Discover Birmingham Property Investment

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.

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.

With several universities and numerous graduate employment opportunities, Birmingham boasts a very young population. Out of a total population of 1,160,000, research indicates that nearly 50% are under 29, and around 60% 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.

Birmingham has the strongest economy outside of London, exceeding £24.8 billion. In 2020, the number of businesses in Birmingham surpassed 78,000, and the city’s business, financial, and professional services sector now provides 206,200 jobs, representing approximately 21% 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

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.

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.