A joint report from the Construction Products Association (CPA) and Barbour ABI has revealed that the first phase of HS2 will act as a catalyst for wider regeneration and investment.
The data, from Regional Construction Hotspots in Great Britain 2018, details the value of construction contracts awarded throughout last year across all regions in Great Britain.
What the research found is that the regions of Great Britain where contracts have been awarded as part of Phase I of HS2 will unlock and increase wider regeneration and investment in infrastructure, residential and commercial projects.
In particular, the areas where HS2 hubs will be built have enjoyed a huge rise in construction contracts awarded over the year; five areas in Great Britain have been awarded £7.2 billion worth of contracts for the construction of HS2 hubs, resulting in significant increases in value of projects.
The five areas – Haringey and Islington; Hounslow and Richmond upon Thames; Birmingham; Warwickshire; and West Northamptonshire have all enjoyed increases, most of which have been triple-digit percentages.
The largest increase is West Northamptonshire, which saw a 197.9% rise in construction contracts awarded last year; for Haringey and Islington meanwhile, this number is 178.5% – up from 5% in 2016.
This reveals just how crucial the infrastructure project is in unlocking the rise in wider regeneration and investment.
These regions have been awarded contracts for new or developed railway lines and tunnels; the sites and infrastructure developments such as stations will help to unlock housing and commercial projects too, ensuring there is residential provision around the transport hubs.
Michael Dall, Lead Economist at Barbour ABI, said the projects will ‘transform’ infrastructure.
He said: “The sheer size of the HS2 contracts will have a transformational impact on the amount of infrastructure work over the coming years, and will also create associated residential and commercial construction opportunities.
“The commercial sector in particular has been challenged since Brexit so it will be interesting to see whether the HS2 development provides a boost to this sector.”