Why Should You Invest in a 2-Bed Apartment in Birmingham?
While each property type comes with its benefits and drawbacks, trends in tenant demand often maximise the potential of your Buy-to-Let property. After the temporary city exodus we saw throughout 2020, city living is making a strong return.
But why identify investment opportunities in Birmingham? While many leading UK cities are having a resurgence in rental enquiries, Birmingham has seen an annual increase of 56%.
In the past 12 months alone, there has been a 312% increase in renters moving away from single-let properties in search of bigger homes with co-living opportunities. Couples once dominated the tenant pool for 2-bed apartments, but changes in tenant priorities have broadened the scope of these bigger investment properties in Birmingham.
At the same time, 2-bed apartments are typically more flexible, giving investors plenty of scope for attracting different tenant demographics.
Featured Development
Lockside Wharf
Birmingham
Stunning Off-Plan Investment Opportunity
- Off-plan apartments – estimated completion 2023
- City-centre location just 3 minutes from Brindleyplace
- Unique waterfront living in Birmingham
- 24.5% price growth expected by 2026 (JLL)
- Top location for London leavers – forecasting yields above 5%
Prices From
£299,950
Tenant Demand for Birmingham Investment
Since 2016, Birmingham has been in an upward trajectory. Fuelled by HS2 and the 2022 Commonwealth Games, the city is attracting incredible global businesses and a wave of young professionals looking to rent within the city.
With investment banking giant, Goldman Sachs, set to join the likes of HSBC, Deloitte and EY, the subsequent demand for property is seeing many investment opportunities in Birmingham showcase their incredible potential.
Similarly, as HS2 continues to progress, demand for city centre apartments will continue to climb. By cutting an already low travel time, Birmingham will quickly become a popular destination for transient tenants working in the capital but seeking the affordability of Birmingham.
Rental Yields
Rental yields are a key metric for prospective investors to consider, which vary significantly between apartment sizes. While one-bed properties, on average, sit on a 4.1% rental yield, 2-bed properties offer more competitive rates of return, reaching an average of 4.8%.
That said, with some buy-to-let hotspots in Birmingham surpassing 5% rental yields, 2-bed apartments in the second city offer a potentially lucrative investment asset. The continuation of the city’s regeneration will make Birmingham property investments more competitive in the years to come, with up to 12% rental growth by 2024.
