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Birmingham's Property Market
Last year, Birmingham delivered a record-breaking 2,398 new homes. This was alongside the start of 43 new schemes for a total of 6,487 residential units currently in progress, all to meet the ever-growing demand and heightened appetite of tenants. As for the return on investment, Birmingham is already the best major city for it. Buyers can expect to make deposits on apartments back within an average of 15.6 months. This, alongside its growing commuting population, is why investors are looking to areas, like Birmingham, north of London.
Birmingham house prices are currently much higher than expected. Birmingham property prices have increased by 1.4% to an average value of £279,920, which is higher than the UK average. While investors may be put off the higher property prices, they are increasing for a good reason. Achieving the highest number of property sales during a period of reduced activity indicates two things. First, plenty of properties are coming to market, confirming the confidence of sellers and, secondly, buyer demand and follow-through are just as high from both owner-occupiers and investors.
Not only is Birmingham outperforming the wider Northern Powerhouse, but it is outperforming expectations, too.
Birmingham’s many regeneration projects are the reason behind its soaring success. Other than Our Future City Plan 2040 – the epitome of regeneration to remodel the city with new parks and green spaces – these projects highly revolve around public transport to improve the local infrastructure and connections locally and wider across the country.
Alongside Birmingham’s improving transport is the Grand Central Transformation. Home to one of the largest train stations in the Midlands, the creation of modern office space and retail and leisure units all in one building makes the 15-minute city concept come alive and boosts the economy. This scheme creates 2,000 new jobs, attracting young professionals to the city. With Birmingham’s plan to become the ‘New Silicon Valley’ for technical professionals, too, the city will only become a stronger investment hotspot as rental demand and Birmingham house prices continue to rise.
Birmingham House Prices in the
While house prices across the UK market are forecast to dip in 2023, Birmingham’s housing market is set to grow – even if just by 1%. But this will be followed by 2% in 2024, 4% in 2025, 4.5% in 2026, and then an impressive 6.5% in 2027. In its entirety, Birmingham house prices will increase by 19.2% between 2023 and 2027 compared to the predicted UK average of 8.9% in that same period.
The city’s market will all but strengthen over the next five years. As Birmingham house prices rise during this time, rent prices look to follow despite a slower rate. Rental prices will grow by 3.6% in Birmingham, only second to Manchester’s predicted 4% rise. With increasing prices, investors can expect fantastic capital appreciation and healthy returns through rental income.
Birmingham’s expectations will surely be met over the next few years. Thanks to the city’s many investments and developments, initially spurred on by the Commonwealth Games and the promise of the HS2 route, the UK’s ‘second city’ may well be competing with the capital for first place by 2027.
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