Birmingham is the New London for Property Investors
Em Morley - January 28, 2019
Birmingham is the new London for keen property investors, according to Surrenden Invest, which has been advocating the qualities of the Birmingham housing market for years.
Now, with London house prices falling for the last two years, increasing numbers of property investors are looking to Birmingham for their next investment.
The leading property investment company has assessed the latest data from Nationwide, which found that house prices in London fell by an average of 0.8% in the year to December 2018, following a 0.5% drop in 2017.
By contrast, Nationwide’s figures show a 2.9% increase in the average property value in the West Midlands over the year.
However, it isn’t just London’s declining house prices that make Surrenden Invest such an advocate of Birmingham; the team was shouting all things Brum from the rooftops long before the capital’s property market began to wobble.
Jonathan Stephens, the Managing Director of the firm, says: “This simple fact is: Birmingham is an amazing city that has an awful lot going for it. Its business community is thriving, and there’s a palpable energy when it comes to startups and entrepreneurs in the city.
“Birmingham’s residents demand the very best, whether that’s cultural attractions, retail outlets or the restaurant scene – and that’s precisely what the city delivers. This is a modern metropolis that is drawing in new residents by the tens of thousands, and for very good reasons.”
According to the latest Office for National Statistics population growth predictions, Birmingham’s population is expected to increase by around 166,000 people between 2018-41 – a rise of 14.5%. This is another factor driving the new wave of property investor interest in England’s so-called second city.
The rental yields on offer in Birmingham are another reason that attention is moving away from London, Surrenden Invest points out.
Then there’s the overall impact of regeneration work on the city. Grand Central’s opening in 2015 marked a step change in the way that many people thought about Birmingham.
Now, the £500m Birmingham Smithfield master plan is taking regeneration to the next level. The Head of City Centre Development and Planning, Richard Cowell, has hailed it “an example to international cities”, with residents set to benefit not just from a new market area, but also from a museum, hotel, culture centres, leisure facilities and a 24-hour gourmet food hangout.
Stephens believes: “This is the new face of Birmingham – and it’s leaving London looking old and tired. When it comes to UK property investment, Birmingham is the place to be.”
Will you be looking to Birmingham for your next property investment?