The massive growth in UK house prices seen over the last two years has stemmed from a huge demand vs supply imbalance.
In a January 2022 report from Rightmove, the property company found that competition among buyers was twice as high as in January 2021, with the number of homes for sale per estate agency reaching its lowest-ever level.
Demand is important for property investment as it not only increases the chance of finding a tenant for your home but will also sustain house price growth and rental growth.
Luckily for those considering a Birmingham buy to let investment, Birmingham has one of the biggest demand and supply imbalances in Europe.
According to Birmingham City Council, around 80,000 new homes will be needed by 2031.
JLL has echoed these claims, with Birmingham needing 4,000 new build homes each year for the next decade – the highest amount outside of London and over three times higher than Leeds.
Like many other UK cities, Birmingham has a range of ongoing urban 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.
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.
Infrastructure is vital for a cities success as it increases the quality of life and job opportunities for residents.
Excitingly, property investment in Birmingham boasts some of the best connectivity in Europe, with a tonne of transport links for Birmingham residents to choose.
Much of this is owed to its location, with Birmingham acting as the logistical heart of the UK thanks to being within four hours of most major cities and towns.
But Birmingham also boasts fast (and affordable) inner-city travel.
Alongside buses and trains, Birmingham also offers a city-wide tram system that links residents from the city centre all the way to Solihull and Wolverhampton.
The upcoming HS2 line, Birmingham Curzon Street Station, will also massively improve transport. Current estimations suggest the station will reduce travel time to London to only 45 minutes.
Birmingham HS2 will also reduce travel time to all these locations:
- 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 59minutes
- 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
There’s also 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 Brindley place and Gas Street Basin deliver some of the best leisure and dining spots in the entire region.
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 call the city home.
Incredibly, Birmingham’s number of active businesses has increased by three times the national average over the past four years.
The city already has the largest business and financial hub outside of London. With more jobs on the way from regeneration like the Big City Plan, it’s easy to see why so many people are moving to the region.
Birmingham has continued to flex its economic development and job creation over the past year.
The Centre for Economics and Business Research reveals that Birmingham’s GVA increased by 24.7% in Q2 2021 – 1.7% higher than the national average.
It’s unsurprising, then, that Rightmove revealed that rental enquiries in Birmingham increased by 51% between 2020 and 2021, with the largest increase in rental demand over that period in the UK.
Naturally, a large student population is incredibly beneficial for investors looking into student property investment in Birmingham and buying 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 student population of around 100,000, 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.
You can learn more about student property investment in our complete student property guide or in our blog on the best places to invest in student accommodation.
Demand vs Supply
The massive growth in UK house prices seen over the last two years has stemmed from a huge demand vs supply imbalance.
In a January 2022 report from Rightmove, the property company found that competition among buyers was twice as high as in January 2021, with the number of homes for sale per estate agency reaching its lowest-ever level.
Demand is important for property investment as it not only increases the chance of finding a tenant for your home but will also sustain house price growth and rental growth.
Luckily for those considering a Birmingham buy to let investment, Birmingham has one of the biggest demand and supply imbalances in Europe.
According to Birmingham City Council, around 80,000 new homes will be needed by 2031.
JLL has echoed these claims, with Birmingham needing 4,000 new build homes each year for the next decade – the highest amount outside of London and over three times higher than Leeds.
Regeneration and Development
Like many other UK cities, Birmingham has a range of ongoing urban 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.
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.
Infrastructure
Infrastructure is vital for a cities success as it increases the quality of life and job opportunities for residents.
Excitingly, property investment in Birmingham boasts some of the best connectivity in Europe, with a tonne of transport links for Birmingham residents to choose.
Much of this is owed to its location, with Birmingham acting as the logistical heart of the UK thanks to being within four hours of most major cities and towns.
But Birmingham also boasts fast (and affordable) inner-city travel.
Alongside buses and trains, Birmingham also offers a city-wide tram system that links residents from the city centre all the way to Solihull and Wolverhampton.
The upcoming HS2 line, Birmingham Curzon Street Station, will also massively improve transport. Current estimations suggest the station will reduce travel time to London to only 45 minutes.
Birmingham HS2 will also reduce travel time to all these locations:
- 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 59minutes
- 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
There’s also 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 Brindley place and Gas Street Basin deliver some of the best leisure and dining spots in the entire region.
Economic Strength
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 call the city home.
Incredibly, Birmingham’s number of active businesses has increased by three times the national average over the past four years.
The city already has the largest business and financial hub outside of London. With more jobs on the way from regeneration like the Big City Plan, it’s easy to see why so many people are moving to the region.
Birmingham has continued to flex its economic development and job creation over the past year.
The Centre for Economics and Business Research reveals that Birmingham’s GVA increased by 24.7% in Q2 2021 – 1.7% higher than the national average.
It’s unsurprising, then, that Rightmove revealed that rental enquiries in Birmingham increased by 51% between 2020 and 2021, with the largest increase in rental demand over that period in the UK.
Massive Student Hotspot
Naturally, a large student population is incredibly beneficial for investors looking into student property investment in Birmingham and buying 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 student population of around 100,000, 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.
You can learn more about student property investment in our complete student property guide or in our blog on the best places to invest in student accommodation.