House Prices Birmingham 2024 – Trends, Factors, and Future Predictions

Birmingham’s housing market enters 2024 continuing its trajectory as a dynamic sector within the UK’s property landscape. 

As the country’s second-largest city, it has established itself as a hub for significant investment and development, appealing to a diverse range of buyers and investors. 

This analysis will dissect the factors driving Birmingham’s property prices, from the city’s economic pulse to its burgeoning infrastructure. 

We’ll also compare local prices to the national average, revealing why Birmingham stands out in the current real estate climate. Moreover, we’ll look into the future, drawing on expert forecasts and economic indicators to predict the market’s direction.

Potential buyers can leverage this insight to make informed decisions, sellers can gauge the optimal timing for listing their properties, and investors can discern the long-term value of entering or expanding their presence in Birmingham’s real estate market. 

The subsequent sections will provide a deep dive into the current state of Birmingham’s housing market, the factors influencing property prices, and the future outlook, arming you with essential knowledge to make calculated moves in this vibrant market.

The Current State of House Prices in Birmingham

House prices in Birmingham have experienced strong growth over the last five years. Since June 2021, Birmingham house prices have grown by 5% on average, and prices are currently more than 10% higher than before the pandemic.

One of the major factors driving Birmingham’s growth and popularity among property investors is a shortfall in housing stock compared to demand. In 2022, 39% fewer homes were available to rent compared to the same time a year ago.

As of early 2023, Birmingham, the UK’s second-largest city, has shown a robust and dynamic housing market. The average house price in Birmingham has indicated the city’s appeal and growing economic landscape. 

According to data from the Land Registry, the average house price in Birmingham was approximately £210,000. This figure marks a continued upward trend reflective of the city’s development, increased demand, and the broader appeal of Birmingham’s diverse neighborhoods, from the bustling city center to the more tranquil suburban areas.

Comparatively, the national average house price in the UK was around £270,000 during the same period. This comparison highlights Birmingham as a more affordable option than many other parts of the UK, particularly when contrasted with the South East and London, where average prices were significantly higher. 

Birmingham’s affordability, economic opportunities, and quality of life have made it an attractive destination for first-time buyers and investors.

Analysis of Recent Trends in the Market

The Birmingham housing market has shown resilience and growth over recent years, influenced by several key factors:

• Growth: Birmingham has experienced a steady increase in house prices, driven by factors such as infrastructural developments, including the HS2 high-speed railway project, which is anticipated to enhance connectivity to London and the North, potentially boosting property values further.
• Demand and Supply Dynamics: The city’s housing market has been characterized by high demand and relatively limited supply, especially in popular areas. This imbalance has contributed to competitive market conditions, with some properties selling above the asking price.
• Market Stability: Despite the challenges posed by economic uncertainties, including those related to Brexit and the COVID-19 pandemic, Birmingham’s housing market has remained relatively stable. Government initiatives, such as the stamp duty holiday and Help to Buy schemes, have supported market activity.

Looking ahead, Birmingham’s house prices are expected to continue their upward trajectory, albeit at a potentially more moderate pace. 

In 2022, houses in Birmingham experienced a price boom. The Commonwealth Games held in July and August 2022, put a global focus on the city, bringing new jobs and seeing the construction of 5,000 new homes.

£750 million in investment has been put aside to ensure the legacy of the Commonwealth Games in the coming years. Birmingham house prices are set to be positively impacted by this international multi-sport event and the ongoing investments as part of the funding will only further increase Birmingham’s appeal amongst prospective homebuyers.

Rents on the Rise

Just as house prices Birmingham have made the city an attractive destination for investors, the city has an appealing rental market, too. In the second half of 2022, Birmingham house rent prices on new, one-bed flats in the city were £900 per calendar month and £1,200 per calendar month for two-bed flats, representing 16% and 20% rental growth, respectively (compared with prices at the end of 2021).

Birmingham House Prices Forecast Beyond 2024

In the landscape of the UK’s housing market, Birmingham stands out as a prime investment destination, having secured the most investment outside of London in 2024, with £380 million channeled into the construction of 1,478 new homes.

The city currently has the largest build-to-rent market at 16,300 homes and also has the largest development pipeline, at 13,200 homes. 

The Birmingham property prices forecast is set to be one of the strongest markets in terms of house price growth, with 19.2% growth predicted between 2023 – 2027. Average house prices in Birmingham could see investors earning strong capital gains.

This rate of growth is on par with Manchester, outstripping all other UK cities. For those seeking real estate investments with robust potential for both immediate and sustained value appreciation, Birmingham stands as a compelling option.

Rising Rents Beyond 2024

Birmingham City Centre property market has seen a shortfall in rental properties. 

With the UK’s record-breaking house prices, many landlords sold their properties to maximize the capital gains on offer. As more landlords cashed in on high property prices, the amount of rental stock available decreased significantly, pushing up rents.

In 2022, Birmingham recorded the second-highest annual rental growth at 18% with Manchester ranking top at 22%. 

As of 2024, rental prices in Birmingham are on an upward trajectory, a trend that echoes the city’s rising property values. 

Currently, the average rent in Birmingham stands at £1,520, with rental yields having escalated to an impressive 5.17%, as reported by Home.co.uk.

This uptick is largely attributed to Birmingham’s burgeoning population, now at 1,160,000, and a projected increase to 1,240,000 by 2030, coupled with a shortage of rental units. 

With 43% of its residents aged between 20 and 35, and this segment accounting for 60% of the rental market, the city’s demographic profile underscores a robust demand for rental properties, particularly attractive to the buy-to-let sector.

According to JLL, rents in the UK’s second city could see rents grow by 19.3% between 2023 – 2027.

Birmingham Housing Prices by Area

Edgbaston

Renowned for its serene environment and affluent vibe, Edgbaston is home to some of Birmingham’s priciest properties.

Historically, it has attracted significant investment, and properties here often command higher prices due to the desirability of the location, characterized by its leafy avenues, large Victorian homes, and proximity to amenities such as good schools, parks, and sports facilities, including the renowned Edgbaston Cricket Ground.

Average house prices in this leafy suburb could range from £300,000 for a modest apartment to well over £1 million for detached homes with ample gardens.

If you’re considering investment or purchase in the area, it’s worth noting that Edgbaston has been on an upward trend, consistent with the general growth in Birmingham’s property market. Buyers and investors often consider properties in Edgbaston as long-term investments due to the area’s enduring appeal. 

Harborne

Combining urban convenience with suburban charm, Harborne offers a blend of housing options for diverse budgets. 

Harborne is known as a very desirable area within Birmingham due to its vibrant high street, excellent schools, and close proximity to the city center along with access to green spaces. This makes it popular among professionals and families alike.

Historically, the housing stock in Harborne has been quite diverse, ranging from Victorian and Edwardian terraces to larger detached homes. Prices have tended to reflect this diversity, with more affordable options for terraced and semi-detached houses, while larger detached properties in prime locations command higher prices.

The average property prices here vary, with terraced houses averaging around £250,000, while larger family homes may cost upwards of £500,000.

Jewellery Quarter

This area has been undergoing a renaissance, transforming from a historic industrial landscape into a trendy urban living space.

It’s a place where the old meets the new, hosting over 200 listed buildings alongside modern developments. This area is particularly celebrated for its independent businesses, including bars, restaurants, and coffee shops, making it a lively spot that’s just a stone’s throw away from the city center.

For those interested in living or investing in the Jewellery Quarter, the area’s appeal lies in its unique blend of historical charm and modern convenience. With a strong sense of community and a plethora of dining, shopping, and cultural options, it offers an attractive lifestyle choice for many​.

Average prices in the Jewellery Quarter reflect its popularity among young professionals, with one-bedroom flats starting at £150,000 and multi-bedroom apartments reaching £400,000.

Sutton Coldfield

Recognized for its prestigious properties and expansive green parks, Sutton Coldfield maintains a high demand in the housing market.

The housing market in Sutton Coldfield has shown a mix of dynamics over the recent period. 

The average price for properties in Sutton Coldfield was reported at £335,000 as of March 6, 2024, which represents a decrease of 9.6% over the last 12 months​​. Another source detailed the average property price in the area as £405,000, with the median price standing at £350,000, indicating a modest 1% increase over the last 12 months​​.

The distribution of property sales by price range in Sutton Coldfield reveals a diverse market, with a significant proportion of sales (24.7%) occurring in the £300k-£400k bracket. 

The market also accommodated higher-end transactions, with sales over £500k representing 16.1% of the market and properties over £1M accounting for 2.9%​​.

The average property price places Sutton Coldfield as the 13th most pricey city out of 113 in England and Wales, highlighting its status as a sought-after area for homeowners and investors alike​​. Property types and their average prices vary, with detached houses averaging £644k, semi-detached £364k, terraced £296k, and flats at £179k, showcasing a range that caters to various preferences and budgets​​.

Digbeth

Known as Birmingham’s creative quarter, Digbeth is an up-and-coming area that has been attracting a lot of investment and development.

With regeneration projects underway, property prices are on the rise but still average around £180,000 for modern apartments and £220,000 for houses.

Semi-detached properties sold for an average of £262,000, while terraced houses fetched around £230,000. This indicates that sold prices in Digbeth were down by 8% from the previous year but showed a 4% increase from the peak prices in 2020, which were £223,790.

This pricing trend suggests Digbeth’s property market has seen some fluctuation, with overall prices slightly recovering from a previous dip. The area is known for its vibrant arts scene, creative industries, and proximity to Birmingham’s city center, making it an appealing location for young professionals and investors alike. 

Erdington

Offering more affordable housing options, Erdington is a hit with first-time buyers and investors.

Average prices for homes in this area hover around £160,000, presenting a more accessible entry point into Birmingham’s property market.

Emerging Areas and Potential for Growth

Perry Barr

Currently benefiting from substantial investments related to the recent hosting of the Commonwealth Games, Perry Barr is set to see property values rise.

Perry Barr offers a range of property types, from traditional terraced houses to more modern apartments and family homes, catering to a diverse demographic. Its proximity to Birmingham City University and other amenities adds to its appeal, particularly among students and young professionals.

House prices remain relatively moderate but are expected to increase, with current averages around £190,000.

Selly Oak

Primarily driven by its student population due to proximity to the University of Birmingham, Selly Oak has potential for buy-to-let investments.

Average house prices are around £180,000, with the market remaining steady due to constant demand.

Eastside

With the development of the HS2 Curzon Street Station, Eastside is poised for significant growth.

Property prices currently average at £200,000, with a forecast for substantial growth, as the area continues to develop.

Is it Worth Buying Property for Sale in Birmingham City Centre?

If you’re considering property investment in Birmingham, the city centre continues to be one of the best-performing areas. According to Rightmove, sold house prices in Birmingham last year grew to reach £240,535 for a typical home.

Whether Birmingham city centre house prices will continue to rise will really depend on the supply-demand imbalance. If the imbalance continues, we are likely to see property and rental prices in the city centre continue on their upward trajectory. 

Looking for more information on property investment in Birmingham? Check out our article on 10 Reasons to Invest in Birmingham and Where to Buy.

House Prices Birmingham FAQ

Why Buy Property in Birmingham?

With rising popularity due to the Commonwealth Games and incoming investment transforming the city, the future looks exciting for Birmingham. Property prices remain buoyant and are set to increase as the city becomes an increasingly desirable place to live. Now is a great time to get in to capitalise on the predicted increase in house prices and an active rental market.

Is Birmingham More Expensive Than Manchester?

The cost of living in Birmingham and Manchester is around the same. Both cities are receiving huge sums in investment and regeneration and enticing professionals from London due to lower costs of living alongside strong job prospects, giving the buy-to-let market a boost. 

What is the Trend in the Birmingham Property Market?

Birmingham’s housing market is poised for remarkable growth, projected to outperform other regions with an impressive 19.2% surge in house prices from 2023 to 2027. 

Not only does the city exhibit robust potential for capital gains, but it also takes the lead in rental price appreciation. In 2022, Birmingham experienced a substantial annual rental growth of 18%, securing the second-highest position nationwide behind Manchester.

What are the Best Areas of Birmingham?

The property market in Birmingham has plenty to offer. In terms of lifestyle, areas like Digbeth are attracting a young professional crowd. Crowned Birmingham’s Shoreditch, with a host of pubs, coworking spaces and creative spaces, Digbeth is an up-and-coming area. Which is additionally popular with both couples and individuals, making the rental market particularly lucrative for landlords. 

Those with families tend to look to Birmingham’s more suburban areas like Moseley. 20 minutes from the city centre by bus, Moseley boasts plenty of open space and parks, summer festivals and events, good schools and a village community feel.

Conclusion

Birmingham offers property investors relatively affordable property with high growth potential. The legacy of the Commonwealth Games should give the city a boost. Additionally, investment continues to pour in, making the UK’s second-largest city an even more attractive investment destination. Birmingham house prices in 2023 look set to remain robust. And the city could see healthy growth in rents and house prices through 2027. To find out more about investing in property in Birmingham, get in touch with our property experts.