Any landlord looking for tenants and a rental income would do well to consider the Birmingham property investment market. Forging ahead in recent years, this buy-to-let mecca, for commercial real estate and residential family homes provides much potential. With high occupied rates and decent rental yields, this form of passive income provides a positive cash flow for many real estate investors.
It is an ideal place to start for beginners looking for their first investment opportunity. While experienced investors, who know their market and have done research will find many neighbourhoods offer the perfect rental playground. Of course, as with any real estate investment, due diligence is key to maximising your rental income, but let’s look at why Birmingham is becoming the buy-to-let hub.
Why the Birmingham Property Investment Market Stands Out
1: Best property Value Growth
London has outdone itself. As property prices rise, buyers are looking to other major cities like Birmingham and since Brexit, this bustling metropolis seen a 16% increase in value. Over the last 25 years, Birmingham’s real estate market has shown steady growth even during the 2008 financial global crisis when the number of properties sold dipped. In 2019, home prices outranked London as one of the best cities for long term investment potential and growth.
2: Transport Investment in Birmingham
The whole of the west midlands is investing in its transport network for smooth, speedy and efficient ways to get around. Look at the official website for Birmingham’s local council for the full plan and vision that will eventually be completed in 2031. Their main aims are to reduce damage to the environment and become a carbon neutral city, improve road safety in residential areas, and to revitalise local neighbourhoods as well as the city centre. Ask any financially savvy investor, and they will confirm, this makes the city, an ideal investment and property hotspot.
3: Ideal Market for Rental Real Estate
Birmingham’s population of under 30s, actually makes it one of the United Kingdom’s cities with the youngest population. Comprising of students and young working professionals, many look to the rental market for housing. So, any landlord who buys a quality real estate property, can expect high demand and a good rental yield, especially in the city centre and emerging neighbourhoods.
4: Commitment to the Future
House owners aren’t the only ones who are ditching London in favour of other major cities. Major businesses and banks see the potential for Birmingham over the next decade and are relocating their head offices to the city. Along with them, comes thousands of jobs, and with Birmingham’s population expected to grow to over a million over the next twenty years, the city has much potential to become, not only one of the UK’s prime hotspots but also within Europe.
5: New Property Developments
As well as developing its tourism, transport and business industries, due to high demand, the real estate market is bursting with new developments. High quality housing in emerging neighbourhoods like Sheldon can offer up to 6% rental yields, thanks to their prime position near transport and shopping amenities. Whether you are in the market for a budget or luxury, residential or city centre investment, one look at the Birmingham property market, reveals hundreds of houses with potential.
Author: Spot Blue Real Estate Agent specialises in UK and overseas property for house buyers and investors. Featured in major publications around the world, their expertise and years in the industry has enabled many buyers to invest in their future. Read more about them here.