Birmingham House Price Forecast 2026

The long-term outlook for the Birmingham property market remains exceptionally bright, sustained by a potent mix of corporate relocations, massive regeneration, and a structural imbalance between supply and demand.

Corporate Inward Investment & The Professional Tide

Birmingham’s economic gravity continues to pull major businesses and high-value employment to the city. Companies such as Goldman Sachs, HSBC, and BDO have established significant bases, creating an ever-expanding professional workforce. Looking ahead to 2026, this trend is reinforced by:

• EY’s confirmed move to the Paradise development is scheduled to be completed, further solidifying the city’s central business district.
• New commitments from global firms like AI leader Atos, which is establishing a new technology centre in the West Midlands, creating high-quality, future-proof jobs.
• MHA, a leading accountancy firm, is relocating to 35 Newhall Street, highlighting the strong demand for premium, sustainable office space.

The relocation of the BBC to the Typhoo Tea Factory in Digbeth also continues to inject fresh energy and creative-sector employment, driving intensified demand within the rental market.

Regeneration: Delivery Milestones

Major regeneration is moving from planning to on-the-ground delivery, which acts as a powerful catalyst for property value growth in surrounding areas:

• Smithfield’s massive £1.9 billion redevelopment is set to kick off its construction phase in early 2026, which will eventually deliver over 3,000 new homes, a new cultural quarter, and the new home for the iconic markets.
• Other significant residential projects, like the Beorma Quarter in Digbeth, are slated for estimated completion in 2026, bringing new luxury units to the market.
• While the full launch of HS2 is still a few years away, Curzon Street Station and the surrounding Washwood Heath depot sites continue to see significant construction progress in 2026, reinforcing Birmingham’s status as a core transport hub and driving investment in the Eastside area.

This ongoing transformation, part of the wider Big City Plan, showcases Birmingham’s sustained ambition and dramatically raises its profile for investors worldwide.

Birmingham’s market resilience and underlying demand drivers point toward continued capital appreciation, with specific, strong figures underpinning the 2026 outlook.

Birmingham’s Five-Year Outlook

Birmingham property investment in 2026 is a highly attractive prospect, with average property prices sitting at £234,328 and rental yields averaging between 5% and 6% in high-demand central postcodes like B1, B2, and B18.

Analysis from the JLL Big Six Report highlights a recent structural shift: over the past five years, rent growth has significantly outpaced price growth, with rents increasing by a massive 55.9% compared to price growth of 18.8%. This indicates the immense pressure on the city’s rental stock and the immediate profitability for investors.

Price Growth Projections to 2030

Looking ahead, Joseph Mews’ Birmingham forecast anticipates steady annual growth of 3-6% through to 2030. This anticipated capital appreciation means a property bought for £234,328 in 2026 could rise to around £280,000 by 2031, demonstrating strong long-term security.

Regarding the projected capital growth, we expect property prices in Birmingham to see significant momentum initially, rising by 5-7% from May 2025 to May 2026. This growth is then anticipated to moderate slightly but remain strong, with increases of 4-6% between May 2026 and May 2027. Subsequently, growth is projected to average 4-5% from May 2027 to May 2028, easing further to 3-5% between May 2028 and May 2029, and finally settling at a sustainable long-term rate of 3-4% between May 2029 and May 2030.

The Birmingham rental market is characterised by strong growth and above-average yields, confirming its status as a lucrative buy-to-let location.

Rental Growth Forecast

According to the latest research from JLL, Birmingham is set to see impressive rental growth of 18.8% between 2025 and 2029, significantly outpacing the UK average forecast of 17.1% over the same period. This translates to an average annual growth rate of approximately 3.5%.

The demand driving this forecast is evident in recent performance: private rents in Birmingham rose to an average of £1,070 in September 2025 according to the ONS, marking an annual increase of 5.1% from £1,019 in September 2024. For comparison, the average monthly rent across the wider West Midlands in September 2025 was £942, and the UK average was £1,354.

High-Performing Rental Yields

Birmingham is consistently delivering above-average rental yields, making returns on investment exceptional when factoring in the city’s relatively accessible average property price. High-performing postcodes are currently delivering yields of up to 6.90%.

The top five postcodes in Birmingham for rental yields, as of 2026 (according to PropertyData), are:

B2 (City Centre): 6.90%

B18 (Hockley, Jewellery Quarter): 6.70%

B44 (Kingstanding, Perry Barr): 6.50%

B12 (Balsall Heath, Sparkbrook): 6.10%

B1 (City Centre): 6.00%

The fundamental investment case in Birmingham is underpinned by the significant disparity between housing supply and rocketing demand.

• High Demand: Birmingham’s population is projected to continue its strong growth trajectory. Marrons have suggested that Birmingham needs over 127,600 new homes by 2040, the highest of any English local authority.
• The London Exodus: The city remains a top destination for those leaving the capital, attracted by lower living costs and a better salary-to-house-price ratio compared to London’s multiple of 10+, making it a much more accessible and appealing place to settle for working professionals.
• A Confident Outlook: Despite thousands of homes currently under construction, the market is not expected to close the gap between supply and demand anytime soon. This provides buy-to-let investors with confidence that their assets will see sustained tenant interest and strong occupancy rates.

Birmingham offers a compelling value proposition that other major UK cities struggle to match: excellent capital growth potential combined with higher-than-average rental yields.

The city’s average salary to house price ratio remains relatively low at 3.63 for a couple, meaning that couples would have to borrow less than 4 times their annual salary to afford the average home, thereby making Birmingham far more affordable than other English cities such as Bath (7.77), London (7.68), and Oxford (6.92). This blend of strong local salaries and relatively affordable entry points makes Birmingham an ideal market for both domestic and international investors seeking impressive growth in both the short and long term.

Over the last decade, Birmingham property prices have seen a consistent increase thanks to new development, new amenities and fast-rising demand. Below you can see how property prices in Birmingham have changed between 2014 and 2024, signalling a positive trajectory of growth that ought to pique the interest of investors.