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What to expect from buy-to-let Birmingham

Discover everything the city has to offer and why investing in buy to let in Birmingham is the best choice.

There’s no denying that Birmingham is a great place to live, which makes it a perfect city for property investment. With over 400 schools and 15 universities within a 60-minute drive, Birmingham has a lot to offer.

With fantastic transport links to virtually anywhere in the UK, Birmingham has become a hotspot for businesses, students and of course, property investors.

Known as the UK’s second largest city after London, Birmingham has quickly become a popular buy to let and investment property location. Here’s what to expect from this wonderful city.

Buy to let Birmingham

With house prices falling by -0.9% in October 2022, the UK property market is in a great position for buy to let investors. As house prices and transaction numbers take a fall, rents continue to climb.

Put simply, the demand for rental properties is outweighing the supply across many towns and cities in the UK. As Birmingham experiences, economic growth across many sectors – including huge financial and professional companies – these budding professionals will quickly need accommodation.

The boom in Birmingham property investments

For new and seasoned property investors, buy to let Birmingham has become an excellent first step on the property investment ladder, as well as an addition to a growing portfolio. It has all the characteristics buy to let investors could ask for, including:

  • Its popularity with young professionals
  • A strong student community
  • Rich industrial heritage with long-term regeneration plans
  • Rapidly growing services industries
  • Major transport links
  • Its appeal to millions of tourists each year
  • An expected increase in rental yields, increasing rent value change by 2.5%.

Before considering property investment in Birmingham, there are a number of factors to consider in order to maximise your investment.

For starters, we take a look at finding a promising area in which to purchase your investment property.

Finding the right area for buy to let Birmingham

Seeking a rental property in a promising area doesn’t mean the most expensive, nor does it mean the cheapest. Before committing to an investment property, it’s important to understand the location and local economy, including the type of people looking to live there.

Here are a few tips for finding a promising location for your property investment in Birmingham:

Consider its transport links

If you’re targeting a property investment fit for young professionals, transport links will be a must for maximising your rental income. Remember, not all young professionals want to live in Birmingham’s city centre, but they do want access to transport links in and around the city.

Think about local schools

Many property investors look for property investments that they know will make a great buy to let property for the long term. One key target for this type of property investment is young families. If the average property price and potential rental yields match, if the property is within close proximity to local schools, young families can make for excellent long-term tenants.

Consider the type of investment property

It’s important to consider the type of buy to let property you’d like to invest in. Once you have a greater understanding of who you could see renting your buy to let property, it becomes far easier to understand the locations for potential property investment.

Birmingham city centre apartments

Birmingham city centre thrives with world-class theatre, entertainment, culture and delicious dining. Living in Birmingham city centre puts individuals in the middle of a vibrant, growing multicultural community, making it popular with young professionals who enjoy a fast-paced lifestyle.

While the property prices may be high, living in Birmingham city centre is in extreme demand, resulting in higher rental yields across the city.

Student property investment opportunities

Birmingham is a booming city, especially when it comes to students. This also means there are plenty of opportunities for investing in student accommodation. Of course, there are a number of benefits to a student property investment, such as:

  • Student accommodation is often cheaper to buy due to smaller sized properties
  • With a steady demand for student accommodation, there’s a lower risk of your investment property remaining unoccupied

But there are also some things to consider, including:

  • If you purchase multiple properties, you will require a HMO (House of Multiple Occupancy) licence, which generally lasts for five years
  • There can be a lot of competition for property investment of this type since Birmingham is so popular with students
  • While there is a steady stream of students needing accommodation, you could have changing tenants every 12 months

Buy to let Birmingham overview

Birmingham is a thriving and incredibly exciting city to invest in a buy to let property.

With so many property investment opportunities, the current property market means there is no better time to add a Birmingham buy to let property into your portfolio.

To get started, why not take a look at our current Birmingham investment opportunity, JQ Rise, or get in touch with us today to find out more about property investment in Birmingham?