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Why Birmingham Should be Your New Buy To Let Location

June 14, 2024

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Key Highlights

UK

Birmingham – lovingly referred to as the UK’s “second city” – should be on any investor’s next buy-to-let list. Here’s why.

Across the whole of the UK, billions are being invested in the top cities to entice more growth and people. One such city is Birmingham. This unassuming midlands city is the second largest in the UK and attracts millions in capital from domestic and foreign investors. In tandem, thousands are moving to the city en masse each year to either begin higher education, find work, or start families.

Birmingham pulls plenty of people to its streets each year, and it’s all down to its growing economy, central location, and constant regeneration projects that are revitalising the city. This, along with a modern lifestyle and culture and plenty of educational and work pursuits on offer, has made Birmingham a top destination for investors seeking high returns and capital appreciation.

 

Why Birmingham Should Be Your Next Buy-To-Let Destination

 

Economic Growth

Referred to as the UK’s “second city”, Birmingham attracts thousands of investors and sees billions being pumped into its economy each year. The city’s GDP is a healthy £28 billion annually.

The city has the largest city economy outside of London, with an impressive economic output that totalled £31.9 billion in 2021. In the year, it was the 7th best in the UK for

economic growth in real terms at 7.4%, which was only slightly below the core city average of 8.2% and the UK average of 8.1%.

Irwin Mitchell’s UK Powerhouse Report – using data from the Centre for Economics and Business Research (CEBR) – highlights the strength of Birmingham’s growing economy. In addition to 6.9% of GVA economic growth in 2021, Birmingham is expected to remain in the UK’s top 10 cities for growth in the future.

It has a growing job market which is attracting scores of skilled workers from across the UK and beyond to come to work there. Key industries based in Birmingham include finance, manufacturing, digital technologies, and professional services. Major firms such as HSBC, Deutsche Bank, and PwC all have offices in the city. Alongside this, it also has a burgeoning tech scene to rival that of Manchester, with plenty of established companies and startups.

 

Strategic Location

Birmingham has a strategic location within the UK, being based at the very centre. This location has made it an ideal base for businesses and those who choose to live there, with strong connections to London, Manchester, Liverpool, and beyond. It is only just over an hour from London by train and an hour and a half from Bristol by train.

Manchester is also a similar distance away by both train and car. The time it takes to get to London will be significantly reduced with the introduction of the HS2 line, further strengthening the link between the capital and Birmingham.

The city’s airport, Birmingham International, flies to over 150 destinations worldwide, making Birmingham a truly international destination. The city is further connected to the rest of the UK via roadways, including the M6, M5, and M42 motorways. These international and national connections have made Birmginahm a strong choice for companies looking to set up additional branches or relocate.

 

Regeneration Projects

Birmingham is enjoying an extensive regeneration project, with billions of pounds being invested in a range of endeavours across the city – both residential and commercial. This commitment to revitalising and breathing new life into the city is apparent, with the HS2 line and the regeneration of Birmingham New Street Station, which has already boosted travel and connection for the city.

Birmingham City Council has not stopped there, with hundreds of projects either in the planning or execution stage happening around the city centre and beyond. There is a 20-year-long masterplan to change the face of Birmingham, making it a truly modern city. This plan has already created thousands of jobs and is expected to create 50,000 new jobs overall. The plans include 1.5 million sqm of commercial space, 65,000 sqm of public spaces, and 28km of new walking and cycling routes. Despite the focus on modernity, the plan is to preserve the city’s history as well. New residential developments are happening all across the city, offering high-quality living for tenants and lucrative investments for investors.

 

Birmingham Cultural Scene

The city has a dynamic and changing cultural scene, with a strong international population that diversifies the area. Its inclusivity, vibrancy, and cultural richness have made the city a fantastic place to study, work, and play. It has plenty of cultural festivals, culinary experiences, and art events taking place across the city every single week.

Birmingham has a thriving arts scene, championed by institutions such as the Birmingham Museum and Art Gallery, the Symphony Hall, and the Birmingham Repertory Theatre. Alongside this, it has plenty of music spaces, LGBTQ venues, shopping centres, and dining and drink options, ensuring that there is something for everyone. It is this rich nightlife that also pulls visitors to the city on evenings and weekends. For those looking to relax and unwind, the city is also not short on green spaces and parks, which offer recreational and sporty opportunities. Notable green spaces include Cannon Hill and Sutton Park.

 

Education

The city is known for its education, with thousands of students coming to Birmingham each year. It is home to international, high-ranking universities, including the University of Birmingham, Aston University, and Birmingham City University. These established academic institutions attract a lot of students – both national and international – who all need a place to stay.

As such, the rental market for students in the city is particularly strong. A large proportion of these students who come tend to stay in the city post-graduation, with the city boasting a fantastic 41% graduate retention rate, as thousands choose to remain in the city for work. This enhances the working professional renter demographic, which is also attractive to investors.

 

Summary

North Property Group is a property investment agency and end-to-end lettings agency which focuses on UK off plan and buy to let properties across the UK. We find the best developments in Birmingham, London, and beyond, and more with first-class property development agencies to hand-deliver premium deals to investors.

Client-focused and data-driven, we’re passionate about what we do and we like to let the results do the talking. Not only can we source the best off-market deals, but we also offer an end-to-end lettings management service, helping you manage your property’s lifecycle. Book a free consultation with us today to start your Birmingham and UK buy to let investment journey and tap into the UK’s premium off plan property opportunities.

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The Bailey

From £249,950

Yield: 13.5%
   In Construction
   Est. Q4 2024
   Lease Length: 250 Years

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