June 24th, 2014
The controversial new HS2 high speed rail link could create a “northern global powerhouse”, according to Chancellor George Osborne.
The planned first phase has courted controversy, with many residents set for major disruption, amid wholesale critique of the scheme’s price tag.
It will, however, bridge the gap between the economic bubble of London, and the north of the country, says Taj Kang, Business Development Director at Contract Mortgages Made Easy.
“By reducing travelling times between the UK’s major cities, we could well see an easing of the London housing bubble, as people begin to realise that they can live further away, and still be in the capital quickly – possibly faster than it could take to cross London itself.”
The initial phase of the new high speed rail-link is to connect London to Birmingham – halving the journey time to around 40 minutes.
“This could actually lead to something of a property boom in Birmingham and beyond, as a sub-one hour journey to the City is an attractive proposition when considering house prices both inside and outside the M25” adds Taj.
A second phase is proposed that would link Birmingham with other major northern cities such as Manchester, Sheffield and Leeds, and further news has emerged this week that hints at a third phase, connecting Leeds with Manchester, shortening the current 50 minute journey to half an hour.
“We need an ambitious plan to make the cities and towns in the northern belt radically more connected from east to west – to create the equivalent of travelling around a single global city” said Chancellor Osborne.
News that is not all positive however, according to Simon Butler, Senior Consultant at Contractor Mortgages Made Easy.
“The downside to these proposals are that, with house prices already increasing at an alarming rate year-on-year, the ‘bubble’ in London could become the norm across the UK, making it more difficult than ever for Contractors to get on the housing ladder.”
“A very real worry for some that it’s ‘now or never’ in terms of making the leap from renting to owning. As demand increases, supply falters and mortgages become more expensive in light of the likely rate increases in the coming months; it’s more important than ever before to engage a broker who specialises in your circumstances, to ensure that you don’t inadvertently stop yourself from being able to buy, by approaching the wrong lender.”
Article By: Mark McBurney, Senior Mortgage Consultant at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
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