Why Invest in Birmingham?

Are you thinking of Investing in the UK property market and not sure what locations to consider? We look at the key question,  Why Invest in Birmingham? And why Birmingham should be on your list of areas to consider for your buy-to-let property investment. As the largest metropolitan borough in Europe, with over one million people; there has never been a better time to invest in Birmingham. Furthermore,  HS2 is coming and major developments continue across the region. Located in the heart of England. and excellent connectivity.  It is within four hours’ reach of 90% of the UK’s population and businesses. The forthcoming HS2 network will slash these journey times. Furthermore, it will make Birmingham a real commuter belt for London workers. The Midlands city offers a more cost-efficient place to live outside of London. HS2 will shorten journey times from London to Birmingham in under 50 minutes.

Universities In Birmingham

Birmingham is home to a booming higher education sector is no exception. The UK’s second-largest student city boasts five universities.  Aston, Birmingham City, the University of Birmingham, University College Birmingham and Newman University College. Aston (rated 33rd in The Guardian University Guide 2016) and the University of Birmingham (placed 17th) are especially strong. Within an hour, of Greater Birmingham, there are a total of 20 Universities, including three Russell Group institutions.  This makes Birmingham an excellent location for education and providing an excellent selection for education. This also creates a deep pool of talent to feed into local businesses.

Birmingham’s Capital Appreciation Potential

Taking into consideration the current demographic of Birmingham, and the economic activity and government investment; it comes as no surprise that Birmingham also topped the list for house price growth in 2017; With an uplift of 7.5% on average – the highest figure in England, House Prices in Birmingham in the city centre are still relatively affordable at £197,461. This is circa £10,000 less than Manchester. And a staggering £500,000 less than average price across London. Furthermore, the increased investment and job creation  Birmingham has significant room for further capital growth. In addition to the above, Birmingham still faces a continued undersupply of available homes. Which will continue to fail to meet demand; Investing in property in Birmingham provides a highly lucrative investment backdrop for investors into residential property.

Government Investment in Infrastructure

Around £10bn of major construction projects including the complete redevelopment of land around new High Speed Two stations has been brought to the market by West Midlands councils. An investment prospectus, which will be unveiled today by West Midlands mayor and former John Lewis boss Andy Street, outlines 20 different projects in the region. The West Midlands Combined Authority (WMCA), the body representing local authorities in the region, wants to attract domestic and foreign investors to help back the schemes. The projects on the list include building billions of pounds worth of offices, retail and residential buildings around the new Birmingham International and Birmingham city centre HS2 stations. The high speed rail line will open in 2026.

What Effect Will HS2 Have On Birmingham

It’s likely then that Birmingham could witness an influx of London workers looking for property in Birmingham, putting further upward pressure on an already increasing population. To prepare for HS2 and higher population numbers, the planned £500 million Birmingham Curzon station will connect to Old Oak Common in North West London. This development alone is expected to provide a £1.4 billion economic uplift in Birmingham. Also, Smithfield, near Birmingham’s Bull Ring, will benefit from a £500 million investment to regenerate the area. This mixed-use regeneration scheme will deliver retail, commercial, leisure and transport, as well as 2,000 new homes.

Economic Growth in Birmingham

Due to the economic growth, the West Midlands saw workforce jobs increase by 110,00 over the year to June 2017, the biggest rise in the UK by some margin. This translates into nearly 100,000 additional households required over the next two decades. The predictions are that the number of people living in Birmingham will rise by 171,000 to 1.3 million by 2039, according to the latest official population projections. For central Birmingham, the level of rental growth is expected to continue in the coming years.

Birmingham Smithfield Regeneration

The Smithfield’s area was formerly home to Birmingham’s wholesale markets. Smithfield is a 14-hectare site between the city’s Eastside district, Chinese quarter and the main city centre shopping area. Its £500 million development plan will see the site completely transformed into a vibrant retail, leisure and residential destination, with more than 100,000 sq. metres of floor space and plans for 1,000 new homes. The project is expected to create 3,000 new jobs and add £470 million GVA to the local economy. If you now realise the reasons why you should invest in Birmingham, have a look below at our  two new projects in the heart of the Birmingham Smithfield Master Plan

Click to View: Smithfield Square Birmingham

Click to View: Smithfield Place Birmingham

Birmingham’s Young & Multicultural Population

Birmingham benefits from having a young population, below the national average. Furthermore, it is the youngest population of any major city in Europe. What’s more, under 25s makeup 40% of the population. One-third of the cities residents are from an ethnic minority, making it one of the most diverse and multicultural cities in the UK. The young population forms a large proportion of the long-term rental market, therefore Birmingham is an ideal location for Buy-to-let landlords to build their portfolio. Generally speaking, the young professional postgraduates, aged 21-34, do not have the capital required for home ownership, furthermore, they have a preference to rent for ease of freedom to move to different locations.

Other Developments in Birmingham

A US hotel group has chosen one of Birmingham’s most famous yet neglected buildings to launch its first operation in Europe. Dream Hotels, which runs venues in the US and Asia, has signed up to open a new hotel in the city as part of the regeneration of Methodist Central Hall, in Corporation Street. The news comes as plans are lodged with Birmingham City Council to carry out a wholesale renovation of the Grade II*-listed building worth at least £35 million and which will create around 100 new jobs.