LIVERPOOL MANCHESTER STUDENT ALL PROPERTIES

Birmingham is the UK’s second largest city behind London. With prices in the capital increasingly spiralling out of control this pushes businesses and individuals to seek cheaper alternatives outside of this major metropolis, leaving Birmingham property investment more prosperous than ever. Birmingham buy to let is one of the most lucrative assets as Birmingham ranks as one of the most popular cities in Europe to invest in.

Currently attracting billions through investment, Birmingham’s reputation has strengthened as retail, residential and commercial space is being produced, maintained or enhanced through major city-wide regeneration schemes.

Property Investment in Birmingham

Changing the Face of Birmingham Through Regeneration

Birmingham is undergoing crucial regeneration schemes with billions of pounds being pumped into developing new areas such as the residential and retail zone of Smithfield and a new cultural quarter in the east. While some developments are still only visions on an architect’s table, others are well on their way to completion, propelling the city to the forefront for Birmingham property investment opportunities aiming to change the face of the city forever.

Paradise Development

One of Birmingham’s most significant developments in almost a generation is the Paradise development costing £700 million. Showing rapid progress, this project aims to introduce 1.8 million sq. ft. of Grade A office, retail and leisure space in one of the most central parts of the city. The main vision sets to open the gateway between the city centre and Birmingham’s Westside area of the city, which is home to Brindleyplace, Deutsche Bank, the Library of Birmingham, Birmingham Symphony Hall and ICC and the new Arena Central development. PwC, part of the ‘big four’ have already agreed to pre-let for the entire eight-storey building at One Chamberlain Square- the first building in the project due for completion.

Property Investment in Birmingham

Arena Central

Arena Central is situated close to the Paradise development and only a short distance from Birmingham’s popular Mailbox district. Another landmark development for Birmingham is the site of the new HSBC UK headquarters which earned the city’s biggest pre-let in a decade from the Government through an entire 240,000 sq. ft. building to house several of its services, including the Midlands hub for HMRC.

Smithfield Development

Based on the former home of Birmingham’s wholesale markets, Birmingham Smithfield is a 14-hectare site between the city’s Eastside District, Chinese quarter and the main city centre shopping area. Costing £500 million, the site will be transformed into a vibrant retail, leisure and residential destination, with more than 100,000 sq. metres of floor space and plans to build 1,000 new homes strengthening the city’s reputation for Birmingham buy to let. The project is predicted to create a staggering 3,000 new jobs and inject £470 million GVA into the local economy.

Birmingham Commonwealth Games

Unparalleled Business Opportunities

World-renowned businesses such as HSBC, Deutsche Bank and PricewaterhouseCoopers are choosing to relocate their headquarter offices to Birmingham through the city’s global appeal by winning the bid to become home of the 2022 Commonwealth Games. HSBC’s new Birmingham headquarter base will create 1,000 jobs alongside Deutsche Bank who will maximise their employment figures from 50 to 2,000.

Outlining a focal point, strategy or key motive within a city is imperative, and through the development and targeting key areas to invest in Birmingham, the city has advanced as the largest professional hub outside of London. This has commandeered the attention for both UK and overseas investors wishing to capitalise on Birmingham property and take advantage of a much wider and more diverse client base.

Birmingham has beaten other cities to first place in terms of economic growth, as its GVA increased by 4.2% between 2012 and 2013 alongside being recently named as the UK’s number one business hotspot and through the creation of new jobs, young talent has followed.

Birmingham as a City to Live and Invest 

In 2017, Birmingham was one of the highest achieving cities in England in terms of house price growth, which comfortably outstripped that of London.

According to Hometrack, in the first half of 2017 house prices in Birmingham rose by 6.1%, exceeding any other city across the UK. And last year, the West Midlands city was named the sixth best in Europe for investment prospects in the PwC and Urban Land Institute ‘Emerging Trends in Real Estate’ report.

Strong growth rates over the past few years have contributed to a 45% rise in average residential property values since troughs caused by the recession back in 2009. Taking into the account the levels of growth the average price in Greater Birmingham is sitting around £178,000, lower than the UK average of £226,756. Differentiating prices underpins a major driver in the Birmingham property market – its affordability against its UK competitors.

As an investor, this is an ideal time to sow the seeds of a fruitful investment into prime city centre residential property as it has rapidly outperformed the wider UK market for more than a year according to the Office for National Statistics.

In 2017, a study found Birmingham to be the most improved city in the UK to live and work. The city achieved this accolade due to falling unemployment and a wave of investment and regeneration projects, as well as being named as having the highest standard of living of all UK regional cities.

Property Investment In Birmingham

Ambitious Infrastructure Visions

HS2 high-speed train connecting London Euston to Birmingham, Manchester and Leeds will come into effect from 2026 which presents itself as Europe’s largest infrastructure project worth £56 billion. A further £1 billion has been projected to create several distinct neighbourhoods around the new Curzon Street HS2 station over the next 30 years.

Birmingham is at a strategically advantageous position in the country, as 90% of the population can reach Birmingham in just under four hours. However, predictions show that with the construction of HS2, more people will choose to reside in Birmingham and commute to London as the journey time is predicted to take only 50 minutes. If you compare this to the typical commute time for those living on the commuter belt of London, their journey to work shows no difference as they average around a 45-minute commute also.

An increase in commuters will push up the demand for land and therefore the push up the cost of potential new developments. As land cost is expected to surge, the feasibility becomes increasingly constrained inflicting a positive effect on rental income and capital growth brought by fewer developments means more demand due to a limited supply.

Population is Birmingham’s Driving Force

Birmingham boasts the youngest population in any major city in Europe which lends itself well to the rental market, as young adults struggle to obtain the capital to purchase permanent assets due to rising house prices prevalent across the country, therefore Birmingham buy to let market proves more reachable for many.

Under 25s make up 40% of the population, and one-third of the city’s inhabitants are from an ethnic minority, creating one of the most ethnically diverse cities across the whole of the UK.

Out of the city’s total population at 1.1 million, 45.7% are estimated to be under the age of 30, including around 65,000 students across five universities and two university colleges, therefore businesses, and of course landlords, have access to a diverse pool of qualified and ambitious graduates looking for Birmingham buy to let.

University of Birmingham Student Property

The city’s thriving student population may prove profitable for buy to let investors, particularly as the graduate retention is so high. Birmingham attracts a substantial number of university students from other parts of the country every year, presenting the fourth highest among UK cities. Universities in the city are a popular choice amongst students from Birmingham, with 50% deciding to remain in the city to study.

While the pull of university students from other regions stands strong, this suggests the superior quality of Birmingham’s higher education institutions and its appeal for potential students, holding the sixth highest retention rate of graduates across any UK city, showing strength in ‘growing its own’ graduates.

Graduates are more likely to reside in the city due to the quality of life, experiences on offer, affordability and heightened job prospects.

Birmingham grew by over 100,000 between 2006 and 2016. However, by 2039 the population is predicted to rise again by 171,000, leaving a total population of 1.3 million. With the demand for quality city centre living remaining strong, residential undersupply stands as a large threat increasing the competitivity within Birmingham property investment.

Birminghams Event Venue Property Investment

Birmingham’s Creative Culture

A colourful art scene and a thriving culture provide a huge benefit to cities like Birmingham in terms of attracting new residents and boosting tourism levels. Galleries, museums and theatres help to enrich the lives of current residents making it and more attractive place to live. In fact, more tickets are sold at the 2,000 seat Birmingham Hippodrome than by any other theatre, including London’s West End. It dazzles crowds with British musicals, the UK’s biggest most spectacular pantomimes, stunning sessions from the Welsh National Opera and a hotspot to be enchanted and inspired by the Birmingham Royal Ballet.

Birmingham’s library has transformed the traditional library settings into a major cultural hub, housing Birmingham’s world-class collections of archives, photography and rare books as well as a million printed volumes, which is the largest number held by any public library in the UK. Serving as an epicentre for excellence through superior standards of literacy, research, study, skills and creative expression and entrepreneurship, the library stands at 31,000 square metres and it is the largest public library in Europe.

Town Hall and Symphony Hall (THSH) are two of the most iconic concert halls in the UK that attract some of the most talented musicians and performers in the world to the heart of Birmingham. Welcoming over 500,000 people to approximately 800 events each year, THSH connects audiences through dynamic and varied displays securing Birmingham as an internationally renowned establishment and a significant contributor to the national economy.

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