Birmingham is the second-largest city in the UK and provides a perfect opportunity to invest in property. The city ranks as one of the best investment opportunities in Europe. It has an economy of £24.8 billion, which is the strongest recorded outside of London. Therefore, it may come as no surprise that global businesses such as HSBC, Deutsche Bank and PwC are relocating their headquarters to the city. This demonstrates Birmingham’s universal appeal that doesn’t just halter at the business enterprise. Due to the rise in Birmingham’s profile, the city was announced as the new host for the 2022 Commonwealth Games. As the largest sporting event for the UK since the 2012 London Olympics, Birmingham takes the limelight on a global stage, and as a result, an estimated £750 million will be generated to boost to its economy. It is predicted that the Games will bring a boost to tourism in Birmingham too. Between 500,000 to one million additional visitors are expected to visit Birmingham over the 11-day sporting event.
Birmingham is Europe’s youngest city; out of the current population, which has experienced an increase in 100,000 between 2006 and 2016, 45.7% is estimated to be under the age of 30. Birmingham’s youthfulness and central location are two principal reasons why the city has created more businesses than anywhere else outside of the capital. Most recent recorded statistics show Birmingham experiencing 17,473 new businesses start-up throughout the city. Project HS2, Europe’s largest infrastructure, worth £56 billion, is due to be introduced in 2026. The high scale project is determined to diminish travel time from Birmingham and the capital to one hour, raising the accessibility to a plethora of jobs for city commuters.
Development activity and strong incoming investment have resulted in Birmingham topping the list for house price growth, with an uplift of 7.5% on average – the highest in England. Increased demands of city-centre living produce a faster rate of increasing house prices. Average house prices across the city amount to an average affordable rate of £197,461; this figure is roughly £10,000 less than Manchester. Plus, it’s £500,000 less than the average London property meaning Birmingham still has immense scope for further growth. There are also huge developments happening across the city centre and exciting new regeneration schemes on the outskirts. Recently, areas such as Perry Barr and Ladywood have started regeneration projects ahead of the Commonwealth Games in 2022.
With 80,000 students across four Birmingham universities, landlords should look to the city to secure the best investments. The ideal target tenant market for landlords are ambitious students wanting housing or excited graduates choosing to reside in the city. The turnover of students living in Birmingham and the lack of rentals means that landlords will always have a consistent demand for letting out their property. As the Universities in Birmingham climb the league tables, more prospective students are choosing the city for their studies. Therefore, this is an ideal time for landlords to consider a fruitful investment in a prime city-centre location like Birmingham.
The future of Birmingham is bright and more vibrant than ever; choosing a Birmingham property to add to your UK property portfolio would enhance your knowledge. Plus, the population surge means properties in Birmingham are sure to gain capital appreciation over the next decade.