Key Stats 2-Bed Apartments
Key tenant demand for premium 2-bed apartments.
of landlords would rather let to couples that rent.
Couples aged 25-49
make up the largest proportion of private renters.
Why invest in a new 2 bed apartment in Birmingham?
One of the most popular property investment assets in the sector, 2-bed apartments are always in strong demand due to the unprecedented space and flexibility they can offer residents. This hasn’t gone unnoticed by developers who have started implementing more 2-bed apartments into their builds, particularly in city centres where young professionals and couples are moving for work opportunities and surrounding amenities.
Choosing a quality development is vital for building long-term consistent yields and a 2-bed apartment only amplifies that. If the investment is located in an up-and-coming market such as Birmingham, where demand is already skyrocketing, it can quickly offer lucrative returns through natural market growth and premium tenant demand.
Consider that the two common demographics of tenants choosing 2-bed apartments – professional sharers and couples – also bring their own unique advantages. They offer the security of a double salary, reducing the risk of arrears and typically rent for longer, meaning less risk of voids. It’s no surprise then that 49% of landlords let to couples according to the English Private Landlord Survey.
Generational Tenant Demand
As city centres become some of the most desirable locations to live in the country, a new generation of residents is emerging. ‘Generation Rent’ want to maximise space and affordability without giving up living in the heart of the action. Whether it’s a prime city-centre apartment or situated just outside, flexibility is a key driver in the increased demand.
Birmingham is a key destination in the Midlands that is experiencing unprecedented demand due to the commercial opportunities provided by companies such as HSBC and PwC alongside world-class leisure amenities and retail offerings. The population continues to grow as workers and families flock to the city, with an expected increase of 10,000 people per year over the next decade. It’s also popular with London movers – 7,771 Londoners moved to Birmingham last year – that’s over 21 a day.
Supply isn’t meeting demand either. There’s not only a shortage of housing but a shortage of more spacious 2-bed apartments in the city. This means a quality, 2-bedroom apartment with easy access to high-skilled jobs and surrounding amenities are like gold dust. Tenants don’t mind paying more either – according to Homes and Property – two bedroom properties are more likely to attract tenants despite rents being higher.
In research by Zoopla, 2-bedroom apartments are recognised as the optimal property for maximising rental yields with an average yield of 5.40%. 2-bedroom apartments beat all of the competition, leading the next asset type by nearly 0.50% and racing ahead of 2-bedroom houses which earn on average 4.80%.
For investors, it’s easy to see that the ideal Buy-to-Let property is a 2-bedroom apartment in a premium location – providing the new wave of renters with a spacious home surrounded by everything they’d need in day-to-day life. Birmingham is one of these prime locations – leading the way for growth in the UK since 2016 with property prices soaring by 16%. Offering above-average rental yields of around 5%, it continues to over-perform despite outside influences to the market.
Featured Luxury 2 Bed Apartment in Birmingham
105 Broad Street, Birmingham
- 1, 2 & 3 bedroom apartments available
- Prime City Centre Location
- Located minutes away from Arena Central, Brindleyplace & Paradise
- State-of-the-art gym & 24-hour concierge
Recommended by PurpleBricks and advised that SevenCapital are brilliant. Loved the way SevenCapital have delivered a personal experience digitally plus an amazing evening event in London.
I recently completed on my apartment at Fabrick Square and it let straight away with a net yield greater than 7% , which is better than I expected. The team were very honest and accommodating throughout the whole process so my experience was great, and I have since reserved a further two apartments in another development. I would recommend SevenCapital.