Introduction
The cultural, economic and social heart of the Midlands, Birmingham is a core UK city that is widely regarded as the nation’s second capital. It boasts the county’s second largest population, economic output and higher education index. The city’s main industry is services, primarily finance, public administration, health and education. However, despite its thriving economy, the average property prices are considerably below London’s and the national average. The average property for sale in Birmingham is £239,016, a fraction of the £543,099 needed in London, which is attracting an increasing number of residents to the city. As a result, Birmingham is experiencing a surge in new business, as enterprises and residents look to escape the high costs of London.
Is Birmingham a Good Place to Buy Property?
Birmingham may be the UK’s second city, but its optimal young demographic and exciting period of development makes it a prime location for buy-to-let property investors looking for maximum returns. The city has one of the highest proportions of young residents in Europe, drawn to the area for social and economic prosperity, with considerably lower living costs than London. The city also has a huge student population, with no fewer than eight higher education campuses in the city. Overall, Birmingham’s popularity amongst young people has generated a huge 40% of its residents being under 25, which in turn produces a considerable rental demand. The worldwide advertisement from hosting the 2022 Commonwealth Games highlighted the city to 1.5 billion watchers and over 1 million in-person spectators, and combined with the development of the HS2 railway to link the city with London in less than an hour, this will continue to attract new residents. Birmingham is forecast to undergo considerable growth, and property for sale in Birmingham represents a top investment opportunity for buy-to-let investors.
Birmingham is undergoing exciting levels of growth in many different areas, all contributing to its popularity with property investors. Its population is undergoing above-the-curve levels of growth. Second only to London in terms of population, Birmingham is home to 1.1 million residents in the city, while the wider Greater Birmingham region contains 4.3 million people. The 2021 census reported an additional 70,000 city residents over the previous decade, a rise above the national average. An increase in residents requires additional housing, and currently demand is well in excess of supply, generating a sizable market for new developments. The city is attracting more and more business, capturing the overspill of London, as well as new business seeking the lower rent prices that Birmingham offers. Birmingham is the start-up centre of the country, with almost 20,000 companies, with a high probability of success. An influx of investments is changing the face of the city. It is one of the highest levels of investment in Europe, and the development recently resulted in awards for the most improved city to live and work.
The property market in Birmingham reflects the exciting time for the area. House prices rose 13.8% in the year leading to December 2022, and property for sale in Birmingham has been steadily rising for a couple of years. These levels of growth are well above the UK average of 9.7%. Buy-to-let property can be expected to offer significant capital growth, on top of the rental yields in Birmingham, making it a strong option for property investment.
Where to Buy Property for Sale in Birmingham?
Birmingham is famous for its diversity, and is amongst the highest foreign-born populations in Europe. There are several demographics in the city, and the location of buy-to-let property can target student, young professionals and family renters in Birmingham.
Where is the most hipster location in Birmingham?
Digbeth
Just five minutes walk from the city centre, Digbeth is widely known as the coolest area in Birmingham, even winning the Coolest Neighbourhood prize from the Sunday Times. The area has grown from its industrial roots, but retained its character and charm. Overflowing with independent retailers and eateries, Digbeth is buzzing with culture. It’s one of the best places to live and work in the country, with food trucks, brunch-serving cafes and strong digital and creative industries, making it appeal to young professionals and edgy students. There’s considerable regeneration in this neighbourhood, with an emphasis on carbon neutral development.
Where is the best place for young professionals in Birmingham?
City Centre
Birmingham’s centre offers everything the city is famous for and is ideal for young renters. You will have walking access to some of the UK’s best shopping, culminating with the famous Bull Ring. Birmingham’s international influences meet in the centre, making for an excellent food scene, and you can travel the world with the cuisines on offer. The excellent transport and links to business hubs is perfect for young professionals wanting to excel and experience all this bustling and multicultural metropolis has to offer.
Where are the best places for families in Birmingham?
Moseley
While just 20 minutes by bus from the city centre, Moseley has a quiet and relaxed feel that appeals to families. The area is reminiscent of a village, with a strong sense of community and even a farmers market, whilst retaining the benefits of a large city. There is a large park in this suburb and a famous folk music festival. Moseley boasts excellent schools, which draws young families to the area.
Edgbaston
Another contender for families is the neighbourhood of Edgbaston. This area is famous for its sporting heritage, with the international Edgbaston Cricket Ground hosting county games and England test matches, as well as a golf course and tennis club. There is a stunning botanical gardens in the suburb, as well as the University of Birmingham. The area is the spot for fine dining in Birmingham, with several dining options including Birmingham’s first Michelin-starred restaurant.
What is the poshest part of Birmingham?
Sutton Coldfield
There are a few contenders for the poshest part of Birmingham, however, most will agree Sutton Coldfield, or to use its full name the Royal Town of Sutton Coldfield, has the best claim for the title. Average house prices in the town are very high, and there are many multimillion-pound properties in the area. Sutton boasts excellent facilities for leisure, with a golf course, connected bike paths and even Birmingham’s largest leisure centre. The abundance of greenery is a large aspect of the town’s appeal, especially Sutton Park, a 2400 acre nature reserve. These are all offered from a location within 30 minutes from the centre of Birmingham.
When to Buy Property for Sale in Birmingham?
The young demographic of professionals and students in Birmingham and growing population makes it a perfect location for property investment. However, when is the best time to buy property for sale in Birmingham? The growth trends of the last few years forecasts an increase in house prices, especially as the planned developments further increase its desirability and housing demands. The current ratio of property demand to supply is at an investment sweet spot, making now the perfect time to invest in new developments in the city.
Is now a good time to buy a house in Birmingham?
Over 2022, house prices in Birmingham rose by almost £30,000. However, property prices are currently well below the national average of £315,119. The forecasted price growth, and current excellent value of property represents an ideal investment opportunity. The low cost of property is perfect for investors, with smaller initial costs but excellent expected returns. The rental market and demand for housing will provide steady rental income, while the above average growth will provide capital growth on investments. The rise in popularity in Birmingham should cause house prices to continue to rise, especially as HS2 reaches completion and the city gains even stronger transport connections, so investors should look to capitalise on this opportunity as soon as possible.
Will house prices go down in Birmingham?
While predicting market trends can never be an exact science, forecasts using previous data combined with the expected developments in the city predict continued growth in property prices. The city is seeing increasing demand for new residents and businesses, aiming to exploit the current low costs and excellent cultural, social and business prospects. The recent census data confirms the increase in desirability, with the population growing at a high rate. Property follows a supply and demand economic model, and the increased demand should contribute to increasing prices. The city was a hotspot of property price growth in 2022, according to the HM Land Registry House Price Index, and this can be expected to continue.
