Investing in Property
Property Investments in Birmingham
Starting your property investment journey can be difficult at first, particularly if you’re new to the process. If you’re struggling with raising capital or just feel like you need a helping hand to guide you through the procedure, then you’ve come to the right place!
At Brite Developments, we specialise in helping property investors and developers achieve their property goals. It doesn’t matter whether you’re a developer, investor, first-time buyer or you’re not quite sure where you fit in as we’re here to help.
Birmingham is one of the UK's major cities, vying with Manchester’s growing property market for the position of the UK's second-largest city. The city’s convenient position in the West Midlands marks Birmingham as the perfect place to access the rest of the UK. Fantastic transport links like Birmingham New Street station are a great central hub for those living in the city.
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Why Should You Invest in Birmingham?
There are many reasons why an experienced property investor should choose to make a property investment in Birmingham. It’s a vibrant city bursting with culture and life, full of opportunity for those who choose to seek it out.
Birmingham is a huge business hub located in an accessible part of the West Midlands, surrounded by plenty of attractions and entertainment for visitors, so you’ll never be bored!
Let’s take a closer look at some of the compelling reasons to invest in the city of Birmingham.
Birmingham Is a Booming City Full of Regeneration
Birmingham is currently undergoing a huge regeneration, with Birmingham City Council launching its ‘Big City Plan’ in 2008. The Big City Plan is a major economic development plan aiming to increase the size of the city centre core by 50%, whilst also implementing major regeneration strategies to improve the rest of the city.
One of the main aims of the Big City Plan is to increase housing by adding 5,000 new homes. The council also wants to add 50,000 new jobs, showing that Birmingham is an up-and-coming city full of potential.
Other major regeneration strategies for the city have included the £750 million redevelopment of Birmingham New Street Station, as well as adding green spaces and other important buildings to the city centre, such as the new Library of Birmingham.
A Cheaper Cost of Living than London
Despite being a major city centre, Birmingham has a much cheaper cost of living than London and the South East, making it an ideal base.
The average cost of rent, food and transport is generally cheaper than in the capital. The statistics also show that Birmingham is 7.84% less expensive to live in than Manchester - another city that rivals Birmingham in terms of size and population.
Because of this, Birmingham is a much more viable place to live than its rival major cities, particularly for those on a budget. Even living in Birmingham city centre is cheaper than residing in most outer London zones, for example - plus the fantastic transport links in the area also mean that those working in the capital can easily commute from Birmingham.
An Amazing Place to Study
Birmingham has one of the largest student populations in the UK and is home to several major universities, including:
The University of Birmingham
Birmingham City University
University College Birmingham
Because of the educational presence of the city, Birmingham city centre has a huge student population, making it the perfect place for student property investments.
The prestige these universities give the city makes it a distinguished place to study, with many students choosing to live and work in Birmingham after they’ve graduated. This adds great value for any investor as student property investments can be extremely lucrative.
Many students choose to live away from halls after their first year of study, adding a lot of rental demand to the market. There has been something of an accommodation crisis at UK universities of late, showing how great the demand for student housing is at the moment.
As there are five main universities in the city centre, you can rest assured that you'll never be short of rental income if you choose to rent a property out to Birmingham’s student population.
Fantastic Business Opportunities
As it’s such a core city, Birmingham has many active businesses dotted around, providing lots of job opportunities for those who choose to live here.
The office market in Birmingham is improving rapidly – in the first quarter of 2022, the total office space take-up was 175,261 square feet.
Office demand is only set to increase over time, due to the upcoming HS2 train line at Birmingham Curzon Street Station and the ongoing regeneration projects happening around the city.
There are many businesses headquartered in Birmingham, with some of the biggest names including: Scream Pubs, London Midland, National Express, O'Neill's, Associated Architects, Ansells Brewery
The Cadbury Bournville factory was also established near Birmingham in the West Midlands. The company now has its headquarters in Uxbridge, but the old factory still remains in the area, also serving as one of the area’s major tourist attractions.
Public Infrastructure & Transport Links
One of the most compelling reasons for property investment in Birmingham is its public transport. The central location that Birmingham finds itself in makes it perfect for travelling across the country.
Birmingham currently has three main train stations including:
Birmingham New Street
Birmingham Moor Street
Birmingham Snow Hill
Because the city is situated in the middle of the UK, it means it's easy to get around the nation, with current transport links going far and wide.
The Midland Metro runs between the main city and the surrounding areas, stretching all the way through to Wolverhampton. The Midlands Metro Expansion is currently in progress, extending the line further across the area. This makes it easy for commuters to get around Birmingham, even if they live in more suburban areas.
Birmingham is serviced by ride-sharing apps such as Uber, as well as traditional taxis and bus routes. Nearby Birmingham Airport is the 7th busiest airport in the country and provides both international and regional flights.
These factors make Birmingham a fantastic city to reside in, whether you're commuting or planning on going on holiday.
Another major factor that might sway you towards property investment in Birmingham is the creation of HS2, the nation’s second high-speed railway line.
The idea for HS2 came from the success of the HS1 line, which links London to the Eurotunnel – providing a high-speed railway line that is unrivalled elsewhere in the UK.
HS2 aims to link Birmingham Curzon Street Station with London Euston, with the opening window currently cited as being between 2029 and 2033.
HS2 is also expected to link other areas of the UK to the line, including Preston and Manchester. This new train line aims to cut the journey from Birmingham to London down to around 51 minutes, making Birmingham a fantastic place for capital commuters to live, whilst also retaining a much lower cost of living.
If you want to invest in Birmingham, it's worth getting in before HS2 is finished, as it's predicted that more people will flock to the city for the new rail line.
Culture & History
Another fascinating aspect of living in Birmingham is the culture and history surrounding the city, with many different forms of entertainment available for those who choose to reside here.
Some of the main attractions in the area include:
The Black Country Museum
The Sea Life Centre
Birmingham Museum and Art Gallery
Birmingham city centre is also home to many sporting venues, including Alexander Stadium (where the Commonwealth Games were held in 2022) and Edgbaston Stadium, hosting cricket games. There are several football teams that play in the area, with the most famous being Aston Villa and Birmingham City.
The NEC holds huge events all year round and there are also many music venues scattered around the city, including the Arena and The Institute. Current transport links also make getting around the city a breeze, so you can peruse the different attractions at your leisure.
Those into their shopping will enjoy a trip to the Bullring shopping centre, located right in the middle of Birmingham city centre.
The Rental Market in Birmingham
The rental market is also another area in which a savvy investor could benefit greatly, with rental returns being very lucrative on buy-to-let properties. The UK currently has a higher demand for rental properties than other types of housing, with more and more people choosing to rent. This means that there are ample buy-to-let opportunities, particularly in a bustling city like Birmingham.
Student property investments are a fantastic idea for any Birmingham investor. Birmingham has many different universities, attracting students from across the globe. Most students will want to find their own accommodation after completing their first year of university, which you can take advantage of by purchasing buy-to-let properties.
With the London property market becoming more and more expensive, people are flocking to cities outside the capital - the looming arrival of HS2 is set to increase urban flight from London even more. More housing will be needed, potentially pushing up house and rental prices. Because of this, there has never been a better time to invest in Birmingham.
The Property Market in Birmingham
What’s new about the Birmingham property market? Whilst there have been some fears about the housing market dropping recently due to high-interest rates, it’s expected that there will only be a small correction, with house prices set to stay fairly stable in the long run.
Whilst prices have fallen somewhat around the country, the annual growth rate still remains at 7.2% in Birmingham.
Predictions have been made that the average house price in Birmingham could increase rapidly in the future, forecasting the average property price in the UK to rise up to £362,350. Historic housing data over the last 25 years has been analysed for these predictions. The ongoing regeneration schemes in the city and the positive effect the Commonwealth Games has had on the area have also been factored in.
Historically, every time a British city has hosted the Commonwealth Games, house prices have increased rapidly. Leftover money from the Commonwealth Games has been reinvested into the city, promoting further growth.
The average price for property is still set to remain far cheaper than in London and the South East, making Birmingham a particularly solid investment - particularly when HS2 is finished.
Invest in Birmingham with Brite Developments
If you’re considering property investment in Birmingham, then Brite Developments should be your first port of call. As a group, we have a wealth of experience in many different sectors of the financial industry, with property development bringing our investors high returns.
We can help you with every step of your investment journey - whether you’re a seasoned hand or are just getting started within the property industry. We have an extensive network within the real estate and private equity sectors - when combined with our knowledge of the market, we’re the very best at what we do.
If you’re looking for experienced advisors to help advance your property portfolio, fill in our online contact form and we will get back to you in no time!