With the second biggest population in the UK, Birmingham is known for its rich, cultural diversity and electric atmosphere. Recent regeneration projects happening across the city have meant Birmingham is now a hot bed of activity for property development.
With huge promise for investors and potential bargains to be had, we take a look at some of the reasons why Birmingham is one of the places to watch if you’re planning on investing in 2019.
The Birmingham Property Market is Booming
With expanding communities and a diversifying culture, Birmingham property developments in 2019 are popping up across the city and into the surrounding suburbs.
Demand for property in the area is very high, with reports showing that this demand has spurred a 5-10% increase in property value since 2015. Current estimates state that by 2020 some 89,000 new homes will be required to meet this demand in Birmingham and the surrounding area. At the moment this is expected to fall short by 30,000 homes, meaning demand for good quality housing in the area is only set to increase. With more young adults looking for rental properties, landlords can access some great rental yields from those not looking or wanting to buy their own property. Just 6 out of 10 households in the city are homeowners, with Birmingham surpassing London for growth of rental yields.
Be it for the world class universities, cheaper standard of living or increasing employment opportunities, landlords are cashing in on this demand for affordable rental properties in Birmingham. With the majority of these migrants being young, home ownership is not always a viable option. Park Gate at Lyndon Place presents a great opportunity for renters in Birmingham due to its excellent transport links. In addition to this, landlords can look forward to estimated 6% rental yields on these apartments.
Why You Should Invest in Birmingham Property
Birmingham is a great place for investors to consider, with residential property values rising by as much as 45% since 2009. The area is currently booming for property demand and very closely resembles the pattern of growth Manchester’s property market has made in the last few years. Considerable amounts of regeneration in Birmingham’s city centre and suburban areas have pushed property prices up and made these areas desirable and trendy places to be. Digbeth in Birmingham’s inner city very closely resembles the Northern Quarter of Manchester thanks to the introduction of trendy bars, restaurants and creative spaces, while suburban areas of Birmingham like Solihull and Sheldon more closely resemble some of Manchester’s affluent suburbs like Sale and Altrincham. With a greater focus on building up these areas to become desirable places to live, this has in turn surged a demand for living spaces in the area, subsequently increasing property values.
HS2 Will Create More Job and Housing Opportunities
With a close geographical location to the capital, Birmingham is set to be one of the major stops along the planned HS2 high-speed rail network.
The opening of the network is marked in our calendars for December 2026, when commuters can expect travel times from Birmingham to central London to reduce from 1 hour 22 minutes to just 49 minutes. This reduction in travel-time makes Birmingham a very viable option for those wanting to live in Birmingham and work in London. With the potential of cheaper living costs in Birmingham and the higher salary weightings of London, demand for property in Birmingham will soar once HS2 is complete.
As the development of HS2 nears completion, it’s expected that the impact will be huge for individuals looking to live and work in the Birmingham area. According to Birmingham City Council research, nearly 50,000 new jobs will be created in the inner-city and surrounding areas as a result of these improved transport links. With all these new jobs in the area it’s predicated Birmingham will see a £4 billion increase in economic output every year.
As Birmingham grows due to its new inter-connectivity between larger cities, the demand for housing in the area will rapidly increase. With more demand in the area for residential plots, now is a great time for investors to make their move on Birmingham property developments. Park Gate is less than ten minutes from the HS2 development meaning it’s residents will have enviable access to this improved network.
Birmingham has Big Plans for 2019 and Beyond
With a community as diverse and bursting with life like Birmingham is, it’s no surprise that there are big developments happening in the city over the next few years. With plenty of companies having established roots in the city or plans for relocation, opportunity is rife for job hunters and those looking for a change of pace. PwC are relocating 1,400 staff members to Birmingham, with new offices capable of catering for a further 1,000 new employees. Big banks such as HSBC and Deutsche Bank are relocating staff to the city so there’s plenty of new opportunities arising every day in the cities infrastructure.
Whilst this is all very impressive, don’t let that fool you into believing Birmingham is all work and no play! In 2022 Birmingham will be hosting the Commonwealth Games with sporting events happening across the city at multiple venues. For music fans, Birmingham’s O2 Academy and NEC Arena see plenty of artists and performers pass through their halls giving you plenty to get stuck in to. The surrounding areas of the city centre also house some really great local events, including the Digbeth Dining Club (a must for foodies out there) and the Performance Car Show (that’ll keep the petrol heads quiet).
With plenty to look forward to in 2019, we’re pretty convinced Birmingham property is a big one to watch. For further development updates on our latest Birmingham development, Park Gate at Lyndon Place, and our plans for 2019, keep an eye on our social channels.
Want to make sure you’re the first to know about our 2019 plans? Get in touch here and speak to one of our experts!