Birmingham Investment location
But to let property investment with high demand and capital growth
Why invest
Birmingham is the UK's second largest city by population with around 1.1 million people and a fast-developing economy.
Property here costs well under half that of homes in London and they are even more affordable than homes in England's third largest city, Manchester, making it a very appealing option for both investors and homeowners.
£2.5 billion investment
The University of Birmingham has reached 93rd in the rankings of the top 100 Universities across the globe.
The city's economy has been boosted by major regeneration projects, including the £1.2 billion Paradise Redevelopment, Birmingham Smithfield with around 3,000 new homes being created and the Midlands Metro Extension which is a £1.3 billion investment to improve the tram network across the West Midlands.
Birmingham Airport's ambitions to grow it's international connections is another reason for international investors looking to visit the city.
Birmingham is the second largest city in the UK.
Major regeneration
Birmingham is undergoing significant regeneration efforts aimed at transforming the city into a more desirable place to live, work, and invest, with projects totalling billions in investment.
Key Regeneration Projects
Along with the city’s impressive universities and growing student population, there are several ambitious Birmingham regeneration projects that are driving the city’s resurgence. From the visionary Big City Plan to the highly anticipated HS2 rail project, these initiatives are redefining the city’s skyline, improving its infrastructure and attracting a wealth of global businesses and high-earning renters. They’re also creating exciting new Birmingham property hotspots that are set to deliver long-term returns for investors.
Property Values
In recent years, Birmingham property has emerged as a standout investment opportunity in the UK. Leading England’s property price growth forecasts rental growth over the next five years, Birmingham property investments offer some of the strongest rental returns in the property market. The highest growth areas in Birmingham show substantial 5-year price increases, led by B96 postcode which includes Redditch at 51.4% and B7 postcode which includes Nechells at 48.2%. However, these figures should be viewed with some caution as they represent average prices across all property types - changes in the mix of properties being sold (such as more detached houses versus flats) can significantly impact these growth rates. Notably, many of the highest-performing areas are in traditionally more affordable parts of Birmingham, such as B10 which includes Small Heath and B8 postcode district which includes Washwood Heath, showing growth rates above 40%. This suggests a continued pattern of regeneration and increasing demand in previously undervalued areas. Current average prices in these high-growth areas remain relatively affordable by Birmingham standards, making them appealing to both buy-to-let investors and homeowners.
Rental Demand
The type of property in demand varies across Birmingham's districts. Apartments, particularly in central postcodes like B1 and B3, are sought after by young professionals and students, especially those studying at Aston University and Birmingham City University. The Jewellery Quarter (B18) and Edgbaston (B15) attract a mix of tenants drawn to their vibrant urban lifestyle, cultural amenities, and transport connections.
Meanwhile, single-family homes in areas like Sutton Coldfield (B72-B76) and Solihull postcodes (B90-B94) are popular with families and professionals seeking more space, good schools, and suburban living while maintaining easy access to the city centre.
There’s a good short-term letting and serviced accommodation market Birmingham city centre.
Rents depend on the type of property and location. Figures from https://www.home.co.uk/ average monthly rent across Birmingham is £1,195.
Home.co.uk figures say that average monthly rents for different types of houses or apartments across Manchester are currently: £966 PCM for a one-bed property, £1269 PCM for a two-bed property, £1,399 PCM for a three-bed property, £1,928 PCM for a four-bed property and £1,375 PCM for a five-bed property. Birmingham property yields based on a long let are up to 6.9% on average.
Property Investment in Birmingham - At a glance
Population: 1,115,000 approximately - 2023.
Average House Price: £240,232 - Source ONS.
A local Economy Worth: £60.78 billion - Source Varbes.
A 49% Graduate Retention Rate.
House price trends vary across Birmingham, with some areas experiencing faster growth than others. However, the overall trend for Birmingham has been upward over the long term. Birmingham offers opportunities for a range of property investments. City centre apartments and inner city terraces and flats show strong demand.
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