Birmingham is one of the UK’s premier property markets. The country’s second city is home to approximately 1.2 million people and is a national and international economic hub. More people are moving to the city each year, and ongoing investment points to a bright future.
2022 was a phenomenal year for the city, exemplified by the hugely successful Commonwealth Games which brought international attention and prestige to Birmingham. Now, the city has a golden decade ahead of it and this is the perfect time to get involved.
The latest Big Six Residential Report from JLL underlines Birmingham’s success. Its economy has grown by 15% in the last decade and its population has increased by 6.7% in the same time period. Why have so many people moved to Birmingham in the last 10 years? A big reason is that employment is up 13.4% and income has grown by 24% in that time – both far above the national average.
These factors combined are putting a lot of pressure on Birmingham’s housing market and are responsible for the city having one of the highest annual housing targets in the city.
The Deloitte Birmingham Crane Survey 2023 shows that a record-breaking 2,398 new homes were delivered to market last year, and a further 43 schemes are underway at various stages of construction. These projects account for a total of 6,487 new residential units in the city over the next three years.
This sounds like a lot of property. However, it must be put in the proper context to be of use. Birmingham needs at least 4,000 new homes a year and the wider region is targeting 16500 annually – a total far higher than what is actually being delivered.
This reality of supply being nowhere near the amount required by overwhelming demand is reflected in house price and rental growth. The latest UK Cities House Price Index from Hometrack shows Birmingham year-on-year house price growth is 2.7%, making it one of the UK’s top three performers at the current time.
By looking more closely and returning to the JLL Big Six report, we can see that one-bed, two-bed and three-bed apartments in the city centre are responsible for most of that growth and represent the best prospect for any investors and homebuyers who are interested in capital appreciation.
However, house prices aren’t the only factor in play. Rental growth in Birmingham is extremely strong too with a 17.9% increase to the average rent over the last year. As with house prices, premium apartments like those at NBHD Heights are where the strongest rent rises can be found.
Designed by architects with vast experience in the city, Neighbourhood Heights is exactly what Birmingham needs and is set to be the ideal home for young professionals, families and first-time buyers. The mix of comfort, connectivity and stylish interior design combine to create homes that exceed expectations.
The local Fiveways area of Edgbaston is undergoing a housing-led regeneration as part of Birmingham’s wider Big City Plan, and the money pouring in is set to deliver housing alongside enhanced public spaces, pedestrian routes and community facilities.
Cabinet member for homes and neighbourhoods at Birmingham City Council, Cllr Sharon Thompson, said: “The regeneration proposal is a hugely ambitious project that will help us to transform and rejuvenate the neighbourhood.