If you are new to the Birmingham property market, you will wonder if Birmingham is an excellent place to buy property. Birmingham is a populated city in the UK and arguably the second city in the UK.
However, the city still has the most affordable property in the UK compared to London, Cambridge, and other cities. According to Zoopla, the property price in Birmingham for the last 12 months is £234,989.
The different properties in Birmingham have different prices, with the cheapest being flats at £141,678. The average property price in London is £727,743. This is three times the average property price in Birmingham.
Before finalising a property, you should consult specialist Birmingham conveyancing services like AVRillo. They have over 20 years of experience managing property deals all over the UK.
There are many reasons to consider buying property in Birmingham. Here we look at some of the reasons:
1 – A thriving economy
Most homebuyers consider the economy of a place before buying property there. Business growth and development projects are a factor that stands out in Birmingham. People are constantly chasing jobs, and they are most likely to consider living in a place that offers them employment opportunities, cultural diversity, social facilities, and good transport links.
Birmingham recently welcomed the Deutsche Bank and HSBC offices that offer significant employment to the locals.PWC also signed a lease of offices in Paradise Birmingham, one of the largest schemes in the city center. The city has many redevelopment projects, making it an ideal place to live and work for professionals.
2 – Young population
Another reason you should consider buying property in Birmingham is the young population. The city’s population is expected to rise to 1.24 million by 2030. At least 40% of the residents in Birmingham are below the age of 25. This young population makes up the core of the rental market.
Additionally, the city has at least a 41% retention rate, with most fresh graduates choosing to stay in the city. It means that most people can choose to study, work, and live in Birmingham.
Ideally, when students graduate, they have to rent property to live in, and most of them have saved the deposit to buy or lease. Investors in Birmingham will have a consistent stream of tenants, and the property market will begin to boom.
3 – Property prices
A property price is a factor you want to consider most when considering owning property in the UK. Property prices in Birmingham have been rising steadily and are now above the national average. The city has been experiencing a growing shortage in property supply.
With great potential, most investors and commuters are attracted to the city. Property price in Birmingham have increased by at least 16% since 2016 and is expected to increase by 15% in 2023.
4 – Rental yields
When investing in property, you should consider the rental yield. Return on investment is a factor you want to consider most before putting your money in a private property. Your investment should give you a higher return and grow your asset portfolio.
The average rental yield in Birmingham is 6.56%, an increase of 1.16% from last year. Student areas like B4 have the highest rental yield of up to 11%. For a high rental yield, places you should buy property in Birmingham include Holloway Head, Digbeth, Erdington, and Edgbaston.
Final Thoughts Is Birmingham a place to invest in property? Yes, the property market in Birmingham still has potential. Many development projects like the Big City Plan and Paradise Birmingham are most likely to change the property landscape. When buying property in Birmingham, you should consider hiring a property solicitor to help you buy the property with peace of mind.