Birmingham, England’s second-largest city, is an increasingly attractive destination for those looking for a conducive environment to live in and for property investors seeking strong capital growth opportunities. With a population of over 1 million people and a fast-growing economy, Birmingham offers investors residential property hotspots poised for substantial price appreciation in the coming years. Investors looking to capitalise on Birmingham’s upward trend should consider the 10 best places to live in Birmingham outlined in this guide.
Birmingham’s Top 2 Neighborhoods for Capital Growth
Birmingham has several attractive neighbourhoods to live in, which property investors seeking capital growth can capitalise on. Two of the best areas with solid growth potential are the Jewellery Quarter and Gun Quarter.
1. The Jewellery Quarter
The Jewellery Quarter is a historic area in central Birmingham known for jewellery and metalwork manufacturing. However, many workshops have been converted into stylish apartments, attracting young professionals. Property values have risen consistently in the past decade, and rental demand remains high.
Investors should consider new developments like The Priory House and Heaton House for maximum returns. Likewise, period buildings from the 1800s with original features are appealing to tenants and offer strong capital appreciation. Overall, the area has a creative, trendy vibe with art galleries, restaurants, and bars that appeal to the target demographic.
2. The Gun Quarter
Once the centre of Birmingham’s gun-making industry, The Gun Quarter is one of the best areas to live in Birmingham and has excellent growth potential. Many former factories and warehouses have been redeveloped into loft apartments and commercial spaces. New residential developments are attracting both tenants and investors.
The Gun Quarter has a central location just north of the city centre, with several transportation links. Investors should target properties like the old Gunsmith House that is being transformed to regain its past glory. New-build apartments or commercial spaces with rental potential will likely generate the best returns over the next 3–5 years as more young professionals and businesses move into the area.
Boasting industrial heritage, central location, and redevelopment opportunities, Gun Quarter and Jewellery Quarter are some of the nicest places to live in Birmingham. They offer both looking for a conducive environment and savvy investors a chance to benefit from the city’s continued revitalisation and economic growth. By purchasing properties in these neighbourhoods, investors can achieve strong capital appreciation and long-term gains.
The 3 Best Connected Neighborhoods in Birmingham
Birmingham has an extensive public transport system, including rail, metro, and bus links, that makes it easy for dwellers to quickly transit within the city and to major UK cities. For property investors seeking strong capital growth, neighbourhoods with the best transport connections should be prioritised, including The Chinese Quarter, Digbeth, and Moseley.
3. The Chinese Quarter
The Chinese Quarter, located just north of the city centre, is a prime example of a well-connected Birmingham neighbourhood. Several bus routes serve the area, and it’s within walking distance of Birmingham Snow Hill and Moor Street railway stations, providing easy access to destinations across the region. Timber Yard, a notable new development, is located within an 8-minute walk from New Street Station. With a growing business district and Chinatown, the Chinese Quarter is a well-connected neighbourhood for tenants to live in and investors to consider.
4. Digbeth
Located just southeast of Birmingham’s city centre and boasting excellent transport links, Digbeth is a former industrial area that’s transforming into a vibrant hub for creatives, startups, and food enthusiasts. The bustling city, coupled with new residential developments like Apex Lofts in Deritend, is drawing more residents, making it a prime location for investors. The area’s accessibility and rising popularity suggest a promising increase in rent and property values. Investing in Digbeth now offers an exciting opportunity to capitalise on an eclectic area on the rise at the current affordable rates.
5. Moseley
Situated south of the city centre, Moseley is a leafy suburb popular with families and young professionals. It has a vibrant village centre with many independent shops, restaurants, and pubs. Transport links into the city are excellent, making it a top destination for those looking to live in a well-connected place.
House prices in Moseley have also been growing over the long term due to high demand. For investors, the suburb represents a stable market with solid returns through both capital appreciation and rents. Properties, especially those within walking distance of the village centre, tend to be highly desirable among tenants.
3 Underrated Birmingham Suburbs Offering Strong Rental Demand
Birmingham’s underrated suburbs are attracting strong demand from tenants seeking good areas to live in Birmingham. These areas offer savvy investors opportunities for healthy rental yields and significant capital growth, and they include Kingstanding, Sheldon, and Shard End.
6. Kingstanding
Located north of Birmingham’s city centre, Kingstanding is an affordable suburb with a growing professional tenant base. New housing developments and infrastructure improvements are attracting young families and professionals to the area. Similarly, strong transport links into the city centre make it an attractive and affordable commuter hub. Property values in Kingstanding have risen consistently over time, and rental demand is outpacing supply, signalling the potential for further growth.
7. Sheldon
Sheldon, east of Birmingham, is an up-and-coming suburb popular with families and young professionals. New housing developments, a revamped high street, and improved public services are transforming Sheldon into a desirable neighbourhood. Rental demand is strong, especially for affordable three-bedroom homes, as the suburb appeals to those priced out of other parts of Birmingham. House prices in Sheldon have increased steadily in the last 5 years, suggesting significant room for future capital appreciation.
8. Shard End
Shard End, southeast of Birmingham, is an affordable suburb with a shortage of quality rental housing due to the high in-flow of tenants seeking a good environment. The increasing demand presents investment opportunities for property investors looking for high-yield neighbourhoods. Strong transport links also make Shard End an attractive commuter base for those working in Birmingham.
Rental demand in the area far exceeds supply for high-quality properties. Property values have risen consistently in the past few years, signalling Shard End’s status as an up-and-coming UK property area.
2 Areas in Birmingham With Great Schools and Lifestyle Amenities
For many young adults, the best area to live in Birmingham, UK, is one that offers a conducive learning environment for their kids and access to basic amenities. The suburbs of Harborne and Edgbaston are 2 areas with excellent schools and amenities.
9. Harborne
Harborne is an affluent suburb in southwest Birmingham known for its highly-rated schools, including Harborne Primary School and Harborne Academy. The suburb also offers convenient access to the University of Birmingham and Queen Elizabeth Hospital.
Residents enjoy major supermarkets like Waitrose and Sainsbury’s as well as popular high streets with independent shops, boutiques, cafes and restaurants. There are also recreational amenities such as the MAC Birmingham Arts Centre, Harborne Pool & Fitness Centre, and several picturesque parks, including Harborne Walkway and St Mary’s Churchyard.
Property prices in Harborne have significantly outpaced Birmingham overall in recent years due to high demand and limited supply. New developments are scarce, so investors seeking rental income and capital gains should consider older properties suitable for renovation or extension.
10. Edgbaston
Edgbaston is a good place to live in Birmingham. It’s an affluent suburb centred around Edgbaston Reservoir and Priory Park and home to highly-rated schools such as Edgbaston High School for Girls. The area provides excellent access to the city centre as well as recreational facilities like Edgbaston Cricket Ground/Stadium, Winterbourne House and Garden, and the Birmingham Botanical Gardens.
The suburb features popular retail and dining along the Calthorpe Estate and Harborne Road, as well as major supermarkets like Waitrose. Tenants continue to flock to Edgbaston due to the desirable lifestyle on offer and proximity to Birmingham University. However, strict planning laws limit new housing developments, suggesting solid potential for capital growth, especially for period properties.
Frequently Asked Questions
What is the best area to live in Birmingham, UK?
The “best” area to live in Birmingham, UK, is highly subjective; it depends on an individual’s personal preferences and lifestyle needs.
Some of our top picks include:
- The Jewellery Quarter: Rich in history and creativity, this area is known for its vibrant and artistic environment, filled with trendy bars and independent shops. Developments like The Priory House are the most desirable by both tenants and investors.
- The Gun Quarter: Once the heart of the world’s gun-manufacturing industry, this area now hosts a mix of residential and commercial spaces, attracting a diverse renters populace. Tenants are increasingly choosing the old Gunsmith House, which is also a top pick for property investors.
- Digbeth: This rapidly transforming former industrial area is fast becoming a hub for startups and the creative sector. Its excellent transport links and new residential developments make it a desirable location.
These areas blend Birmingham’s rich heritage with modern living, making them attractive choices for residents and investors.
What is the safest part of Birmingham in the UK?
According to the latest crime figures, some of the safest areas in Birmingham are Sutton Four Oaks, Yardley Wood East, and Moseley. These neighbourhoods have lower crime rates compared to the city average and are well-regarded for their peaceful atmosphere, making them ideal for anyone prioritising safety.
Is Birmingham, UK, expensive to live in?
Compared to other major cities in the UK, like London or Manchester, the cost of living in Birmingham is considered relatively affordable. However, like any city, the cost can vary greatly depending on the area and tenant’s lifestyle.
Housing is typically the largest expense — while Birmingham offers more reasonable rental and property prices than London, prices can still be high in the more affluent areas. Other costs, such as groceries, transportation, and entertainment, are generally in line with the national average.
So, while Birmingham affords a somewhat cost-effective option for city living in the UK, it’s always important to budget wisely and consider all costs associated with living in a city.
Is it safe to walk in Birmingham at night?
As with any large city, safety can vary across different areas of Birmingham, UK. Generally, the city centre is well-lit and patrolled, making it safe for people to walk at night. Still, it’s always important to stay vigilant and aware of the surroundings, especially when alone. Residents should stick to busier streets, use well-travelled public routes, and consider using a taxi or rideshare service if they’re out late, particularly if they’re unfamiliar with the area.
Conclusion
While Birmingham has long faced economic challenges, recent regeneration and investment in infrastructure have led to an exciting resurgence in the city. For property investors seeking strong capital growth opportunities in the best places to live in Birmingham, areas like Digbeth, Harborne and The Jewellery Quarter offer affordable entry points. The next decade looks bright for Birmingham, and the time to invest is now — contact your wealth manager for more details!
Disclaimer: Any information API Global provides does not constitute financial advice and is for educational purposes only.
