Birmingham’s Population Set to Rise by 80,000 by 2030
There can be no denying Birmingham’s rise in popularity over the last decade. The population of the ‘second city’ has risen by nearly 10% since 2010, equating to around 100,000 new people living in the city.
Driven by incredible regeneration, continued affordability in spite of rising property prices and seemingly new career opportunities every day, this influx of new residents isn’t set to slow any time soon, with Oxford Economics suggesting the population will hit 1.24 million by 2030 – a rise of nearly 80,000 in ten years.
This is a huge increase that can be attributed to several factors all coinciding at once. Firstly, regeneration of the city is completely transforming the profile of Birmingham. What may have once been seen as a typically traditional city centre has been revitalised over the last 20 years – starting with the Bullring, now a 1.2 Million sq ft retail destination with over 39 Million visitors annually.
Now, with the redevelopment of Grand Central and New Street Station, as well as HS2, Paradise, Arena Central and Birmingham Smithfield on the horizon, Birmingham has a lot to shout about.
With world-class amenities comes world-class occupiers. Despite rising prices, Birmingham continues to be much more affordable than the traditionally popular London market – in terms of both residential and commercial occupiers. This has led to global businesses such as HSBC and PwC relocating their headquarters to Birmingham, which in turn attracts a skilled workforce that have more money to spend, notably Birmingham is now home to the UK’s largest Business and Professional service hub anywhere outside London.
Investors could look to Birmingham’s past performance as a solid indicator of what this means for the future of the market. The average asking rents in Birmingham have risen by 28% since 2009 and forecasts expect an overall rise in UK rents by a further 15% by 2023, as renters look set to outnumber homeowners over the next 20 years.
A rising population will also have an impact economically speaking – Birmingham’s gross value added (GVA) is expected to grow by 16.4% over the next ten years, much faster than the wider UK average. As regeneration projects continue to both start and complete, attracting both employers and employees, this increased economic performance will only continue as events such as the 2022 Commonwealth Games showcase the city on an international scale.
Finally, Birmingham continues to be a key destination for those leaving London. With a much more affordable market, the opportunity for high-quality career opportunities increasing and travel times set to be heavily reduced thanks to HS2, the completion of this line forecasted for 2026 will cement Birmingham as an alternative prime market to London that could entice a new wave of workers looking for quality accommodation.
All of this has meant the population is expanding rapidly, putting huge pressure on supply and creating a much more competitive market. Tenant demand is at an all-time high in Birmingham and for a demographic that wants to be at the heart of the action, a city-centre residential property is the ideal way to achieve that lifestyle.