Why Invest In
Birmingham

Known as the UK's Second City

Why You Should Invest In The Birmingham Property Market

Birmingham is known as the UK’s ‘Second City’ due to its rising population, rich history, and growing economy. Situated in the heart of England, the city is home to more than 1.1m people, while the greater Birmingham area houses almost 2.5m residents, five universities, and a property sector that is in the early stages of a major growth spurt.

Birmingham is the second-largest city in the UK, yet it has been overlooked historically by investors in favour of London, Manchester, and Liverpool. However, all the fundamentals are in place to make Birmingham an attractive investment option for anyone seeking to make market-beating returns over the short, medium, and long term.

Birmingham has been voted the best regional city in the UK to live in, with the cost of living approximately 60% lower than London. Many corporates have recognised the value and have already relocated to Birmingham. The property market is growing at an exponential rate, fuelled by the influx of major corporations and the growing deficit of housing supply.

Birmingham simply does not have enough residences to meet the occupier demand.

 

The imminent arrival of the HS2 rail link, a thriving student population and a string of government incentives have combined to make Birmingham a particularly promising option for property investors. Recent research has found that the average rental yields for Birmingham-based homes range from 5.95% to a massive 10.87%, depending on the size and location of the property. Even at the lower end of the market, this easily exceeds the average UK rental yield of 4.4%.

Key Facts

  • UK’s 2nd city
  • 1 million population
  • HS2 will reduce travel time to London – 49 minutes
  • 40% of the population under 25
  • Top 3 UK destination for Foreign Direct Investment
  • UK’s most entrepreneurial city with 12,109 start-ups in 2017
  • 3 major universities 75,000 students
  • Direct access to over 100 destinations globally
  • 90% of the UK within 4 hours from Birmingham
  • A shortfall of 39,000 properties
  • To reach £500+ per sqft by 2021
  • Estimated house growth (2018-2022) + 23.5%
  • Rental growth (2018-2021) +16.5%
  • 166,272 people commute into Birmingham every day

Location

Birmingham

Population

1,100,000

Economy

£ 31.9 Billion

Employment

11% (Since 2010)

Tourism

£ 7.1 BIllion

Investing in Birmingham

Birmingham is currently undergoing a huge transformation as part of their Big City Masterplan, creating huge opportunities for the property investor.

Birmingham’s framework of six economic growth zones will attract a £1.5 Billion investment programme generating some 1.8 Million square metres of new floor space and create around 50,000 new jobs.

By 2031, Birmingham will have undergone a transformational change that will see substantial economic growth furthering its dynamic presence on the international stage. The six economic zones provide the stimulus for clustering economic activity within high-quality business environments, each accelerating the delivery of growth to benefit the city.

The forefront of Birmingham’s regeneration is to provide an exceptional standard of living with efficient transportation around the city. Birmingham will have more public squares, parks and pedestrian spaces, combined with its beautiful canal network which is to be restored.

With more Michelin Starred restaurants than any other city in the UK other than London as well as beautiful bars and cafes overlooking the water, Birmingham will soon provide a World Class standard of living, that will be recognised globally.

Forecast for Growth

Birmingham is behind the curve with its regeneration, presenting huge opportunities for investors seeking healthy returns. The 20-year Big City Plan aims to improve transport connectivity, as well as build 5,000 new homes and create 50,000 new jobs. The arrival of the HS2 link will also attract increasing numbers of Londoners to Birmingham, where property prices are much more competitive.

  • Foreign Direct Investment to Birmingham reached £1.1 billion in 2018.
  • Birmingham City Centre £500+ per sqft by 2022 according to both Jones Lang LaSalle and Knight Frank.
  • Rental value growth +17% and capital growth +15% by 2024.

A Window of Opportunity

For new and veteran property investors, there is no shortage of opportunities in Birmingham. The city is well known as an affordable place to live for students, young professionals and families, but there are signs that this is changing.

Birmingham is experiencing unprecedented levels of demand and a wave of new amenities due to a combination of new developments and inward investment from the local government.  This has secured Birmingham’s position as the most desirable alternative for those leaving London while also attracting ambitious professionals from around the country.

Property prices in Birmingham are still relatively low compared to other regions, however rental yields for 2022 are averaging 6.56%, according to data from Zoopla. This is significantly higher than London at 2.90% and even the UK average itself.

According to JLL research rental prices in Birmingham could increase by 12% over the next five years  – the highest level of growth in the country.

Connectivity

Birmingham is strategically located for motorway travel with the M5, M6, M40 and M42 all interconnecting in and around the city. Three main rail stations serve Birmingham, New Street, Snow Hill and Moor Street, together providing a comprehensive network linking long-distance destinations across the UK.

Birmingham International is approx twenty-five minutes drive from the development, enabling domestic and international air travel with ease and convenience.

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We work with a pool of trusted partners; Wealth Managers, Financial Advisors, and Agents giving their clients access to best-in-class residential property investment.

We are always on the lookout to add to our network, if you would like to work with us, please get in touch.

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