Discover Birmingham Property Investment

Thinking about Birmingham property investment? In 2026, the market in the UK’s Second City is surging with renewed momentum. Browse our resources related to investing in Birmingham and discover the potential of a property investment market consistently ranked as the UK’s fastest-growing.

Why Choose Birmingham Property Investment in 2026?

The Birmingham property market is not just performing; it’s leading the UK. As of late 2025, forecasts are exceptionally strong, solidifying its position as a prime location for investors seeking their next buy-to-let property.

The city’s growth story is underpinned by powerful data. The average Birmingham rent is now robustly established at £1,063, driven by historic demand and a critical undersupply of housing. This rental growth is forecast to continue rapidly. Simultaneously, property values are projected to continue their upward trajectory.

Forecasts from reputable sources like JLL suggest Birmingham is set to be the UK’s fastest-growing major city for house prices, predicting a cumulative price increase of 24% between 2025 and 2029. What’s more, average rents of new-build apartments in Birmingham have increased by 6% annually, outpacing wage growth. This upward trend highlights the potential for sustained capital appreciation and lucrative returns for property investment in Birmingham.

As Birmingham continues its ambitious regeneration, developing world-class amenities and attracting a rapidly growing population of high-value tenants, the case for investing in Birmingham property in 2026 has never been stronger.

The Future of Birmingham Property Investment

With a projected capital growth of 24% by 2029, Birmingham property investment remains one of the most compelling opportunities in the UK. For those looking to invest in property here, the potential for strong returns is significant, and momentum is building right now in 2026.

The opportunity for rental returns in the city is reaching new heights, with JLL anticipating rental price growth of over 18.8% across the city over the next five years. This impressive rental growth forecast, coupled with unparalleled infrastructure projects like HS2 reaching key construction milestones, means the long-term growth prospects for investment in Birmingham look exceptionally promising.

Based on these forecasts, the anticipated growth could significantly boost the value of your assets.

Birmingham property investment
Download the Birmingham Investment Guide

Want to know more about the Birmingham property investment and the market for 2026? Download the Birmingham Investment Guide today and discover everything you need to know about Birmingham property investment in the new year. In this guide you’ll find:

  • Current market performance
  • Forecasts for the Birmingham property market
  • Key trends impacting the market
  • Best places to invest in Birmingham
  • How a Birmingham investment can boost your portfolio
Download Guide

Is Birmingham a Smart Choice for Property Investment?

Many buy-to-let investors ask: is Birmingham a good place to invest in property? The answer is a resounding yes, and professional tenant demand is a crucial indicator.

Birmingham buy-to-let properties are highly sought after due to the consistent demand from a large professional demographic. The city is home to major national hubs for global businesses, including Goldman Sachs, PwC, and HSBC. Furthermore, the transformation of the city’s creative economy, highlighted by the BBC’s significant relocation to the Typhoo Tea Factory in Digbeth (expected in 2026), is creating thousands of new roles and driving demand for professional rental accommodation.

This influx of high-value tenants creates a highly competitive rental market, pushing rental prices to new heights and making property investment in Birmingham a smart choice for both budding and experienced investors. The combination of high demand, affordability compared to the South East, and the strongest forecasted price growth in the UK firmly establishes the Second City as a leading buy-to-let location for 2026 and beyond.

How Has Redevelopment Impacted Birmingham Property Investment?

The regeneration that began with landmarks like the Bullring has culminated in the transformative Big City Plan, a multi-billion-pound programme that continues to create a world-class infrastructure.

HS2 Curzon Street Station: The most critical infrastructure project, with major construction milestones expected to complete in 2026. Once operational, the journey time to London will be dramatically reduced to just 49 minutes, fundamentally changing Birmingham’s connectivity and accelerating property value uplift in Eastside, Digbeth, and the City Centre.

Smithfield Regeneration: This £1.9 billion project is rebuilding the historic heart of the city, delivering over 3,000 new homes, a new market district, and major public squares, further bolstering city-centre living.

Digbeth Transformation: Spurred by the BBC’s move, Digbeth is evolving into a creative and innovation district. The city council is actively seeking investment to deliver over 6,000 new homes in this area, cementing its status as a major residential and commercial hub.

Paradise: Ongoing phases are continually delivering premium mixed-use space, attracting major corporate occupiers and setting the standard for contemporary city-centre architecture.

With such strong growth and prospective development, these new amenities are attracting new residents, bolstering demand for rental accommodation, and strengthening the cause for Birmingham property investment.

Birmingham Property Investment

What is the Average Rental Yield in Birmingham?

As the second city has developed, new amenities and incredible demand have helped to boost rental prices across Birmingham, driving up the average Birmingham rental yield.

Now, as more people consider moving to Birmingham to take advantage of its significant regeneration, work opportunities and fantastic quality of life, what is the average Birmingham rental yield and what postcodes are expected to perform the best going forward?

We’ve broken down the average Birmingham rental yield and what investors in the second city can expect to see within their own investment.

Read our extended research on Birmingham rental yields in 2025 today.

Read the Full Article

Why invest in Birmingham property? Plus Icon

With numerous areas to choose from across the UK, why should you focus on Birmingham property investment? The second city has been on a consistent upward trajectory, reflected strongly in its property market. Birmingham remains one of the most affordable major cities in the UK, offering high-yielding investment opportunities with exceptional growth potential.

Over the past 20 years, £10 billion has been invested in the city, creating a world-class infrastructure and the amenities necessary to meet growing demand. This investment has helped Birmingham rental prices grow by 22% in the last five years.

With an expanding business sector and a growing population, the opportunities for investors to benefit from both capital appreciation and rising rents make buy-to-let properties in Birmingham a prime investment.

Will Birmingham house prices rise? Plus Icon

The property market in the West Midlands has experienced strong growth for the better part of a decade, and Birmingham property prices are projected to continue their upward climb.

According to JLL, property prices in Birmingham are on track to increase by 16% between 2025 to 2028, largely due to consistently high demand and limited supply. As such, future forecasts suggest prices could increase by £37,000 in the next four years. This has firmly placed Birmingham property at the top of many investors’ lists worldwide.

What is rental demand like in Birmingham? Plus Icon

With several universities and numerous graduate employment opportunities, Birmingham boasts a very young population. Out of a total population of 1,180,000, research indicates that nearly 44% are under 30, and a significant number of the city’s rental market is younger than 35. This ‘Generation Rent’ demographic is driving increasing demand for rental property in Birmingham. As homeownership becomes less accessible for first-time buyers, a significant portion of millennials are facing a lifetime in the rental market. This trend is creating a thriving demand for rental property in the UK’s second city. With forecasts suggesting that 80,000 new homes would need to be built before 2040 to meet this demand, it’s clear why Birmingham is a buy-to-let hotspot.

What businesses are in Birmingham? Plus Icon

Birmingham has the strongest economy outside of London, exceeding £38.9 billion. In 2024, the number of businesses in Birmingham surpassed 37,245, and the city’s business, financial, and professional services sector now provides 145,600 jobs, representing approximately 26.9% of the total economy. As a result, more global companies are establishing regional offices in the second city. Some of the most prominent names include:

  • HSBC
  • Deloitte
  • Mazars
  • KPMG
  • PwC
  • Goldman Sachs

What is the population of Birmingham? Plus Icon

Birmingham is one of the most populated cities in the UK, with a total population of over 1.2 million.

Since 2011, Birmingham’s population has grown by 8%, driven largely by its popularity amongst the younger demographic.

With five universities across the entire city, 40% of the overall population is under-25 while 60% of the rental market is under-35.

Is Birmingham a good place to invest in property? Plus Icon

When it comes to buy-to-let property, location is key. The Birmingham property market has become an investment goldmine over the years, with its impressive past performance, high rental yields and relatively affordable prices making it one of the best places to invest in property.

Birmingham property prices are currently averaging £228,000 with an average rental yield of 5.21% – considerably less than London’s average prices of £649,941 and yields around 2%.

The second city’s exciting future, which includes the completion of HS2, Smithfield Regeneration and Big City Plan, is forecast to push property prices up 16% by 2028.

With undersupply creating a competitive market, demand is at an all-time high for Birmingham buy-to-let investment and will only increase alongside a rising population.

Want to Know More About Birmingham Investment Properties And Buy-to-Let?

With 24% price growth forecasted across the second city by 2029, discover some of the best buy-to-let investment opportunities in Birmingham by filling in the form to the right.