Discover Birmingham
Birmingham is one of the country’s most diverse destinations, with more than 180 different nationalities calling the city home. It features world renowned museums, beautiful historic buildings standing shoulder to shoulder with modern architecture, spacious sporting venues, and some of the top performing universities in Britain.
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The Yard in Birmingham
Fountain Place in Birmingham
The Mayfair of Birmingham
Smithfield in Birmingham
The Boulevard Birmingham
Birmingham: A City Guide for Buy-to-Let Investors
Birmingham is on track to have the fastest growing economy in the West Midlands – and one of the fastest growing in the whole of the UK – according to the Centre for Economics and Business Research. It’s continually ranked as one of the quickest growing cities in the country, particularly when compared to other regional areas. This makes it a highly attractive proposition for buy-to-let investors.
Birmingham enjoyed a significant boom in 2022, hosting the Commonwealth Games which helped to highlight the city’s rich history, vibrant culture, and potential for the future. Today, it’s becoming a hub of innovation, development, education, and opportunity. This thriving metropolis is a hugely attractive place to live, work, learn, play, and invest.
An Introduction to Birmingham
Birmingham is one of the country’s most diverse destinations, with more than 180 different nationalities calling the city home. It features world renowned museums, beautiful historic buildings standing shoulder to shoulder with modern architecture, spacious sporting venues, and some of the top performing universities in Britain.
Birmingham is additionally shaping up to be the ‘next London’ in terms of the business landscape. Over the years, a number of organisations in the capital have announced plans to relocate to the West Midlands city, with the bank Goldman Sachs being one of the latest to choose Birmingham as its new hub. This shift has been accelerated by the ‘work from home’ revolution, which is allowing many to retain their top talent while paying lower property rates by moving away from London.
Birmingham’s growing reputation as one of the best places to live and work, coupled with a sharp increase in employment opportunities, is drawing more and more people to the city. According to the latest Savills forecasts, property prices in Birmingham are expected to rise by around 23–24% over the next five years (2025–2030), driven by strong demand, continued regeneration, and infrastructure investment.
"Birmingham is forecast to see both the highest sales price and rental growth of any UK city over the next five years"
Why Invest in Buy-To-Let Property For Sale in Birmingham
Rental prices in Birmingham are forecast to grow by approximately 12–15% over the next five years, with annual growth rates between 2–4%. With strong tenant demand and competitive yields, the city remains a top destination for buy-to-let investors. This is driven by a wide range of influencing factors, including:
Economic Growth
Birmingham has the second highest number of start-ups in the country, just behind London. The city also has one of the highest one-year business survival rates, with 92% of start-ups still trading after 12 months.
Together, these businesses – which include the likes of Jaguar and MG Rover – helped to contribute £52.6 billion to the UK economy in 2020, accounting for over 3% of the national total. This grew to around £56 billion just two years later.
The good news for those investing in property in Birmingham is that this abundance of wealth and opportunity is only set to grow. For landlords, this translates to more businesses, more professionals arriving in the area and a greater pool of affluent tenants.
While Birmingham is known for its diverse business landscape, the ‘one to watch’ right now is the technology sector, with recent Government reports highlighting the city as a top digital performer. Between 2019 – 2023, the number of tech-related jobs in Birmingham increased by 55%, and the West Midlands technology sector is expected to generate more than £2.7 billion each year from 2025 onwards.
Population Growth
The Greater Birmingham region is home to almost 2,300,000 people, and just over half of them live within the city of Birmingham. Birmingham is known for being the ‘youngest’ city in the UK – and possibly even in Europe – with 40% of residents being 25 years of age or younger.
One of the main reasons for this is the huge number of educational establishments within the region. From the centre of Birmingham, young people can access 400 schools, 15 universities, and 3 colleges within an hour’s drive.
The number of students in Birmingham grew by a whopping 10% between 2019 – 2021, and there are now reported to be almost 80,000 studying at Birmingham’s five main universities: Aston University, Birmingham City University, Newman University, the University of Birmingham, and University College Birmingham. It’s estimated that 6000 extra beds will be needed by 2026 to accommodate the growing number of students. However, there has been a 45% reduction in demand for halls of residence, with many students preferring to live in independent accommodation in the city. This is great news for Birmingham’s buy-to-let property investors with an eye to growing their portfolio.
Tourism Growth
Located in the centre of England, Birmingham is naturally very well connected to other parts of the UK, by road, rail, and air. The direct trains to London – either from Birmingham Moor Street to Marylebone or from Birmingham New Street to London Euston – take just two hours. This is expected to be reduced to 52 minutes with the introduction of the HS2 line which will directly connect these two major cities.
Birmingham is also home to Birmingham Airport, which serves nearly 15 million passengers every year (2024/25). This figure is expected to grow, with plans in place to expand the airport’s north terminal by close to 40% to accommodate even more travellers.
Today, Birmingham is the fourth most visited UK city. 20 million people every year visit Birmingham, which includes an estimated 803,000 overnight stays. The city is known for its museums, botanical gardens, canals, and country manors… and there’s also the opportunity to uncover the history of the real Peaky Blinders. In just a single year, between 2016-2017, the number of family-friendly attractions and galleries in Birmingham grew by 3.4%.
Investing in Birmingham property
While more and more people are choosing to live, work, and study in Birmingham, the number of new homes being built in the city is declining, resulting in rising demand for housing. The city presents a fantastic opportunity for buy-to-let investors, especially considering the lower cost of housing when compared to London and other locations in the south. The income ratio for a property in Birmingham is just 7.1, compared to the national average of 8.9, making buy-to-let properties remarkably affordable and attractive for investors wanting to increase the size of their portfolio.
With an influx of new businesses and major infrastructure projects underway, Birmingham’s economy is poised for long-term growth. While short-term forecasts project annual GVA growth of around 0.5–0.6%, long-term estimates suggest this could rise to 1.4% annually through to 2040. As one of the UK’s most dynamic regional cities, Birmingham offers a compelling opportunity for buy-to-let investors looking to capitalise on strong tenant demand and rising rental yields in the West Midlands.
Frequently Asked Questions About Birmingham
- What makes Birmingham a good location for investment properties?
Birmingham is often considered by investors due to its large rental population, ongoing regeneration and position as the UK’s second-largest city. A diverse economy, major employers and several universities help support rental demand from professionals, students and commuters. These fundamentals can make Birmingham investment properties suitable for investors seeking rental income and long-term potential, depending on location and market conditions.
- What types of investment properties are available in Birmingham?
Birmingham offers a broad range of investment properties, including city‑centre apartments, new‑build developments and traditional buy‑to‑let flats. Demand is typically strongest for well‑located apartments close to transport links, employment hubs and amenities. Those looking to explore live opportunities can view current developments.
- What rental yields can I expect from Birmingham investment properties?
Gross rental yields for Birmingham investment properties are often illustrated at around 5–7%, depending on the purchase price, rent achieved, location and tenant demand. Yields vary between developments and are affected by ongoing costs and finance.
- How much do Birmingham investment properties cost?
Prices for Birmingham investment properties vary by area, specification and property type. City-centre and regeneration-led locations generally command higher prices, while surrounding districts may offer lower entry points. Compared with many southern UK cities, Birmingham is often viewed as relatively accessible, although property values can rise or fall.
- Is there strong rental demand for investment properties in Birmingham?
Birmingham has a large and diverse tenant base, including students, young professionals and relocating workers. Universities, major employers and transport links continue to support rental demand across many parts of the city. Demand levels can vary by neighbourhood, property quality and pricing.
- Which areas of Birmingham are best for property investment?
Areas often considered for Birmingham investment properties include the city centre, Digbeth, the Jewellery Quarter, Southside and Edgbaston. These locations benefit from regeneration activity, transport connections and access to amenities. Demand and pricing differ between areas, so local research remains important.
- What are the risks of investing in Birmingham property?
Investing in Birmingham property offers strong opportunities when approached strategically. By focusing on high-demand locations, selecting properties well suited to the local rental market, and working with experienced property professionals, investors can create a well-managed and resilient investment that minimises risks and supports long-term performance.
- How do I get started with Birmingham investment properties?
Getting started typically involves setting a budget, clarifying investment goals and researching the local market. Investors may also wish to speak with mortgage brokers, solicitors and tax advisers. Working with a specialist property investment provider such as 365 Invest can help identify opportunities and guide the purchase process.
