Published: March 15, 2022

Birmingham property prices

Written by Amber Furr
Birmingham Property Prices.

How do Birmingham’s house prices and achieved rents compare with the rest of the UK, and what is attracting investment in the UK’s second city?

This guide will take a deep dive into the Birmingham property market, comparing house price growth, looking into the best areas to invest and predictions for the future of the city.

Average property prices in Birmingham

According to Rightmove, Birmingham properties sold for an average price of GBP 238,581 over the last year. Reflecting the post-pandemic property boom and increasing demand in Birmingham, sold prices were up 9% on the previous year and up 17% on the 2019 peak.

Although Birmingham’s house prices have risen by 44% over the last decade, Birmingham remains an attractive option for investors, offering a lower entry point and above-average rental yields.

JLL predicts property values in Birmingham to rise by an average of 4.9% every year for the next five years – at a time when the report expects the UK housing market nationally to cool. This would equate to a GBP 500,000 home bought in Birmingham today, being valued at GBP 635,000 or above come 2026.

AreaAverage property priceGrowth per yearValue in 2026Total capital growth
BirminghamGBP 238,5814.9%GBP 303,049GBP 64,468
UKGBP 278,1233%GBP 322,420GBP 44,297
ManchesterGBP 248,8474.7%GBP 313,088GBP 64,241
Prime Central LondonGBP 787,0584%GBP 957,576GBP 170,518

As the above table shows, the average Birmingham property could be bought today for around GBP 40,000 less than the UK average house price and grow by around GBP 20,000 more than the UK average over the next five years.

To provide an off-plan example, our latest Birmingham development Affinity Living Lancaster Wharf completes in Q2 2024. Forecasting 10% growth over the build period and 4% growth every year for five consecutive years post-completion, off-plan developments are an incredibly lucrative investment option.

Birmingham is also forecasted to see the strongest rental growth of any other UK city in the next five years, with a projected rental yield of 6% on Lancaster Wharf.

Why is Birmingham attracting demand and investment?

Forecasted to see the strongest house price and rental growth of any UK city between 2022-2026, Birmingham’s reputation as an investment city is increasing on the global consciousness.

Nick Whitten, JLL’s Head of UK Residential Research, commented: “Thanks to the Commonwealth Games, along with other major developments in the city, Birmingham’s cultural, economic, practical and professional offerings will all improve dramatically over the next five years – and our residential predictions reflect that.”

1. The Commonwealth Games

Taking place between 27th July – 7th August 2022, the international multi-sporting event will catapult Birmingham onto the global stage, providing a unique opportunity to showcase the potential of the UK’s second city for an audience of 1 billion people.

The legacy of the games will bring enormous long-term economic and social benefits to Birmingham, based on historical data. In fact, the Perry Barr area will see 5,000 new Birmingham properties by 2040, with GBP 750 million of investments into the surrounding area. Bringing thousands of new jobs to the area, the Games will attract a new pool of skilled people to live and work in Birmingham.

2. High-Speed 2 (HS2)

The government’s GBP 106 billion railway will form the ‘backbone of Britain’s transport network’. A prime beneficiary, Birmingham will be the central hub connecting London and the North, supporting the government’s ‘Levelling Up Agenda’ to improve connectivity and opportunities in the UK’s regional cities.

Cutting the commute time to London to just 52 minutes, Birmingham will become an attractive commuter hotspot for millions of Londoners seeking more affordable rent and better amenities when the link completes between 2029-2033. Already having a direct impact on house prices in Birmingham, buyer demand is 35% higher than in 2017.

3. Other key projects

Other key projects contributing to Birmingham’s strong investment performance are the Snow Hill Masterplan, which will transform the northern part of the city centre to drive growth and regeneration activity over the next 20 years. With global investment banking giant, Goldman Sachs, setting up headquarters in this part of the city as an alternative to the capital, boosting the city’s profile and attracting a talent pool of high-earning renters.

Where to invest in Birmingham

1. Birmingham City Centre

Rental yields: 5.2%
Average property price: GBP 223,378
Property growth over past decade: 47.88%

A vibrant metropolitan city in the heart of England, Birmingham has more to offer renters than ever. With the youngest city population in Europe, 40% of core inhabitants are under the age of 25 – the prime demographic of the rental market.

The northern part of the city centre is increasingly popular among tenants, on the doorstep of the Colmore Row business and leisure district, and a short walk to the Bullring shopping centre and Birmingham New Street.

2. Edgbaston

Rental Yields: 4.1%
Average property price
: GBP 311,842
Property growth over past decade
: 47%

Best known for its sporting reputation and proximity to the University of Birmingham, Edgbaston is one of the most affluent areas of the city. For investors prioritising capital growth over rental yield, Edgbaston is an established investment area with almost 50% property growth over the last 10 years.

The area offers a village feel within the city, giving residents the ‘best of both worlds’ that JLL predicted as a post-pandemic rental trend.

3. Jewellery Quarter

Rental Yields: 4%
Average property price: GBP 210,083
Property growth over past decade: 49.10%

Birmingham’s Jewellery Quarter is responsible for 40% of the UK’s jewellery production – the highest concentration in Europe. A hub of young professional renters, the Jewellery Quarter remains a popular investment choice.

While house prices have risen by 28% over the last three years, the area is mostly made up of loft conversion apartments as opposed to purpose-built – something for buyers to consider as new, purpose-built developments with amenity space are the most popular choice in today’s rental market.


With exceptional growth on the horizon, major infrastructure projects underway and a rapidly increasing population of young professionals, now is the time to invest in the UK’s second city. Find out more in our Birmingham Investment Guide.

But despite Birmingham’s exciting growth forecasts and global reputation as an investment city, there is a comparatively low supply of high-quality purpose-built homes in the market.

At Select Property Group, our premium residential brand Affinity Living is expanding to Birmingham city centre for the first time, following the incredible success of four operational Manchester developments.

But what will Affinity Living bring to Birmingham? Promising all the brand’s standards of prime city centre location, state-of-the-art apartments and premium amenities, Affinity Living Lancaster Wharf is the home Birmingham’s tenants have been looking for.

Get in touch to find out more about Birmingham’s property market or our latest investment opportunities.

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