There are many reasons why property buyers should be considering Birmingham as one of their next investment locations. Whilst foreigners are growing fond of Birmingham thanks to Cillian Murphy’s outstanding performance in the “Peaky Blinders” tv show, Britons know that it is the home of the Black Sabbath and Judas Priest as well as “the 2nd city of the UK.”
Birmingham’s home to the 2022 Commonwealth Games!
There are less than 100 days to the 2022 Commonwealth Games due to be held from July 28th to August 8th. The Commonwealth Games is one of the most important sports events of the year, whilst some media reports suggest that it will be the most expensive sports event since the 2012 London Olympic Games.
A survey conducted for the Commonwealth Games Federation (CGF) by leading professional services firm PricewaterhouseCoopers (PwC) suggested that “since Manchester 2002, hosting the event has boosted GDP in the host city/region by £0.8 billion – £1.2 billion. Amongst other significant benefits of hosting the Games, the report revealed that the event has led to increases in tourism of up to 25% in the three years after hosting, as well as Commonwealth trade deals and investments of up to £400 million into the host city.”
A report by the Financial Times noted that “the West Midlands Forum, a campaign group of public and private sector leaders, sees the 2022 games as a milestone in a multiyear economic revival. Last year’s City of Culture status now marked the start of a “golden decade”, it argued in a paper last month, including 2022’s games and HS2’s arrival towards the end of the period.”
Is Birmingham a property investment opportunity?
The answer to the question is yes. We can back the affirmative answer if we pay attention to what UK’s property specialists mention in their reports. Analysts at property consultancy JLL suggested that the average property prices in the city would rise by 4.9% per year, with rental values rising by 2.8%.
In their Residential Forecast 2022-2026 they note that “Birmingham is on track for a huge house price boom over the next five years, thanks in no small part to the Commonwealth Games which will result in the construction of 5,000 new homes by 2040 and a global spotlight on the city. Beyond 2022, the £750 million of investment set aside to ensure the legacy of the games will also add to Birmingham’s future appeal to would-be homebuyers who will see the results of continued investment.”
Why should you buy property in Birmingham?
There is little doubt that Birmingham and its surrounding area are already a property investment hotspot and a popular choice for people who’d like to diversify their real estate portfolios. The reasons that make Birmingham a trend among property investors are many; however, we will elaborate on three of them in this blog.
Birmingham becomes a business hub again
Birmingham used to be one of the major production hubs in the UK in the 20th century. However, in its last decades, an economic downturn led businesses close down. As a result, the unemployment rate grew more than in other areas of the country.
Now, it is time for the city to strike back. The FT report mentions that ” HSBC decided to move its UK retail banking arm back to its original home in Birmingham four years ago. That was followed by expansions into the city by Goldman Sachs, KPMG, Barclays, PwC and BT.”
Birmingham is expected to become the most prominent business hub in the area with international businesses already searching for commercial property in line with their needs. New job opportunities will make the city an attractive location for the professional of tomorrow. Strong economic growth will strengthen the demand for property, affecting the rental demand and rental growth.
HS2 will connect Birmingham with London in less than 1 hour
The HS2 project will change the way we see travelling by train forever. Despite scrapping the eastern legal of the initial London-Leeds route, HS2 remains a massive project intended to create high-speed rail links between the capital and major cities in the Midlands and North of England. The UK government expects HS2 to create a large number of workplaces and boost the country’s economy in regions that need an influx of funds.
According to a report published by the BBC, the London-Birmingham leg is expected to open between 2029 and 2033. If everything goes according to plan, passengers will be able to reach both cities in 50 minutes. The small duration of the trip is expected to make life easier for people who would like to live in Birmingham and work in London or vice versa.
Economists note that the Birmingham Curzon Street Station will be at the heart of the high-speed rail network in the West Midlands. It will be one of the most environmentally-friendly stations in the world it is forecast to create 30,000 jobs in the city.
Regeneration: A new start for the city
The Regeneration Project in Birmingham is one of the strongest stimulants for the local city economy. Analysts suggest that the Big City Plan could create up to 50,000 jobs and bring over £2bn of funds to the city, thus strengthening the local economic development.
The Midland Metro Expansion is an overhaul of the city’s transport city, aiming to triple the transport network’s size. New trams and new routes will transform the region, creating new jobs and helping people to use public transport services more often.
Expensive projects such as Smithfield, Arena Central and Paradise will change the city’s image forever. Property market analysts note that over 100 thousand students live in Birmingham. The city has one of the highest graduate retention rates in the UK (< 45%) which means that people who have studied there would be willing to invest in local property developments, driving prices up.
Ongoing regeneration projects in Birmingham will bring new people to the city with high qualifications and salaries above the UK national average.
Holborn and buying your home in Birmingham
At Holborn, we believe that buying property is one of the best ways to diversify and secure your investment portfolio. For more than 20 years, Holborn’s experts have browsed the UK’s housing market to find the best opportunity for property investors that could produce strong returns. We offer a huge pool of investment options to our clients who put their trust in us.
As average house prices in West Midlands are likely to rise in the next years, Holborn has partnered with some of the largest developers in the UK property market. You can view some of the newest developments in the city of Birmingham in our dedicated section on our Holborn Assets Property website. Projects such as Silversmiths are among the best you can find in the city centre. You can watch our property webinars on our YouTube channel or get in touch with us by filling in the contact form for more information.