Birmingham is thriving, and it’s not just down to the Peaky Blinders’ effect. Investors may have historically overlooked the UK’s perennial ‘Second City’ but no longer – and for good reason. Properties are affordable, capital growth is increasing rapidly and demand is soaring, delivering rental yields more than double those on offer in London.[1]
The Jewellery Quarter has become a byword for hipster cool in recent years, but now attention is rightly focusing on the Gun Quarter as the new hotspot for growth. Situated a short walk from the central business district, the Gun Quarter boasts a unique industrial heritage just like its neighbour but is still relatively undeveloped in terms of residential property, offering huge untapped potential.
Once the centre of the world’s gun-manufacturing industry, the Gun Quarter is set to rival the Jewellery Quarter as Birmingham’s most attractive neighbourhood for city living. Take the old Gunsmith House, which is being restored to its past glory with 85 stylish apartments showcasing the area’s distinctive industrial character. At the heart of Birmingham’s Big City Plan for development, the Gun Quarter is being reinvented and there could not be a better time to invest in what is tipped to be the city’s next hotspot. With Berkeley Homes’ exclusive Snow Hill Wharf nearby, the growing potential and appetite from developers in the area is clear.
The fundamentals are extremely strong for investors across the city. Both the residential and property markets are growing exponentially, fuelled by an influx of major employers and the region’s position as the fastest-growing tech hub in the country.[2] The likes of HSBC, Deutsche Bank, Goldman Sachs and PWC are attracting young professionals who want to rent in the bustling city centre – home to buzzing bars and restaurants and a vibrant cultural scene – where the proportion of households privately renting is forecast to rise further to 63%.[3]
With a well documented under supply of housing in the city, Birmingham’s already a hive of regeneration and development, with soaring demand, particularly amongst the burgeoning young professional cohort. Accordingly, private rents increased by 17.6% last year and investors can benefit from projected growth of 17% in rental value and 15% in capital growth by 2024.[4]
Birmingham is the youngest city in Europe with 40% of its population under 25 and a student population of over 100,000 – 46% of whom stay in the city after graduating.[5] With a booming economy and HS2 on the way, Birmingham’s political leadership are underway with an ambitious vision to create a world class city centre. The Big City Plan will transform the city and drive more growth, creating over 50,000 new jobs and 1.5 million square metres of floor space for businesses.
Last year Birmingham was named as one of the best places to live by the Sunday Times and one of the best cities in the world by the Time Out Index.[6] It’s time for the UK’s Second City to take centre stage for investors as Birmingham goes from strength to strength.
———-
[1] https://sevencapital.com/birmingham-property-investment/rental-yields-birmingham/
[2] HSBC, Deutsche Bank, Goldman Sachs and PWC have relocated: https://centrick.co.uk/news/8-reasons-why-job-opportunities-are-thriving-in-birmingham/
https://www.buyassociationgroup.com/en-gb/2022/09/20/levelling-up-birmingham-london/
To note this is 2021, West Midlands on track to create an extra 52,000 digital tech jobs https://www.gov.uk/government/news/west-midlands-on-track-to-create-an-extra-52000-digital-tech-jobs-and-grow-by-27-billion
[3] CBRE: https://lamontestates.co.uk/the-rise-of-build-to-rent-in-birmingham/
[4] Rightmove data: https://www.theguardian.com/money/2022/oct/21/private-rents-britain-hit-record-high-demand-properties
Zoopla says 12.3%: https://metro.co.uk/2022/12/09/map-shows-the-cities-in-the-uk-where-average-rent-has-risen-the-most-17908794/
[5] https://www.propertyinvestortoday.co.uk/breaking-news/2022/1/birmingham–why-the-youngest-city-in-europe-has-become-a-thriving-hub-for-students-graduates-and-young-urban-professionals
[6] Sunday Times: https://www.thetimes.co.uk/article/why-birmingham-best-place-to-live-uk-2022-kmzgwsvhq
Time Out Index: https://www.timeout.com/things-to-do/best-cities-in-the-world
