Birmingham House Prices
Let’s take a look at the predictions for Birmingham house prices in 2022 and beyond to see why investors should take a closer look at this destination with both affordability and high growth potential.
In the heart of the West Midlands, the thriving cosmopolitan city of Birmingham is not only a highly desirable place to live but a property investment hotspot.
What’s more, the UK’s second-largest city is on track for a house price boom over the next few years.
The Birmingham Property Landscape
One of the major factors driving Birmingham’s growth and popularity amongst property investors is a shortfall in housing stock compared to demand. There were 39% fewer homes available to rent compared to the same time a year ago.
Soaring demand for rental homes is a pattern we are seeing across the UK. This pattern is in part due to property prices at their highest ever levels, meaning people are renting for longer to save up for the required deposit. At the national level, demand drove rents up over 8% in the last quarter of 2021, and the average cost of renting a home in the UK is now close to £1,000 per calendar month.
In the West Midlands region, the average price of rent has hit £728 per calendar month, an increase of 8.6% over the last year. Birmingham has a number of new housing projects in the pipeline, from student accommodation to private sale to build to rent projects.
Investors may want to look into things that are soon to come onto the market, as well as off-plan properties, which can make a great investment thanks to the sizable discount off the market rate frequently available.
Property Price Forecast for Birmingham’s House Prices in 2022
This year, houses in Birmingham are on track to experience a price boom.
The Commonwealth Games, to be held in July and August 2022, will put a global focus on the city, bringing new jobs and seeing the construction of 5,000 new homes – a major driver in house price growth predictions.
£750 million in investment has been put aside to ensure the legacy of the Commonwealth Games in the coming years. Birmingham house prices in 2022 and beyond 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.
Currently, the average price of a Birmingham property is £233,148. This is expected to increase by around 6% in 2022, and by the end of this year, the average property price could reach £247,136.
Prospects in the wider area look positive too. In the West Midlands region as a whole, the average price of a home is set to hit £197,234 in 2022. In 2023, it’s predicted that prices will break the £200,000 barrier and could reach £208,310 in 2024.
Birmingham’s House Price Forecast to 2026
Through 2026, Birmingham house prices are expected to rise more than any other UK city at 4.9% per year. This means that a home purchased for half a million in 2022 could be valued at £635,000 or above in 2026. Looking further to the future, some predictions estimate that house prices could rise by 29% in ten years.
As well as a strong potential for capital gains, Birmingham is set to lead the way for rental price growth. In 2022, rental prices are predicted to rise 12.5%.
If you’re interested in the overall state of the UK Property Market & Predictions for the current year, this article is for you.
If you prefer looking more ahead, here’s an article on House Price Predictions for the Next 5 Years.
Is it Worth Buying Property for Sale Birmingham City Centre?
If you’re considering property investment in Birmingham, the City Centre continues to be one of the best performing areas. House prices in the past year grew to reach £187,700 for a typical home, and landlords saw average rents increase 6.9% over the same period.
The reason for this rapid increase in rent is down to a couple of factors:
- Birmingham City Centre has seen a shortfall in rental properties. With the UK’s record-breaking house prices, many landlords decided to sell their properties to make the most of 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.
- With uncertainty surrounding the economy in 2020-2021, both due to the COVID-19 pandemic and off the back of Brexit, more people decided to rent rather than buy property to avoid locking themselves into a mortgage.
Whether Birmingham City Centre house prices will continue to rise will really depend on this 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!
Birmingham offers property investors relatively affordable property with high growth potential. The Commonwealth Games is set to give the city a boost, and investment continues to pour in, making the UK’s second-largest city an even more attractive investment destination. Birmingham house prices in 2022 look set to remain robust and both the city and the West Midlands region are expected to see a price boom through to 2026. To find out more about investing in property in Birmingham, get in touch.
Is it worth buying a house in Birmingham?
With the Commonwealth Games on the horizon, the prospects for Birmingham house prices in 2022 and a number of investment projects in the pipeline, 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 through to 2026.
Is Birmingham more expensive than Manchester?
The cost of living in Birmingham and Manchester is around the same. In terms of the property market, over the next five years property in Birmingham is set to increase at a rate that is a fraction higher than in Manchester. However, 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.
What are the best areas of Birmingham?
In terms of lifestyle, areas of Birmingham 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 popular with 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.