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Why Reits are counting the cost of the HS2 derailment

The scaling back of HS2 has drawn a variety of responses from the real estate sector – and the majority are not positive
Why Reits are counting the cost of the HS2 derailment Published on October 9, 2023
  • Landsec said move knocks confidence
  • Euston plans are "drop in the ocean"

In quite possibly the least surprising surprise announcement ever made at a party conference, the Conservative government scrapped the northern leg of HS2 last week. Instead of running to Manchester, the high-speed railway line will now run only from London to Birmingham. 

As a trade-off, the government said “every penny” of money saved would be redirected to roads, rail and buses instead. In addition, it announced a development scheme in Euston, the proposed final stop of HS2 in London, in which it said it would lean on the private sector to build the rail infrastructure alongside homes and commercial real estate on a scale similar to the redevelopment of King's Cross.

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