What makes these the best places to invest in Birmingham Buy-to-Let 2022?
Driven largely by the ‘Big City Plan’ that started with the Bullring, a vast number of redevelopment projects are transforming large sections of the city, encouraging more and more people to move for the opportunities available. This has highlighted a wide array of Birmingham Buy-to-Let investment property in key areas of the city, all of which are forecasting high-growth potential as demand increases.
With this in mind, we’re examining the best places to invest in Birmingham Buy-to-Let property in 2022 and why investors from across the world should be considering Birmingham property as a premium asset for their portfolio.
When we talk about the ‘best’ places to invest in Birmingham, we’re looking at several key investor metrics. While some of these are obvious, it’s important to get a clear idea of what makes a good Buy-to-Let investment before we jump in. Some of the examples we look for are:
Property Price Growth | Rental Yields | Tenant Demand | Regeneration | Transport Links
This allows us to build a complete picture of an area’s Buy-to-Let performance while also highlighting Birmingham’s performance as a whole. Here are some of the best places for Buy-to-Let investment property in Birmingham in 2022.
Invest at the heart of Birmingham city centre
Invest at 105 Broad Street – achieving yields up to 5.2% and forecasting 19.5% price growth.
Ideal for traditional Buy-to-Let investment in Birmingham or a Short-Term let – 105 Broad Street is achieving an average occupancy rate of 80% for short-stay tenants.
Prices from £249,950.
Birmingham City Centre
Rental Yields: 5.2%
Average Property Price: £223,378
Property Growth last 10 years: 47.88%
Over the last year, Birmingham city-centre has seen massive progress across many of its main regeneration projects. Both Paradise and Arena Central draw closer to completion, while work has begun on the HS2 terminus station at Curzon Street.
Looking across the wider landscape, the Midlands Metro Expansion has made huge progress and is now operational from Grand Central to the Jewellery Quarter and beyond. It’s expected the work on the Broad Street line will complete by this time next year.
This level of redevelopment is just one contributor to the price growth across Buy-to-Let investments in Birmingham. Prices have risen by 44% over the last decade but Birmingham remains relatively affordable, providing investors with a lower initial entry point and above-average rental yields.
As you’d imagine, the city-centre continues to be a prime example of Buy-to-Let investment property in Birmingham, supported by a bustling business hub that is attracting demand from young professionals – the core demographic within the wider rental market.
Properties to watch in Birmingham City Centre: St Martin’s Place, 105 Broad Street
Birmingham City Centre Key Stats
Average Price:
£223,378
Average Rental Yield:
5.2%
Growth since 2010:
47.88%
Jewellery Quarter
Rental Yields: 4%
Average Property Price: £210,083
Property Growth last 10 years: 49.10%
The Jewellery Quarter remains one of the top investment locations in the city-centre. Offering a ‘village feel’ without sacrificing any of the connectivity or nearby amenities, the Jewellery Quarter continues to be a hub of young professionals looking for rental accommodation.
Property prices have risen by 28% over the last three years and properties near the Jewellery Quarter Station have seen some of the biggest rises. As a key transport link for this side of the city, it’s a major driver of demand for the area and Nationwide predicts that any properties within 500m of a station could draw a premium of 9.4%.
With a selection of luxury-conversion and loft-style apartments, as well as plush townhouses, Jewellery Quarter properties continue to be some of the best Buy-to-Let investments in Birmingham. With many more digital businesses moving into the area, expect a larger wave of demand from professionals in the city looking to live within walking distance of the office.
Jewellery Quarter Key Stats
Average Price:
£210,083
Average Rental Yield:
4%
Growth since 2010:
49.10%
Edgbaston
Rental Yields: 4.1%
Average Property Price: £311,842
Property Growth last 10 years: 47%
Largely recognised for its sporting heritage before anything else, Edgbaston also happens to be one of Birmingham’s most affluent postcodes and a clear investment hotspot. For investors that want a Buy-to-Let investment property in Birmingham with established growth, Edgbaston has demonstrated nearly 40% growth over the last decade.
Property growth may not be as explosive in Edgbaston but its yields have always kept pace with its average values. Edgbaston rental prices sit at around £1,014 and while it may represent a higher initial investment, Edgbaston still maintains exceptional tenant demand and yield security.
This is largely driven by its reputation as a family hotspot. Just ten minutes from the city-centre, Edgbaston can also offer a ‘private, village feel’ that many other areas can’t. Hosting Birmingham’s first-ever Michelin-starred restaurants, it’s also home to some of the area’s key cultural hotspots such as the Midlands Art Centre and Victorian Botanical Gardens.
Edgbaston Key Stats
Average Price:
£311,842
Average Rental Yield:
4.1%
Growth since 2010:
47%
Erdington
Rental Yields: 5%
Average Property Price: £179,256
Property Growth last 10 years: 47.89%
Representing one of the most affordable areas in this list, Erdington is a truly emerging market for the city. Home to around 23,000 residents, plenty of amenities and easy access to the city core, it’s an ideal choice for the investor that is planning for the long-term.
Erdington is one of the most rapidly improving locations in the city and has seen an array of investment into major facilities, including a £7.5 million leisure centre.
Transport links are particularly strong in this area and include a train station as well as connections with the M6 and Birmingham International Airport. This makes it popular with tenants that aren’t looking to live in the city-centre but still might work there or need to commute out of the area.
For offering an affordable entry point into the market and with exceptional growth on the horizon, Erdington represents one of our best places to invest in Birmingham in 2022.
Properties to watch in Erdington: Nexus Point
Erdington Key Stats
Average Price:
£179,256
Average Rental Yield:
5%
Growth since 2010:
47.89%
Harborne
Rental Yields: 4.6%
Average Property Price: £375,767
Property Growth last 10 years: 39%
One of the most desirable postcodes in Birmingham, Harborne is popular with families looking for the more relaxed feel of the suburbs without compromising access to the city-centre.
Harborne is recognised as being home to a large percentage of professional workers – nearly 63% of the population work at a managerial or executive level, much higher than the UK average. This could be largely driven by the quality of the amenities available, as well as the quality of the properties on offer.
As you’d expect, Harborne has seen above average property growth over the last ten years – around 39% since 2010. With some of the top performing schools in the West Midlands, as well as a fantastic retail and leisure sector, Harborne continues to be one of the best places to invest in Birmingham in 2022 and one of the top destinations for a Birmingham Buy-to-Let investment property.
Properties to watch in Harborne: CopperBox
Harborne Key Stats
Average Price:
£375,767
Average Rental Yield:
4.6%
Growth since 2010:
39%
Digbeth
Rental Yields: 4.7%
Average Property Price: £203,600
Property Growth last 10 years: 49.38%
Digbeth is widely recognised as Birmingham’s most ‘up-and-coming’ area. Just five minutes from the Bullring and the city-centre, Digbeth is a vibrant melting pot of arts, culture, digital business and exciting independent retail – making it one of the key winners in the best places to invest in Birmingham.
Home to many of the city’s leading art, digital and media companies, as well as hosting Birmingham Coach Station and the future HS2 interchange hub at Curzon Street, Digbeth is establishing itself as a thriving area for young professionals to work and live. With strong transport connections, it’ll receive a huge boost in foot traffic when both the HS2 and Birmingham Smithfield projects complete.
In terms of past performance, Digbeth has seen property price growth of 401% in the last 20 years and according to JLL, it’ll experience 16.5% over the next four years. This demonstrates the potential that the area holds for Buy-to-Let investments in Birmingham, driven by the regeneration that is transforming the local skyline.
Properties to watch in Digbeth: Fabrick Square
Digbeth Key Stats
Average Price:
£203,600
Average Rental Yield:
4.7%
Growth since 2010:
49.38%
Best Capital Growth Areas in Birmingham in 2022
If you’re looking to identify capital growth in Birmingham, look no further than Digbeth and Edgbaston. Both of these areas have experienced the best growth over the last ten years but offer very different propositions for investors.
Digbeth can be considered an emerging market and is much more affordable than Edgbaston – the average price in Digbeth is £203,600 vs £311,842 in Edgbaston. Regeneration in the area is helping drive its growth and ensuring that in the long-term, it’ll be a desirable hotspot for both investors and residents. Right now, Digbeth represents an affordable entry point into a wider Birmingham property market that is forecasting incredible growth and even higher demand.
Edgbaston, on the other hand, is an investment area further along the ‘growth cycle’. While it’s a more expensive initial proposition, it has a proven level of growth that is driven by a strong local workforce and incredible resident amenities nearby. That said, Edgbaston is a much more ‘suburban’ area and is mainly populated with houses rather than the apartments that are typically more popular with investors. Similarly, it’s further from the city-centre than Digbeth, which may be a factor for tenants seeking a certain lifestyle.
Tune into our LIVE Session: Have You Got a Type?
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Joining our host Liam Smith to examine the various asset classes on the market will be SevenCapital’s Head of Marketing, Cally Godfrey.
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Best Rental Yield Areas in Birmingham in 2022
Rental yields in Birmingham are generally above-average. With an average yield of 5.1%, the city is recognised as one of the more potentially lucrative markets in the UK – affordable enough to attract new investment while still offering exceptional returns.
Digging deeper into individual areas, it’s no surprise that the same holds true for the more affordable markets in the city. Both Digbeth and Erdington top the list for affordability in Birmingham and are still in demand because of the lifestyle and amenities they can provide.
This invariably leads to better rental yields: Digbeth at 4.7% and Erdington at 5%.
For investors interested in a long-term strategy, these are the areas that should be primarily considered. While they represent affordable entry points now, future redevelopment will contribute to rising demand which in turn supports rising rental prices and yields, making them key considerations for the best places to invest in Birmingham.
