The best buy-to-let destinations tend to be places with a decent student population and this is one area where Birmingham absolutely comes into its own, being home to no fewer than five universities (Aston University, University of Birmingham, Birmingham City University, University College Birmingham and Newman University), in addition to which the University of Law and BPP University both have a major presence in the city and it is the regional base of the Open University.
This means that there is always high demand for student rental accommodation, creating lucrative opportunities for investment in student buy-to-let in Birmingham. There is also a substantial population of young adult professional renters, who have chosen to start their careers in Birmingham, often thanks to the fact that Birmingham can now compete with London in terms of career-development opportunities and is well ahead of London in terms of providing an attractive lifestyle at a reasonable price.
It also has to be acknowledged that Birmingham’s many advantages have long since been recognised by property investors so it is definitely not the most affordable destination in the Midlands, but the price of Birmingham buy-to-let property is still much more attractive than in the south of England and so property investors can make good yields while keeping rents competitive when viewed against local wages. Buy-to-let property in Birmingham also has the potential for good capital growth as there is always a constant demand for high quality rental accommodation in the city centre.
Investors in buy-to-let property in Birmingham can expect yields in the region of 6% to 11%. Those wishing to target the student market should probably make the B4 postcode area their first (and possibly only) port of call.
This is a major student area and is especially popular with students at Aston University and Birmingham City University as their buildings are very close by. Even though B4 is prime Birmingham buy-to-let territory, prices are more affordable than you might expect and the right property could bring in a yield of as much as 11%.
If, however, you are looking to target young professionals then you might want to look at B5, specifically Digbeth, which is slightly outside the official city centre and therefore benefits from noticeably lower property prices (although they are increasing due to the popularity of the area) even though it has a thriving local economy and excellent transport links.
Another good option for buy-to-let in Birmingham would be B17, specifically Harborne. As you might have guessed from the postcode, this is actually a suburb of Birmingham and therefore attracts people who prefer to live in a quieter environment while still having easy access to everything Birmingham itself offers. While this might suggest families (and indeed the area is very popular with this demographic), the relative tranquillity of B17 is also much appreciated by young professionals.
Published: 26 September 2018Introducing our latest residential development located just 20 minutes from Birmingham City Centre in Cradley Heath, Priest House.
Published: 14 August 2018One BHM is our latest residential development perfectly situated in the sought after B1 area in Birmingham. One BHM will bring 165 one, two and three-bedroom apartments to the market, each designed with a bespoke and distinctive finish.
Published: 3 August 2018Birmingham is the second largest city in the UK with the population expecting to grow by 13.7% by 2031, which will lead to the demand for new homes in the city centre to increase.
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