Lomond Quarterly Insights Highlight: Birmingham Property Market
Rental market experiences continued high demand
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).
Strong buyer interest in the sales market
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.
Futureproofing your purchase
First-time buyers (FTBs) are highly active in our market, as the pressure on renters continues to persist. Two-bed apartments in the city centre and three to four-bedroom houses in the suburbs, where budgets can be stretched, are in high demand. Buyers are motivated to future-proof their purchase. In fact, the average price of houses with three or more bedrooms in our suburban areas has increased by over 8% year-on-year (Dataloft Inform).
Find out more about the UK-wide property market in our Lomond Quarterly Insights here.