Why Invest in a Studio Apartment in Birmingham?

 

Small but mighty – studio apartments offer the modern tenant everything they need in a single space, while giving investors an affordable asset within their Buy-to-Let property investment strategy

Studio apartments are typically more compact than 1- and 2-bed properties, which is usually reflected in their price. As well as offering more affordable entry prices, investors can also save on Stamp Duty Land Tax. The average price of a studio Buy-to-Let property in Birmingham sits at around £149,990, meaning investors can save significantly more on tax than with larger apartments. 

However, this increased affordability does not limit the returns on studio apartments. Location is key, and with this property type more common in the heart of urban centres, the potential of this Buy-to-Let investment property in Birmingham will grow with the city.

Tenant Demand

 

With the location of a Buy-to-Let contributing to the success of a property investment, you may be thinking, ‘but why should I invest in Birmingham?’ 

The second city is expanding, as is the demand for rental property. What was once generation buy, climbing property prices throughout the UK has seen the average age of renters continue to rise. Almost 50% of the private rental sector is made up of 25-34 year olds, the key demographic of young professionals across the city.

Searching with two consistent priorities: location and affordability, studio apartments offer these tenants open-plan living spaces in prime central spots. Young professionals are an ever growing demographic, making a studio apartment a potentially lucrative Buy-to-Let property in Birmingham.

Rental Yields

 

For investors, rental yields are yet another consideration which varies significantly between both locations and property types. While apartments generally offer higher yields than houses, studios lead the way for more competitive returns on Buy-to-Let investment property in Birmingham

Sitting at over 6%, the average rental yield for studio apartments surpasses those of both 1- and 2-bed properties. When considered with their growing demand and affordable entry prices, it’s no surprise that investors are incorporating more studio apartments in their Buy-to-Let property investment strategy.

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