Northern Powerhouse Rail’s Piccadilly section has potential for 13,000 new homes if station built underground

Manchester Council is updating its regeneration plans for the Manchester Piccadilly area in light of proposals for a new rail station.

HS2-alternative-Manchester-Piccadilly-station-MCC-c-Bennetts-Associates-1

Source: Bennetts Associates

CGI image of Manchester Piccadilly Station proposed as HS2 alternative.

It has tendered for a consultancy team to develop a refreshed strategic regeneration framework (SRF) “based around the anticipated growth opportunity and connectivity benefits” that the Northern Powerhouse Rail (NPR) network could bring.

The SRF will cover a 150 hectare area in the city centre focused on Piccadilly Central and Ardwick, the areas directly to the North and East of the proposed NPR, but will also consider further areas including Mayfield, Sister (part of Manchester’s digital campus), Piccadilly Basin, Portugal Street East and East Village Central.

The Manchester Piccadilly area alone has the scope for 13,000 new homes, according to the council.

Council leader Garry Bridges said: “Manchester Piccadilly will be at the heart of Northern Powerhouse Rail and the improved connections it brings - greater capacity, faster and more frequent services. The area surrounding the station has the potential to become a world-class district. 

“This will be even more the case if the government accepts the compelling case for an underground Piccadilly Station, which will allow more land to be used to support jobs and housing - complementing existing initiatives.”

The NPR concept was first introduced by the government in 2014 to improve east-west rail connections. As plans developed, it was assumed that the NPR would share infrastructure with HS2 into Manchester Piccadilly, until the HS2’s Manchester leg was scrapped in 2023 and its estimated cost transferred to NPR.

Its scope has since expanded to include Sheffield, Hull and Bradford.

In January 2026, the government set out a renewed plan for NPR, proposing a predominantly new line between Liverpool and Manchester and the continuation of the Manchester Piccadilly section. It also set a £45bn funding cap (2025 prices) for spend from 2026-27.

It is yet to be decided whether the Manchester Piccadilly station will be built underground at a higher cost than at surface-level, the latter of which could limit regeneration potential.

The Department for Transport expects the project to complete in the 2040s across three development phases.

The £250,000 tender contract is due to start on 18 January 2027.