Birmingham is home to a large population of residents and students that is growing rapidly. Over one million people live in the city, with projections from Birmingham City Council showing that this number could increase by as much as 7.8% in the next 15 years. Often referred to as the UK’s second city, it has turned itself into one of the country’s economic superpowers, being host to a number of multinational businesses and innovative start-ups.
Estimated population growth in the next 15 years
Large number of students make up the population of Birmingham
Estimated property price increase in the City by 2026, more than any other UK City (JLL)
Estimated number of new homes needed by 2031 to satisfy the growing population (Birmingham City Council)
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With a population of more than one million people and thousands of multinational businesses and innovative start-ups, Birmingham has recovered strongly from the pandemic and is attracting international attention following its role as host of the 2022 Commonwealth Games.
Nowhere near enough homes are being built in Birmingham to meet this current demand, and there is no sign that this will change in the future. The Deloitte Birmingham Crane Survey 2022 shows that fewer than 5,000 new units are currently under construction in Birmingham for the next five years. In 2021, the number of new units delivered to market fell by 26% – further compounding the issue.
The city needs at least 4,000 new units per year at the current rate of population growth. Every year that the city falls behind, demand rises and house prices and rents follow suit. For this reason, JLL believes that Birmingham will see more house price growth in the next five years than any other major UK city at 27%. The agency also projects rental growth of 14.8% in the same time period driven by the same lack of supply.
Furthermore, with the upcoming HS2 train network passing through Birmingham along with these estimated increases in property rental and prices, Birmingham is the ideal place to invest in property in the UK.
Life in Birmingham
Birmingham is a modern cosmopolitan city with a thriving local culture and all the amenities you would expect from a major metropolis. It has on of the highest graduate retention rates in the country, with 51.5% of students loving Birmingham so much they opt to remain in the city after finishing their studies!
The Commonwealth Games attracted headlines for Birmingham this year, and it also promises to bring thousands of permanent jobs and a potential £1.2bn uplift in the long term as part of its legacy. This is a major benefit for the city and fits perfectly alongside other investments and regeneration projects, which are creating jobs and growing the local economy.
Projects like the Big City Plan, the Smithfield Masterplan and more are underway and promise to benefit Birmingham in the long term. These are multi-year plans with serious funding which will create jobs and the conditions for further business growth over the coming decades. They will make Birmingham more attractive for businesses and workers who want to enjoy all the benefits of high quality jobs along with the dynamic, thriving lifestyle that Birmingham offers.
In addition, the HS2 high speed rail line plans to totally transform Birmingham by dramatically cutting the time it takes to get to London and Manchester by train. This will be a huge economic boost for the city and will spotlight Birmingham as a major economic destination.
All future economic growth comes on top of a strong foundation. Irwin Mitchell’s UK Powerhouse Report shows that Birmingham has already delivered 6.9% economic growth in 2021 as it recovered from the pandemic – making it a city on the up and one of the most promising places in the UK. Furthermore, 2.3% economic growth a year is projected going forward, making Birmingham an ideal place to buy for both homeowners and investors.
The size of Birmingham’s economy (Birminghan City Council)
Economic growth in 2021 (Irwin Mitchell and CEBR)
Birmingham is one of the UK’s most renowned higher education centres as it attracts more than 80,000 students each year from all over the world. The quality of its teaching, research and graduate outcomes is extremely high and makes the city in-demand across a huge range of educational sectors.
It is home to eight universities, the most famous of which is the University of Birmingham which is one of the finest institutions in the UK. It was named the 19th best university in the country by the Complete University Guide league table and 18 of its departments are in the top 10 for their individual disciplines.
This impressive education sector and the tens of thousands of students who come to the city because of it contribute to the health of Birmingham’s economy and housing market. High levels of educational prosperity increase demand and competition for the best homes.
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