Solihull, West Midlands, Birmingham and the HS2 Effect!
Updated: Oct 30, 2020
We continue to see the transformation taking place in Birmingham City centre and the direct impact this is having on property prices in the UK's second city. Naturally, as prime city stock increases in value, investors are priced out and forced to look in the surrounding areas.
Solihull, which is a large town and home to over 140,000 residents, is showing early signs that it will soon be the location for "smart money". Located just 10 minutes from Birmingham City Centre, the town is one of the most affluent outside of London. With a growing population, Solihull is attracting big businesses which are aiming to take full advantage of the professional pool but also the relatively affordable land costs and low rental prices.
The HS2 Effect
When HS2 starts running in 2026, Birmingham will effectively become a London commuter town overnight as journey times are cut in half. The idea of affordable living in Birmingham with a commute to Euston that takes less than 50 minutes will likely be highly attractive for many professionals and families currently living in London, further increasing the demand for residential property. As the HS2 stretches on to the North-West, Birmingham could quickly become the central transport hub of the UK.
The Interchange Station
A new interchange station is to be built in Solihull, close to key sites such as the NEC and Birmingham Airport. The site is expected to become fully operational when the first phase of the rail link - between Birmingham and London - opens in 2026. Works, being overseen by the Laing Murphy partnership, are now underway at the location.
Aside from the station itself, there will be car parking facilities for some 7,400 passengers and staff and the council also intends that the site will be at the centre of a new business and housing hub.
The Hub is already home to a number of key stakeholders, including world-class economic
assets such as the NEC, Birmingham Airport, Jaguar Land Rover and Birmingham
Business Park, as well as the 340 acre Arden Cross development site, which will
host the HS2 Interchange Station, as well as business, leisure and residential uses.
It is also at the centre of the UK’s transport networks, placing 75% of the UK’s population within a three-hour drive time.
The UGC will bring together the aspirations of stakeholders within the area to create a unified framework for growth and development within The Hub.
Plans have been laid out to create a garden village of up to 5,000 homes in the vicinity and a vision has also been outlined for a significant commercial development - designed to boost the local economy.
The Midlands Engine
The Midlands Engine is a coalition of Councils, Combined Authorities, Local Enterprise Partnerships (LEP), Universities and businesses across the region, actively working with Government to build a collective identity, to enable us to present the Midlands as a competitive and compelling offer that is attractive at home and overseas.
Home to over 10 million people and 800,000 large and small businesses, the Midlands has huge potential and the Partnership is focused on its global success – and this in turn will deliver an enhanced quality of life for our citizens and communities.
Solihull Property Prices
We haven't yet seen explosive growth in Solihull, prices have been increasing at a steady rate over recent years. With the average price of a 1xbed just above £94,000 prices are still over 20% below comparable properties in Birmingham City centre.
With the regeneration plans starting to take shape in Solihull combined with the lack of supply to meet the needs of the growing population in the region, there is scope for significant growth over the coming years. In addition to the capital growth, investors can expect to see healthy rental returns at approximately 6% with the understanding that rents are now on the rise.
Population growth is forecast to increase by 12% over the next 10 years, house price growth is forecast at 14% over the next 2 years, 80,000 new homes are going to be required over the next decade and Big City Plan and The Hub are expected to create an additional 50,000 jobs.
But as with any good location, it's only a matter of time before the golden nugget of opportunity is missed. What more could you want from a buy to let location, Solihull has it all.
If you would like to explore the opportunities we have in this region then please do get in touch. We have an off-market opportunity in Solihull that is due for completion in the coming months, with prices starting at £112,995 for a luxury 1xbed apartment.