5 Reasons Why Birmingham is Becoming the Top Investment Hotspot for Buy-to-Let Investors

As we delve into the second half of 2018, many of the savvy investors who have been diligently researching on the property market have begun to turn away from London to the next investment hotspot – Birmingham.

Birmingham ranks as one of the most popular cities to invest in Europe and is attracting billions of dollars of investment into citywide retail, commercial and residential space. Many of the top tier investment banks such as Deutsche Bank and HSBC have also chosen to relocate their headquarters to the city.

For investors looking to “buy-to-let”, here are five reasons why Birmingham is attracting this much interest:

1. UK’s Second City

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Birmingham has been named as the city with the highest standard of living among all UK regional cities. It is currently Europe’s youngest city and ~46% of its population is under 30. With a vast pool of young talent, Birmingham has consistently delivered strong economic growth and performance and is one of the strongest performing economies in UK, exceeding the average growth rate for UK.

2. Redevelopment and regeneration in the City that will rival London by 2026

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The next 8 years shows great promise for Birmingham, with 3 highly anticipated development projects

High Speed Railway Network (HS2)

A planned high-speed railway directly linking London, Birmingham, the East Midlands, Leeds and Manchester, is set to land in Birmingham in 2026. Project HS2, being Europe’s largest infrastructure project, worth £56 billion, is expected to see travel times between Birmingham and the Capital slashed to under one hour, increasing accessibility to jobs for city commuters and bringing with it a £1 billion regeneration project to the Eastside area of Birmingham where the station is planned.

Birmingham Smithfield Development

£500 million is invested in the redevelopment of Birmingham Smithfield, a 14-hectare site between the city’s Eastside district, Chinese quarter and the main city centre shopping area. The development plan will see the site completely transformed into a vibrant retail, leisure and residential destination, with more than 100,000 sqm of floorspace that will create 1,000 new homes, 3,000 new jobs and add £470 million GVA to the local economy.

Commonwealth Games 2022

In December 2017, the city was announced as the new host for the 2022 Commonwealth Games. The 2022 Commonwealth Games is set to shine a huge global spotlight on the city and generate an estimated £750 million boost to its economy.

3. An Education Hub

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Birmingham is the UK’s second largest student population with the Top 20 universities less than an hour’s drive away. The growing student population generates steady tenant demand for many of its investors. In 2017, there was a record-breaking 21,768 purpose built student accommodation for Birmingham students.

4. A growing population that drives rental demand for new homes

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The number of people living in Birmingham will grow by around 13.7%, or 150,000 people, by 2031, bringing with it increased demand for new homes, especially rental homes considering the younger workforce and growing expat population.

 

Many of the current generations also belong to the “Generation Rental” choosing to rent instead of saving up for a home. ~18% of the current population are in a rented accommodation and that figure is set to grow in the next decade. Therefore, the rental outlook for Birmingham remains strong with the city expected to see a 17% rental growth by 2021.

5. A city where home prices have risen faster than any other UK cities

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According to Savills, house prices in Birmingham have risen faster than other UK regions over the last year, with 8.6% annual growth. Average residential values in Birmingham have grown by 31% over the last five years, and Hometrack predicts that property prices will rise a further 20-30% over the next three or four years as the city continues to see vast improvements.

 

The Timber Yard, Birmingham City Centre

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This September, One Global Property Services will be bringing to Singapore The Timber Yard, a joint venture between Galliard Homes, one of UK’s largest privately-owned residential property developer, and Apsley House Capital.

Situated in Birmingham’s Southside district, the development will comprise a collection of 379 modern one, two and three-bedroom units less than a 10-minute walk away from Birmingham New Street railway station which provides direct access to London Euston station.

The site, bounded by Claybrook Street, Hurst Street and Skinner Lane, will also see the building of 10,000 sq ft of ground floor commercial units for retail and leisure use.

For those of you who wish to know more about the Birmingham Property Market and preview the launch of this one-of-a-kind development, One Global Property Services will be organizing a Cocktail Event this September showcasing The Timber Yard Birmingham for the first time in Singapore! Feel free to register for the event via the form below or visit their website for more information!

RSVP for The Timber Yard Birmingham's Cocktail Event in Singapore this September!!

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