Why investors can’t resist property for sale in Birmingham

Follow the money and invest in the UK’s top UK hotspot

Birmingham is the UK’s second city (sorry to residents and authorities in Manchester and Edinburgh!). It’s vibrant, dynamic, a magnet for visitors and businesses, and at the heart of the UK’s transport network. When High-Speed Rail arrives, the city will be just one hour from London. In this article, we highlight a few of the major reasons why investors can’t resist property for sale in Birmingham, and why Birmingham has been named the UK’s top property hotspot (again).

Birmingham – a large and growing populous city

Outside of London, Birmingham is the UK’s most populous city. In Birmingham itself, there are more than 1.1 million residents. Birmingham City Council, in its 2012 population projections, forecasts this number will grow by a little more than 12% by 2032. That’s another 134,000 residents who will need homes.

While this rate of growth is a fraction shy of the projected rate of growth nationwide, it’s expected that the rate of growth in working age population will outstrip that of the UK. Great news for buy-to-let investors – this size and type of population growth gives property for sale in Birmingham the potential for above-average capital growth and rental yield.

Birmingham – incredible accessibility

While Birmingham isn’t the geographical centre of England or the UK, it is certainly at the heart of the nation’s transport network. Traveling anywhere from Birmingham is easy.

The M40 connects to London. The M6 not only connects to London (via the M1), but also to the rest of the South of England, the North West, and Scotland.

Currently, a rail passenger from Birmingham can be in London in around two hours and Manchester in 90 minutes.

Combining road and rail options, you can reach 90% of the UK in less than four hours from Birmingham. And it’s going to become even better connected when High Speed starts services – London will be just one hour away, making Birmingham a potential destination for commuters into London!

The city is also well positioned for international travel, with Birmingham Airport providing an entry and exit point for 25 million passengers each year. Expansion plans will enable passenger numbers to more than double by 2025.

Exceptional education establishments

Birmingham City Council oversees the state school system in its role as England’s largest local education authority. It oversees more than 450 schools, covering ages from nursery to sixth form. Other schools include voluntary-aided Anglican, Jewish, and Islamist schools. Around 70% of pupils in state schools in Birmingham now achieve five A to C grades at GCSE level.

Birmingham is also a renowned university city. There are five universities in Birmingham, which cover a student population of around 65,000. Many of these will continue to live in Birmingham after graduation, helping its modern economy to grow at an above-average rate.

Birmingham is a key destination for business

Birmingham is a key destination for London headquartered firms investing in regional cities. These firms benefit from lower costs for premium office space and lower salaries for skilled workers. Birmingham Airport’s proximity to the city also attracts international clients.

Inward investment is increasing. In 2015/16, there were 51 inward investment projects – 74% more than the previous year. This inward investment is likely to grow further as the benefits of HS2 come more into focus and Birmingham Airport expands.

The city is also home to the largest financial economy in the UK outside of London, with a vibrant banking sector. HSBC is moving its UK retail headquarters to the city in 2018. The ‘Big Four’ accountants and other top accountancy firms run many global audit relationships from Birmingham. More than 45,000 people work in the financial and insurance sector in Birmingham.

There are more than 200 law firms in the city, and all large national law firms have an office in Birmingham.

Birmingham’s economy is vibrant, diversified, and growing. The Birmingham Economic Information Centre has forecast that the city’s GVA will rise to around £30.4 billion by 2026 – an increase of almost a third of the city’s economic output in 2014, and average annual growth of around 2.3%. It is some way above the growth rate that is forecast for the UK by the IMF, World Bank, United Nations, and European Commission – whose average forecasts range between 1.2% and 1.9% per year through to 2021.

Birmingham has a plan

Birmingham is growing, both economically and in population. It means there will be a need for new homes, jobs, and infrastructure. The local authority has put in place the Birmingham Development Plan 2031 to ensure that the city realises its potential. 80,000 new build homes will be developed, in sustainable neighbourhoods designed to provide all the amenities required now and by future generations.

Birmingham is the most attractive UK city for property investment

Birmingham is reinventing itself. Massive investment in infrastructure, transport, and regeneration is translating into higher property prices. According to home.co.uk, the average property price in Birmingham increased by 6% between July 2016 and July 2017. At £185,916, the average property price is around 17% below the UK’s average price of £223,257 (HM Land Registry House Price Index). Property for sale in Birmingham is among the most affordable big-city property in the UK.

The average rent in Birmingham is £988 per month, meaning property investors should benefit from an average rental yield of 6.4%.

Excellent transport links. Incredible education facilities. A rapidly-growing economy and a preferred destination for business. Forecasts of a rising working age population all requiring homes. It’s not surprising that in their 2017 Emerging Trends in Real Estate survey, the Urban Land Institute and PwC named Birmingham as the UK’s number one property investment hotspot.

To discover more about the amazing new build property for sale in Birmingham, contact one of the Gladfish team on +44 207 923 6100 .

Live with passion,

Brett Alegre-Wood

Brett Alegre-Wood
October 10, 2017

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