Birmingham, a metropolitan borough and major city located in the West Midlands, has been awarded the title of the 6th best place in Europe for investment opportunities in the property market.
Famous for its rich history of art and culture, Birmingham has an economy worth of £24bn and is one of the largest economies worldwide. The diverse and growing population provides the city with innovative and creative ideas and solutions, making it a central-hub for global business and technology.
The picturesque city provides ideal opportunities for property investors looking to both receive long term rental returns and the capital growth of a property. Birmingham has a house price growth of an astonishing 7.5%, compared to London’s capital growth of 1.8%, making it the best in the UK.
Not only does the city have an unrivalled annual house price growth, the average property price in Birmingham is three times cheaper than that of property in London, meaning investors can buy charming properties located in the city centre for as little as £130,000.
With a population of over 1 million and titled the second most populated city in the UK, the property market in Birmingham has something to offer for everyone, whether that is a rented house, apartment or flat.
With such a large and diverse population, the Birmingham property market lends itself perfectly to students, young professionals and big corporate organisations. Home to five universities, Birmingham now has a substantial student population and thus a growing demand for specialised student property, creating a huge gap in the market for property investors.
For those investors looking to achieve a steady monthly rental income, Birmingham is the place to be – with those under 25 years old (who are often unable to afford the harsh and demanding costs of their own property) making up a staggering 40% of the population, the demand for buy-to-let properties is as high as it has ever been and only continues to grow.
Established corporate businesses previously based in London are also making the decision to head further north due to Birmingham’s growing business prospects in an already booming economy. Alongside being a central-hub for business and technology and the attractive property prices the city offers, the HS2 high-speed railway set to be completed in 2026 will also reduce journey times when travelling from Birmingham to London, making it easier and quicker for professionals to travel in and out of the city.
The cheaper cost of living, reduced expenses and exceptional transport connectivity in Birmingham are giving bigger, previously more popular UK cities a run for their money in the investment sector.
Birmingham is set to undergo various different redevelopments in years to come – this includes changes to the transport systems both in and out of the city and an increase in the amount of properties available on the market. With more and more new homes being built, the Birmingham property market caters to the large and diverse population it is home to. Whether you’re looking to invest in property that will attract a student demographic or whether you’re looking to rent out to business professionals working in the city, Birmingham offers an extensive range of properties at different prices and attractive yields.
Mark Burns is the managing director of property investment firm Hopwood House.