Why you should invest in property in Birmingham

Published on 30th October 2018 by Laura West

A major city and metropolitan borough nestled in the West Midlands, Birmingham has just been awarded the title of sixth best place for property market investment opportunities in Europe.

World renowned for its vibrant history, culture and art, the city has an economy now worth a staggering £24bn, a figure that makes it one of the biggest economies in the world. Birmingham’s growing and diverse population gives the city creative and innovative solutions, enabling it to become a fundamental hub in technology and global business.

The charming city also offers ideal opportunities for buy-to-let property investors who are searching for capital growth on property, as well as collecting long-term rental returns. The house price growth in Birmingham has reached an impressive rate of 7.5 per cent, the best growth in the UK. Comparably, London’s capital growth is only at 1.8 per cent.

Not only does Birmingham have strong and unmatched increases in annual house prices, the city also boasts property prices which are three times cheaper than investment homes located in London. This means that investors could purchase property within the city centre for a modest price of £130,000.

The city also the second most populous place in Britain, with a population of more than 1 million. Birmingham is a popular city with plenty to offer investors, from large rented homes to high-end apartments and studio flats.

With a diverse and large population, the property market in the city is perfect for young professionals, students and corporate organisations who are all looking to rent spaces. Birmingham now houses five different universities, meaning that the student population within the city is exceptionally large, with increasing demand for specialist student accommodation. There is now a significant gap in Birmingham’s market for property investors.

For landlords who wish to achieve a consistent rental income each month, Birmingham could be the answer. 40 per cent of the population is aged under 25 years old, and these residents are typically unable to afford the steep costs of purchasing their own property, so the demand for rental properties is extremely high, and it continues to expand.

Established corporate companies which were previously located in London are now also choosing to relocate north to Birmingham, due to its expanding business prospects in a booming economy. Alongside its position as a centre for technology and business, and attractive property prices, the high-speed HS2 railway is a major draw. Set for completion in 2026, it means that travelling to London from Birmingham by rail will be significantly faster, making it easier for professionals to travel out of and into the city.

The exceptional transport connections, reduced expenses and cheaper cost of living, as well as Birmingham’s reputation as a large and popular city, make it an attractive prospect for buy-to-let investors. Birmingham is also scheduled to undergo several different redevelopment projects in the years to come, which include renovations to transport systems out of and into the city, and an expansion in properties available to buy. Whether investors want to rent to the large student demographic, or attract business professionals based in the city, Birmingham provides an extensive choice of properties at attractive prices and high yields.