The latest Big Six Residential report from JLL has just been released, comparing activity, prices and rents across six top UK cities outside of London: Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester. The report is released twice a year, and includes valuable insights and data for both domestic and international investors considering UK property investment.
Key headlines:
- Birmingham remains ‘on top’ as the highest performing investment city
- New build apartment rents in Birmingham have increased by 50% in the past five years
- Demand for Manchester city centre living shows no signs of slowing as the price for new build apartments in the city is valued 26% higher than just five years ago
Read on to discover the full takeaways from JLL’s latest residential report.
Birmingham retains pole position
Birmingham, an industrial powerhouse located in the Midlands retained its number-one position as the top UK city for property investment. JLL reported the city as experiencing the highest price and rental growth for new build apartments, with an annual price growth averaging 5.6%.
New apartments arriving to market are commanding higher rents, as the expectations and demands of renters in the city are growing, with renters eager to pay a premium in order to secure a more luxurious lifestyle. Developments such as Edition Birmingham are high in demand, offering an amenity level rarely seen outside of the capital.
Affordability pressures which have limited growth in other cities, particularly London, have proven to not affect the Birmingham property market, with an annual growth of 8.5% for one-bedroom properties, 5.3% for two-bedroom properties and 4.1% for three-bedroom properties. With Birmingham presenting more affordable living, demand for city centre accommodation has increased drastically, pushing rental prices up also. The average rents of new build apartments in the city have risen more than 50%.
Due to attractive entry prices and the opportunity for strong returns, demand for Birmingham property investment has increased, with global investors seeking investment opportunities in Birmingham.
Manchester’s international demand grows
One of the most established cities for investment not only in the UK but across Europe, Manchester’s demand from international buyers has grown, and has no signs of slowing.
The price value for new build apartments is currently 26% higher than just five years ago, and rents for new homes in Manchester have risen by an average of 55% in the last five years. As high-quality stock has entered the market, rents have surged, due to the unprecedented demand into luxury living in Manchester.
Residences such as One Port Street are meeting the demand for highly amenitised, premium accommodation, with developments such as Vita Living Circle Square tailored for the abundance of young professionals within the city. With 80% of the FTSE 100 companies boasting an operational presence in the city, the job market in Manchester thrives, encouraging young professionals to build their career in the capital of the north. Vita Living Circle Square is ideally created to suit these tenants, located in the heart of the Oxford Road corridor, just steps away from major global employers.
The future of the UK property market
As reported by JLL, the consistent imbalance between supply and demand in major cities such as Manchester and Birmingham are expected to continue, contributing to property value and rental increases.
Five-year forecasts:
- Sales price growth 2025-29:
- Birmingham 24%
- Manchester 22.2%
- UK 19.9%
- Rental growth 2025-29:
- Birmingham 18.8%
- Manchester 18.8%
- UK 17.1%
With an ever-growing increase in demand, and current mortgage rates expected to drop further, the window of opportunity for international investors choosing UK property is now.
Investing in UK property
With over 21 years experience as the trusted partner for global investors, Select Property has a credible background in developing the highest-quality property in the UK whilst delivering the strongest returns for investors. Our international offices across the UK, Dubai, Shanghai and Hong Kong establish our presence amongst our investor community, and we’d be happy to assist you through each stage of your property investment journey. Contact our team today to learn more about UK property investment.