Property Investments in Birmingham

There are five higher education institutions in Birmingham, with over 60,000 students living in the city, and approximately 41% of them choose to stay in the city after graduating. This high graduate retention rate continues to drive competition in the rental market. Opportunities to invest in buy-to-let rental properties in Birmingham are clearly present for property investors looking to maximise returns, especially as the economy continues to grow and the city expands.

More businesses are shifting away from London due to the cost of commercial property in the capital, and Birmingham is quickly becoming a high-priority area for these businesses, due to exceptional transport links around the country. Many of the UK’s leading firms have offices in Birmingham, including BT, HSBC, KPMG, Deutsche Bank, Deloitte, and PWC, with ambitious young professionals moving to the city in search of central, modern and affordable accommodation.

Birmingham is a major transport hub and benefits from being extremely central in the UK. The region’s connectivity and economic landscape will be boosted significantly by High Speed 2 (HS2) – the country’s new high-speed rail network and Europe’s largest infrastructure project to date.

Travelling from Birmingham to London will take just 38 minutes, and commuters can reach key cities in the Northern Powerhouse within an hour. Shortening travel times will increase desirability. It will also provide quicker transport times to numerous airports, increasing its connectivity across Europe. HS2 will draw countless businesses into this already thriving economic powerhouse.

According to statistics from VisitBritain (2023-2024), Birmingham attracts approximately 3 million overnight visitors and 23.8 million day visits from tourists annually. This comes as no surprise, as even The New York Times recognised Birmingham as one of their ‘Top 20 Places to Visit’.  

New funding has also been announced during English Tourism Week. This investment is part of the ‘Plan for Change’ initiative, which will welcome 50 million international visitors to the UK per year by 2030. The Mayor of the West Midlands, Richard Parker, has said, “Tourism is big business in the West Midlands – with record visitor numbers driving growth and creating good jobs for local people.”  

Birmingham is an unassuming star amongst property investors. Ranking as one of the most popular investor cities in Europe, it’s a standout choice for several reasons. The properties are more affordable than those in London. Property prices in London sit at around £567,000 on average compared to Birmingham’s prices at £229,000 (ONS). 

Nevertheless, prices are increasing rapidly, making it a hotspot for people deciding where to invest in UK property. This is largely due to the large-scale regeneration projects underway in the city, transforming the face of Birmingham and offering property investors high potential for capital growth, alongside strong rental yields and consistent tenant demand.

Spanning over 20 years, the Big City Plan began in 2010, and the city is halfway through its long-term vision. ‘Big’ would be a massive understatement for this regeneration project, as it’s one of the most ambitious and high-achieving development projects the UK has seen for decades. With a world-class city centre at its fingertips, the master plan will widen the city’s core by 25%. In turn, it will create over 50,000 new jobs and inject £2.1 billion into the economy each year.

Projects within the scheme include Paradise and Arena Central, Grand Central and the HS2 project. Most notably, the £1.9 billion Birmingham Smithfield project will revolutionise the city’s Eastside and Southside quarters. Spanning 42 acres, the project will create 3,000 new homes, 8,000 new jobs, public spaces, leisure attractions and the new home of the Bullring Markets. As if that wasn’t enough, Smithfield is expected to bring £470 million GVA into the local economy.