Property Investment Company Birmingham
The UK’s second largest city, Birmingham, has become a prevalent buy-to-let area and carries the alias of the ‘Midlands Engine’. With a population over 1.1 million, an exceptional economy, future growth plans, and a high number of private renters, it's no wonder property investment in Birmingham has become increasingly popular.
Read on to learn more about Birmingham property investment, including analysis of past and future market performance, a run-down of the best Birmingham buy to let areas, and an overview of what makes the city so special.
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Overview
Thanks to its booming economy and property market, Birmingham is one of the most exciting parts of the UK to invest in property.
Approximately 40% of Birmingham is made up of under 25s and it is also one of the most ethnically diverse cities in the country. Plus, population growth is predicted to continue, with data forecasting Birmingham’s population will reach 1.3 million by 2039.
The city is also preparing to host the 2022 Commonwealth Games, which will provide a further boost to an already-strong local economy. The Commonwealth Games Village, which will serve as accommodation for the athletes, will be converted to residential housing after the games are finished.
As a property investment company, Birmingham regularly features in our consultations with clients. The city has offered brilliant returns for investors so far, and it is expected to continue doing so well into the future.
Featured Buy-To-Let Properties In Birmingham
Property investment in Birmingham - why?
Birmingham buy to let property is seen as a top choice due to a huge, growing rental demand. The demand is driven by a thriving business scene, with world renowned companies such as HSBC and Deutsche Bank headquartered in the city.
The great thing about property investment in Birmingham is that prices are still at an attractive level with room to grow, plus yields are strong. In short, there is lots of potential for buyers to make serious profits from capital growth over the coming years, whilst enjoying great rental incomes in the meantime.
Finally, regeneration is ripe and there is a 20-year plan to transform the city centre. Birmingham’s ‘Big City Plan’ is dubbed by the city’s council as the ‘most ambitious, far-reaching development project ever undertaken in the UK’. This will provide 50,000 new jobs, 5,000 new homes and improved infrastructure to meet the needs of new residents.
Birmingham Property Market Data
The map on the left shows postcodes in Birmingham and the surrounding areas have achieved average property price increases of between 16% and 22%.
Interestingly, the top performers are generally the suburbs surrounding the city centre (see B31, B32 and B38, for example), whilst postcodes in the very centre have performed weakest (see B1, B3 and B4, for example).
The chart on the left shows the change in average price paid for a property across the whole of Birmingham since 1995.
As the data shows, in the last decade the city’s property market has swiftly recovered from the global financial crash of 2008/2009.
In fact, since 2010 the average price paid for a property in Birmingham has increased by an astonishing 53%. This is one of the fastest and largest increases in capital value outside of London.
With a population just over 1.14 million at present, the Office for National Statistics forecasts that Birmingham’s population will increase to just over 1.25 million by 2043.
Such a large rise will increase demand for high-quality rental accommodation and – as supply won’t be able to keep up with demand – lift property values, meaning property investors who buy early stand to gain plenty.
Property Value Forecast
Rental Value Forecast
Economic Plan
Best Areas In Birmingham To Invest In Property
There are different areas in Birmingham to suit a variety of investor interests and objectives. Below, we have picked out the most popular areas for buy to let property in Birmingham.
City Centre
Naturally, Birmingham's city centre is popular with professionals who want to live close to their workplaces and other city centre amenities.
Leaning on the city's industrial past, factory conversions and period properties are popular in the centre (in particular, see the Jewellery Quarter), and they're supplemented by a range of new build blocks.
With the population in the city centre at circa 25,800 and growing, along with very strong yields, central Birmingham is still a hot spot for property investors.
Digbeth
Digbeth has been tipped as an up-and-coming spot for buy-to-let investment in the immediate future due to its affordability, demand, and expected price growth. Prices are still at a relatively low entry point and the area could deliver great returns for those who invest early.
Furthermore, Digbeth is subject to more than £2 billion worth of planned development projects over the coming years. It is also within walking distance of HS2’s Curzon Street Train Station, plus the existing Moor Street and New Street stations.
This really is one spot to look out for.
Erdington
Erdington is located north of the city centre and it is one of Birmingham’s best areas when it comes to affordable housing.
Yields stand at around 5-6%, whilst the current average price paid for a property is £161,360. The affordability of Erdington makes it a tempting place for investors, especially if those considering student accommodation.
It has experienced a price growth of 23.09% over the last five years, with more likely due to ongoing projects like the remodelling of Wilton Indoor Market and the redevelopment of Central Square Shopping Centre.
Perry Barr
Perry Barr is another area pipped with great potential.
The Athlete’s Village for the 2022 Commonwealth Games will be built here and after the games it will be transformed to provide 1,400 new homes.
Plus, there are planned improvements to public transport, a new railway station, new shops and more, all of which is sure to have a positive impact on the property market.
Types of Property Investment in Birmingham
A low supply of rental properties mixed with increasing demand makes Birmingham buy to let properties a wise investment choice.
In February 2020, a survey by Simply Business placed Birmingham as joint second with Liverpool as the best place in the UK to invest in buy-to-let property.
With five, popular universities, Birmingham has a student population of around 80,000 – meaning there is a substantial requirement for accommodation.
Plus, Knight Frank reports that Birmingham is one of the top UK cities for overseas students, who favour luxury student properties.
Frequently Asked Questions
Below you can find a range of common questions from previous investors. If you require specific details and advice please do not hesitate to contact us today on +44(0)203 627 3987 or via [email protected]
If you look at the current entry level prices, average yields and active regeneration projects, then Birmingham is a fantastic place to invest in property. Data from Birmingham’s local property market shows properties in the city have previously experienced substantial capital growth and solid rental yields, and research suggests this is set to continue – making for a profitable purchase.
Yes, property prices in Birmingham have increased and they are predicted to continue doing so. Data from HM Land Registry shows average prices have increased by more than 50% since 2010.
Investors can achieve strong rental yields from Birmingham buy to let property, especially in the city centre. Properties in the centre often generate yields between 4-5%, with postcodes such as B1, B2 and B3 performing particularly well.
Yes, the HS2 train line will be connected with Birmingham’s existing rail routes. Phase one of the HS2 project is set to see Birmingham’s travel time to London cut to just 40 minutes. Furthermore, the city will be within an hour’s commute to Manchester, Sheffield, Leeds, York, Preston and Wigan.
Why work with us?
As a property investment company in Birmingham and elsewhere across the UK, we pride ourselves on finding high-potential, well-priced opportunities in a clear, ethical manner for our clients. In addition:
- We do not charge any sourcing fees.
- We’re signed up to the Property Ombudsman Scheme to protect our clients.
- We conduct extensive due diligence on all investment opportunities.
- We provide after-sales support.
- Due to our close relationships with property developers, often we can get exclusive discounts or bonuses (like a free furniture pack)
- We’ll help you with any extra steps in your journey, whether that’s finding a mortgage provider, instructing a property management company, or something else.
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All information accurate as of September 2021