Birmingham Property Market 2019
Updated: Mar 6, 2019
So what is all the fuss about? Why is the city constantly being mentioned as the best location for UK property investment?
There is no doubt that Birmingham is becoming one of the UK's most talked about locations for buy to let, property investment. Home to a growing population of over 1.3 million people, Birmingham is the UK's most populous city after London.
Driving the growing population, Birmingham is now one of the UK's leading business hubs with some of the UK's leading household names relocating to the city centre, creating jobs, contributing to the local economy and importantly feeding the demand for quality rental property in the city centre.
Did I mention Birmingham has 10 higher education colleges and 6 universities, one of which is ranked in the top 100 universities in the world! The graduate retention level is huge and this is being made possible by the growing number of job opportunities in and around the city.
So let's explore some of the main reasons why Birmingham City is set to be one of the best performing buy to let cities of 2019.
Economy
Birmingham was a former industrial powerhouse and by the 18th century was one of the greatest industrial cities in the world. Fast forward to 2019 and Birmingham is again proving to be one of the big players on a global scale with a growing regional economy worth over £90 billion.
Birmingham's diverse economy, supported by its reputation as a hub for creative industries, is among the UK’s fastest growing centres for digital media ventures. Its professional services are also booming, in the last 2 years we have seen the relocation of firms such as Deutsche Bank and HSBC . The presence of these huge international corporations has increased the number of affluent professionals making their home in Birmingham.
The growing population has helped Birmingham develop the largest professional services hub outside of London which has caught the attention of both domestic and foreign investors who are looking to source highly skilled professionals.
As a direct result of the growing economy and increasing population, private developers are producing high quality city centre residences. One of the latest luxury developments in Birmingham is One BHM. The project is located in the heart of Birmingham, a short 5 minute walk to the new HSBC headquarters. Completion is due for next year and the development is sure to be a popular choice amongst the surging number of young professionals choosing to live in the city centre.
Birmingham City Tour
There is a wealth of opportunity for companies seeking to expand or invest in Birmingham. The city has exceptional connections to local, national and international destinations. It lies at the heart of the UK’s road network and boasts an international airport serving 9 million passengers per year to 140 direct and scheduled charter routes. The proposed HS2 rail link will potentially cut travel time between Birmingham and London to under 50 minutes.
Connectivity
Geographically Birmingham is perfectly located, with fast and easy access to the key cities of the north and the south.
Its expanding rail network will bring the capital even closer at just 49 minutes, and will welcome an estimated £1.5 billion and 22,000 jobs to the region. The reduced journey will certainly open the way to an increased volume of commuters, choosing to work in London while living in Birmingham.
If like me you prefer the comfort of your own car, you can take the M40 and drive to London and be there in less than 2 and a half hours or head to Manchester via the M6 and arrive in just 1hr 55mins.
Alongside this Birmingham International Airport sits just 5 miles south-east of the city centre with a choice of over 400 direct or one-stop flights across the world.
Living in Birmingham
Life in Birmingham can be very rewarding, it is a vibrant, modern, dynamic and culturally diverse city which attracts investment and visitors from all over the world. It’s a fantastic home to the arts, culture and heritage, hosts the largest retail centre in the country and is practically a foodies dream. In other words you’re not going to run out of things to do anytime soon. The curry mile, might suit you if you fancy something spicy, or perhaps the famous Bullring shopping centre for a day of retail therapy. The nightlife doesn’t disappoint either, with many bars, clubs and pubs to wet your whistle. Check out live music at the Jam House, maybe Northern Soul at The Night Owl, or head under the arches for The Tunnel.
Shopping
A £600 million makeover of New Street Station was unveiled in September 2015, complete with the launch of Grand Central shopping mall, where John Lewis is the anchor tenant. This is the third shopping destination in Birmingham’s portfolio which includes The Mailbox, home to luxury brands such as Harvey Nichols, Armani and a Malmaison Hotel and The
Bullring where high street favourites can be found, alongside the iconic department store Selfridges.
In Summary
Over the last 5 years Birmingham has seen significant private and public investment. The city has been reinvented and is frequently mentioned as one of the top 2 locations for UK buy to let investment and rightly so.
With huge new developments such as Paradise, the job opportunities in and around the city are attracting a growing number of young professionals. In addition to this Birmingham is actively promoting the retention of university graduates in the city which in-turn is encouraging 100's of new business to open in the city each month.
The UK is in the midst of a housing crises and this is clearly evident in Birmingham. The current lack of supply in the city has made Birmingham's property market extremely competitive.
Naturally the strong demand is forcing prices up. New data from the Land Registry shows there were significant price increases during 2017-2018. For example the 22 properties sold in the B12 postal code area during 2018 showed an average price of £171,500 compared to £118,000 just one year prior.
Rental yields in Birmingham have remained competitive when compared to the highest performing cities in the UK. Typical yields range anywhere from between 4-7% in and around the city, compared to the national average of 3-4%.
According to Emerging Trends in Real Estate 2018, Birmingham is one of the most popular cities in Europe to invest and it's clear to see why.
In conclusion, now is a great time to invest in Birmingham, the city is thriving and has the capacity and infrastructure to support further growth. While driving through the city you get a clear sense that the regeneration is working, the shops are full, the restaurants have queues, the roads are busy and the cranes are working around the clock!
The supply of Birmingham's rental property is falling short of the demand and this is expected to continue for the coming years. Timing is vital in property investment. Buying property in Birmingham now will maximise your chance of achieving strong capital growth and increasing rental yields.
Take a look at our latest developments in and around the City of Birmingham:
One BHM, Birmingham City Centre, B1
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