The halt first opened in June 1935 and was in use until the end of British Railways passenger services beyond Bewdley in 1963. Although thought by some people to have been closed as part of the Beeching axe in 1963 its planned closure pre-dated his report. It was well used by fishermen, ramblers and tourists, and was reopened immediately after the SVR's southerly extension of services in 1974. Northwood Halt is not included in the public timetable.
The level crossing is now protected by light signals and an audible warning; this system replaced hand-operated gates, the scene of two serious accidents in 1947 and 1964.
Upon reopening the only shelter for passengers awaiting trains was a wooden shed. This was subsequently replaced with a GWR style pagoda that was constructed by volunteers at Kidderminster.