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Property Investment in Birmingham

Commonly known as the UK's 2nd city, Birmingham is today home to over 1 million people. Culturally diverse and commercially successful, Birmingham is also home to almost 70,000 students across its three major universities. Understandably, the rapid expansion in the city's population has led to an increased demand for investment property for sale in Birmingham city centre in recent years.

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Property Investment in Birmingham

Why Invest in Birmingham?

Birmingham has successfully managed to transition from being a traditional manufacturing hub to being a diversified, modern economy (with help from the Northern Powerhouse initiative) and has proved itself a rewarding destination for buy-to-let property investment from investors of all kinds.

  • Ranks as one of the most popular cities in Europe to invest in
  • Billions of pounds have been invested in the city to develop infrastructure, retail, commercial and residential space
  • Central to the £56 billion HS2 project
  • High demand for both student and buy-to-let properties

Birmingham has been classed as Britain’s most populated city outside of London. Recent years has shown a rapid growth in the population, with 1.1 million people now taking home there.

Buy-to-Let Investment in Birmingham

Continuous development and investment in the city has influenced both residents in and out of the city to take advantage of what the city has to offer. Most notably the fact that more people are leaving cities such as London for cheaper alternative lifestyles, with Birmingham appearing to be at the top of the list for many.

Investors seeking out their next buy-to-Let property investment in Birmingham should consider the top hot spots around the city to ensure the best returns. Postcodes such as B1 and B5 are highly sought after locations for buyers, as the area offers fantastic transport links and local amenities.

If you like the sound of what Birmingham has to offer, contact our team to discover more about the buy-to-let properties in Birmingham we have available.

Student Property Investment in Birmingham

Birmingham is home to four major universities (University of Birmingham, Birmingham City University, Aston University and Newman University) but is also surrounded by 20 universities that are within an hour of the West Midlands.

If you’re unsure just how in-demand student accommodation is in Birmingham, at least 40% of Birmingham’s population is made up of under 25’s, making Birmingham one of the youngest cities in Europe. Many of these students may go on to continue living in Birmingham, making the bustling city their forever home.

Universities within the UK globally have a reputation which attracts an international appeal. As a result of this, in 2015 saw a record number of applicants apply to commute to the UK and take home. From which Birmingham has been alleged to be the largest centre for high education in the UK outside of London.

This means students are now looking beyond figures, as they start to demand something with an ingenious design to allow social groups to configure and bond. Birmingham, as a city, offers services that create a wider social interaction through various events and private activities that students can partake in to enhance their experience.

Through an extraordinary positive rental growth every year, student accommodation in Birmingham has become a thriving industry and a flourishing market to enter.

If you like the sound of what Birmingham has to offer, why not take a look at our portfolio of student property investments in Birmingham.

Contact the Team

Call us on +44 (0) 161 337 3890 or contact us using the form below to arrange your free no obligation property consultation.

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Buy-to-Let in Birmingham

Buy to Let in Birmingham

The best buy-to-let destinations tend to be places with a decent student population and this is one area where Birmingham absolutely comes into its own, being home to no fewer than five universities (Aston University, University of Birmingham, Birmingham City University, University College Birmingham and Newman University), in addition to which the University of Law and BPP University both have a major presence in the city and it is the regional base of the Open University.

This means that there is always high demand for student rental accommodation, creating lucrative opportunities for investment in student buy-to-let in Birmingham. There is also a substantial population of young adult professional renters, who have chosen to start their careers in Birmingham, often thanks to the fact that Birmingham can now compete with London in terms of career-development opportunities and is well ahead of London in terms of providing an attractive lifestyle at a reasonable price.

It also has to be acknowledged that Birmingham’s many advantages have long since been recognised by property investors so it is definitely not the most affordable destination in the Midlands, but the price of Birmingham buy-to-let property is still much more attractive than in the south of England and so property investors can make good yields while keeping rents competitive when viewed against local wages. Buy-to-let property in Birmingham also has the potential for good capital growth as there is always a constant demand for high quality rental accommodation in the city centre.

  • Birmingham is one of the most important student destinations in the UK
  • It has a high population of young adult professionals
  • The local economy is both substantial and diverse
  • Property is very affordable compared to the Thames Valley area

Birmingham Areas and Rental Yields

Investors in buy-to-let property in Birmingham can expect yields in the region of 6% to 11%. Those wishing to target the student market should probably make the B4 postcode area their first (and possibly only) port of call.

This is a major student area and is especially popular with students at Aston University and Birmingham City University as their buildings are very close by. Even though B4 is prime Birmingham buy-to-let territory, prices are more affordable than you might expect and the right property could bring in a yield of as much as 11%.

If, however, you are looking to target young professionals then you might want to look at B5, specifically Digbeth, which is slightly outside the official city centre and therefore benefits from noticeably lower property prices (although they are increasing due to the popularity of the area) even though it has a thriving local economy and excellent transport links.

Another good option for buy-to-let in Birmingham would be B17, specifically Harborne. As you might have guessed from the postcode, this is actually a suburb of Birmingham and therefore attracts people who prefer to live in a quieter environment while still having easy access to everything Birmingham itself offers. While this might suggest families (and indeed the area is very popular with this demographic), the relative tranquillity of B17 is also much appreciated by young professionals.

What Birmingham Has To Offer Investors

Birmingham City Centre

Big City Plan is a 20-year vision that’s set to encourage and support the transformation of Birmingham to add to the world class reputation they currently hold. The plan is to develop new residential communities and offer support in the diverse community, by maintaining and enhancing its unique character.

Improving the transportation links was key due to Birmingham’s New Street station being the busiest rail interchange outside of London. It has been made three and a half times bigger than before to make for easy and enjoyable experience for the passengers.

The cities considerable growth, coupled with the ambitious plans for future development has resulted in a growing demand for rental accommodation in the city in recent years. Understandably, this has led to increased numbers of investors looking to purchase investment property for sale in Birmingham city centre and the surrounding suburbs such as Edgbaston and Bourneville.

With food at the core of what Birmingham does best, it is home to a variety of bars and restaurants so people are able to spend a divine night out on the town. Those who wish to shop the day away can visit the amazing Bullring shopping centre or simply enjoy the cultural attractions.

Birmingham vs London

Birmingham VS London

Recent reports have revealed that property prices in Birmingham are rising at a faster rate compared to homes and buildings in London. Factors contributing to this could be the fact that over 7000 people moved from London to Birmingham in 2018.

Not only that, but the West Midlands in general have been experiencing a house price growth of 7% year-on-year which undeniably shows just how popular Birmingham is becoming for both residents and investors.

A faster increase in property prices points to a growing economy and a strong infrastructure. This will become even more important as the plans for the HS2 train lines come to fruition. During this time, more people will move to Birmingham to commute, leading to an increased demand and property prices are expected to soar.

Birmingham Economic Growth

Birmingham City

Evidence of the support for the growth of Birmingham’s economy can be seen by HSBC’s decision to position their headquarters in the centre of the city. This has brought in an additional 1000 jobs into the city and it is really just the tip of the iceberg of new developments.

Lasalle Investment Management have already invested 100m into the city with plans to build 603 apartments for rent that will be available by 2019.

Furthermore, Knight Frank named Birmingham the business hotspot of the UK, and this certainly seems to be the case. Over 6000 people moved from London to Birmingham in 2015. Many of these individuals were young workers, poised to bring innovation and entrepreneurial roles into the business hub at the centre of the city.

The new HS2 train links will be of great importance for Birmingham City. Phase one of the new HS2 line will link Birmingham to London, providing a more rapid choice for transportation. Ministers have suggested that this will strengthen the economy, providing greater connections between Birmingham and London as well as the rest of the UK. Phase 2a and 2B of the HS2 train lines will further connect Birmingham to both Manchester and Leeds.

In total, this project is predicted to bring in 30,000 jobs. More people are also expected to move to Birmingham due to the predicted commute time to London being just forty-nine minutes. The first phase of the new train line is scheduled to open by December 2026, and when it does, it will bring substantial changes to Birmingham City.

Property Investment News for Birmingham

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