Over 7,000 Londoners left for England’s second city last year, making it the most popular destination for Londoners outside the capital, in the UK; and new figures point to this as becoming an ongoing trend. With the huge influx of residents there is an obvious appeal to investors and landlords alike, as demand for property follows suite. Here are some of the top reasons why clients are investing in Birmingham:
1. Birmingham Property Value to Rise to £500 Per Square Foot
The level of current and projected growth within the residential market in the UK’s second city is massively encouraging. Before the end of next year, it is predicted that new luxury city centre residential schemes will reach as high as £500 psf. Currently the price of new builds sits around the £400psf level depending on exact positioning; so clearly a very lucrative opportunity for capital growth over the next few years.
2. Huge Rise in Demand for Rental Options
Following in suite with the above, the predictions for the rental market and the levels of growth in return are just as strong. As mentioned at the outset the number of people living in Birmingham is set to rise to 1.3 million by 2039, which is equivalent to an increase of nearly 100,000 households. Optimism in this sector is further boosted by the stat that 40% of Birmingham’s population under 25 years old; the majority of which are expected to be looking for premium/new apartments to rent. Evidently the prospects for rental growth are high, particularly for new builds!
3. HS2: One of Europe’s Most Exciting Transport Projects
HS2 remains one of the top catalysts of the growth in investment. The first railroad to be built north of London in over 120 years and will form a new link to the North; providing commuters connection times from London to Birmingham of just 49 minutes! With the average Londoner’s inter-city commute coming in at a staggering 74 minutes, this new option to be favoured by many; encouraging even more to take advantage of the better average house price levels in Birmingham.
4. You’re in Great Company
The city is already a hotbed for investment with huge companies relocating here such as HSBC, Deutsche Bank and PwC. The new influx of business will make this the largest professional hub outside of London, with an economy of £24.8 billion, once again the largest outside of London.
The city has also been named hosts of the 2022 Commonwealth Games putting it the spotlight nationally and globally.
One of the most exciting current projects is the £700m Paradise Development, adjacent to the city centre and is already well underway. This will introduce close to 2 million sq ft of new office, retail and leisure space alongside a brand new hotel.
One final project to highlight, is the £500m regeneration of the Birmingham Smithfield market, which will be another central focal point with over 100,000sq.ft of retail and leisure spaces and featuring new luxury property developments; all in all set to create over 3,000 new jobs and adding close to £500m to the city’s economy.
Conclusion:
The UK’s second city ranks as one of the most popular in Europe in which to invest. It’s the No.1 regional city for start up’s in the UK. Birmingham has a 7.5% house price growth compared to London’s 1.8% and 19.8% economic growth rate in the last five years.
Take a look at just one of the many investment opportunities from Ernest Brooks:
Westminster Works, Digbeth
Prices start from £159,600
220 apartment, split over 7 storeys, around central courtyard with concierge and access to roof gardens. Located close to the proposed high-speed rail network linking Birmingham and London, HS2, Westminster Works is an ideal base for commuters to the north and south. Within the Southern Gateway £1 billion regeneration zone Westminster Works offers city living within a vibrant new neighbourhood. Ideal investment opportunity, offering investors up to a 7.5% gross yield.
Development features include:
• Concierge Service
• Parcel and food delivery facility
• Online Tenant Portal
• Access to roof gardens
• Car Parking & cycle storage
• 24/7 security
Ernest Brooks has a selection of new luxury and well-priced new homes available, get in touch for latest market updates, predictions and to discuss your next property investment.
For further information on lucrative investment options contact Mark Ross of Ernest Brooks on 02037431436 or [email protected].