Birmingham’s Big City Plan: Update

Prosperous Innovation

Having surpassed the halfway point, Birmingham is now unrecognisable. Birmingham is a location which has seen a lot of growth over recent years. It is no surprise that the major economic powerhouse is overtaking competitors. The Big City Plan has improved transport links and connectivity across the city, all whilst enhancing architectural prospects. Birmingham is now in the top third of the UK for quality of life.

£600 million Gateway scheme

One major project which has been exceptionally successful is the ‘£600 million Gateway scheme’, which saw the transformation of Birmingham New Street station. The train station was once known as the ‘UK’s ugliest building’, and now seen as a ‘value-engineered’ icon. New Street is the busiest station outside London and the busiest interchange station in Britain – acting as a catalyst for inner-city regeneration. The railway is vital to Britain’s economic growth. It helps create jobs, offers more business opportunities, and supports capital growth. As an investor, you want to get the most of out your investment. As of 2022, house prices are showing positive year-on-year growth. House prices in Birmingham are expected to rise more than in any city in the UK over the next 5 years. This makes Birmingham an ideal time for investment.

£12 million urban city park

Completed in 2012, another considerable achievement is the £12 million regeneration of the urban city park ‘Eastside City Park’. This was the first urban park in Birmingham for 130 years. City parks have numerous benefits. They increase property value, stimulate local economies, and protect cities from environmental impact. Having achieved a Green Flag Award, the park itself has over 14,000 square metres of landscaped green space and hundreds of trees. To continue going green, over the next 30 years Birmingham sees its future as a Bolder Greener City, responding directly to the climate change challenge. Over the next 25 years, the plans will ensure that the younger generation inherits a much improved, fairer, and greener city. Adopting this sustainable approach will benefit the economy enormously. A £2.5 billion pound uplift in capital value is expected.

Big City Plan: Awaiting Achievements

With a significant focus on sustainability, there are an additional number of development schemes in progress, one being ‘Making Birmingham Green’ by 2026. ‘Making Birmingham Green’ has an ambitious target for a 60% reduction in the city’s carbon dioxide emissions. There is the highly promising project of ‘HS2’: A new high-speed railway line from London to the West Midlands. Phase One will set to open between 2029 and 2033. This will provide further connectivity to the city from other major UK cities. Walking routes will also be prioritised, which will support ambitions for a liveable and well-connected city.  Birmingham’s highest-profile office ‘Paradise’ provides 12,000 workers with access and delivers 1.8 million sq. ft of contemporary space. With the city effectively becoming a commuter hotspot, this drives demand for a much higher tenant base.

The Big City Plan has provided a huge growth in the property market expectancy. If you are looking to achieve capital growth, then Birmingham is the perfect spot. Birmingham rental yields have risen by 28% in the last 10 years. Birmingham rental yields are currently outperforming the national average of 5%. Since 2016, property prices have increased by 16%, one of the highest growths in the UK. Additionally, property prices are expected to increase by a further 15% by 2023.