Lomond Insights: Birmingham property market Q2 review
As we reached the midway point of the year, the Birmingham and West Midlands property market looks different to the end of its first quarter. Price and inflation changes have knock-on effects in the selling and buying market, while the private rental sector continues to grow.
We are thrilled to share that the West Midlands continues to be the strongest region in the UK property market in 2023, according to the most recent Halifax House Price Index, with average sale prices up 2.7% year-on-year.
The rental market in our area continues to perform exceptionally well, driven by the high demand and limited supply. It is particularly attractive to a young and affluent demographic, with nearly half of renters aged between 18 and 29 (DRMA). The appeal of city apartment living is evident, accounting for 57% of the properties available for rent. Two-bed apartments in the city and two to three-bed houses in the suburbs are highly sought after, providing ideal opportunities for working from home or for couples/sharers, which constitute 44% of the renter market (DRMA).
Despite recent challenges, the sales market remains resilient, supported by robust employment levels and market mobility. The majority of our sales are within 5% of the asking price, indicating strong buyer interest. In the most recent Halifax House Price Index, the West Midlands emerged as the best-performing region, with average sale prices increasing by 2.7% year-on-year.
Although the market is still undersupplied, demand has improved since the beginning of the year, with a significant number of registered buyers. In the West Midlands region, three and four-bedroom houses are the most popular, accounting for two-thirds of sales. One and two-bed apartments in Birmingham represent 15% of the sales. Given the current volatility in the mortgage market, we have witnessed a rise in mortgage appointments.
Although there may be fewer product options available, the existing ones offer greater flexibility. Therefore, seeking financial advice from our experienced team is becoming increasingly valuable in navigating the changing lending environment.
HOW WE PERFORMED IN Q2
Despite fluctuations in the current markets, our property experts continue to deliver brilliant service to our thousands of customers.
While we continue our efforts to grow the company even further, our teams produced the following numbers in Q2:
SALES (per branch)
- 19 new instructions
- 120 applicants
- 4 contract exchanges
- 6 applicants per property
LETTINGS (per branch)
- 23 new instructions
- 364 applicants
- 16 applicants per property
- 67 new tenancies agreed
Richard Crathorne, Chief Executive Officer, summarised: “Coming into the busier summer months, we are seeing steady levels of demand and a seasonal upturn in properties coming onto the market.”
You can read the full summary of the Birmingham property market below, or click here to learn how Lomond is transforming the UK property market, notably in the investment sector.