Property investment in Birmingham

Birmingham overview

Strategically located in the centre of England, Birmingham is one of the UK’s most important regional hubs. Home to the largest city economy outside of London, Birmingham is established as a prosperous, high-growth investment city. But it’s the city’s future growth projections that make it such an exciting investment opportunity.

Birmingham in numbers
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Property price growth forecast by 2027 – JLL Q4 Report

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Annual rental growth forecasted over the next five years (highest level of growth in the UK)

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Three fifths of Birmingham’s population are under the age of 35

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Lettings numbers in Birmingham were 19% above pre-pandemic levels in 2022

Birmingham property

Why invest in Birmingham? Attracting global investment for its strong capital growth forecasts, high rental yields, and low entry point compared to London property, Birmingham is an increasingly popular investment choice. Among the top three cities for average property price growth over the next five years at 19.2%, JLL cites key drivers for growth as the Commonwealth Games, HS2 and mass regeneration.

The city’s rapidly expanding population combined with a chronic undersupply of high-quality residential property presents a prime opportunity for investment property developers and investors. According to Urbanbubble, around 1,000 homes per year are needed in Birmingham to keep pace with increasing rental demand. The same report revealed that there were over 15,000 more students studying in this West Midlands city in 2022-23 than seven years ago, meaning demand for build-to-rent property will continue to rise as postgraduates leave their student accommodation.

Global companies such as Goldman Sachs, HSBC Bank and Deloitte are leading a growing trend of blue-chip employers setting up headquarters in Birmingham rather than the capital. Paired with the city’s strong graduate retention rate across its five universities, Birmingham is attracting a talent pool of high-earning young professionals – a key demographic of the build-to-rent sector. Recognised for its “vibrant bars, Michelin-star restaurants, world-class museums, top shopping, meandering canals, green spaces, ground-breaking music, elite sport and vibrant culture”, Birmingham was voted one of the best cities in the world 2022 by TimeOut.

Birmingham Property
Birmingham Regeneration

Birmingham regeneration

Ideally located in the middle of England, Birmingham is the central hub on the HS2 line connecting London with the Northern Powerhouse. The government’s £72bn scheme will transform Birmingham overnight into a commuter hotspot for millions of Londoners looking for more affordable rent and better-quality rental accommodation, cutting the commute time to the capital to just 49 minutes. Birmingham’s Curzon Street station will be at the heart of the high-speed rail network and will be one of the most environmentally friendly stations in the world.

Another huge regeneration plan is The Big City Plan – a 20-year city centre masterplan, designed to support Birmingham’s continuing transformation into a global city centre. Plans include creating 1.5 million square metres of new floorspace; creating over 50,000 new jobs; contributing 2.1B to the local economy each year; creating a well-connected walkable city; valuing the city centre’s historical assets, and so much more.

Other regeneration projects include the Snow Hill Masterplan – a 20-year plan including a £50m investment into Snow Hill railway station. Home to some of the city centre’s most valuable assets including Colmore Business District, Snow Hill is a hugely important area of the city with great potential. This regeneration plan is estimated to create tens of thousands of jobs in the city.

Home to the largest city economy outside of London, according to the Irwin Mitchell City Tracker, Birmingham’s economy is set to be among the top three fastest growing in 2023, with its GVA expected to rise to £29.6bn in Q4. Key sectors responsible for growth are creative and digital technologies.

Download our Birmingham investor guide

Thinking about investing in Birmingham property? Download our Birmingham investment guide to find out why the UK’s second city is such a prime investment opportunity.

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Birmingham Property Investment Guide

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