Focus on Birmingham

3 Jan 2020


A bright future for property investment

It may be less than an hour from the inflated bright lights of London but Birmingham property prices are more in line with the cheaper north.

When you’re looking for property online but not sure where, it pays to check out Birmingham. According to Property Investments UK, this heart of the Midlands is a beacon for current property investment, providing an up-and-coming location for property investors, be it for buy to let or simply buy to live.

Birmingham has its own glowing attractions in good quality rental property, as well as major development for businesses to grow and extend an invitation for people to live and work here.

At the centre of the UK road and rail network the city is home to more than a million residents, with 5.75 million living within the wider region, including a huge student population which often opts to move into the world of work here. 

Why Invest in Birmingham?

Historically known for engineering, the city is morphing into a highly significant commercial centre. Professional services like banking and law are major employers. Building on its manufacturing heritage, Birmingham is also strong in high tech, including autonomous vehicle CAV technology, likely to be massive in future.

Big city centre development features Snowhill, Paradise and Arena Central, with Birmingham Smithfield the next big development getting underway. 

Deutsche Bank has an HQ here, HSBC has made it the HQ of their new UK retail bank and a huge new Government Hub will be based here. The new National College for High-Speed Rail is also located in Birmingham. And in two years time the city will host the 2022 Commonwealth Games, which are set to boost the economy by £1.5bn.

Amenities

Birmingham is a major centre for retail and leisure, attracting visitors right across the Midlands. The Bullring Shopping Centre is estimated to have more footfall than any other shopping location bar London’s Oxford Street. The restored and regenerated canalside areas by Brindleyplace and Gas Street Basin are now a popular leisure and dining district, while the Arena Birmingham and International Convention Centre host thousands of visitors annually.

Substantial investment in local public transport includes a £1.3bn expansion of the city tram services to Edgbaston, Brierley Hill, Dudley and Solihull over the next few years. A new Sprint rapid transport bus network of seven fast routes is in planning too.

Property Values 

The average house price in Birmingham is now £163,000 – slightly less than either Leeds or Manchester property. That represents a 5% rise over the last year and a steady 41.4% rise since the financial crisis of 2008.

Rental Demand 

The Office for National Statistics forecasts suggest the 1.1 million population will grow by almost 20% or 200,000 by 2039 and demand for property is outstripping supply. Birmingham is one of the most popular destinations for people moving out of London. 

Investment 

Birmingham offers property investments to suit every kind of investor. Here are some of the most attractive places to buy.

City Centre

Birmingham city centre is ever popular with professionals wanting to live near work and city centre amenities. Apartments vary from new build blocks, in locations such as the Mailbox area, plus the conversions and period properties the Jewellery Quarter is notable for.

Totally Money’s Buy-to-Let Rental Yield Map 2018/2019 says Birmingham city centre landlords can expect a yield of 5%. Average property prices are around £281,000

East Side and Digbeth

Fringing Birmingham city centre to the east both these areas are within the Birmingham City Centre Enterprise Zone undergoing huge regeneration, including the new Birmingham City University campus at Eastside and the new HS2 station set to open at Curzon Street in 2026. Digbeth is also fashionably up and coming. Average asking prices are £240,000, with yields of 6% possible.

North Of The City Centre: Aston and Nechells

The inner city districts north of Birmingham city centre are among Birmingham’s cheapest property prices. Averaging £126,000, they’re popular with landlords looking for budget buy to lets and offering shared accommodation.

Erdington

Population: 20,388
Average House Price: £179,050

This lower-cost housing area is popular with tenants looking for value for money accommodation. Average prices are around £179,000, attracting buy to let investment for student rent. Yields are around 5-6%.

Perry Barr

The Athlete’s Village for the 2022 Commonwealth Games will be built at Perry Barr. This village will then provide 1,400 new homes. There will also be a new railway station, shops and other regeneration here, boosting the wider Perry Barr property market. The average property price is £146,428 with 5% yields. 

South Birmingham: Edgbaston, Selly Oak, Harborne and Moseley

Population: 65,560
Average House Price: £281,000

The South Birmingham suburbs, including Edgbaston, Selly Oak, Harborne and Moseley are among the city’s most popular mid-market residential suburbs. They attract professionals wanting to live outside the city centre, as well as families. Average prices are £281,000.

In contrast to many cities, prices drop further out. Stirchley offers good value properties with an average of £190,427, with yields of 5%. 

Sutton Coldfield and Solihull

These are Birmingham’s more affluent areas, popular with families due to good schools and commuting. Average prices here some of the highest in the area - £350,000 and upward - and yields (B23) are around 4%.

Birmingham Airport Area

Savvy investors are keeping an eye on the Birmingham Airport area. As well as the airport expansion programme there’ll be a new HS2 station and transport interchange here, as well as plans for large-scale commercial development with 4,000-plus homes.

Interested?

OnlineEstateAgents.com is the place to start, with locally based specialists on hand to direct you to the best location. Get a free and instant online property valuation with OnlineEstateAgents.com and seek advice from our expert team of independent property professionals.

For further information about online homes for sale contact Online Estate Agents Ltd; on 0330 1244 786.

 



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