Birmingham, Britain’s second-largest city, has a population of over 984,333 and has undergone a major transformation over the past several years. Once referred to as ‘the city of a thousand trades’, Birmingham has morphed into a place of entrepreneurialism.
While the cities growth in population isn’t running at the speed of some other major cities in the UK, ‘Brum’ still offers many of the same benefits; including high ROI due to an increase in house prices, demand for city centre living and strong rental yield returns. While Birmingham’s property prices are on the up, it is still a city known for its affordable housing.
In January 2020, the average price of a house in Birmingham was £168,600 in comparison to a UK average of £220,900 and £482,000 in London. Most of the demand comes from young professionals and students – many of which are now choosing to stay in their location of study following completion.
With an economy of £28.1 billion, it’s not only British people wanting a slice of this vibrant city, it is in fact one of the most popular cities in Europe to invest in. Europe has taken great interest in Birmingham over the years and, perhaps most importantly, the city demonstrated their global appeal by winning the bid to host the 2022 Commonwealth Games, thus creating a £778 million investment into the West-Midlands.
Undergoing mass regeneration, the city is reaping the benefits from both new builds and refurbishments. It’s currently attracting billions of pounds worth of investments into citywide retail, commercial and residential space and infrastructure projects. Some of the most exciting include the £10 million revamp of the cities largest public space, Centenary Square, the £30 million redevelopment of 55 Colmore Row, a Grade II listed Victorian terrace façade and the phenomenal £110 million transformation of Birmingham’s landmark House of Fraser building. Most of the upper floors in the iconic building will be converted to office space while the lower floor and basement will turn into bars and restaurants; the council are also considering plans for a rooftop terrace.
While new office spaces are a great addition for the area, the Midland Metro tram extension is one of the most important changes. With the tramline stretching from Wolverhampton to Birmingham, the second phase of this will extend the service into the new terminal at 54 Hagley Road via Brindley Place and Five Ways and expects to be finished by 2021.
The completion of this will improve the commute in and out of the city centre to nearby communities and by 2031, HS2 will have improved the commute to and from Birmingham across the country. In the next 10 years, the commute from Birmingham to London will be reduced to just 49 minutes. This will have fantastic repercussions on tourism throughout Birmingham and the West-Midlands allowing the city to show off its economic resilience.
The West-Midlands is also dipping its toes into pioneering technology. The region is the UK’s first large-scale 5G ‘test-bed’, paving the way for the roll out of the high-speed network across the country.
All in all, from high-speed phone networks to high-speed rail, Birmingham has more than ever to offer and is setting its place in stone as a key city within the UK, offering up the perfect Buy To Let opportunities.