The arrival of HS2 in west London is transforming the area into a new development hotspot, driving a £10 billion boost to the local economy, according to recent research.
Commissioned by HS2 Ltd, the study highlights how the construction of Old Oak Common station is spearheading transport-led regeneration, creating thousands of new jobs and homes over the next decade.
The report, titled “From trains to cranes: HS2 and the West London development boom,” reveals a 22% increase in planning applications within a 1.5-mile radius of the station since HS2 received Royal Assent in 2017. The total value of these applications has surged to £3.41 billion over seven years, marking a 325% increase from the previous seven-year period.
The analysis projects that HS2 will facilitate the creation of over 22,000 new homes and nearly 19,000 new jobs in the local area. It also shows that investment and regeneration projects around Old Oak Common have grown more rapidly since 2017 compared to the previous seven years and other parts of west London.
Historically dominated by retail, wholesale, and logistics industries, the locality is being transformed into a hub for high-tech jobs, driven by innovation and the creative industries. This influx of skilled roles is expected to boost annual salaries in the area by over £1,500.
Conducted by the consultancy Arcadis, the study notes that the promise of the new station has "galvanised investors, boosting confidence in the positive legacy high-speed rail will create locally."
HS2’s Old Oak Common station will be a super-hub with unparalleled connectivity, linking over 100 stations across the UK. The 14-platform station will serve HS2 services, the Great Western Mainline, Heathrow Express, and the Elizabeth Line, becoming the 42nd stop on the new London line.
This research underscores the potential of new infrastructure in the UK to act as a catalyst for economic growth. It follows a previous report showing a similar economic boost in the West Midlands due to the upcoming arrival of two new HS2 stations and the railway’s control centre in the region.
Rail Minister Peter, Lord Hendy said:
“This research demonstrates that the construction of HS2 is driving transformational regeneration around the new station at Old Oak Common, with substantial benefits for local people and new opportunities for businesses.
“This is exactly what investment in major infrastructure projects can do – not only will HS2 improve connectivity between London and Birmingham and beyond, but it’s also creating high-skilled jobs, boosting housing and stimulating long-term economic growth.”
Mark Wild, HS2 Ltd’s Chief Executive, said:
“HS2 is designed to increase capacity on Britain’s railways, improve connectivity between our two major cities, and kick start growth in the British economy. This research shows how HS2 is doing just that – boosting economic prosperity locally around HS2’s Old Oak Common station – years before the first trains leave HS2’s platforms.
"It underlines the vital importance of the work I'm now undertaking to reset HS2 and ensure that this railway is efficiently delivered for the lowest reasonable cost to maximise the benefit to the taxpayer."
The research, conducted by Arcadis, is based on planning applications made both before and after HS2 received parliamentary approval in 2017. Any benefits that would likely have happened without HS2’s arrival, and development that is likely to have displaced from other areas, has been removed from the analysis to give a robust picture of regeneration and investment activity linked to HS2.
HS2’s new station sits within the economic development zone where the Old Oak and Park Royal Development Corporation (OPDC) is delivering its masterplan for a new district in west London. Established by the Mayor in 2015, OPDC covers an area of 650 hectares and is working to maximise the regeneration opportunities, creating a positive legacy for communities.
Savvy investors have spotted the opportunity around London’s new transport superhub years in advance and have seized it. London property developers, City & Docklands, have already invested in the area, opening One West Point, London’s tallest residential tower outside of Canary Wharf, in 2022. As London’s 16th tallest building, the new development boasts 701 apartments, with extensive landscaped gardens, courtyards, and roof terraces. Since its completion, City & Docklands has delivered a further 241 build-to-rent homes at Mitre Yard, together with the delivery of 208 units at adjacent development North Kensington Gate in May, just 10 minutes’ walk from Old Oak Common station and has plans for more in the local area.
Imperial College London is a global top 10 university in West London and is driving the WestTech Corridor - a vision for a globally competitive innovation ecosystem in West London, leveraging innovation zones such as Albertopolis, Paddington Life Sciences, the White City Innovation District and Old Oak.
Imperial has identified Old Oak as an innovation zone have invested in the area since 2014, predicated on the major transport infrastructure planned at Old Oak Common Station, and its proximity to the White City Innovation District. Imperial are now owners of four sites, including One Portal Way and Victoria Industrial Estate, purchased in 2024 and announced as part of the UK Government Investment Summit.
One Portal Way has planning permission for a 2million sq. ft. mixed use masterplan, providing transformative regeneration including workspace, amenities and 1,300 homes over a range of residential typologies including student accommodation. Imperial are transforming Victoria Industrial Estate, occupying the existing industrial units, with science and innovation deep-tech business, growing the innovation ecosystem in Old Oak. The site is allocated for redevelopment in the OPDC Local Plan.
Innovators in the creative industry have also been drawn to the Old Oak and Park Royal area. Garden Studios, described as London’s most technologically advanced, large-scale film and television studio, chose to locate itself in the area in February 2021, seeing the incredible growth potential offered by the unrivalled connectivity.
The effect of transport led economic activity in the capital is not new – with the recently opened Elizabeth line being directly linked to the development and delivery of 55,000 new homes. Even now, after the line is fully operational, TfL predicts further development in areas connected by the brand-new line, including at Old Oak Common.
Howard Smith, Director of the Elizabeth line, said:
“At TfL, we know first-hand that enhanced connectivity is central to delivering positive economic impact, as outlined in this research report by HS2.
“Once complete, Old Oak Common station will become a vital stop on our railway, offering an important interchange with HS2, other services, and local buses, and we are confident it will enable us to continue supporting strong, sustainable growth opportunities in West London and beyond.
“The Elizabeth line has enabled us to demonstrate how the development of world-class infrastructure can unlock several other important benefits, including impactful regeneration through new jobs and homes, and vital economic impact across the whole country via a UK-wide supply chain.”
Image credit: HS2
