Known as the UK’s second city after London thanks to both its population density and economic prosperity, Birmingham in the West Midlands is a good all-rounder when it comes to property investment.
Dating back to 8000 BC, Birmingham established itself as a commercial centre in 1166 when it became a successful market town under the patronage of Lord of the Manor Peter de Birmingham. Today the city has grown to house around 1.2 million residents with a thriving nightlife and cultural scene, one of the biggest retail centres in Europe, great amenities and leisure facilities and the accolade of one of the UK’s happiest cities in 2019.
The city’s central location within the Midlands region also means it is privy to excellent transport links via road, rail and air. The presence of the M6, M5, M42, A38 and A4540 amongst other road networks makes getting into and around Birmingham and the wider Midlands region a breeze. Birmingham also has four main train stations – Birmingham New Street, Snow Hill, Moor Street and Birmingham International – and the city is the central transport hub between the north and south, just over an hour from London by train, and due to offer an even speedier commute with the arrival of the HS2 from 2026. When it comes to public transport there are plenty of bus routes connecting all areas of the city and many traffic free cycling routes suitable for all ability levels. 16 minutes from central Birmingham is Birmingham International Airport and, as the name suggests, both domestic and international flights are available here.
Prospective residents are also drawn to Birmingham’s excellent amenities like the Bull Ring and Mailbox retail complexes, the National Exhibition Centre (NEC) and numerous galleries, museums and theatre spaces like the Birmingham Hippodrome and the Birmingham Museum and Art Gallery. Not to mention a plethora of festivals like the Birmingham International Jazz Festival, the Birmingham Cocktail Weekend and the Flat Pack Film Festival, plus live music and a buzzing nightlife!
Foodies will also appreciate the city’s dining pedigree, with an impressive five Michelin-starred restaurants to choose from, and there is something to suit every palate. The city is even part of the Delice ‘Good Food Cities’ network.
Families will be keen to know that Birmingham is home to a great range of primary, secondary and nursery schools too. Indeed, there are more than 300 primary schools in the Birmingham catchment area and 141 secondary schools plus a number of accredited nursery settings.
The city is home to an extensive range of leisure facilities as well, like The Bear Grylls Adventure, Avery Fields and Ackers Adventure ski, snowboard and outdoor activity centre to name but a few, plus great outdoor spaces (including an impressive 36 parks) such as the 43-acre Aston Park, more canals than Venice and trees than Paris! Birmingham will even be the host for the Commonwealth Games in 2022.
So it will come as little surprise then to hear that the city which ticks all the boxes was also voted one of the top places to live in the world in a recent survey.
Birmingham makes an ideal location for buy-to-let investments too thanks to its younger population, with around 40% of the city’s residents aged under 25. Much of this younger age group is made up of students attending the city’s five universities; The University of Birmingham (a Russell Group University rated 13th in the UK), Aston University, Birmingham City University, Newman University and University College Birmingham. All of which offer an extensive range of undergraduate, post graduate and business courses to over 75,000 students annually. And with an average rental yield of 4.34% and high capital growth expectations for average house prices (+24% by 2025) the city’s buy-to-let market is certainly one to watch.
The average price paid for properties in Birmingham over the last 12 months was £227,722. Less than the national average (£255,000), the West Midlands region overall (£264,563) and certainly local hotspots like Little Aston (£769,713), Hampton-In-Arden (£647,846), Dorridge (£639,188), and Knowle (£539,047) in particular.
When it comes to the types of property on offer, you would expect to pay in the region of £195,000 for a terraced house, £235,000 for a semi-detached property and £155,000 for a flat in Birmingham.
