one of the UK’s leading knowledge clusters. Leaving vast tracts of it in limbo for years or decades to come would be a retrograde step and a disservice to both the capital and country.” The LPA draws comparison with the Elizabeth Line in creating world-class public realm, new cultural amenities, sustainable office buildings and driving investment and growth. Research by Knight Frank shows that the line contributed to above-market rental growth in office submarkets such as Farringdon (46%), Bond Street (37%) and Liverpool Street (37%).But, it added, the Elizabeth Line has also acted as a catalyst for investment and regeneration, leading to 171 hotel openings, 2,666 new food and beverage outlets and 12 museums. The LPA argued that report findings demonstrate the positive economic and social benefits of infrastructure investment, and underline the case to push ahead with schemes such as HS2. Begley added: “The Elizabeth Line has been truly transformative and shows how important continued investment in our transport infrastructure is in order to drive economic growth.” The prime minister has refused to dismiss speculation that the London terminus will be moved or the northern leg scrapped. A decision is expected in the Autumn Statement. Sunak is being advised by former journalist Andrew Gilligan, who wrote a paper for the Policy Exchange think tank advocating that all sections of the HS2 line on which construction had not yet started be scrapped. Andy Burnham, mayor of Greater Manchester, has said he is open to a discussion with ministers about delaying construction of the northern leg of HS2 if the government commits to building an east-west route between Liverpool, Manchester and Leeds. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Image from HS2 press office