Table of Contents
Property Listing in Birmingham
- Birmingham
Deposit
.
Yield
Property Price
.
The current landscape of Birmingham’s property market
Birmingham’s average house price
The average property price in Birmingham as of June 2024 stood at £232,000, marking a modest 0.3% increase over the previous year. While this growth may seem modest, it is indicative of a stable market, making Birmingham an attractive destination for property investors seeking long-term capital appreciation.The average prices in Birmingham reflect a balanced market, with property values rising steadily over recent years.
When looking at buying your first home in Birmingham, the average price might surprise you. It is holding steady, at around £204,000, which is the same as last year. That is actually pretty reasonable compared to some other cities. Especially if you are just getting your foot in the door as a new investor. It’s kind of comforting to know prices haven’t shot up, right? It feels like the market’s giving you a bit of breathing room.
Now, if you’re considering dipping your toes into the buy-to-let game, Birmingham could be a solid option. For folks taking out a mortgage to buy an investment property, the average price is around £239,000. That’s not too far off from what it was before, so it feels like a safe bet, especially if you’re looking for a predictable market. But if you’re one of those savvy investors who can buy in cash—good for you, by the way—you’re in for a bit of a deal. The average price for cash investors is slightly lower, at £214,000. That’s a decent chunk of change saved by avoiding mortgage costs. It’s one of those times where having cash on hand really works to your advantage, especially if you’re trying to maximise your investment.
Property Type Impact on House Price Variations in Birmingham
Here’s where things get interesting, though—house price in Birmingham vary quite a bit depending on the type of property you’re looking at. And that is kind of nice because it means there’s something for everyone depending on your budget or what kind of investment you are after.
Let’s start with detached houses. These are your big family homes, the ones with the space and maybe a garden or two. As of June’24, these are averaging around £435,000. It’s a higher price point, but if you’re looking for capital growth or something that’ll hold its value over time, it might be worth considering. Plus, if you’ve got a larger family, this could be your dream home territory.
Then you’ve got semi-detached houses, which are like the middle ground. These are hovering around £266,000. A lot of people love semis because they strike a good balance—they’re bigger than a terraced house, but not quite as pricey as detached ones. So, they’re in high demand, especially in neighborhoods that are family-friendly but not too far from the city center.
Terraced houses? Now we’re talking affordability. These are sitting at about £212,000, which makes them really attractive for first-time investors. They’re smaller, sure, but they’re perfect if you’re not after something huge or if you’re buying to rent out. A lot of these houses are in areas that have good rental demand, so it’s a solid option for buy-to-let investors as well.
And finally, we have flats and maisonettes. These are priced, at around £157,000, which is the lowest entry point into the Birmingham market. They are especially popular in the city centre. Here people want to live close to work or nightlife. If you are a first-time investor and don’t need a ton of space. Or if you are an investor, aiming for smaller units that will rent out quickly, these could be a good option for you.
So, even if you’re looking for your first home or thinking of getting into property investment, Birmingham has a lot to offer.
Have a look at this graph,
Yearly Trends in Birmingham House Prices
It is all about timing and figuring out when the market is on the rise or if there’s a little dip that might just work in your favour. Birmingham is one of those cities that has seen some real changes in the last decade. Not just in terms of property prices, but also in how the city itself has developed and attracted more people. The overall average price paid by investors in Birmingham offers a competitive entry point compared to other UK cities.
So, let’s rewind a bit to 2011. Back then, the average house price in Birmingham was around £133,496. Not bad, right? But just as you’d expect, the market wasn’t all smooth sailing. In 2012, prices actually dipped a little – by about 2.1%. Things were still a bit shaky following the 2008 financial crisis. But, if there’s one thing about Birmingham, it is that the city bounces back.
From 2013 onwards, house prices in Birmingham started to rise again, slowly but surely. It wasn’t anything crazy, but you’d see a rise of around 4-7% each year. These steady gains made a lot of sense because the city itself was growing. There was more demand for housing, and big infrastructure projects were kicking off, like the work on HS2 (the high-speed rail network) and other developments in and around the city centre.
By the time 2017 rolled around, things were really starting to pick up speed. House prices jumped by over 8%, with the average price hitting £167,885. It wasn’t just about the property market anymore; Birmingham had become a bit of a hotspot. More businesses were setting up shop there, and it seemed like the city was attracting professionals who might have previously headed to London. This was great news for the property market because it created even more demand, both from people looking to buy homes and those wanting to invest in buy-to-let properties.
Between 2017 and 2019, the growth continued at a pretty solid rate. A lot of expansion happened in the central location. With the improving transport links, the city became an attractive place for companies and people alike. If you’d invested in a property in Birmingham during those years, you probably would’ve seen a nice bit of capital appreciation.
Check out this table comparing average price and annual house price increased over the past years:
| Year | Average Price | Annual % Increase |
|---|---|---|
| 2015 | £144,496 | 4.48% |
| 2016 | £155,274 | 7.45% |
| 2017 | £167,885 | 8.12% |
| 2018 | £177,991 | 6.01% |
| 2019 | £188,356 | 5.82% |
| 2020 | £189,029 | 0.35% |
| 2021 | £199,771 | 5.68% |
| 2022 | £206,500 | 4.47% |
| 2023 | £210,000 | 1.69% |
| 2024 | £266,334 | 26.82% |
Initiate a powerful sequence of your property growth and reinvestment.
Initiate a powerful sequence of your property growth and reinvestment.
Unleash how successful investors build wealth, reduce financial stress, and achieve financial freedom.
Private Rental Prices Continue to Climb in Birmingham
Annual Trends in Birmingham Rental Prices
Let’s understand what is been happening lately. In July 2024, the average rent for a private property in Birmingham hit £1,003 per month. That is up by 11.4% from £901 in July 2023. For some context, the rest of the West Midlands saw a rise too. But it was not quite as sharp. Rents there went from £811 to £884, which is still significant but not on the same level as Birmingham. And across Great Britain, the average rent jumped from £1,178 to £1,279 in the same timeframe.
This is important to note for anyone thinking of investing in property in Birmingham. The numbers are going up quickly, and that is a sign of strong demand. Whether it is the people moving here for work, students needing accommodation, or just more people renting instead of buying, it’s clear that rental houses in Birmingham are hot right now.
You might be wondering, “Why Birmingham?” Well, it’s not just one thing. The city has a lot going for it- great transport links, a vibrant job market, and a growing reputation as a cultural and business hub. All of that draws people in, and when people come, they need places to live.
What This Means for Investors
If you’re thinking about property investment, Birmingham is ticking a lot of boxes. Buy-to-let investors are finding that the demand for rental homes, especially in key areas like Edgbaston or Moseley, isn’t slowing down anytime soon. And with rent prices rising like this, the potential return on investment (ROI) is looking pretty solid.
Of course, we’d never say property investment is without its risks. You’ve got to keep an eye on things like interest rates and maintenance costs, but Birmingham’s current market conditions make it one of the more promising areas in the UK right now. Especially when compared to London, where the barrier to entry is so much higher.
Birmingham’s Average Rent Compared with the Wider West Midlands
It is clear that Birmingham is seeing some significant growth. Flats and maisonettes have really shot up, with rents rising by 11.6%. This shows just how popular these types of properties have become. Likely because they’re often a more affordable option for young professionals and smaller households.
Detached houses in Birmingham are not far behind. Their rental prices going up by 11%. And if we are talking about one-bedroom homes, they’ve seen the biggest jump of all. Their rents increased by 11.9%. This points to a big demand for smaller, more budget-friendly homes. Especially as living costs continue to rise.
Even larger homes, like four-bedrooms, have seen a solid 10% rise in rent. This shows that even at the higher end, demand is steady, making Birmingham a hot spot for investors. Compared to the broader West Midlands, Birmingham really stands out as a place where rental yields are attractive across the board – whether you’re looking at smaller houses or bigger family homes.
Rental Price Changes by Property Size in Birmingham
Breaking down the data further according to the number of bedrooms, Birmingham’s rental prices still, show consistently high growth across all segments:
- One bedroom: £752
- Two bedrooms: £913
- Three bedrooms: £1,028
- Four or more bedrooms: £1,465
For property types, the average monthly rents in July 2024 were as follows:
- Flats and maisonettes: £836
- Terraced properties: £994
- Semi-detached properties: £1,049
- Detached properties: £1,336
First-time Investors in Birmingham
Among first time investors the popularity of purchasing homes in Birmingham remains stable. In June 2024, the average price for first time investors was £204,000. This is paradoxically not much different from June 2023.
Compared to the other regions, Birmingham still appears to be quite a reasonable place to go for the property ladder. Also, it is not only about the prices; the city has the scope of property appreciation as well so it suits the investors and the people who want to stay for several years as well. The properties sold prices in Birmingham vary by area and property type, making it accessible for a wide range of budgets.
First-Time Investors Prices in Birmingham vs the West Midlands
One thing to note is that Birmingham’s property market is a bit kinder to first-time investors compared to the rest of the West Midlands and Great Britain. While first-timers in Birmingham paid £204,000 on average, home-movers shelled out a bit more. It is around £265,000. That’s slightly lower than last year’s figure of £267,000. In the wider West Midlands, though, prices were higher at £289,000. And across Great Britain, the average was a heftier £333,000. So, Birmingham still offers a good deal compared to surrounding areas!
A Breakdown of House Prices Across Birmingham
Birmingham got a bit of everything, whether you are looking for something high-end or more budget-friendly. There are neighborhoods that cater to just about anyone. Each area has its own personality when it comes to house prices.
To help you figure out where to invest, we will break down the property prices in a few key areas of the city. Birmingham’s property values fluctuate significantly by postcode area, offering options for investors and homebuyers alike.
Harborne
Jewellery Quarter
What was once mainly an area of historic workshops is now one of the trendiest spots in Birmingham. Young professionals are flocking here, drawn in by the cool shops, buzzing restaurants, and sense of community. You can still find one-bedroom apartments starting at £150,000. While larger apartments can set you back up to £400,000.
Sutton Coldfield
Digbeth
Erdington
Erdington is a great place to start. Especially for first-time property investors. Property prices here hover around £160,000. This price is pretty reasonable compared to other parts of the city. With the proximity to Birmingham’s centre and steady rental demand, it is a solid choice for buy-to-let. Rental yields here tend to be reliable, so you can count on a steady return.
Perry Barr
Selly Oak
Eastside
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
Cash Needed
Rent per month
Limited Units
£185k
Is Investing in Birmingham City Centre Property a Wise Move?
Investing in Birmingham City Centre property has turned out to be a pretty solid decision. Just last year, the average property price hit £240,535 according to Rightmove. And it does not look like the upward trend is slowing down anytime soon. A big reason for this is that more people want to live or rent in the city than the number of homes available.
This supply-demand imbalance creates a sweet spot. Ultimately helps you in your property appreciation and get a decent rental yield. Being one of the UK’s most vibrant cities Birmingham offers great buy-to-let opportunities.
Also you cannot forget the HS2. This high-speed rail is only going to boost the city’s appeal further. So, if you’re thinking long-term, Birmingham’s property values are likely to keep climbing. The city’s already benefiting from a growing business sector. And once transport links improve, expect even more people wanting to live in the heart of the action.
Birmingham’s Economic Prospects
The economy of Birmingham has a gross value of more than £27 billion. The city incorporates leading businesses such as PwC, HSBC, Goldman Sachs, and others. The availability of over 206,000 jobs is no surprise. It is becoming a hotspot for professionals looking for high-paying roles. Also the job market only going to get better. For instance, projects like the Birmingham Central Framework 2040 are aiming to create 74,000 more jobs.
What does this mean for property investors? As Birmingham’s economy grows, we expect property prices to follow suit. House prices in the city remain reasonable when compared to other major cities in the UK. With a salary-to-house price ratio of 6.6, Birmingham offers a unique blend of affordability and potential for strong property appreciation.
Due to its expanding economy with exciting growth areas in finance, technology, and media, there is an increase in both the houses and rental prices. Certain areas, like Sutton Coldfield, are known as a more expensive place to buy property, appealing to buyers seeking premium homes.
Housing Supply and Demand in Birmingham
One of the biggest factors pushing Birmingham’s property prices up is the shortage of housing compared to demand. Right now, there are around 8,848 homes under construction. But that is not even close to what is needed. With over 7,000 new homes is required each year. This is just to keep up with the growing population. And for property investors, this shortfall spells opportunity.
Because supply is so tight, property hotspots in Birmingham, especially the city centre, are likely to keep delivering strong rental yields and capital appreciation. The city has a workforce of over 100,000 professionals, and over a million residents. This demand for rental properties always remains high. Semi-detached, terraced, and modern detached houses are particularly popular.
As Birmingham continues to attract talent from London and other big cities, rental demand is only set to increase. The property market here is competitive, especially in the city centre, and it looks like that’s going to stay the case for the foreseeable future. So, it’s a strong market if you’re looking for long-term growth.