Welcome to Birmingham, the UK’s second city. As one of Britain’s most vibrant and populated cities, this West Midlands hotspot has quickly become one of the UK’s best places to invest in property.
With the likes of Manchester, Liverpool, London, and Leeds all vying for the attention of property investors, you may be unsure if property investment in Birmingham is right for you.
Investing in Birmingham Property
Welcome to Birmingham, the UK’s second city. As one of Britain’s most vibrant and populated cities, this West Midlands hotspot has quickly become one of the UK’s best places to invest in property.
So, if you’re looking for one of the best buy to let investment hotspots the UK has to offer, then keep reading to find out why you should invest in Birmingham property
Why Invest in Birmingham Property?
With the likes of Manchester, Liverpool, London, and Leeds all vying for the attention of property investors, you may be unsure if property investment in Birmingham is right for you.
Dig a little below the surface, though, and you’ll discover a city that boasts not only affordable prices and high rental income but also the demand needed to sustain a successful investment.
With that in mind, let’s take a look at the returns you can earn through Birmingham property investments.Read Less
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Birmingham Investment Property Capital Growth
For property investors with one eye on retirement, long-term capital growth (the increase in a property’s value over time) may be one of the essential types of returns for you.
Luckily for those interested in property investment in Birmingham, the West Midlands city has delivered huge capital growth over the last 20 years.
According to the latest available data from the Land Registry, the average property price in Birmingham is currently £239,603.
While this is noteworthy due to its affordability (over £50k below the UK average), it’s also a whopping 12.08% higher than 12 months ago.
This falls in line with some of the impressive capital growth seen in places like Liverpool (10.9%) and Manchester (10.5%), and is over 4% higher than property in London.
While Birmingham property investment ticks the box for long-term growth, it’s also suited to income-focused investors.According to home.co.uk house price data, the average rent in Birmingham is £1,511 PCM.Therefore, property in Birmingham can deliver gross rental yields (not factoring in expenses) of 7.34%.This is an incredibly high average and is on par with London (7.60%) and higher than the UK average (4.87%) but falls short of Liverpool (7.56%).These returns will get even higher for student investment property in Birmingham due to the lower property prices.
Birmingham is often called the UK’s second city due to its vast economy and large population.Around 1.15 million people live in Birmingham, which is growing considerably.Between 2002 and 2015, the ONS found that Birmingham’s population increased by a whopping 163%.In 2021, ONS found that there was an increase of 6.7% since 2011 – higher than the rate seen in England as a whole (6.6%).And with current predictions in place of the Birmingham city population to rise from 1.1 million to 1.23 million by 2038, it’s an exciting time to make a Birmingham investment.After all, a rising population means an increase in buyers and tenants, which leads to rising house prices and rental income – a good sign for prospective Birmingham buy to let property investors.It gets better:Around 40% of Birmingham’s population is aged under 25.This is a key age group of tenants in the private rented sector, with young professionals one of the most likely age groups to rent.As such, property investment in Birmingham has several attributes needed for a successful investment.
