Property Investment Birmingham: The Complete Guide

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Birmingham Investment Guide Birmingham Investment Guide

Welcome to the ultimate property investment Birmingham guide for 2021.  

In this guide, updated for 2021 and 2022, we will take a deep look into the buy to let Birmingham market to see if it is worth your cash investment. 

Here, you will learn topics like: 

  • Why you should invest in Birmingham 
  • The latest 2021 market data 
  • Birmingham property price predictions for 2022 and beyond 
  • The best buy to let Birmingham areas 
  • Latest investment properties in Birmingham for sale 

And much more! 

We’ve split the guide into five chapters, so you can skip precisely to what you are interested in. 

Keep reading to learn all about property investment in Birmingham. 

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Is Birmingham a Good Place to Invest in Property?
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Chapter 1: Is Birmingham a Good Place to Invest in Property?



Birmingham Property Market in 2021
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Chapter 2: Birmingham Property Market in 2021



How Does Birmingham Compare to the Rest of the UK
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Chapter 3: How Does Birmingham Compare to the Rest of the UK



Best Areas for Property Investment Birmingham 2021/2022
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Chapter 4: Best Areas for Property Investment Birmingham 2021/2022



Birmingham Investment Property for Sale
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Chapter 5: Birmingham Investment Property for Sale



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Is Birmingham A Good Time to Invest? Is Birmingham A Good Time to Invest?

 

Chapter 1: Is Birmingham a Good Place to Invest in Property? 

Chapter 1 of our Birmingham property investment guide covers seven reasons you should consider investing in Birmingham in 2021. 

This includes the city’s main selling points and a brief look at the underlying statistics propelling Birmingham as a top buy-to-let investment area. 

If you’ve already decided that you want to invest in Birmingham, feel free to skip all the way to chapter 5 to see the latest investment properties for sale. 

Key topics: 

Why Invest in Birmingham Why Invest in Birmingham

 

Why Invest in Birmingham? (7 Reasons) 

In 2021, Birmingham has quickly become one of the most popular buy to let areas alongside Liverpool and Manchester. 

In fact, a report from estate agent Barrows and Forrester found that there has been a 25.2% rise in Birmingham rental demand in 2021 – the largest increase recorded. 

But why is this the case, and why should you invest in Birmingham? 

There are currently seven reasons investors are choosing to buy investment property in Birmingham. 

They are: 

  1. Low property prices and high returns. 
  2. Strong capital growth rates.  
  3. Massive rental demand. 
  4. Huge student and graduate population. 
  5. Extensive regeneration efforts. 
  6. Exciting employment opportunities. 
  7. World-class transport links and amenities. 

Is Birmingham a good place to invest in property? Here are seven reasons why it is. 

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Birmingham Investment
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Invest in Birmingham for Low Prices and High Yields Invest in Birmingham for Low Prices and High Yields

1. Invest in Birmingham for Low Property Prices and High Yields

When it comes to property investment, Birmingham is one of the most affordable cities in the UK. 

Looking at the latest available data from the Land Registry, the average value of a buy to let Birmingham property is currently £208,241.  

This is an incredibly affordable price point, especially when you compare it to other cities in the UK.  

For instance, the average London property costs around £756,164. That means London properties are 263.12% more expensive than in Birmingham.  

Average Buy To Let Property Value Average Buy To Let Property Value

 

While house prices and returns aren’t the lowest or highest, the figures are still incredibly healthy and highlight the strong potential of investment properties in Birmingham. 

It’s also important to note that these are just average gross rental yield figures. The reality is NET rental yields (returns after you calculate all expenses) are far better investment potential indicators. 

For instance, RWinvest Birmingham properties can secure NET rental yields of 5%, which is incredibly high.  

Perhaps the biggest indicator of Birmingham’s affordability is in its city centre. 

When it comes to Birmingham city centre property investment, the average price on Zoopla is currently £236,991. 

For comparison, that is £2,312,247 less than in central London (yes, you read that right). 

It’s clear that those who purchase buy to let Birmingham property can get more for their money than they would when investing in other UK cities.  

Want to See How Birmingham Compares to the Rest of the UK? 

Then Check Out Our All-New UK House Prices Report for 2021 Today 

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Invest in Birmingham for Capital Growth Invest in Birmingham for Capital Growth

2. Invest in Birmingham for Capital Growth

When it comes to capital growth, Birmingham offers a compelling solution for investors.  

Historically, buy to let Birmingham prices have grown considerably and consistently over the last two decades. 

Birmingham Buy to Let Prices Over the Last Two Decades Birmingham Buy to Let Prices Over the Last Two Decades

 

Between June 2001 and June 2021 (the latest data from the Land Registry), prices have grown considerably at 198.68%. 

While this is incredibly positive, Birmingham’s growth rate has been truly impressive over the last five years. 

Despite pressures from Brexit and the Covid-19 pandemic, property investment in Birmingham prices has continued to increase. 

For comparison, London prices have dropped by a staggering 16.72% since the EU referendum. 

Similarly, since the start of the UK lockdown, prices in London are now 13.22% lower – a bad sign for future growth. 

Factoring in Birmingham’s growing economy, which is now valued at over £23 billion, it’s clear that Birmingham property investment is a wise choice in 2021. 

This growth isn’t expected to slow down either, with Savills predicting a 23.9% increase in West Midlands property prices by 2025. 

Learn All About Capital Appreciation In Our 2021 Guide 

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High Demand From Young Professionals in Birmingham High Demand From Young Professionals in Birmingham

3. Invest in Birmingham for Demand From Young Professionals

Demand is a vital indicator of a lucrative investment, which is why Birmingham buy to let is so promising.   

A popular choice amongst families, students, and young professionals, Birmingham boasts one of the largest populations in the UK, home to approximately 1,145,000 people.   

The wider Birmingham area and the West Midlands are the second most populated UK regions, behind only London.  

When you break this population down by age, it becomes clearer why so many investors are looking for property to buy in Birmingham.   

Around 64% of the population are of working age, which exceeds the national average of 62%.  

Birmingham Population by Age Birmingham Population by Age

 

Notably, for investors looking towards the future, around 40% of Birmingham’s population are aged under 25.  

This is crucial for any property investor looking at investment properties in Birmingham, as those renting properties tend to be younger and unable to afford to buy a house.  

By 2039, it’s predicted that the population of people living in Birmingham will reach 1.3 million.  

More people than ever are choosing to move to the West Midlands city. Perhaps most interestingly, a bulk of those moving are leaving London. 

In fact, around 18,000 people left London for the region in 2020 alone. 

It’s no surprise then that a report from Rightmove found that there has been a staggering 51% increase in rental enquiries in Birmingham this year. 

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East and Green

Modern Residential Development

UK Prices from £198,000

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Minutes From New HS2 Station

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Snow Hill Wharf

Stunning Collection of Canal-Side Apartments

UK Prices from £227,500

5% Projected Rental Return

Central Birmingham Location

Birmingham Investment
Birmingham Prices from £249,950

5% NET Rental Return

Prime Business Location

High Student Demand in Birmingham High Student Demand in Birmingham

 

4. Invest in Birmingham for High Levels of Student Demand 

Along with boasting high demand from young professionals, Birmingham also has a large population of students seeking accommodation.   

Naturally, a large student population is incredibly beneficial for investors looking to get into student property investment in Birmingham and buy student accommodation. 

However, did you know a student population is also beneficial for residential buyers? 

Today’s students are the professionals of tomorrow, and cities that attract graduates to stay and work are often the best for property investment. 

Luckily, Birmingham is one of those cities. 

With a population of around 100,000, Birmingham students are attracted to five famous universities – Aston, Newman University College, the University of Birmingham, University College Birmingham, and Birmingham City. 

There are also 20 universities within an hour of the wider Birmingham region.   

Crucially, Birmingham has one of the highest graduate retention rates in the UK, with Knight Frank reporting a 46% retention for 2020. 

According to the Centre for Cities, the city is also the third best performing UK city for attracting graduates with no prior links to Birmingham. 

Exploring the student market alongside the residential property market is a smart and lucrative move for investors looking for an investment property in Birmingham.  

Regeneration in Birmingham Regeneration in Birmingham

5. Invest in Birmingham for Regeneration

Like many other UK cities, Birmingham has a range of ongoing regeneration schemes in place that are helping to grow the economy and increase the appeal of Birmingham property investment.   

The major regeneration strategies are: 

  • Big City Plan – set to create 50,000 new jobs and £2.1 billion for the local economy. 
  • High Speed 2 (HS2) – will create 30,000 new jobs and reduce travel time from Birmingham to London to under an hour. 
  • Birmingham Smithfield – £1.5bn development of a 14-hectare site with 1,000 new homes and 3,000 new jobs. 
  • Midlands Metro Expansion – Improved transport links for professionals in and out of Birmingham. 
  • Paradise – £700m project adding 1.8m sq. ft. of grade A office space, retail and leisure space in Birmingham city centre. 
  • Arena Central – Near the Paradise development and will be home to HSBC’s main headquarters.  

Investors should keep a strong eye on Paradise, Birmingham Big City Plan, and HS2, which could see investment into the area explode. 

Transport systems are vital for an area’s employment, and with HS2, Birmingham will improve its already fantastic transport system. 

And with the addition of over 80k jobs into the city from the Big City Plan and HS2, we could be set to see an unprecedented rise in market activity in Birmingham in the coming years. 

Discover the Top 10 UK Areas for Regeneration In Our Ultimate 2021 Guide 

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Employment Opportunities in Birmingham Employment Opportunities in Birmingham

6) Invest in Birmingham for Employment Opportunities 

A significant contributor to Birmingham’s rising population and increased rental demand is the fantastic employment opportunities on offer. 

World-renowned businesses such as HSBC, Deutsche Bank, and PWC all call the city home. 

In fact, HSBC’s new Birmingham headquarters development has created 1,000 jobs. 

Meanwhile, Deutsche Bank has increased the number of employees from 50 to 2,000.  

All in all, Birmingham has seen the number of active businesses in the city rise by three times the national average over the past four years. 

The city already has the largest business and financial hub outside of London. 

And with more jobs created from regeneration projects like HS2, it’s easy to see why so many people are moving to the region. 

This reputation as a significant business city plays a considerable role in the city’s growing population. 

In cities with a lot of business opportunities, the demand from young professional tenants becomes higher.   

That’s why looking for residential property for sale in Birmingham city centre is an excellent venture to consider due to the high levels of demand your property will experience.   

To target Birmingham’s high population of young professionals, you should look for properties in thriving city-centre locations with proximity to transport links and desirable onsite facilities.  

HS2 Travel Time Compared to Current Travel Time HS2 Travel Time Compared to Current Travel Time

7) Invest in Birmingham for Transport Links and Amenities 

When it comes to transport links, Birmingham residents are spoiled for choice. 

Alongside buses and trains, Birmingham also boasts a city-wide tram system. 

This links residents from the city centre, Bull Street, and New Street Station, all the way to Solihull and Wolverhampton. 

And, with the impending Midlands Metro Expansion, travelling around the city will get even better. 

That’s without factoring in the incredible HS2 expansion. 

Birmingham Curzon Street Station will be one of the central cogs in the entire HS2 network, with current estimations reducing travel time to London to only 45 minutes. 

  • Manchester – HS2 time 41 minutes, current time 87 minutes 
  • London – HS2 time 45 minutes, current time 82 minutes 
  • Sheffield – HS2 time 57 minutes, current time 59 minutes 
  • Leeds – HS2 time 49 minutes, current time 118 minutes 
  • Newcastle – HS2 time 117 minutes, current time 166 minutes 
  • Edinburgh – HS2 time 194 minutes, current time 243 minutes 
  • Glasgow – HS2 time 200 minutes, current time 240 minutes 
Amenities Amenities

Amenities 

There’s plenty to see and do for residents in Birmingham. 

First up is the Bullring Shopping Centre, which is busier than every other UK shopping location except London’s iconic Oxford Street. 

Secondly, Arena Birmingham and the International Convention Centre attract thousands of visitors each year. 

And aside from excellent restaurants and leisure spots, the iconic canal-side Brindleyplace and Gas Street Basin deliver some of the best leisure and dining spots in the entire region.  

Want to Invest in Student Property? 

Read the Complete Student Property Investment Guide for the Latest Tips and Tricks 2021/2022 

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Chapter 2: Birmingham Property Market in 2021 

Chapter 2 of the property investment Birmingham guide will take a deep look into the Birmingham property market. 

With an in-depth analysis of 2021 house and rental prices, this section is perfect for those looking for a more data-centric approach to investing in Birmingham. 

We will also show the latest property price predictions for the coming years, so you know what to expect when securing your Birmingham investment property. 

Key Topics: 

Property Prices are Now at a Record-High Property Prices are Now at a Record-High

 

Birmingham Housing Market 2020/2021 

Despite an unpredictable two years, house prices in Birmingham have performed remarkably well. 

With the introduction of the stamp duty holiday, and a newfound appetite amongst tenants to move homes after lockdown, the UK property market has continued to grow. 

This growth has even continued throughout 2021, despite many experts predicting a lull in prices post stamp duty holiday. 

At the time of writing this, property prices are now at a record-high, with no signs of slowing down.  

This has also been seen amongst Birmingham investment property. 

Learn About the Latest Birmingham Market Data in Our 2021/22 Report 

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Birmingham Property Prices Since Lockdown Birmingham Property Prices Since Lockdown

 

All the way back in March 2020, at the start of UK lockdown, property prices in Birmingham were valued at £186,673. 

While there was an understandable dip between March and April of -0.94%, the market soon saw a huge uplift, with prices rising fairly consistently. 

There were dips in prices seen in August 2020, October 2020, and May 2021. However, they were incredibly negligible. 

Overall, between March 2020 and the latest available Land Registry data, property investment in Birmingham has seen prices rise by 11.55%, from £186,673 all the way to £208,241. 

These prices are likely a result of the increased market interest in the city, with a 51% increase in rental enquiries in 2021, according to Rightmove. 

This is a massive increase during economic uncertainty and is an excellent indicator of a healthy and robust investment market. 

With no signs of slowing down, it’s likely a good idea for Birmingham investors to buy an investment property before prices rise to unaffordable levels. 

A reminder that with RWinvest, Birmingham properties can be purchased for just £198,000. 

Key Takeaways:

  • The current average Birmingham house is valued at £208,241.
  • Prices have increased by 11.55% since the start of the UK lockdown.
  • The market has seen prices drop on only four occasions, which have been incredibly negligible.
  • Prices are continuing to rise across the UK despite the end of the stamp duty holiday.

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East and Green

Modern Residential Development

UK Prices from £198,000

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Minutes From New HS2 Station

Invest From £60,000

Snow Hill Wharf

Stunning Collection of Canal-Side Apartments

UK Prices from £227,500

5% Projected Rental Return

Central Birmingham Location

Birmingham Investment
Birmingham Prices from £249,950

5% NET Rental Return

Prime Business Location

Birmingham Rental Market Birmingham Rental Market

 

Birmingham Rental Market 2020/2021 

While Birmingham house prices have increased, so too have rental figures in the region. 

Across the UK, the rental market has seen a considerable uplift. 

According to reports, tenant demand has hit a record high, clearly seen in the Birmingham rental market. 

Rental enquiries in Birmingham have increased by a staggering 51% in 2021, which has led to a considerable rise in rental prices. 

Rent in Birmingham has risen by 14.25% since July 2019.   

In fact, in the last year alone, rental figures in the West Midlands region have shot up by a considerable 6.9%. 

West Midlands Property Prices Since Lockdown West Midlands Property Prices Since Lockdown

 

While we don’t have monthly statistics for rent in Birmingham, looking at the wider West Midlands is a strong indicator of overall rent trends in the city. 

And as you can see from the graph, the local rental market has seen considerable growth over the past year, with a particularly stunning rise in the last three months. 

This is excellent news for buy to let Birmingham investors, with the chance to earn more money on Birmingham investment properties than ever before. 

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Birmingham Property Price Predictions 2021/22

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Chapter 3: How Does Birmingham Compare to the Rest of the UK   

Chapter 3 of our guide will look at how property investment in Birmingham compares to other popular buy to let investment hotspots in the UK. 

We will be comparing cities based on average property prices, rental yields, and growth potential. 

If you want to see where you should invest in Birmingham, skip to chapter 4 for the best places to invest in Birmingham. 

Key topics:

Property Investment - Birmingham vs London Property Investment - Birmingham vs London

Birmingham vs London 

So, how does the UK’s second city compare to London property investment?  

While London has always had a strong reputation as an investment hub, recent data shows that the capital currently offers abysmal returns on investment in 2021.  

Property prices in London have been in free fall for several years, with prices in the last 12 months seeing an extreme drop of 13.22%. 

London prices are around 263.12% higher than property found in Birmingham, and yields are far worse in the capital, standing at 4.88% compared to 5.25% in Birmingham. 

In fact, London property investment underperforms in every single category compared to property investment in Birmingham. 

Overall, buy to let Birmingham investments are a clear choice compared to London, with far higher returns and growth in property prices. 

London Still the Best Investment? Check Out Our 2021 Guide to Find Out Why It Isn’t! 

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Birmingham vs the North West Birmingham vs the North West

 

Birmingham vs the North West 

When it comes to property investment, Liverpool and Manchester have quickly solidified themselves as the number one destination.  

With this reputation, comparing Birmingham to the North West is a healthy comparison as it evaluates Birmingham compared to the best the UK offers.  

Property Investment - Birmingham vs North West Property Investment - Birmingham vs North West

 

Current data suggests Liverpool and Manchester are both clear winners against Birmingham. 

The North West outperforms the buy to let Birmingham market in every selected category, including affordability, rental returns, and capital growth. 

However, while this is the case, Birmingham property investments perform well in their own right. 

Property prices in Birmingham are only slightly higher than the properties offered in Manchester property investment, with returns slightly below the ones seen in Liverpool. 

However, rental yields are incredibly high in the North West, with averages nearly reaching 7%, and the potential to earn far higher on select properties.  

For instance, it’s common to see properties in Liverpool property investment with rental yields of 8% or more, thanks to the incredibly affordable prices on offer.  

Overall, Liverpool and Manchester property investment is a clear winner and is likely the better investment choice if you’re a beginner.  

However, Birmingham is one of the closest competitors to the region.  

If you’re looking to diversify your portfolio, it can be an excellent location to consider in the future. 

Invest From £50,000

East and Green

Modern Residential Development

UK Prices from £198,000

Returns Available on Request

Minutes From New HS2 Station

Invest From £60,000

Snow Hill Wharf

Stunning Collection of Canal-Side Apartments

UK Prices from £227,500

5% Projected Rental Return

Central Birmingham Location

Birmingham Investment
Birmingham Prices from £249,950

5% NET Rental Return

Prime Business Location

Frequently Asked Questions on Birmingham Investments

You may be asking, “is Birmingham a good property investment location?” 

Yes, Birmingham is a great place to invest in property and is one of the best buy to let areas in the UK. 

Birmingham property investment makes a good option for investors seeking property in an area with a large community of young people, high returns, and affordable prices. 

No, property prices are not falling in Birmingham, according to official Land Registry figures. 

As of June 2021, property prices are 9.79% higher than a year prior, increasing by 1.11% over May 2021.

Yes, it is currently a great idea to invest in UK property. 

Rental values have reached a record high in the UK of over £1,000 on average, according to HomeLet, with house prices rising at their highest rate since 2004. 

This means that property investors are seeing higher returns than they ever have before. 

Is Birmingham Good for Property Investment?

You may be asking, “is Birmingham a good property investment location?” 

Yes, Birmingham is a great place to invest in property and is one of the best buy to let areas in the UK. 

Birmingham property investment makes a good option for investors seeking property in an area with a large community of young people, high returns, and affordable prices. 

Are Property Prices Falling in Birmingham?

No, property prices are not falling in Birmingham, according to official Land Registry figures. 

As of June 2021, property prices are 9.79% higher than a year prior, increasing by 1.11% over May 2021.

Is Investing in Property a Good Idea UK?

Yes, it is currently a great idea to invest in UK property. 

Rental values have reached a record high in the UK of over £1,000 on average, according to HomeLet, with house prices rising at their highest rate since 2004. 

This means that property investors are seeing higher returns than they ever have before. 

Snow Hill Wharf Snow Hill Wharf
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How Does Birmingham Property Investment Compare to Opportunities in Other UK Cities? 

While property investments in Birmingham can be highly lucrative, you should still explore other UK investment options.   

The North West has been considered the best region to invest in over recent years for UK investments.   

Home to Liverpool and Manchester, the North West regularly makes property investment news due to the region’s combination of some of the highest rental yields, fastest growth, and strongest rental demand, resulting in some highly lucrative buy to let options.  

While the highest rental yields in Birmingham appear to reach around 6%, Liverpool boasts returns of up to 10% in its L1 postcode.   

Due to large student populations, these cities are also some of the best places to invest in student accommodation.  

London vs Birmingham London vs Birmingham

London v Birmingham Property investment – Which is Better? 

Many investors are choosing Birmingham property investment over London buy to let.  

While London remains one of the economic powerhouses of Europe and an excellent city for tourism, business, education and more, the property market of the British capital is underperforming when compared to other UK cities.   

One of the most significant factors in the growing popularity of buy to let in Birmingham over London is that property is a lot pricier in the capital.   

The returns investors can expect from London property are also low compared to investments in the Birmingham property market and the property market of other cities in the UK, both in terms of rental yields and capital growth.   

According to Savills predictions, by 2025, property prices in London are expected to grow by 12.4%, which is lower than the UK average of 21.5%.   

Birmingham property prices are set to see higher growth of 23.9% in the West Midlands region.  

Discover the Best Alternative to Birmingham in the North West 

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Should I Buy Property in Birmingham or Choose the North West?  

Those seeking an investment property for sale in Birmingham can benefit from a thriving UK city with the potential for strong yields and capital growth.   

That said, if you’re serious about making attractive returns from your property venture, don’t ignore Liverpool and Manchester property investments alongside your Birmingham property investment venture.  

Whether you should buy a property in Liverpool or Manchester instead of Birmingham depends on your budget and the amount of money you’re willing to spend to get the best returns possible.   

Liverpool prices are lower than Birmingham property prices, making the area naturally more appealing to those with a smaller budget.   

However, building a diverse property portfolio is always a good idea, which means exploring opportunities for property to buy in Birmingham and the North West can be a great option.  

Is Birmingham a Good Choice for 2021 and Beyond? Is Birmingham a Good Choice for 2021 and Beyond?

Is Birmingham Property Investment a Good Option for 2021 and Beyond? 

If you’re looking to invest in 2021, Birmingham property investment is a fantastic choice.  

With huge regeneration efforts, including Birmingham Smithfield and HS2 Curzon Street Station, rental returns and property prices will only get higher. 

Another thing to consider is the Commonwealth Games 2022.   

Starting on 28th July 2022, the Commonwealth Games will be held in Birmingham and will attract over one million spectators.   

This will no doubt boost the economy of the city and encourage further investment.  

Around 4,500 jobs a year are predicted to be created by the Commonwealth Games by 2022.   

By investing in Birmingham in 2021, you can take advantage of this city’s upcoming growth and purchase property at a lower rate before prices increase over time.  

Learn More About the King of Capital Growth and Discover Manchester Property Investment Today 

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Best Areas to Invest in Birmingham Best Areas to Invest in Birmingham

Chapter 4: Best Areas for Property Investment Birmingham 2021/2022 

In Chapter 4 of our property investment Birmingham guide, we will look at the best places to invest in property in Birmingham. 

If you want to find the latest Birmingham investment property in some of these areas, be sure to check out Chapter 5. 

Key topics: 

What Are the Best Places to Invest in Property in Birmingham? (7 Places)

Looking to make the most lucrative investment in Birmingham? 

This section of our guide is ideal for you. 

Here we will look at the best areas to invest in property in Birmingham, so you know exactly where to invest. 

To help you find a property to let in Birmingham, we will analyse each area based on various factors. 

These are: 

  • Affordability 
  • Return Potential 
  • Price Growth 
  • Tenant Demand 
  • Transport 
  • Employment Opportunities 
  • Regeneration 

Below you will find the top seven buy to let Birmingham hotspots for you to consider if you’re planning to buy property in Birmingham for your investment.  

Note: All data has been taken from Zoopla, with rental yields calculated from the average house prices and rent offered on the platform. Some areas have fewer properties, so figures may not be 100% accurate due to smaller sample sizes.

Avg. House Price: £236,991  

Avg. Gross Rental Yield: 5.21% 

10-Year Price Growth: 38.15% 

When it comes to the best places to buy investment property in Birmingham, the likely top spot belongs to the city centre. 

Birmingham city centre property investment has shot up in popularity thanks to the opportunities on offer. 

A bulk of the city’s regeneration is concentrated on the area, with the likes of HS2 Curzon Street, Paradise, Arena Central, and the Big City Plan all in the pipeline. 

Not to mention the considerable overhaul of the city-wide metro expansion.  

With this level of regeneration and employment opportunities on offer, young professionals and students flock to the area, making new-build apartments a hot commodity. 

Property in Birmingham city centre already generates around 5.21% rental yields on average, according to property listings on Zoopla.   

This will likely continue to grow alongside property prices, which have already increased by nearly 40% on Zoopla’s database. 

Due to this capital growth and return potential, Birmingham city centre is likely the best area to invest in property in Birmingham. 

If you want to know the best investment property in Birmingham, keep an eye out on properties like Snow Hill Wharf in the city centre. 

Avg. House Price: £218,701 

Avg. Gross Rental Yield: 5.78% 

10-Year Price Growth: 38.59% 

Alongside Birmingham city centre, arguably the best area to invest in property in Birmingham is Digbeth. 

Digbeth is one of Birmingham’s most coveted hotspots, with the Sunday Times naming it one of the coolest places to live in the UK.   

Located to the East of the city and found only five minutes from the Bull Ring and the city centre, Digbeth is home to many businesses in the creative and media industries. 

With high levels of employment in the area and fantastic transport links via Birmingham Coach Station and the upcoming HS2 Curzon Street Station, the location is popular amongst young professionals.   

With the upcoming Birmingham Smithfield to consider, too, demand for rental property is increasing heavily. 

It’s good news then that rental yields are incredibly high in the area and now stand at almost 6%. 

Digbeth is part of the city’s Eastside regeneration scheme, wherein a new cultural quarter and public area will be created.   

As for Birmingham property prices, those in Digbeth have increased by around 38.59% since 2011, so the future looks bright in terms of capital appreciation over the coming years.  

Due to all these factors, Digbeth is undoubtedly one of the best places to buy property in Birmingham. 

If you’re looking for the best investment properties in Birmingham Digbeth, then East and Green is well-worth considering as it starts from only £198,000. 

Avg. House Price: £237,323 

Avg. Gross Rental Yield: 5.21% 

10-Year Price Growth: 38.15% 

A top location to consider for Birmingham city centre property investments, the Jewellery Quarter is a popular destination for young professionals. 

There’s a lot to love about the Jewellery Quarter, with plenty of properties to choose from, including luxury conversions, contemporary apartments, and even stunning townhouses. 

Thanks to its central location in the city centre, many regeneration projects and transport links surround the area, including the nearby Jewellery Quarter Station. 

Prices in the area have grown hugely over the past decade, with a recorded 40% rise.  

If you want a city centre region to invest in, the Jewellery Quarter is a top place to buy Birmingham property. 

And, with further digital businesses moving into the area, investors should keep a close eye on the region as tenant demand increases. 

For the best property investment in Birmingham, Snow Hill Wharf is less than half a mile from the Jewellery Quarter, which is a smart choice if you want to target the local young professional population. 

Avg. House Price: £200,500 

Avg. Gross Rental Yield: 3% 

10-Year Price Growth: 40.52% 

Another top contender for the best places to invest in property in Birmingham is Erdington.  

Located to the north of the city centre, Edrington is considered one of the best areas in Birmingham for affordable housing.   

The low prices in this suburb make it an excellent location for buy to let Birmingham investment, especially student accommodation.  

While we have calculated average rental yields of 3% from Zoopla’s data, this is based on a relatively small sample size, so it should be taken with a grain of salt. 

In reality, its affordability lends itself well to generating strong rental yields, which can be upwards of 5% if you look right. 

The area is quickly emerging with a growing population of 23,000 residents. 

Along with solid regeneration, including a new £7.5 million leisure centre, Erdington offers world-class transport links with a local train station and easy access to the M6 and Birmingham International Airport. 

It’s unsurprising, then, that property prices in the region have grown by a whopping 40.52% since 2011. 

Future regeneration for this area includes the re-development of Central Square Shopping Centre and remodelling of Wilton Indoor Market.   

Projects like these are likely to increase demand and interest in the area and boost the appeal of buy to let in Birmingham.  

Avg. House Price: £316,614 

Avg. Gross Rental Yield: 3.77% 

10-Year Price Growth: 37.83% 

Often thought of as one of the best areas in Birmingham to live in, Solihull is a more affluent area with a high average price of £316,614. 

While property prices are high, so too is rent with around £1000 a month, generating 4% or higher yields. 

Just a 30-minute drive to Birmingham, Solihull is a borough on its own but is still considered part of the Birmingham area.  

Many people currently live in the Solihull region, with estimations of 213,993 residents suggesting demand for rental property is vast in this Birmingham investment area.   

Regeneration in the area is also significant, with a huge Solihull Town Centre Masterplan to revolutionise the region over the next 20 years. 

There will also be an HS2 interchange nearby, with flagship projects like Westgate, Kinghurst village centre, and the NEC arena makeover making headlines. 

According to Zoopla, Solihull prices have increased heavily in the last decade by nearly 40%. 

While Solihull doesn’t offer the best returns, it’s one of the best places to invest in Birmingham property in its own right.  

It is well worth considering for the future.  

Avg. House Price: £294,663 

Avg. Gross Rental Yield: 4.79% 

10-Year Price Growth: 40.51% 

A popular area amongst families, Edgbaston is a top place to buy property in Birmingham. 

With property prices growing by over 40% in the last decade, and sizeable yields just shy of 5%, Edgbaston is an affluent area perfect for investors looking to buy houses rather than apartments. 

As a bonus, the average rent currently sits at £1,175 for Edgbaston, making it the highest average on this list. 

The area offers some excellent amenities perfect for families, acting as the home of the Warwickshire County Cricket Club and Birmingham’s first Michelin-starred restaurants. 

Families can also visit the Midlands Art Centre and Victorian Botanical Gardens for a lovely day out.  

These facilities lend to a strong village feel that is just 10 minutes from the city centre. 

For this reason, it should firmly be on any Birmingham investors list for the best property investment in Birmingham. 

Avg. House Price: £379,420 

Avg. Gross Rental Yield: 3.47% 

10-Year Price Growth: 40.51% 

Another affluent area in Birmingham for families, Harborne is one of the most desirable living spaces in all the West Midlands. 

Gifted with easy access to the city centre thanks to excellent local transport links, Harborne is incredibly popular for professionals with high-paying jobs. 

In fact, a report found that 63% of the local population is employed at a managerial or executive level, making the area a lucrative investment opportunity for investors with cash to spare. 

The most prominent stumbling block investors will find in the region is the hefty entry price tag, with current averages valued at almost £380k. 

For investors with a smaller budget, it’s smarter to invest in areas like Digbeth and Birmingham city centre for the best property investments. 

However, with a huge retail and leisure sector and high-performing schools, any investor targeting families will find a top investment opportunity in the area. 

And with a 40.51% growth rate, Harborne is one of the best areas to invest in property in Birmingham for 2021, 2022, and beyond. 

1. Birmingham City Centre

Avg. House Price: £236,991  

Avg. Gross Rental Yield: 5.21% 

10-Year Price Growth: 38.15% 

When it comes to the best places to buy investment property in Birmingham, the likely top spot belongs to the city centre. 

Birmingham city centre property investment has shot up in popularity thanks to the opportunities on offer. 

A bulk of the city’s regeneration is concentrated on the area, with the likes of HS2 Curzon Street, Paradise, Arena Central, and the Big City Plan all in the pipeline. 

Not to mention the considerable overhaul of the city-wide metro expansion.  

With this level of regeneration and employment opportunities on offer, young professionals and students flock to the area, making new-build apartments a hot commodity. 

Property in Birmingham city centre already generates around 5.21% rental yields on average, according to property listings on Zoopla.   

This will likely continue to grow alongside property prices, which have already increased by nearly 40% on Zoopla’s database. 

Due to this capital growth and return potential, Birmingham city centre is likely the best area to invest in property in Birmingham. 

If you want to know the best investment property in Birmingham, keep an eye out on properties like Snow Hill Wharf in the city centre. 

2. Digbeth

Avg. House Price: £218,701 

Avg. Gross Rental Yield: 5.78% 

10-Year Price Growth: 38.59% 

Alongside Birmingham city centre, arguably the best area to invest in property in Birmingham is Digbeth. 

Digbeth is one of Birmingham’s most coveted hotspots, with the Sunday Times naming it one of the coolest places to live in the UK.   

Located to the East of the city and found only five minutes from the Bull Ring and the city centre, Digbeth is home to many businesses in the creative and media industries. 

With high levels of employment in the area and fantastic transport links via Birmingham Coach Station and the upcoming HS2 Curzon Street Station, the location is popular amongst young professionals.   

With the upcoming Birmingham Smithfield to consider, too, demand for rental property is increasing heavily. 

It’s good news then that rental yields are incredibly high in the area and now stand at almost 6%. 

Digbeth is part of the city’s Eastside regeneration scheme, wherein a new cultural quarter and public area will be created.   

As for Birmingham property prices, those in Digbeth have increased by around 38.59% since 2011, so the future looks bright in terms of capital appreciation over the coming years.  

Due to all these factors, Digbeth is undoubtedly one of the best places to buy property in Birmingham. 

If you’re looking for the best investment properties in Birmingham Digbeth, then East and Green is well-worth considering as it starts from only £198,000. 

3. Jewellery Quarter

Avg. House Price: £237,323 

Avg. Gross Rental Yield: 5.21% 

10-Year Price Growth: 38.15% 

A top location to consider for Birmingham city centre property investments, the Jewellery Quarter is a popular destination for young professionals. 

There’s a lot to love about the Jewellery Quarter, with plenty of properties to choose from, including luxury conversions, contemporary apartments, and even stunning townhouses. 

Thanks to its central location in the city centre, many regeneration projects and transport links surround the area, including the nearby Jewellery Quarter Station. 

Prices in the area have grown hugely over the past decade, with a recorded 40% rise.  

If you want a city centre region to invest in, the Jewellery Quarter is a top place to buy Birmingham property. 

And, with further digital businesses moving into the area, investors should keep a close eye on the region as tenant demand increases. 

For the best property investment in Birmingham, Snow Hill Wharf is less than half a mile from the Jewellery Quarter, which is a smart choice if you want to target the local young professional population. 

4. Erdington

Avg. House Price: £200,500 

Avg. Gross Rental Yield: 3% 

10-Year Price Growth: 40.52% 

Another top contender for the best places to invest in property in Birmingham is Erdington.  

Located to the north of the city centre, Edrington is considered one of the best areas in Birmingham for affordable housing.   

The low prices in this suburb make it an excellent location for buy to let Birmingham investment, especially student accommodation.  

While we have calculated average rental yields of 3% from Zoopla’s data, this is based on a relatively small sample size, so it should be taken with a grain of salt. 

In reality, its affordability lends itself well to generating strong rental yields, which can be upwards of 5% if you look right. 

The area is quickly emerging with a growing population of 23,000 residents. 

Along with solid regeneration, including a new £7.5 million leisure centre, Erdington offers world-class transport links with a local train station and easy access to the M6 and Birmingham International Airport. 

It’s unsurprising, then, that property prices in the region have grown by a whopping 40.52% since 2011. 

Future regeneration for this area includes the re-development of Central Square Shopping Centre and remodelling of Wilton Indoor Market.   

Projects like these are likely to increase demand and interest in the area and boost the appeal of buy to let in Birmingham.  

5. Solihull

Avg. House Price: £316,614 

Avg. Gross Rental Yield: 3.77% 

10-Year Price Growth: 37.83% 

Often thought of as one of the best areas in Birmingham to live in, Solihull is a more affluent area with a high average price of £316,614. 

While property prices are high, so too is rent with around £1000 a month, generating 4% or higher yields. 

Just a 30-minute drive to Birmingham, Solihull is a borough on its own but is still considered part of the Birmingham area.  

Many people currently live in the Solihull region, with estimations of 213,993 residents suggesting demand for rental property is vast in this Birmingham investment area.   

Regeneration in the area is also significant, with a huge Solihull Town Centre Masterplan to revolutionise the region over the next 20 years. 

There will also be an HS2 interchange nearby, with flagship projects like Westgate, Kinghurst village centre, and the NEC arena makeover making headlines. 

According to Zoopla, Solihull prices have increased heavily in the last decade by nearly 40%. 

While Solihull doesn’t offer the best returns, it’s one of the best places to invest in Birmingham property in its own right.  

It is well worth considering for the future.  

6. Edgbaston

Avg. House Price: £294,663 

Avg. Gross Rental Yield: 4.79% 

10-Year Price Growth: 40.51% 

A popular area amongst families, Edgbaston is a top place to buy property in Birmingham. 

With property prices growing by over 40% in the last decade, and sizeable yields just shy of 5%, Edgbaston is an affluent area perfect for investors looking to buy houses rather than apartments. 

As a bonus, the average rent currently sits at £1,175 for Edgbaston, making it the highest average on this list. 

The area offers some excellent amenities perfect for families, acting as the home of the Warwickshire County Cricket Club and Birmingham’s first Michelin-starred restaurants. 

Families can also visit the Midlands Art Centre and Victorian Botanical Gardens for a lovely day out.  

These facilities lend to a strong village feel that is just 10 minutes from the city centre. 

For this reason, it should firmly be on any Birmingham investors list for the best property investment in Birmingham. 

7. Harborne

Avg. House Price: £379,420 

Avg. Gross Rental Yield: 3.47% 

10-Year Price Growth: 40.51% 

Another affluent area in Birmingham for families, Harborne is one of the most desirable living spaces in all the West Midlands. 

Gifted with easy access to the city centre thanks to excellent local transport links, Harborne is incredibly popular for professionals with high-paying jobs. 

In fact, a report found that 63% of the local population is employed at a managerial or executive level, making the area a lucrative investment opportunity for investors with cash to spare. 

The most prominent stumbling block investors will find in the region is the hefty entry price tag, with current averages valued at almost £380k. 

For investors with a smaller budget, it’s smarter to invest in areas like Digbeth and Birmingham city centre for the best property investments. 

However, with a huge retail and leisure sector and high-performing schools, any investor targeting families will find a top investment opportunity in the area. 

And with a 40.51% growth rate, Harborne is one of the best areas to invest in property in Birmingham for 2021, 2022, and beyond. 

Ready to Find the Best Areas to Invest in the UK? 

Then Check Out Our Free 2021/22 Ultimate Guide 

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Best Places in Birmingham for Capital Growth Best Places in Birmingham for Capital Growth

What Are the Best Areas to Invest in Property in Birmingham for Capital Growth? 

If you’re targeting capital growth, Birmingham investors are spoiled for choice with areas to choose from. 

With most Birmingham areas performing highly over the last 10 years, seeing prices grow by around 40%, it may be challenging to decide where to invest. 

However, if you’re targeting future capital growth and want the biggest chance to see your investment grow, the top 3 best areas for capital growth in Birmingham are: 

  1. Birmingham City Centre 
  2. Digbeth 
  3. Jewellery Quarter 

All areas attract an aspiring young population, have world-class transport links, including the new HS2 station, and attract tonnes of investment through regeneration. 

Best Places in Birmingham for Rental Yields Best Places in Birmingham for Rental Yields

What is the Best Place to Invest in Property in Birmingham for Rental Yields? 

If you’re targeting rental yields in Birmingham, the three highest returning locations are Birmingham City Centre, Digbeth, and the Jewellery Quarter. 

This is likely because the area’s offer affordable property prices and high rent thanks to demand from young professionals and nearby employment opportunities through regeneration. 

Want the Best Rental Yields Available in Birmingham? 

View the Latest Releases From RWinvest Today for 5% NET Returns 

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Birmingham Birmingham
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Chapter 5: Birmingham Investment Property for Sale 

In the final chapter of our guide, we will take a brief look at the latest Birmingham investment property. 

We will also explain who RWinvest is and why you should consider buying Birmingham investment properties with us. 

Key Topics:

Birmingham Investment Properties for Sale Birmingham Investment Properties for Sale
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Investment Property in Birmingham 

To deliver the best investment opportunities possible, we offer luxury property listings found in Birmingham’s best buy to let areas, including Digbeth, the Jewellery Quarter, and Birmingham city centre. 

You can get NET Birmingham rental yields of over 5%, with prices starting from only £198,000. 

Below you will find a list of the latest investment property for sale Birmingham.

Our current top three Birmingham buy to let properties for sale include: 

  1. Snow Hill Wharf 
  2. East and Green 
  3. Exciting Off Market Birmingham Opportunity 

You can check out all of our property listings on our dedicated Birmingham investment property page. 

Be sure to also sign up to our mailing list to get exclusive properties and deals straight to your email inbox – entirely for free. 

Likewise, you will be informed about all the latest releases, so you can be the first to cherry-pick your units and make the best Birmingham property investment possible. 

Invest From £50,000

East and Green

Modern Residential Development

UK Prices from £198,000

Returns Available on Request

Minutes From New HS2 Station

Invest From £60,000

Snow Hill Wharf

Stunning Collection of Canal-Side Apartments

UK Prices from £227,500

5% Projected Rental Return

Central Birmingham Location

Birmingham Investment
Birmingham Prices from £249,950

5% NET Rental Return

Prime Business Location

Who Is RWinvest? 

RWinvest is an award-winning property investment company with over 17 years of experience in residential and student property. 

With offices across the UK, we are well-positioned to analyse the UK market and deliver the best investment properties with the highest returns. 

Named the North West’s Best Property Business 2020 and nominated as Business of the Year 2021, we have helped over 75,000 investors and gained over 1,000 five-star reviews since 2004. 

If you want to invest with one of the best investment companies in the UK, then RWinvest is for you. 

You can start investing with us today from only £34k and get NET rental yields up to 8%. 

Call us now and explore all our latest investment property for sale in Birmingham and beyond.  

Alternatively, check out our range of exciting properties in Liverpool and Manchester, with the brand-new luxury riverside Manchester skyscrapers Embankment Exchange available from £50k today.

The RWinvest Sales Process

To help you feel at ease with exactly what to expect with an RWinvest Birmingham investment, here are the three steps to our easy-to-follow sales process. 

In the first step of our sales process, you will chat with one of our sales representatives. 

Our property consultants will guide you through the early steps of the journey and help you find your ideal property by asking you about your budget and goals. 

Once you find your property, you will reserve your unit by paying a deposit and filling out an online form. 

Our award-winning client care team is here to help you in the next step of your journey. 

Here, they will answer any questions you have about property investment and offer you the chance to work with one of our recommended property solicitors (although you can choose your own). 

The client care team will then liaise with your solicitor and help complete all the legal documents necessary. 

After all the legal steps are complete, you will then exchange contracts and officially complete the purchase of your Birmingham investment property. 

The final step is talking with the post-sales team. 

Due to RWinvest specialising in off-plan property, you may have to wait for your property to be completed. 

Our post-sales team will liaise with you during this wait, keeping you regularly updated with the development progress and even organise property viewings. 

The RWinvest sales process is designed to make property investment as easy as ever. 

If you have any questions, don’t hesitate to contact us today, or check out our dedicated sales process page for more explanation. 

Step 1 – Chat to the Sales Team

In the first step of our sales process, you will chat with one of our sales representatives. 

Our property consultants will guide you through the early steps of the journey and help you find your ideal property by asking you about your budget and goals. 

Once you find your property, you will reserve your unit by paying a deposit and filling out an online form. 

Step 2 – Liaise With Client Care

Our award-winning client care team is here to help you in the next step of your journey. 

Here, they will answer any questions you have about property investment and offer you the chance to work with one of our recommended property solicitors (although you can choose your own). 

The client care team will then liaise with your solicitor and help complete all the legal documents necessary. 

After all the legal steps are complete, you will then exchange contracts and officially complete the purchase of your Birmingham investment property. 

Step 3 – Complete the Process With the Post Sales Team

The final step is talking with the post-sales team. 

Due to RWinvest specialising in off-plan property, you may have to wait for your property to be completed. 

Our post-sales team will liaise with you during this wait, keeping you regularly updated with the development progress and even organise property viewings. 

The RWinvest sales process is designed to make property investment as easy as ever. 

If you have any questions, don’t hesitate to contact us today, or check out our dedicated sales process page for more explanation. 

Disclaimer: The following content was updated in September 2021. By the time you read it, data may now be outdated. Be sure to research yourself for the latest data available.