Around £3.5 billion of private investment will be needed to complete the regeneration around Euston station, a new report has found.

The findings by independent economists at Metro Dynamics come five months after Prime Minister Rishi Sunak said that HS2 would go to Euston, but only with private investment.

Between 2,100 and 2,500 homes are expected to be built around the new station, around half of which would be affordable.

This includes plans for homes outside the HS2 development area – at the former site of Maria Fidelis School, the Royal Mail site in Eversholt Street and on the existing Regent’s Park Estate.

Around 470,000sq m of new commercial floorspace would also be created, up to 30% of which could be used by the life sciences sector.

Redevelopment work is expected to take place until 2053, by which point it is estimated Camden Council will have gained £800 million in business rates receipts and £45 million in council tax.

Other sites earmarked in the report as being suitable for new homes include Regent’s Park Barracks and the Parcelforce depot near Camden Town.

New buildings around the station are largely expected to be between three and 12 storeys high, but with some as tall as 18 floors, towering 60m into the sky.  

The report, which was prepared for Camden Council, gives “potential outcomes” of the regeneration based on the most plausible current scenario and assumptions.

It suggests the regeneration would contribute £41 billion to the UK economy in the next 30 years, as well as creating 34,000 new jobs and reducing crime by almost a quarter.

Economists also identified a range of potential short-term issues with the redevelopment of the area – including noise and visual pollution during construction, as well as health impacts from changes in air quality.

Construction on the project to redevelop Euston station has been paused until next year while the design of the terminus is changed to halt ballooning costs.

Delivery of the new station will also be transferred from HS2 to a new development corporation.

It is anticipated that the number of platforms at the station will be reduced from its original 11 down to six.

Metro Dynamics’ report suggests that 860 fewer homes would be delivered if the station’s footprint is not reduced as expected.

Camden Council leader Cllr Georgia Gould said: “After years of delay and indecision, much of Euston remains a building site.

“Homes have been ripped down, businesses lost, and open spaces destroyed.

“Our communities living next to and around the station continue to face disruption and uncertainty.

“However, we are determined to see promises to these residents kept and we are setting out an ambitious and viable new direction that is possible for Euston.”