{"id":841,"date":"2018-07-04T11:33:35","date_gmt":"2018-07-04T10:33:35","guid":{"rendered":"https:\/\/sevencapital.com\/?page_id=841"},"modified":"2022-04-06T10:31:48","modified_gmt":"2022-04-06T09:31:48","slug":"why-invest-in-birmingham-property","status":"publish","type":"page","link":"https:\/\/sevencapital.com\/birmingham-property-investment\/why-invest-in-birmingham-property\/","title":{"rendered":"Why Invest in Birmingham Property"},"content":{"rendered":"
Birmingham has established itself as the UK\u2019s second city, following closely in the footsteps of London. As regeneration schemes progress throughout the city and international employers continue to relocate to Birmingham, the city is seeing impressive tenant demand, exceptional growth and promising forecasts for the coming years. Looking for the best Buy-to-Let hotspots in the UK? Find out why you should invest in Birmingham in 2022. <\/span><\/p>\n <\/p>\n Why invest in Birmingham? With the entirety of the UK to consider when searching for Buy-to-Let opportunities, this is an increasingly common question amongst investors. However, the answer is surprisingly simple – the city not only offers affordable properties, but it\u2019s exciting future is offers strong rental yields and endless potential for growth.\u00a0<\/span><\/p>\n As well as being a core city within the UK, Birmingham also ranks as one of the most popular investment locations in Europe. With \u00a3billions of investment being injected into infrastructure projects across the city, spanning both commercial and residential spaces, the future of Birmingham is an indication of its potential.\u00a0<\/span><\/p>\n Combined with the growing demand for property, this offers insight into why investors should consider the second city. The continued regeneration, coupled with the 2022 Commonwealth Games and a thriving business district make Buy-to-Let properties in Birmingham a prime investment opportunity for 2022 and beyond. <\/span><\/p>\n <\/p>\n Taking place 27th July and 7th August 2022, the Birmingham Games will attract over one million spectators during the event, giving a massive boost to the local economy of Birmingham. It\u2019s expected that the Games will create on average, 4,500 jobs a year until 2022 and then 950 after.<\/a><\/p>\n Key Stats<\/strong><\/p>\n <\/p>\n <\/p>\n Demand is the lifeblood of any property investment. This is why Birmingham Buy-to-Let properties are such a popular asset with many investors. As the second largest city in the UK \u2013 with a population of 1.4 million<\/a>\u00a0 \u2013 Birmingham continues to be a key location for young professionals, students, families and even those leaving the capital. This level of demand is highlighting why so many people are looking to invest in Birmingham property in 2022.<\/p>\n The second city is also one of the youngest cities in Europe \u2013 60% of the population are under 35<\/a>. Attracted by the career opportunities and amenities available, young professionals are one of the most desirable tenants for Buy-to-Let properties. This demographic makes up the largest % of the UK rental market and many are choosing to rent long-term \u2013 highlighting why Birmingham Buy-to-Let properties<\/strong> are ideal for those seeking\u00a0consistent tenant demand.<\/p>\n <\/p>\n The Birmingham property market is one of the most affordable in the country relative to its size. The <\/span>average property price in Birmingham now stands at \u00a3214,696<\/b> – meaning plenty of people are looking to rent or buy Birmingham Buy-to-Let properties.<\/span><\/p>\n This also means that Birmingham rental yields are exceptional, especially when we consider recent rental growth. <\/span>Birmingham rents have grown by 28% since 2009 and are set to grow by 10% over the next four years.<\/span><\/a> Birmingham\u2019s average asking rent is \u00a31,188 \u00a0– which means <\/span>Birmingham\u2019s average rental yield is 6.56%<\/b> when measured against the average property value.\u00a0<\/span><\/p>\n This is much higher than the <\/span>lower yields we\u2019re seeing in the South<\/span><\/a>. Data from <\/span>LendInvest<\/span> shows that (perhaps unsurprisingly) the city-centre is one of the highest-performing areas. B5, for example, regularly achieves <\/span>yields between 5% and 6%,<\/b> while some student areas such as B4 (near the <\/span>Eastside<\/span><\/a> and plenty of student accommodation) can reach highs of 11%.<\/span><\/p>\n <\/p>\n Capital appreciation is often a clear objective for investors and investing in Birmingham Buy-to-Let properties in the city centre has the potential for incredible results. We\u2019ve already mentioned that property in the city is affordable but that doesn\u2019t mean it hasn\u2019t experienced significant growth over the years.<\/span><\/p>\n Average property values in Birmingham have grown almost 40% over the past 10 years and saw 16% growth between 2016 and 2020 – making Birmingham property the fastest growing market in the UK during that time period.<\/p>\n Thanks to a vast amount of regeneration and continued demand from movers to the area, these price rises don\u2019t look set to stop either. Savills predicts that Birmingham property prices will rise again by 24%<\/a> between now and 2025<\/strong> – good news for those investing in Birmingham already.<\/span><\/p>\n Want to get the lowdown on Birmingham investment in 2022? Our guide is filled with the insights you need to make an informed decision.<\/p>\n Discover Birmingham market forecasts for 2022, as well as what life looks like after lockdown for the second city. From prime market performance to the ongoing impact of HS2 and the Midlands Metro Extension, this is your chance to stay ahead of the market and understand why you should invest in Birmingham property today.<\/p>\n <\/p>\n In 2003, the Bullring redevelopment kickstarted a much wider plan of regeneration, officially named the \u2018Big City Plan\u2019<\/strong> in 2010. With the Bullring now one of the busiest shopping centres in the UK, it\u2019s only right that its surroundings are as prestigious. The Big City Plan aims to <\/span>widen the city\u2019s core by 25%<\/b>, <\/span>create over 50,000 new jobs<\/b> and <\/span>contribute 2.1 billion to the local economy <\/b>each year.<\/span><\/i><\/p>\n Developments such as Paradise and Arena Central are creating exciting mixed-use spaces in the centre of the city, while the Grand Central redevelopment and HS2 project are transforming the cities transport links and bringing London ever closer than before. Finally, future developments such as the \u00a31.5 billion Birmingham Smithfield will revolutionise the city, transforming a 42-acre area into 2,000 new homes, public spaces, leisure attractions and the new home of the Bullring Markets.<\/span><\/p>\n Regeneration is often cited as a driver of demand and it\u2019s true for Birmingham property investment. Regeneration shows that further growth is on the horizon and often leads to rising property prices and asking rents. For investors looking to invest in Birmingham property, having these developments on the horizon should be a welcome sight, alongside rising Birmingham house prices and incredible rental yields.\u00a0<\/span><\/p>\n <\/p>\n Global businesses such as HSBC, Deutsche Bank and PwC have all relocated their headquarters to Birmingham<\/b>, creating a world-class network of career opportunities for residents. In total, the number of active businesses in the city has risen by 13% over the last four years<\/b> \u2013 three times the UK average.<\/p>\n This level of commercial activity has resulted in a higher number of professionals flocking to the city, boosting Birmingham tenant demand far above its regional competitors. Birmingham had the largest proportion of new businesses in the UK during 2019, making the total number of new businesses in the region 173,134, with over 100,000 employees in the financial sector alone.<\/p>\n With the advent of HS2, this number will rise dramatically as those working in London looking for a more affordable home will choose Birmingham<\/b>. At the same time, HS2 will help deliver 30,000 new jobs<\/b> while rejuvenating the surrounding area.<\/p>\n <\/p>\n One of the most overlooked demographics when it comes to investment is graduates. Students are often more considered because they\u2019re a known quantity but savvy investors will consider where these students go after<\/i> their studies. The students of today are the young professionals of tomorrow and typically, a young professional tenant will mean longer rental periods and more secure income.<\/p>\n This means that areas with good graduate retention are key locations. Birmingham\u2019s graduate retention has transformed over the last decade and the city now has one of the strongest graduate pools in the country. With over 100,000 students attending five universities throughout the city and an average retention rate of 46%<\/a> \u2013 there\u2019s a vast amount of potential young professionals seeking accommodation – a clear signpost for those looking to invest in Birmingham property in 2022.<\/p>\n\n
Birmingham Investment Guide 2022<\/strong><\/span><\/h2>\n
Click here for your free copy of the guide<\/u><\/strong><\/a><\/h3>\n