Average Rental Yield in Birmingham in 2027
The average rental yield in Birmingham is 5.6%, based on an average monthly rent of £1,106 (ONS, September 2026) and an average house price of £235,000 (ONS, August 2026). That is a gross yield, before costs such as management fees, maintenance and insurance.
For buy-to-let investors heading into 2027, Birmingham’s position is unusual. House prices in the city rose just 1.5% in the year to August 2026, and asking prices were 0.6% lower than a year earlier (Rightmove, July 2026). Rents, meanwhile, rose 3.3% over the same period. When rents rise faster than prices, yields on new purchases go up, which is why 2026 and early 2027 offer a better entry point than the last few years.
Birmingham also remains far more affordable than London. A typical home in Birmingham costs 6.5 times local earnings, compared with 11.3 times in London (ONS, April 2025), and the average Birmingham rent sits around £300 a month below the UK average of £1,406. This shows that the second city is affordable for renters, affordable for investors, yet still able to generate some of the most competitive rental yields in the country.
Birmingham Rental Yields Forecast for 2027
Property prices in the second city are forecast to recover from 2027 according to the latest market forecasts. Savills forecasts house prices in the West Midlands to rise 3.0% in 2027 and 19.7% over the five years to 2030. Our own forecast for Birmingham is even more ambitious, predicting 3.0% to 5.0% growth in 2027 and 14.7% to 25.7% over 2026 to 2030.
Rents are expected to keep rising alongside this – JLL forecasts UK rents to grow 16.5% over the five years to 2030, and expects the EPC C requirement for rented homes by 2030 to push rents higher later in the period. Investors who buy in 2027 can lock in today’s yields while benefiting from both rental growth and the forecast price recovery.
Best Property Types for Rental Yields in Birmingham
The average rent in Birmingham is £1,106 a month, up 3.3% in the year to September 2026 (ONS). That is above the West Midlands average of £983, but well below the UK average of £1,406. The average rent for a flat in Birmingham is £923 a month.
| Property size | Average monthly rent |
|---|---|
| One bedroom | £834 |
| Two bedrooms | £1,009 |
| Three bedrooms | £1,141 |
| Four or more bedrooms | £1,587 |
| All properties | £1,106 |
These figures are averages across all private tenancies, including long-running ones, so rents on new lets are usually higher. A modern one- or two-bedroom apartment in the city centre will typically let above these averages.
Average Rent in Birmingham
The average rent in Birmingham is £1,106 a month, up 3.3% in the year to September 2026 (ONS). That is above the West Midlands average of £983, but well below the UK average of £1,406. The average rent for a flat in Birmingham is £923 a month. These figures are averages across all private tenancies, including long-running ones, so rents on new lets are usually higher. A modern one or two-bedroom apartment in the city centre will typically let above these averages.
| Property size | Average monthly rent |
|---|---|
| One bedroom | £834 |
| Two bedrooms | £1,009 |
| Three bedrooms | £1,141 |
| Four or more bedrooms | £1,587 |
| All properties | £1,106 |
Birmingham Rental Yields by Postcode
Rental yields vary widely across Birmingham, so research at postcode level is an important part of choosing where to buy. We have split the figures into two groups: the city-centre postcodes most popular with apartment investors, and the postcodes with the highest yields based on a reliable volume of sales.
City-Centre Postcodes
| Postcode and area | Average price | Gross yield |
|---|---|---|
| B18 – Jewellery Quarter, Hockley | £185,657 | 7.2% |
| B1 – City centre, Brindleyplace | £195,695 | 6.7% |
| B2 – City centre, New Street | £180,455 | 6.6% |
| B3 – Colmore Business District | £199,357 | 6.6% |
| B12 – Highgate, Balsall Heath | £203,111 | 6.4% |
| B5 – Digbeth, Southside | £219,344 | 6.2% |
| B16 – Ladywood, Edgbaston | £211,682 | 5.7% |
| B15 – Edgbaston, Five Ways | £255,209 | 5.4% |
| B4 – Steelhouse, Aston University | £269,893 | 5.3% |
The Jewellery Quarter (B18) currently offers the highest yield of any city-centre postcode at 7.2%, followed by the central B1, B2 and B3 districts at 6.6% to 6.7%. These postcodes record only a handful of sales each month, so their yields can move more than those of larger suburbs, but they consistently attract strong demand from young professional tenants.
Highest-Yielding Postcodes Across Birmingham
| Postcode and area | Average price | Gross yield |
|---|---|---|
| B37 – Chelmsley Wood, Marston Green | £230,110 | 6.4% |
| B44 – Kingstanding, Great Barr | £220,178 | 6.4% |
| B23 – Erdington | £211,255 | 5.8% |
| B42 – Perry Barr, Great Barr | £245,230 | 5.8% |
| B33 – Stechford, Kitts Green | £227,857 | 5.6% |
| B67 – Smethwick | £245,715 | 5.6% |
| B11 – Sparkbrook, Sparkhill, Tyseley | £226,987 | 5.5% |
| B32 – Quinton, Bartley Green | £249,747 | 5.5% |
Outside the city centre, the highest yields are found in the north and east of Birmingham, where house prices are lower. B37 and B44 both offer 6.4%, with B44 recording around 20 sales a month. These areas mainly suit investors buying houses for families, rather than apartments for young professionals.
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Best Buy-to-Let Areas in Birmingham
The best area for you depends on your strategy:
For high yields from apartments, look at the Jewellery Quarter (B18) and the central B1 to B3 postcodes, where yields of 6.6% to 7.2% combine with strong demand from young professionals.
For long-term growth, look at the areas around the city’s major regeneration schemes: Digbeth and Southside (B5), close to Smithfield and HS2’s Curzon Street station, and Ladywood (B16).
For family lets, the northern and eastern suburbs such as Kingstanding (B44), Erdington (B23) and Perry Barr (B42) offer yields of 5.8% to 6.4% on houses.
What Is Driving the Birmingham Rental Market?
Jobs and Business
Birmingham has more than 43,000 active businesses, and 15.1% of them were started in 2024 (ONS). Global firms including HSBC, Goldman Sachs and PwC have major offices in the city, and the BBC is moving into a new home at the former Typhoo factory in Digbeth.
Regeneration
Several large schemes are reshaping the city centre and its edges:
- Birmingham Smithfield: a £1.9bn to £2bn scheme on the former wholesale markets site next to the Bullring, bringing new homes, a public square and workspace, and linking the city centre to Digbeth.
- Paradise Birmingham: a £1.2bn development of offices, hotels, homes and public spaces next to Centenary Square.
- HS2 Curzon Street and Digbeth: station-led regeneration of the east side of the city centre.
- Ladywood: a £2.5bn long-term regeneration with up to 12,000 new homes, parks and schools.
Housing Supply
New supply is not keeping pace with demand. Birmingham added around 10 new homes for every 1,000 existing dwellings in 2024–25 (ONS). With a growing population and limited new supply, competition for good-quality rental homes is likely to remain strong.
Transport
74% of Birmingham residents live within a 30-minute walk of a railway station (ONS, 2024), and the Midland Metro tram network continues to expand. HS2 will cut journey times to London once it opens, widening the pool of tenants who can live in Birmingham and work in the capital.
What Will Affect Your Birmingham Rental Yield?
Rental yields are sensitive to several factors, so it pays to research each one before you buy:
Purchase price. Yield falls as price rises, so a well-priced property in a strong rental area often outperforms a more expensive one.
Regeneration and new developments. Properties near major schemes such as Smithfield tend to attract more tenants and higher rents as the area improves.
Transport links. New Metro extensions and HS2 will increase demand in the areas they serve.
Tenant type. Apartments near universities and business districts suit students and young professionals, while families tend to look for terraced and semi-detached homes in the suburbs.
Running costs. All the figures on this page are gross yields. To work out your net yield, deduct costs such as letting and management fees, maintenance, insurance, service charges and void periods.
For tailored advice, speak to an investment professional or a member of the Joseph Mews team.
FAQs for Rental Yields in Birmingham
How is regeneration helping the Birmingham property market?
Schemes such as Smithfield, Paradise and the regeneration around HS2’s Curzon Street station are bringing new jobs, homes and amenities to the city centre and Digbeth. Better places to live and work attract more tenants, which supports both rents and property values in the surrounding postcodes.
Is Birmingham a good place to invest in property?
Birmingham combines above-average yields with long-term growth. Average sold prices in the city have risen 48.2% over the past ten years, from £158,120 to £234,257 (HM Land Registry), and rents are still rising. Prices have been flat in 2026, but Savills forecasts 19.7% growth in the West Midlands by 2030, with a recovery starting in 2027. Read more in our guide to investing in UK property.
Are rents rising in Birmingham?
Yes. Average rents in Birmingham rose 3.3% in the year to September 2026, and rents across the West Midlands rose 4.4%. JLL expects UK rents to grow 16.5% over the five years to 2030.
What is the average rent in Birmingham?
The average rent in Birmingham is £1,106 a month (ONS, September 2026). A one-bedroom property averages £834 a month, a two-bedroom £1,009 and a three-bedroom £1,141.
What is a good rental yield in Birmingham?
The average gross yield across all Birmingham property is 5.6%, so anything above that is better than average for the city. For apartments, where the average is 7.7% across all flats, a yield of 6% to 7% on a modern new-build is a strong result, given the lower running costs and higher rents new-builds usually achieve.
What are the best rental yields in Birmingham?
The highest yields in central Birmingham are in the Jewellery Quarter (B18) at 7.2%, followed by B1 at 6.7% and B2 and B3 at 6.6% (PropertyData, October 2026). By property type, flats offer the best yields, averaging 7.7%.