With major draw cards like a superb educational system for children, a high quality of lifestyle, a booming local market and an increase in city-living post-pandemic, it’s no surprise that Birmingham is currently experiencing a surge in property interest with positive year-on-year growth.
According to a new study by Property Consultancy JLL, house prices in Birmingham are expected to rise more than any other city in the UK over the next five years. According to the report, the average predicted rate of growth in major UK cities in the next five years is 4.7% in both Manchester and London and 3.9% in Liverpool. Over that same period, the average value of a home in Birmingham is expected to rise by 4.9% per year, with rental values rising by 2.8%.
Essentially, this means that a £500,000 home bought today could be valued at £635,000 or higher in five years' time, making 2022 the ideal time to invest in some Birmingham property. On top of that, according to nationwide agency Rightmove, properties in Birmingham had an overall average price of £235,803 over the last year, a relatively low price tag compared to other parts of the country, meaning now would be the time to act fast.
Why the boom?
The expected price increases are in no short part due to the upcoming 2022 Commonwealth Games and the subsequent £750 million investment into the city. The move by HMRC (Her Majesty’s Revenue and Customs) to the city is also expected to bring 6,300 high earning jobs to the area, and financial giant Goldman Sachs is establishing a new office in Birmingham with a potential headcount of several hundred in the next few years.
Additionally, the long-awaited completion of HS2 (a high-speed railway service) will also ensure Birmingham is more accessible to London with a mere 50 minute commute, a huge plus in a post-covid era where many people are returning to London for work.
Which areas are worth exploring?
Some of the key areas that are prime for property investment include Edgbaston, a city central spot that offers green space, the Jewellery District, suburban villages like Harborne or Solihull, Erdington - an upcoming neighborhood, and Digbeth, which is proving popular among first-time buyers.
Properties in the surrounding areas of Alexander Stadium, a Commonwealth Games venue, are likely to see an increase in value as the area receives a revamp ahead of the Games. Upcoming developments include a ‘green loop’ being introduced to connect the Perry Perry Hall Park and the River Tame, while other local landmarks like St John’s Church Hall and Perry Barr Canal Yard are set to receive refurbishments.
As ever, consulting with a property professional will ensure you can capitalise on the timing and other benefits at play when it comes to investing in Birmingham property. Contact Tailor My Property today to speak to our network of professional brokers, specialists and agents and ensure you make a sound investment for years to come.