Birmingham
Birmingham is a major UK city that is attracting a lot of investors. It is establishing itself among the top areas in the country and the rental demand is increasing. Birmingham is seeing an influx of businesses, professionals, and investors, as well as exponential growth in the economy and the population. Forecasts predict that the city’s future performance is extremely promising, making it a top choice for buy-to-let investors as rental yields and appreciation are set to increase.
The average property price in Birmingham stands at £260,940. As such, a good rental yield is usually above 5%, which is the minimum requirement to maintain costs. Rents have grown by 28% since 2009 and are set to grow by 10% over the next four years. According to house.co.uk, the average asking rent is £1,598, making the average rental yield 7.35% when measured against the average property value. This is incredibly high, outperforming much of the UK.
According to the UK House Price Index, an apartment in Birmingham is available for just £148,047 on average, meaning strong rental yields of 8.24%.
Capital growth in Birmingham has been considerable over the last 20 years, making future long-term capital growth promising. Growth has increased by 7.66% in the last 12 months. This, along with predicted house price growth, makes Birmingham an extremely promising place to invest, where landlords can expect prominent capital returns and rental yields.
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Average property values in Birmingham have increased by 40% in the last decade, with a 16% growth from 2016-2020.
With the city undertaking several regeneration projects and more people relocating to Birmingham, rental demand continues to rise.
Savills has predicted that Birmingham property prices will rise again by 24% between now and 2025.
Research suggests that Birmingham needs 4,000 homes per annum over the next 10 years to meet demand. The average supply has been around 900 new homes per annum since 2010, highlighting the disparity between supply and demand.
60% of the population is under 35 and largely made up of young professionals – one of the most desirable tenants in the Buy-to-Let sector
