Why should you invest in Birmingham?
Demand for rental property has reached an all-time high, with many landlords inundated with enquiries about available properties. Following the growing instability in the property market, many are opting to rent over purchase – ultimately leading to strong demand for rental properties.
With Birmingham being the second largest city in the UK it is increasingly becoming a desirable place for landlords to invest in their next buy-to-let property, with both growing demand and increasing rental yields.
If you’re a landlord considering whether to invest in a property in Birmingham, here are a few reasons why you should!
An endless supply of tenants
With Birmingham being the UK’s second largest city there are always people looking for their next rental home. The city currently has 1.1 million residents including around 80,000 students and even more young working professionals looking to move to the business hub. These numbers result in high demand for rental properties with the number of people enquiring about a rental property increasing by 7% compared to last year*. Therefore, if you were to invest in a buy-to-let property in the city centre it wouldn’t take us long to find you the ideal tenant.
Birmingham's increase in rental prices
Recently published data showed pinpointed Birmingham as being in the top 5 regions seeing the greatest increase in rents; with a 12.8% annual increase, and an average asking price of £802. ** Birmingham provides an average property price of £217,659 and gross rental yield of 7.40%. By 2026 the predicted growth will be around 15.9%** And
New commercial and residential developments
With further regeneration efforts expected to take place in the future, Birmingham qualifies as a stable investment. In recent years the city has gone through a major redevelopment and new residential & commercial developments are constantly being built. This means that there is always a new opportunity to expand your portfolio in the region with a variety of properties to choose from. Take a look at our high yield properties.
HMOs and student accommodation
Birmingham is home to 5 universities, including the desirable, Russell Group, University of Birmingham. With around 80,000 students living in Birmingham each year, it creates a strong demand for student accommodation and HMOs in the city centre. With the strong influx of student tenants every year, you know that your properties will always be in demand and tenanted throughout the academic year.
According to a recent national student survey, around 88% of UK university students live in student accommodation, so there’s lots of scope for getting your foot on the student property ladder. Students can also bring in higher rental yields when compared to other types of renters and investing in properties to target the student audience can deliver high returns as well as being a rewarding experience, in one of the fastest growing sectors in the UK.
Investment hotspots include Harborne, Edgbaston and Erdington - with Digbeth, and Jewellery Quarter also among the top contenders for making buy-to-let investments. There’s certainly plenty of Birmingham’s areas that offer both new and existing Landlords a great return on investment.
If you’d like to talk to one of our team about buy to let properties to suit your budget, click here or call us on 0121-633-4455. Or visit our properties for sale page to see our current buy-to-let properties across the West Midlands.
*Source Rightmove **Source Zoopla