Birmingham’s property market remained resilient through the third quarter of 2026. Rents are still rising and demand remains healthy, but tenants have more choice than they did during the highly competitive market of recent years.
For landlords, that means getting the fundamentals right is becoming increasingly important. Pricing, presentation and understanding how your property compares with the competition can all influence how quickly it lets and the rent it achieves.
Rental growth continues, but the market is more balanced
Average private rents across Birmingham reached £1,106 per month in September, up 3.3% from £1,070 a year earlier. That is encouraging, but rental growth is now more measured. Across the wider West Midlands, newly advertised rents averaged £1,284 per month during Q3, 2.9% higher than a year earlier.
Demand remains healthy too. Nationally, there were an average of 5.3 enquiries for every available rental home in September, the highest level for almost two years. Birmingham, however, has its own dynamics. The city has continued to see significant rental supply, including newer professionally managed developments that sit alongside traditional private rental apartments. Recent research found that Birmingham was an exception to the stronger rental growth seen across many major English cities this summer, with higher levels of rental supply helping to keep rent increases in check.
For landlords, this doesn’t mean the demand isn’t there, but that tenants can be more selective. A well-presented, well-maintained apartment that is realistically priced for its development and location can still stand out. Holding out for a higher rent, on the other hand, can quickly become counterproductive if it leads to a longer void period.
Looking beyond the headline figures
The sales market tells a similarly nuanced story. The average Birmingham house price was £235,000 in August, 1.5% higher than a year earlier. But prices for flats and maisonettes were provisionally 2.4% lower year on year, which is particularly relevant in Birmingham’s apartment-led city centre market. For landlords, the important point is to compare like with like.
A city-wide average can provide useful context, but the location, development, condition and specification of an individual apartment can tell you far more about how it is performing. The same applies to rent. Understanding what else is available to tenants in your building and immediate area is often more valuable than focusing on a Birmingham-wide figure alone.
Keeping an eye on the bigger picture
Borrowing costs also remain an important part of the equation. Bank Rate was held at 3.75% in September, while the average two-year fixed buy-to-let mortgage rate stood at 5.34% at the end of Q3. For landlords approaching the end of a mortgage deal, or simply reviewing how their investment is performing, it is worth looking at the whole picture. Rental income, borrowing costs, service charges, maintenance and potential void periods all play their part.
What does this mean for Birmingham landlords?
The market remains resilient, but it is also more selective. Rents are higher than they were a year ago and demand remains healthy, but greater choice means the market is no longer doing all the work for landlords. Getting the basics right matters: realistic pricing, good presentation, regular maintenance and an informed view of the local competition.
There is plenty changing beyond the market too, particularly around regulation, and we’ll continue to keep our landlords informed and help them prepare as new requirements come into effect. As ever, if you would like to review your property’s rental value or understand how it is performing in the current market, the FleetMilne team will be happy to help.
Sources: Office for National Statistics, Housing prices in Birmingham, October 2026; Rightmove Rental Trends Tracker, Q3 2026; Zoopla Rental Market Report, September 2026; Savills UK Build to Rent Market Update, Q3 2026; Bank of England Monetary Policy Summary, September 2026.
