Birmingham Property Market Report

Property price growth is always a key consideration for anyone interested in the UK property market.

To begin our Birmingham market report, let’s analyse data to determine how Birmingham house prices have grown over the last 13 years.

Average House Prices in Birmingham: 2010 – 2015

In January 2010, Birmingham property prices stood at £131,783 on average. Throughout the year, prices remained relatively steady until September when they rose to £138,036, before falling back down to £134,849 by the end of the year.

Average property prices in Birmingham then remained low through 2011, 2012 and 2013. It wasn’t until January 2014 that the average house price in Birmingham exceeded September 2010’s figure, with a new average property price of £138,300.

From that point onwards, the average house price Birmingham offered rose significantly until landing on an average property price of £144,496 by January 2015.

Between January 2010 and January 2015, the average house price in Birmingham rose by 9.6%

Average House Prices in Birmingham: 2015 – 2023

After hitting £144,496 in January, average Birmingham house prices continued to grow consistently from 2015 to 2020. By December 2015, average Birmingham house prices stood at £153,448.

By June 2016, the average property price in Birmingham had reached £161,121, exceeding £160,000 for the first time. Prices then stayed at a consistent level throughout the rest of 2016, 2017, 2018, and 2019.

By August 2020, average house prices in Birmingham had landed at £190,845. This was the first time house prices had exceeded £190,000 and happened in line with the record-breaking housing market growth seen throughout the UK in 2020.

By December 2020, average Birmingham property prices had risen yet again, ending the year at £201,308. This means that Birmingham property prices increased by a total of 39.3% within the last five years alone.

As of March 2023, property prices in Birmingham are now at 231,270 – further illustrating this great growth.

Are House Prices Rising in Birmingham?

When you look at average Birmingham property prices over the last 13 years, it’s clear that house prices are rising in Birmingham. Since 2010,  average Birmingham property prices grew by 77.58%.

What is the Average House Price in Birmingham?

According to Zoopla house price data, the current average house price in Birmingham is £231,270. This is based on the asking price of Birmingham properties that are currently listed for sale online.

If you’re interested in buying property in Birmingham, either to live in or for investment purposes, you’ll want to know where you can find properties that best fit your budget.

As with any UK city, the average house price in Birmingham will vary depending on the different parts of the city.

Some postcodes in the Birmingham property market offer more affordable average house prices than others, while more affluent postcodes can be pricier.

Below is a table displaying the current average asking price for 26 different postcodes across the housing market in Birmingham.

Where Are the Cheapest House Prices in Birmingham?

According to the average asking price data for each postcode, as compiled by Zoopla, the most affordable areas in Birmingham to buy property are B6, B8, B10 and B9. In these postcodes, average Birmingham house prices currently fall below £190,000.

Postcodes B2, B21, B23, and B26 all offer average asking prices of less than £200,000.

To understand why Birmingham property prices are more affordable in these postcodes, we need to look at the towns and districts that each postcode covers.

B6, for instance, which currently has average asking prices of £153,686, covers inner-city areas Aston, Birchfield, and Witton. With the area being home to Aston university, this postcode is a popular student property spot.

Other affordable postcodes in Birmingham, such as B23, span another student hotspot, Erdington, while the B2 postcode spans part of Birmingham city centre.

Where in Birmingham Are House Prices Most Expensive?

According to Zoopla’s data, the highest Birmingham house prices can be found in B15, which is home to the affluent suburban area of Edgbaston. Other postcodes that offer high Birmingham house prices include B17, B7, and B20.

In Birmingham, the housing market is often split into two, with the residential property market and the student market.

If you’re looking for a house to buy in Birmingham that you plan to live in, or you’re a buy-to-let investor that wants to invest in residential property, the residential market is what you’ll focus on.

Right now, the residential Birmingham property market is thriving. But aside from the stamp duty tax break, which has fuelled property market activity across the UK, what are the reasons for high demand throughout the housing market in Birmingham?

People Are Leaving London to Live in Birmingham

New property market trends have also caused more people to start looking for homes that suit new living and working styles. Due to the Covid-19 pandemic, more people are now seeking properties outside of London and looking to live in more suburban areas.

This has led to high numbers of people leaving the capital to buy property in towns and cities that offer lower property prices and a better quality of life.

Even before the pandemic, however, there’s been a prominent trend of people leaving London to live in Birmingham. Back in 2018, it was revealed that 7,771 Londoners moved to Birmingham, which worked out at more than 21 people a day.

Birmingham Has a Great Business Scene

One of the reasons so many people choose to live in Birmingham is because of the opportunities available.

Birmingham is the second-largest market for business outside of London, offering a thriving manufacturing industry and tourism sector.

Birmingham is home to several big business names, including the headquarters for National Express. The city is also a popular spot for smaller independent businesses and start-ups.

Birmingham Offers Lots to Do and See

There’s so much to do and see in Birmingham that it’s no surprise demand for property has been skyrocketing in the area.

Birmingham offers a great cultural scene, a lively food and drink scene, and some fantastic attractions and regular events.

Is Birmingham Expensive to Live?

As far as average house prices, average rental prices, and average living costs go, Birmingham is one of the more affordable UK cities. Those renting in Birmingham can expect to pay no more than £932 a month, with one-bedroom flats available for £660 on average.

So how is the cost of life in Birmingham UK? According to data from Numbeo, the price of a meal in an inexpensive restaurant is £10 on average in Birmingham, which is £5 cheaper than London’s average.

The average price of a loaf of bread in Birmingham averages out at 97p, compared to £1.02 in London, and the average cost for a one-way public transport ticket comes to £2.40.

So, we know that Birmingham house prices have increased significantly over the last 10 years. But what about future Birmingham house price forecast predictions?

Birmingham had been subject to many different housing market predictions in 2020, and now, experts are looking forward to considering how the market will perform over the coming years.

Here’s what experts expect from the future of the housing market in Birmingham.

Savills Predicts Solid Upcoming Growth for Birmingham House Prices

According to property experts, Savills, the average Birmingham house price is forecast to see continued growth over the next few years.

Savills has predicted that Birmingham house prices will rise by 8.9% by 2027 – one of the highest predicted growths for the UK.

Birmingham Forecast to See Attractive Regional Growth by 2026

Birmingham house price forecast predictions are also strong when it comes to regional growth predictions.

In their latest residential UK housing market forecast, Savills also predict that house prices in the West Midlands will see average house price growth of 5.5% by 2026.

Birmingham Regeneration Set to Boost Property Prices

Birmingham regeneration has played a huge part in fuelling house price growth across the city for a number of years.

One of the biggest upcoming regeneration schemes is the redevelopment of transport links in Birmingham, with new train stations and metro lines to be introduced. Studies have shown that having access to rail lines can boost property prices by 14%.

Property experts are predicting a housing boom in Birmingham as a result of this upcoming regeneration scheme, with housing demand set to increase even further in areas close to the new transport links.

If you’ve reached the end of our Birmingham property market report and you’re now interested in making a property investment purchase in this top UK city, look no further.

At RWinvest, we currently have great Birmingham investment opportunities available that offer rental yields as high as 5% with our Snow Hill Wharf development.

Here are some reasons to invest in the Birmingham property market with RWinvest.

We Offer Investment Opportunities in Top Birmingham Property Market Locations

At RWinvest, we offer property investment opportunities in the very best areas within the housing market in Birmingham, helping you secure the best Birmingham house prices, rental yields, and potential capital growth.

We Work With the Best UK Developers

We work with the top UK developers, ensuring all of our buy to let opportunities are successfully created to the highest standard. Due diligence is a big part of our process when finding new opportunities to offer our clients, so you can rest assured you’re in the best hands by investing with RWinvest.