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Best Buy-to-Let Property Investment Areas in Birmingham 2019

birmingham-skyline-night

As we enter 2019, Birmingham still remains the UK’s top city for investment according to PWC in their Emerging Trends in Real Estate: Europe 2018 report.

The unprecedented level of investment Birmingham is experiencing means it continues to ride high as one of the best buy-to-let areas in the UK. From infrastructure improvements such as HS2 and West Midlands Metro to brand new commercial, residential and leisure spaces like Arena Central and Paradise, Birmingham is developing itself as a prime location for property investment.

With people leaving London for less expensive regions and city living growing in popularity, demand in Birmingham is at an all-time high. As a more affordable market, Birmingham continues to provide strong rental yields and opportunities for capital growth.

So, where are buy-to-let investors identifying as the buy-to-let hotspots in Birmingham? From suburbs to the city centre, we’ve put together a list of the places showing high demand and positive price growth, taking into account benefits for investors such as transport links, property prices and the rental market. These are the best areas for Birmingham buy-to-let properties in 2019.

Birmingham’s Best Buy-to-Let Hot Spots 2019

Harborne – B17

Harborne

Average Property: £283,627
Price Growth Since 2015: 23%

High on the list for young professionals and families, Harborne sits just outside the city centre. A sought-after Birmingham suburb, Harborne combines a relaxed village vibe with independent shops, an excellent dining scene and some of the top performing schools in the West Midlands.

Harborne is one of the most affluent neighbourhoods in Birmingham, offering a relaxed lifestyle with the buzz of Birmingham city centre on your doorstep. Located near the University of Birmingham, Harborne is under ten minutes away from one of the top 15 universities in the UK, which has a student population of 34,000. It’s also home to the newly refurbished £12 million Harborne Pool and Fitness Centre.

Demand is always high for property in Harborne thanks to excellent transport links and amenities. With over 15,000 people living in Harborne, a significant 63% work at a professional or managerial level, 50% higher than the UK average.

Properties to watch in Harborne: CopperBox Prices from £174,950 

Birmingham City Centre (Broad Street)

Birmingham City Centre

Average Property: £192,846
Price Growth Since 2015: 27%

The heart of the city has seen unprecedented investment over the last 15 years as part of the ‘Big City Plan’. From the HS2 line set to connect Birmingham with London to the £700 million Paradise development providing new commercial and leisure space, it’s safe to say Birmingham city centre is thriving.

A thriving commercial sector is attracting global corporations such as HSBC, PwC and Deutsche Bank, creating the biggest business, professional and financial sector outside of London and housing nearly 120,000 jobs.

The incredible demand for living in the city has helped drive inwards investment and pushed property prices up by 27% since 2015. With the population set to explode to 1.3 million by 2039 and residential undersupply still prevalent in Birmingham (much like the rest of the UK), any property unit in the city centre can be considered a quality investment.

Properties to watch in Birmingham City Centre: St Martin’s Place prices from £284,950 , 105 Broad Street prices from £185,950

Edgbaston – B15

Edgbaston Cricket Ground

Average Property: £300,655
Price Growth Since 2015: 17%

Just 10 minutes from the city, Edgbaston is a leafy suburb renowned for its sporting venues and affluent background. With a bustling dining scene, Edgbaston is home to Birmingham’s first ever Michelin star restaurant alongside thriving pubs and bars. Edgbaston Cricket Ground and Edgbaston Priory Club are world renowned sports venues and regularly host top events, while families can also enjoy the Victorian Botanical Gardens and Midlands Art Centre.

Property price growth is steadier than other suburbs but prices have always remained some of the highest in the region. The rental market is also strong, with average rental prices sitting at around £1,014. For buy-to-let investors, Edgbaston remains a higher initial investment but maintains excellent tenant demand in a desirable area.

Digbeth – B5

Digbeth

Average Property: £235,517
Price Growth Since 2015: 27%

Named as one of the coolest places to live in the UK by the Sunday Times, Digbeth is the most contemporary district in Birmingham. Once the industrial heart of the city, just five minutes from the iconic Bullring, Digbeth is now a hub of creative energy. From the Custard Factory – filled with businesses in the art and media sector – to Digbeth Coach Station and HS2, Digbeth is quickly becoming a top hotspot within the second city.

As part of the Eastside regeneration scheme, Digbeth is expecting a completely new public area alongside a cultural quarter, helping push the region to the forefront. Channelling London’s Shoreditch or Berlin’s Kreuzberg, Digbeth as a creative district is heavily in demand. Its affordable property market and vibrant lifestyle mean investment is accessible with both property prices and rental yields rising in the last 5 years and set to continue trending positively.

Properties to watch in Digbeth: Fabrick Square

Erdington – B23

Erdington

Average Property: £166,025
Price Growth Since 2015: 21%

Sitting 12 minutes from the city centre, Erdington is focused around a bustling high street with 280 local businesses. Erdington is home to 23,000 residents and offers a fantastic opportunity for more affordable living just outside of the city centre. One of the most rapidly improving Birmingham locations, Erdington has seen excellent investment into facilities including a £7.5 million leisure centre.

Excellent transport links include a train station and easy access to the M6 and Birmingham International Airport.

Properties to watch in Erdington: Nexus Point

Moseley – B13

Moseley

Average Property: £267,059
Price Growth Since 2015: 15%

Another suburb popular with professionals and young families. Moseley is built around distinctive music venues, a vibrant art scene and independent shops, just a stone’s throw from the city centre. Home to an abundance of green spaces, there’s plenty to see and do in this coveted village. Residents even have a private 11 acre park, which regularly holds annual music events such as the famous Moseley Folk Festival.

The large majority of Moseley properties are flats, typically averaging at around £810pcm. Moseley has a very active rental market that is continuing to grow, demonstrating the demand for living in the village suburb. Travel links to the city centre are excellent, potentially bolstered by the redevelopment of Moseley rail station.

Jewellery Quarter – B3 & B18

Jewellery Quarter

Average Property: £231,365
Price Growth Since 2015: 28%

A desirable quarter just a short walk from the city centre, the Jewellery Quarter is always in demand from young professionals working in the thriving media and tech sectors within Birmingham. With historic roots in the jewellery industry, the lovingly nicknamed ‘JQ’ remains a contemporary part of the city that maintains its unique character.

Home to a number of stylish bars, pubs, live music venues and local businesses, the Jewellery Quarter maintains a real community village feel at the heart of Birmingham, ideal for professionals that work in one of 475,000 jobs located in the city centre but want something more relaxed at the weekend.

With property prices rising by 28% over the last 3 years, the Jewellery Quarter has seen the best property price growth of any buy-to-let hotspot on this list. As rapid development continues throughout the area, rental prices in the quarter have risen to around £930pcm, with an amazing range of luxury converted flats and New York-style loft apartments.

Properties to watch in Jewellery Quarter: SGUV, Kettleworks

Kings Heath – B14

Kings Heath Square

Average Property: £214,485
Price Growth Since 2015: 19%

One of the most obvious ‘up-and-coming’ areas, Kings Heath is quickly becoming a top investment hotspot in Birmingham. Neighbouring Moseley, this suburb has a high street featuring an eclectic mix of shops, restaurants and music venues such as the Hare & Hounds. Kings Heath epitomises relaxed city living, with fantastic amenities for residents and transport links to the heart of Birmingham.

With rental prices cheaper than Moseley at around £671, Kings Heath property also spends the least time on the market, with the average property being sold in 79 days during last year. A number of excellent schools, a host of amenities and fantastic travel links in the area also guarantees a consistent demand from families.

Selly Oak – B29

Selly Oak

Average Property: £219,695
Price Growth Since 2015: 12%

Just south-west of the city centre, Selly Oak sits close to the University of Birmingham and has proved popular with students. Offering direct access to Birmingham in 10 minutes by train, Selly Oak has its own thriving retail and dining scenes. Selly Oak Shopping Park comprises nearly 190,000 sq ft of retail space and a number of large brands to shop with.

While the average property sits at around £220,000, excellent rental price growth means buy-to-let investors can take advantage, particularly with the large student population nearby.

What are the key factors for choosing Birmingham Buy-to-Let properties?

When compiling this list, we considered a number of factors including house price, rental properties, transport and amenities.

Area Development/Regeneration – How much inward investment is going into the area, such as Birmingham city centre’s HS2 project.

Transport Development – How easy is it to access the wider UK or key destinations within Birmingham. This includes new roads, rail links, airport links or motorway access.

Living Trends – Where do people want to live in 2019?

Rental Market – We look at property prices, average rents and demand for properties in the area.

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