INVEST IN Birmingham
Why Birmingham
The UK’s official second city and the heart land of multi culture, jewellery, Jaguars and logistic centre of England.
Over the last few decades due to Birmingham’s and the wider midlands area has become a strong hold for logistics companies from haulage through to ecommerce.
Get closer to the modern city infrastructure Birmingham the second largest metropolitan city outside of London now has 1.1 million people who are demanding increasing residential, office, leisure and retail space.
Boasting the first two stops of the HS2 line, a marvel of engineering, and the largest government spend in UK history, the opportunity for huge growth has seen most major investors and developers get a property presence in the city – away from London investments.
The city is expected to make the most property millionaires of any other UK city, due to huge growth, major companies re-locating from London, a tram system which is joining all the districts, Commonwealth games is 2022 advertising to foreign investors, and of course the excitement of a HS2 line taking you from Birmingham to London in under 40 minutes.
Invest in Birmingham
Why Invest now
Birmingham’s growth has been tantalising for investors over the last 10 years, and is expected to have another 10 years of tremendous growth.
While apartment prices have already risen 23% in the central postcode locations (18% all postcodes), with 2019 alone seeing 5% growth in the ‘2nd city’ we are expecting to see a further 25% over the next five years, with that figure increasing with an early HS2 completion.
Forgetting HS2 for a minute (as hard as that can be) looking at the new tram system being implemented and currently in construction, some investors are too slow to recognise the importance of this for profit.
Numbers by Lloyds (and verified by Baron & Cabot) show that properties grow in value by between 10% and 30% when a tram station is built near by, or up to 3 x the ‘normal’ growth for the area. The number becomes higher the further away from core city centre the tram station is.
The beauty of this growth is property is still very affordable for Birmingham with average properties around the same price as Leeds, and around six times the average salary. As salaries are growing again in the UK this should deliver 10 years of continued growth before price per property may hit the 8-9 times average salary.
Invest in Birmingham
Conclusion
Taking stock in Birmingham seems to be a no brainer for any investor who can afford the cost of the initial investment. While 1 beds outside of the city can be purchased for around £130,000 for a new build, core central we are looking at £170,000 upwards for the better quality.
While prices are growing, affordability is still there and we could sustain a further 50% property growth, with no salary increase before affordability was challenged.
In 10 years time, when there is a new tram line and HS2 line we will have wished we had invested more into the city.
Key Merits
- Average salary to average property price 6.1
- 25% rise in property values predicted over the next 4 years
- Average rental yields between 4% and 7%
- Massive under supply of property
- Strongest economy outside of London
