Birmingham is forecasted to have a population rise of 171,000 people, now a little over £1.1m according to the World Population Review – Birmingham. This would make the total population of the city a total of 1.3 million by 2039. Meaning nearly 100,000 extra houses are required over the next two decades. This shows how Birmingham’s population boom is outpacing residential construction. In order to meet this demand, residential development rates need to more than double. Between 2011 and 2016 around 8,000 homes were built in Birmingham. However nearly 20,000 were required, a worrying build rate. . .
There is a huge demand for rental properties in Birmingham due to the ever increasing popularity of city-centre living. Birmingham’s population boom is outpacing residential construction. Major infrastructure development and investment is growing Birmingham’s appeal as a place to live, which in turn is creating high tenancy demand. In fact, the city’s population is increasing three times faster than properties are being built.
Major Job Creation
Perhaps the most significant cause of this population boom is the huge job creation happening in Birmingham and the wider West Midlands area. Major organisations are also now moving to Birmingham, such as HSBC, HMRC and Deutsche Bank. In addition to the arrival of the big brands, so continue huge development projects like HS2, combining to generate a large numbers of jobs for the city. For HSBC alone that means a minimum of 1000 H.O skilled jobs. The HS2 represents well over 15,000 jobs in 2 years, potentially double that during the course of the project.
Birmingham has the third-highest jobs growth rate in the UK at 30% . In 2017, created in the West Midlands were 148,000 new jobs. More people are moving to Birmingham to take advantage of the career opportunities. Businesses are also taking advantage of this strong talent pool and commercial atmosphere. This is also helping entrepreneurs thrive in the city. The number of new businesses in Birmingham growing by 13.5%. This is significant, as it is three times the UK average.
Leaving the Capital
Birmingham has been the most popular city for people moving out of London over the last two years. Beating Manchester, Bristol and Leeds. High rental prices are encouraging many people to leave London in search of the same good work and lifestyle opportunities but with a much better quality of life. With its great job prospects and vibrant culture, Birmingham is a great choice for many young professionals. As well as families leaving the capital. HS2 is also giving people the chance to live in Birmingham and still enjoy the benefits of working in London.
Thanks to its numerous prestigious high education facilities there are also many students moving to and living in Birmingham. This has created a great buy-to-let student accommodation market. Furthermore, it is one that can offer investors stable rental periods of up to three years. Creating a great property investment opportunity in Birmingham. To find out more about how you can help fulfil the demand for such students check out our Birmingham investments space.