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Complete guide to Property Investment 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.
If you’re looking for investment property outside of the capital, then it’s worth knowing that 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.
Birmingham doesn’t stop there, as urban living is expected to grow further into the city centre with enhanced public transport and improvements when the HS2 arrives. There are also two schemes currently in development for build to rent, which is aimed to cater the high demand for housing.
Furthermore, Knight Frank named Birmingham the business hotspot of the UK, and this certainly seems to be the case. Around 7,771 people moved from London to Birmingham in 2018. Many of these individuals were young workers, poised to bring innovation and entrepreneurial roles into the business hub at the centre of the city.
Forecasts from 2019 demonstrated how the Birmingham City Centre housing market is expected to continue with a strong performance over the next 5 years and with one of the UK’s largest city centre regeneration projects going ahead, it’s clear to see why.
This 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.
Ranks as one of the most popular cities in Europe to invest in.
Birmingham is central to the £56 billion HS2 project.
High demand for both student and Buy-to-Let properties.
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.
For investors who are interested in the long term capital growth for Birmingham, forecasts are positive, coming shortly behind Manchester, Edinburgh and Bristol. Birmingham clearly has plenty to offer property investors, both in short term rental yields and long term capital appreciation..
|UK City||5 Year Sales Price Growth Forecast (Cumulative %)|
Data taken from the JLL UK City Centre Forecasts.
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, across all eight universities there are around 80,000 students, 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.
Students are 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.
Homes needed pa over the next 10 years: 4000
Average supply pa over last 10 years: 950
Population aged 15-34: 32%
Salary to house price ratio: 7.0
Employment Growth(next 5 years):1.6%
Population Growth(next 10 years): 3.9%
Being considered as the UK’s second city comes with its benefits; there’s plenty of opportunities for investors and businesses who want to be involved within the city and as demand for housing and suitable accommodation continues to climb, it’s worth knowing where to get the best rental returns.
Naturally where you choose to invest in Birmingham will provide different results. If you want to find a good investment within the city centre you could expect rental yields of up to 5% with average house prices coming in at over £250,000.
|B1 (City Centre)||£179,845 (96)||£0||£0||£303,125 (4)|
|B2 (City Centre)||£168,125 (4)||£0||£0||£0|
|B3 (City Centre)||£240,026 (59)||£0||£0||£0|
|B4 (City Centre)||£140,000 (1)||£0||£0||£0|
|B12 (Ballsall Heath)||£155,408 (17)||£0||£198,023 (6)||£146,513 (38)|
|WS1 (Walsall)||£101,234 (42)||£315,700 (5)||£197,371 (21)||£118,692 (32)|
|B1 (City Centre)||£207,610 (777)||£0||£0||£980,400 (5)|
|B2 (City Centre)||£170,961 (7)||£0||£0||£0|
|B3 (City Centre)||£245,440 (190)||£0||£0||£515,000 (4)|
|B4 (City Centre)||£186,750 (5)||£0||£0||£0|
|B12 (Ballsall Heath)||£147,519 (43)||£395,000 (1)||£197,400 (5)||£164,225 (67)|
|WS1 (Walsall)||£101,006 (98)||£374,456 (29)||£193,320 (39)||£133,710 (119)|
|B1 (City Centre)||£196,896 (483)||£265,000 (1)||£0||£217,958 (12)|
|B2 (City Centre)||£178,255 (47)||£0||£0||£0|
|B3 (City Centre)||£227,540 (163)||£0||£0||£770,000 (2)|
|B4 (City Centre)||£207,937 (12)||£0||£0||£0|
|B12 (Ballsall Heath)||£122,783 (223)||£855,000 (1)||£234,491 (6)||£144,372 (51)|
|WS1 (Walsall)||£94,011 (69)||£339,669 (27)||£180,769 (59)||£124,196 (88)|
|B1 (City Centre)||£198,764 (462)||£0||£0||£233,907 (19)|
|B2 (City Centre)||£188,458 (24)||£5,841,548 (1)||£0||£0|
|B3 (City Centre)||£240,046 (127)||£0||£0||£517,250 (4)|
|B4 (City Centre)||£251,086 (34)||£0||£0||£0|
|B12 (Ballsall Heath)||£127,523 (171)||£172,000 (1)||£153,640 (5)||£139,750 (78)|
|WS1 (Walsall)||£97,313 (58)||£326,480 (28)||£173,694 (64)||£122,842 (110)|
Data provided by Gov UK Land Registry.
The B5 postcode, East Side and Digbeth is benefitting from a new HS2 station, due to open in 2026, enabling easier transport links around Birmingham in and out of the city centre.
If you were to invest here, rental yields of around 5-6% are achievable, with average house prices coming out at £240,000.
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.
|Postcode||(%) Average Rental Yield|
|B1 (City Centre)||4.3|
|B3 (City Centre)||4.4|
|B5 (City Centre)||4.7|
|B8 (City Centre)||4.4|
Data according to propertydata.co.uk
|Year||(%) Rental Growth Per Annum|
Data taken from the JLL UK City Centre Forecasts.
Development into the city has turned Birmingham into a tourist hotspot, with around 41.8 million visitors coming into the city each year as there is plenty on offer. These record breaking numbers are helping the Birmingham economy to stay strong as it supports thousands of jobs whilst creating many more.
Many visitors can enjoy their time in Birmingham by visiting the incredible Birmingham Library which stands out amongst the sea of buildings for its intricate and mesmerising exterior; you can expect to see millions of visitors coming here each year.
Other notable tourist hotspots include the famous Cadbury World and an array of sporting events including the NatWest T20 Finals Day at Edgbaston Stadium as well as other arts and culture events such as the Birmingham Weekend festival, which is 3 day festival in Digbeth, with is another notable hotspot for property investment.
Aside from the obvious HS2 project, Birmingham has other plans in the pipeline such as the Birmingham Transport Plan 2031 which sets out the cities needs to meet future demands from visitors and residents.
Some notable aspects of the transport plan are to reduce environmental impact caused by current transport links around the city, by the commitment to become a carbon neutral city by 2030.
West Midlands Trains is also another venture set up for Birmingham and the wider West Midlands, which aims to improve the local rail network which includes free Wi-Fi, 20,00 extra seats, 100 new carriages and smart ticketing, allowing for more passengers to travel in and out of Birmingham with ease.
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.
Birmingham will be hosting the 2022 Commonwealth Games and in order to bring everybody together in the name of sport, new developments to renovate the Birmingham Alexander Stadium are starting to take shape.
Plans to increase the stadiums seating capacity from 12,700 to 18,00 have been approved as well as new sections to the stadium to host and cater for the 1.5 million tickets that will be available for purchase.
Overall the 2022 Commonwealth Games will bring local and national tourism to the area, giving a much needed boost to shops, restaurants, hotels and even transport links.
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 it currently holds. The plan is to develop new residential communities and offer support in the diverse community, by maintaining and enhancing its unique character.
Aside from creating new residential communities, the Big City Plan aims to create over 50,000 new jobs which in turn will get more people working and living in and around Birmingham. As the number of jobs increase throughout the city, so will the demand for suitable housing.
Birmingham Smithfield will bring an abundance of investment into the city, as this regeneration project aims to create a space of vibrant retail markets, leisure facilities, housing, public spaces and improved transport links, which will include the infamous HS2.
With 14 hectares of land available, Birmingham Smithfield will see 51,000 new homes, 100,000 new jobs and continued growth and investment into the infrastructure. Attractions also play a huge part in this regeneration project, as the plans aim to contribute to an ever-growing, theatre, entertainment and restaurant scene.
The new residential section will be a vibrant, green, modern setting with the aim of becoming a desirable place to live, with new facilities and amenities being right on the doorstep of new residents. With an estimated completion date of 2037, this could become a fantastic opportunity for property investors looking to get involved in Birmingham Smithfield.
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
The new headquarters aims to do so much more than simply relocate. Their 11 story building will contribute to a reduction in energy consumption, reduced water waste and will be home to over 5,000 indoor plants, creating a living green wall from the ground floor to the 10th floor lobby.
HSBC’s decision to move to Birmingham was due to the city being ‘dynamic and entrepreneurial’ and with around 2,500 HSBC UK employees to help run the day-to-day operations, the city’s vibe will only strengthen the ties between this business and the local economy.
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.
|Year||(%) House Price Growth Per Annum|
Data taken from the JLL UK City Centre Forecasts.
Birmingham City Centre has held its own throughout the years, proving itself to be a true competitor to other popular locations such as London and Manchester.
Birmingham has transformed itself from being an engineering centre to become the place to be for commercial use. Many businesses have relocated their head offices to Birmingham as the city begins to become associated with tech and manufacturing.
You might assume Birmingham house prices would have merged slightly with more southern prices but actually, when compared to other popular investment cities such as Manchester and Leeds, Birmingham house prices aren’t that much different.
Due to the numbers of individuals relocating to live in Birmingham City Centre, this has naturally created a demand for suitable housing, whether that’s studios or flats, which have become a popular choice for young professionals looking to work and live in the city.
A very well-known location in Birmingham, the Jewellery Quarter shines just as bright as the diamonds in the 500+ jewellery businesses that line the streets within the area.
Due to its popularity, the Jewellery Quarter has seen an influx of residential interest and has adapted itself to meet this demand. It’s clear to see why the local population has continued to climb, as the area has an abundance of leisure facilities and amenities which keep people visiting the Jewellery Quarter, again and again.
Townhouses and apartments are a popular choice of development in the Jewellery Quarter, as it meets the needs of the young professionals that move into the area. Investors can have confidence that the properties are also of the highest quality when it comes to condition, an important aspect to ensure the reputation of the area.
In regards to property prices, the Jewellery Quarter has experienced a 26% growth in asking prices over the past 5 years and private renters in the area makes up 57.5% of the Jewellery Quarter market.
Due to its high percentage of renters, the Jewellery Quarter has become a hotspot for landlords, first time investors and veterans who want a slice of this lucrative property market.
Digbeth has made its mark in the investment world as many associate Digbeth with being fashionable and ‘cool’ due to its many developments that have helped to upgrade the area.
The Big City Plan has included Digbeth as part of its redevelopment stage and aims to improve the landscape as well as new infrastructural improvements and more investment into creating more commercial and residential spaces.
Buy-to-Let investors can be confident they are adding a valuable asset to their portfolio as the area has been injected with £1.5 billion worth of investment, which includes The Smithfield Masterplan; a development plan aimed at improving the Eastside and Southside quarters of Birmingham.
As Digbeth is home to many young professionals, the traditional workspace is slowly evolving into fashionable creative spaces that continue to attract new businesses. This is also a key element to consider if you’re looking to invest in Digbeth.
Property prices vary in Digbeth and can start at as little as £99,995 up to £173,250 depending on the type of building and location, but with rental yields being fairly consistent at 6%, there is plenty of potential for property investors.
Harborne has become a popular location for young professionals and families and is especially attractive for those looking to study at some of Birmingham’s top performing schools. This combined with the leisure and retail facilities available, Harborne continues to be a hotspot for both residents and investors.
Harborne is home to an impressive percentage of people working at a managerial or professional level. The housing market in Harborne has also experienced impressive numbers, with property prices increasing 39% since 2009.
As reported on Property Investor Today, Harborne has benefited from higher average house prices for the past 10 years and with plans to continue the development of the area, expectations for this number to continue to grow should be a clear indicator for investors where the hotspots for property investment in Birmingham are.
Currently the average house price is around £362,574 and with rental yields coming in at around 4.8%, investors can enjoy promising yields with more growth to come in the future.
A 15 minute car journey will get you to the city of Birmingham and so it’s a great location for anyone wanting to commute into the city whilst enjoying the lifestyle of a calm and peaceful suburban area.
Harborne draws many of its visitors due to its night markets which brings much of the community and businesses together to eat good food and purchase local goods. Harborne is also home to popular retail brands and has a lively high street with plenty of independent business owners that continue the growth and popularity of this area.
Although Solihull is technically its own borough, its close proximity to Birmingham still makes it a contender as it has plenty to offer property investors who might be looking for something more in the surrounding areas but are still after an investment hotspot.
Solihull is however, one of Birmingham's brightest residential areas with great potential and growth which continues to climb. The growth in Solihull has seen an incredible 47.94% incline over the past 10 years and with property prices averaging at £406,100 the area has upheld its reputation as a very desirable place to live.
For individuals searching for promising commercial opportunities, Solihull is home to Birmingham Business Park and Blythe Valley Business Park, providing much needed commercial space for new businesses and companies looking to relocate.
National averages is not something Solihull tends to stick to, instead they go higher than the national average and for a long list of areas such as employment rate, proportion employed in professional occupations and of course, house prices. Employment rates alone are higher than the national average, coming in at a 76.5% employment rate (2018).
If you are an investor looking for a certain type of tenant, Solihull clearly demonstrates its quality of tenants and with rental yields at a healthy 5%, property investors can expect good things from Solihull.
Just a short 8 miles from the city of Birmingham, Walsall has received some much needed attention in recent years, as investment has been injected into the area to make it a much more desirable place to live.
Most investors will probably have heard of The Waterfront Project; a £12m project that transformed Walsall’s canalside into a hub for culture, great food, leisure and overall high-quality mixed-use developments.
Now as we step further into 2020, more plans to rejuvenate Birmingham’s investment hotspots gets underway, as a new £165m project, known as Soho Wharf, has been given the green light and aims to create 102 modern townhouses, 650 apartments and over 10,000 sq ft of commercial space, perfect for new businesses, start-ups and graduates who are keen to live and work in the city.
Aside from the new living and commercial areas, Soho Wharf will provide the public with parks, gardens and new cycle and pedestrian routes, to allow for a free flowing space which directly guides you into the city centre.
If of course you need more reasons to invest in Walsall, simply turn to the day-to-day life this area has to offer. A modern shopping complex named The Saddler’s Centre is an extremely popular destination for many residents and visitors from Birmingham as it’s home to popular retail brands, cafes, restaurants and even a housing complex.
For property investors interested in Walsall, buy-to-let is a popular venture amongst landlords in this area with many investors seeing up to 6% rental returns on modern studios and apartments.
Just a short 10-20 minute drive from Birmingham City Centre, Moseley has a lot to offer residents, tourists and investors. Moseley has become a fantastic option for those who want to be close to the city centre for work but are happy to commute to enjoy the rural qualities Moseley has to offer.
What’s more, Moseley will benefit from the HS2 development and give visitors outside of Birmingham even more of a reason to visit the city, as it will turn a trip to London into a short 49-minute train ride.
You might find whilst exploring the streets of Moseley that there is huge potential for some great property investment, as the area can provide a slice of luxury for professionals and growing families as some detached houses can be purchased for prices of up to £1m.
If you’re interested in investing in apartment space, available properties such as Equipoint and Park Gate can bring in estimated yields of up to 6% and can provide couples and young professionals with a city centre home.
If you are interested in somewhere with a more ‘village-y’ feel, Moseley is just that and was even voted the best place to live in the UK by the Sunday Times in 2019. With a reputation like that, it’s clear that when properties come up for sale in the area, they’ll be snapped up quickly.
Just like many other towns and villages in and around Birmingham, Dudley has something for everyone and is a town that can offer fantastic scenery and countryside landscapes, making it a great choice for anyone wanting to live slightly outside of the city centre.
Dudley has recently secured itself a place among some pretty impressive developments such as the £81 million Porterfield development, the £343 million Midland Metro extension and the £31 million Institute of Technology on Castle Hill.
These investments, both individually and combined will transform Dudley in a town like no other. Not only will it cater for professionals looking for commercial opportunities, it will also provide opportunities for those looking to relocate to the area.
Transport and infrastructure are one of the key components as part of these developments, with the aim to upgrade current transport links and amenities to make Dudley more accessible for everyone.
Nearby postcodes such as M5 and M6 provide promising investment opportunities and with just a short 8 mile trip until you reach Birmingham City Centre, the future of Dudley continues to be bright.
Key to the success and growth of Pure Investor in recent years has been our location on the outskirts of Manchester. Strategically located to offer all our consultants easy access to Manchester, Liverpool, Sheffield and Leeds, we are regular visitors to all the major property developments within the key Northern Powerhouse destinations.
We are passionate about the growth and development within these locations, ensuring our consultants have a high level of expertise regarding the development opportunities within these key growth areas. For this reason, many investors choose to speak with Pure Investor first when considering property investment in the North England.
We genuinely believe in working with our clients, providing a high quality of service and information, allowing our clients to make their decision on a more informed basis. As a result of this, an increasing number of investors are choosing to return and utilise our services on an ongoing basis. This is something we are incredibly proud of, and which we are looking to continually improve on in the future.
If you are considering in investing in a property in the North of England, and don't fancy the 'hard sell' approach, please feel free to get in touch on either firstname.lastname@example.org or Tel: 0161 337 3890.
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Published: 14 August 2018One BHM is our latest residential development perfectly situated in the sought after B1 area in Birmingham. One BHM will bring 165 one, two and three-bedroom apartments to the market, each designed with a bespoke and distinctive finish.