Has HS2 had a negative impact on Banbury house prices? Find out more and whether you’re affected

Many local residents are wondering: Is this massive infrastructure overhaul going to have an impact on our local housing market? And what about property prices?

HS2: Get up to speed

HS2, or High Speed 2, is an ambitious plan which has been in the works since 2013 to improve rail connectivity between London and the Midlands and stimulate economic growth.

HS2 is the UK’s second purpose-built high-speed railway, after the equally imaginatively titled High Speed 1, which connects London to the Channel Tunnel.

Whilst Banbury isn’t directly on the HS2 route, which runs to the east of the town, parallel to the M40, it is around 15 miles from the closest point of the HS2.

The HS2 line will also pass through the Radbourne area, Southam and Long Itchington Wood.

As such, construction activities and their associated disruption, plus the lasting environmental impact, are close enough to raise concerns.

Despite more ambitious plans which would have included a further connection to Derbyshire, Manchester and Leeds being scrapped in 2023, delays to the project in recent years have meant that phase one of the HS2 route is not due for completion until 2029-2033, with further work still to be completed to Euston station and the surrounding area afterwards.

And the response to HS2 locally? This has been varied, with many residents in Banbury and surrounding areas apprehensive about the potential devaluation of their properties due to the project’s proximity.

Concerns about increased noise, environmental changes, and disruptions to daily life have been voiced. In response, local councils have allocated funds to monitor HS2’s impact and ensure that community interests are represented during the construction phase.

What’s happening with house prices?

Analysis of house prices nationally by Hamptons estate agents has shown that properties near the HS2 route have experienced slower price growth. Between 2019 and 2022, homes within a mile of the HS2 line saw a 15% increase in value, compared to an 18% rise across the rest of the UK.

The number of property sales within a mile of the HS2 line dropped 27% during the same period also, in contrast to a 10% drop across England and Wales as a whole in the same period.

Now, Banbury’s a bit further out from the line, so those kinds of price drops haven’t been seen locally, thankfully.

According to Rightmove, Banbury property prices are currently down 3% compared to their peak in 2022.

But if buyers are being cautious about areas close to HS2, given the disruption, noise, and environmental factors, it’s fair to assume that hesitation may have an impact on nearby towns - especially when homebuyers are weighing up where to settle down long-term.

Reassuringly though, house prices in the wider Cherwell area surged by 9.3% in December 2024, making it one of the fastest-growing areas in England.

This increase indicates a strong demand for properties in the region, possibly driven by its appeal as a commuter town.

Particularly now we are in the post-covid era where many workers are returning to the office and seeking homes which offer a straightforward commute.

What is in store for Banbury house prices in future?

Today, the average property price in Banbury is £298,906.

Zooming out to county level, the average house price in Oxfordshire over the last year was a pricey £480,867.

Both of which are significantly above the national average of £268,319, with prices remaining relatively stable compared to the previous year.

Given its affordability in comparison to the rest of Oxfordshire and its favoured location within an hour’s commute of the capital, Banbury is likely to remain popular with commuters.

Whilst it is possible that the inconvenience of significant construction works could have an impact on house prices in the short term, we can be encouraged by what we have seen with previous large-scale improvements to transport links – particularly those with connections to the capital – where property prices have seen an upwards trajectory.

When the M40 was extended from Oxford to Birmingham in the early 90s, providing an easier connection between Birmingham and London, many parts of the Midlands saw a significant increase in property prices as a result. The same was true of the Crossrail project, which has seen the prices of properties within a 10-15 minute walk from an Elizabeth Line station rising anywhere between 30-60%.

So, it may not all be doom and gloom for those of us near the HS2!

With construction set to continue for a number of years and the project’s full shape still changing, it’s a story that’s not over yet though.

So, whether you’re thinking of buying, selling, or simply curious about the future of our town, it’s worth paying attention.