Property remains one of the most popular investment assets in the world, offering unparalleled resilience, potential for return-on-investment and crucially, accessibility – you can generally buy property anywhere and you can buy property from anywhere.
It’s no surprise then that UK property is so popular with both domestic and international investors. It offers all of the above alongside a proven history of success and opportunity for diversification. There is a vast range of choice when it comes to investing in UK property – from the location of the investment to the type and size of the property.
As a result, prospective landlords are spoiled for choice when it comes to deciding where in the UK they want to buy. For our money, there’s one clear choice – Birmingham. The second city has been transformed over the last two decades and the property market has shifted alongside it. As the quality of life in Birmingham has improved, demand for quality accommodation in the city has grown with it, creating a competitive and potentially lucrative market. With that in mind, why should you become a landlord in Birmingham?
1. Demand for Birmingham isn’t slowing down
With Birmingham now one of the most exciting cities in the country, it’s no surprise that people want to live there. According to ONS data, Birmingham’s population has increased by 14,318 people since 2021, making it one of the fastest growing cities relative to its size.
And the best part of this population growth for potential landlords? The most prominent demographic in this population growth is people in their 20’s, which just so happens to be the group that is most likely to rent in the current housing market.
It’s also important to remember that Birmingham, like many other cities in the UK, is struggling to build enough houses to meet demand. Supply and demand is the lifeblood of an investment and the current imbalance has created the potential for exceptional rental returns for Birmingham landlords – with an average rental yield currently around 6.6%.
2. Birmingham is a market filled with quality developments
Regeneration has impacted every aspect of Birmingham – transforming existing destinations and creating entirely new landmarks across the skyline. Catalysed by the creation of the Bullring, we’re seeing the ‘Big City Plan’ in full effect and cranes are on every corner.
Fortunately, the Birmingham property market hasn’t gone unaffected. The strength of the various developments across the city is exceptional, with multiple schemes offering an incredible quality of life and best-in-class amenities at the heart of highly desirable postcodes.
This is particularly evident in developments such as Snow Hill Wharf, which remains a clear choice for the discerning investor. A bespoke development comprising some of the most exclusive and luxurious apartments in the city, it’s just one example of the new benchmark that Birmingham property is setting within the local market.
3. The city has knowledgable property partners
It might be a strong claim since we’re one of the leading property agents in the city but we believe that the knowledge and experience we have in the market is a huge benefit for potential investors. It’s no secret that a strong support network can vastly improve the potential of a property investment – you need trusted partners and effective third-party assistance.
When you become a Birmingham landlord, you know that you’re working alongside partners that not only understand property investment but understand the intricacies of the local market. We know what tenants are looking for, how to market a property and how to ensure that you’re maximising the potential of your asset.
This is why we’re able to offer leading investment support, property management services and support both buyers and sellers in the market.
4. The market is still accessible but not for long
For a long time, the strength of the Birmingham property market has been its affordability. The price of property in the city added to its accessibility and attracted the first wave of investors seeking exceptional returns.
While Birmingham still remains relatively affordable for its size and rental performance – the average price in the city is £228,877 compared to £242,523 (Manchester) and £508,037 (London) – forecasts suggest that prices will continue to rise over the next four years. If JLL forecasts are correct, Birmingham property could increase by around 3.6% a year by 2027 – equating to 19.2% overall.
For investors on the fence about becoming a landlord in Birmingham, this is a clear opportunity to get in while it’s still relatively affordable and make potential returns on capital growth.
