Birmingham Property Market 2025

As we enter 2025, it’s again that time of year where investors, buyers and renters re-evaluate their position.

At the start of the year, forecasts were ruled by uncertainty but after a general election ushering in a new government and a property market that has largely recovered, we’re happy to say that forecasts for the new year are much more positive.

If you’re considering buy-to-let investment in Birmingham this year, read on to get a full overview of the Birmingham property market in 2025 and what the future may hold.

After a year of property price correction and rental value growth, Birmingham and the wider West Midlands remains a key hotspot for investment. The region is expected to be in the top three for growth across both metrics and Birmingham is ideally positioned to take advantage of this growth over the next five years.

According to Fleetmilne research, around £10.4m worth of property was sold over the last 3 months in Birmingham, with 93% of sales being apartments. This highlights the level of demand for this property type in the city-centre, driven by an exceptional rental market achieving yields as high as 5.4%.

Finally, over the last 12 months the average value per sq.ft of sold Birmingham property hit £307, beating both the West Midlands (£249) and wider UK (£290) – excellent news for investors already invested in the city.

As of Q2 2025, the average Birmingham property price is £232,433, still significantly more affordable than its competitors – £250,623 in Manchester and £525,586 in London.

Data shows that property prices in Birmingham have risen by 21.8% over the last five years – significantly more positive than initially forecasted largely due to ongoing redevelopment and the catalyst of demand in the pandemic.

Likewise, Savills research suggests that Birmingham property prices in 2025 will rise by 4.5%, higher than the UK average of 4%.

This is a huge improvement on last year’s forecast which suggested that prices would fall throughout the entire country. 

The same report suggests that Birmingham property prices will increase by 26.4% over the next five years, with the most significant growth occurring in 2026. This only serves to highlight the importance of utilising property as a long-term asset.

Forecasted Midlands Property Price Change (Annual)

• 2024: 4.5% (versus 4% in the UK)
• 2025: 6% (versus 5.5% in the UK)
• 2026: 6% (versus 5% in the UK)
• 2027: 4.5% (versus 4% in the UK)
• 2028: 3% (versus 3% in the UK)
• Cumulative: 26.4%

The city’s average price has risen by £96,000 (73%) over the last decade and £110,000 (92%) over the last two decades, with the most significant increases occurring since 2016. This alone demonstrates its pedigree within the market.

The rental market has continued to make significant strides over the last year, even at a time when the property market was slowing.

According to Fleetmilne research, the average rental price in Birmingham is £1,120 and saw an increase of 7% since 2024, maintaining the same year-on-year increase since 2023.

As always, the exceptional demand and desirable amenities within Birmingham – coupled with the ongoing undersupply of property to meet demand – means it remains a key hotspot for buy-to-let investment.

According to Savills data, rental values are expected to increase even further next year and beyond. UK rents are expected to rise by 4% in 2025 and experience cumulative growth of 17.6% between now and 2029.

Forecasted UK Rental Price Changes (Annual)

• 2024: 4%
• 2025: 4%
• 2026: 3.5%
• 2027: 3%
• 2028:  3%
• 2029: 3%
• Cumulative: 17.6%

Our own research suggests this will ring true – overall we’ve seen significant rental prices across various property types and demographics, particularly as transactions slow and more people remain in the rental market.

Birmingham Rental Price Changes (Property Type / Last 12 Months)

• Studio Apartment: + 8.7%
• 1-Bed Apartment:  + 8%
• 2-Bed Apartment: + 7.2%
• 3-Bed Apartment: + 6.4%