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An Investor’s Guide to BIRMINGHAM
A City Firmly on the Radar FAST FACTS:
of Global Investors BIRMINGHAM
Strategically located in the very REGION:
centre of England, Birmingham West Midlands, England
is one of the UK’s most important
regional hubs.
POPULATION:
The home to the largest city economy outside
2.8 million (Birmingham
of London[3], Birmingham is established as a
metropolitan district) [1]
prosperous, high-growth investment city.
But it’s Birmingham’s future growth
DISTANCE FROM LONDON:
projections that make it such an exciting
investment location for global investors. 128 miles (206 kilometres)
In the coming years, key infrastructure projects 1 hour 24 minutes direct-train
such as High-Speed 2 (HS2) will accelerate the link, reducing to just 49 minutes
growth of the city’s economy, population, and by 2029 with High Speed 2 (HS2)
– subsequently – its property market.
An established investment city, on the verge ECONOMIC OUTPUT:
of new and prolonged period of growth. GBP 31.9 billion – the largest
city economy in the UK outside
The time to secure assets in Birmingham is now. London [2]
It lies near the geographic centre of
England, at the crossing points of the
national railway and motorway systems.
Birmingham is the largest city of the
West Midlands conurbation—one of
England’s principal industrial and
commercial areas—for which it acts as
an administrative, recreational, and
cultural centre. [4]
ENCYCLOPAEDIA BRITANNICA
Invest in UK Property: An Investor's Guide to BIRMINGHAM Invest in UK Property: An Investor's Guide to BIRMINGHAM
A Young, Rising Population
Birmingham is the second most
populous city in the UK
Birmingham city centre has seen of Birmingham’s
a 163% increase in population population is under 25 [14]
> The youngest major city in Europe
(2002-2015), the second fastest
rising in the UK [10]
10,000 people are added the
population of Birmingham every
year. That’s 200 people a week! [11]
of ‘city core inhabitants’
Population growth is expected The University of Birmingham
aged under 35-year-old [15]
to be strong in Birmingham with > Affinity Living’s key target market
an extra 50,000 people forecast
to be living in the city by 2023 [12]
Birmingham boasts world class universities and creative industries, we have a
growing digital sector and an expertise in business, professional and financial
Birmingham was the most services, and the city has a wealth of opportunities in the pipeline.
popular city destination for those graduate The Birmingham city-region is currently experiencing the highest inward
migrating from London in 2018, retention rate investment outside of London, and our visitor economy is going from strength
followed by Manchester and to strength. We are turning heads, not just in the UK but around the world. [16]
Leeds[13]. A significant number of
PAUL FAULKNER, CEO, GREATER BIRMINGHAM CHAMBERS OF COMMERCE
these movers are young workers
and families.
Invest in UK Property: An Investors’ Guide to BIRMINGHAM Invest in UK Property: An Investors’ Guide to BIRMINGHAM
A Diverse, International City
Birmingham’s Chinese Quarter; the city has one of the UK’s largest Chinese populations. Exterior and minaret at Birmingham Central Mosque, while an Emirates A380 aircraft takes off from
Birmingham Airport on its daily flight to Dubai.
FAR EAST CONNECTIONS BIRMINGHAM & WEST MIDLANDS’ FOUR BIGGEST FOOTBALL
CLUBS ALL HAVE ASIAN OR MENA OWNERS:
has been a partner city of Birmingham since 2006 [18]
ASTON VILLA WOLVERHAMPTON WEST BROMWICH BIRMINGHAM
FOOTBALL CLUB WANDERERS FC ALBION FC CITY FC
Premier League Premier League Premier League Championship (Tier 2)
Part-owned by Naseef Owned by Fosun Owned by Chinese Owned by Hong Kong
Onsi Sawiris, Egyptian International, a billionaire businessman Paul
has the 4th largest group of Chinese students across the UK [19] billionaire listed as the Chinese conglomerate businessman, Lai Suen Cho Hung and
fourth richest African headquartered in Guochuan [22] his Trillion Trophy Asia
by Forbes in 2019 [20] Shanghai. [21] company [23]
Invest in UK Property: An Investor's Guide to BIRMINGHAM Invest in UK Property: An Investor's Guide to BIRMINGHAM
A City That Connects the UK & the World
EASY ACCESS TO BRITAIN’S AN INTEGRAL DIRECT ACCESS TO MAJOR
MAIN MOTORWAYS RAIL HUB GLOBAL CITIES
M40 Birmingham New Street Birmingham International Airport
London via Oxford One of the principal stations of the UK rail network. Birmingham International Airport is one of the busiest airports in the UK. Handling 12.5
million passengers each year, its top three routes are Dublin, Amsterdam and Dubai.[24]
M6 LONDON - 1 hour 25 mins direct
London (via the M1), Manchester, Liverpool and BRISTOL - 1 hour 25 mins direct
the rest of North West England, and then beyond MANCHESTER - 1 hour 27 mins direct
to Glasgow and Scotland
LIVERPOOL - 1 hour 35 mins direct
LEEDS - 1 hour 57 mins direct
M5 CARDIFF - 2 hours direct
A
South West England, with cities including Bristol, GLASGOW - 4 hours direct D
Bath and Exeter
EDINBURGH - 4 hours direct E
B
Birmingham Moor Street F
The city’s second busiest station, and a major C G
connection on rail lines across the Midlands.
London in 1 hour 45 mins direct. I
Plus many major towns and cities throughout the
Midlands region. A DUBLIN - 1 hour 10 mins. F ROME - 2 hours 40 mins
J
B PARIS - 1 hour 20 mins G ISTANBUL - 4 hours
H
Birmingham Snow Hill C MADRID - 2 hours 25 mins H DUBAI - 7 hours
Major regional station. D AMSTERDAM - 1 hour 20 mins I ISLAMABAD - 7 hours 40 mins
Many major towns and cities throughout the E FRANKFURT - 1 hour 30 mins J DELHI - 9 hours 15 mins
Midlands region.
COMING SOON:
HS2 Station
Birmingham Curzon Street, the city’s
‘HS2 station’, is expected to cut direct
journey times between Birmingham and
London to just 49 minutes from 2029.
‘Spaghetti Junction’ - iconic Birmingham landmark which
underlines its extensive UK motorway connectivity.
Invest in UK Property: An Investor's Guide to BIRMINGHAM Invest in UK Property: An Investor's Guide to BIRMINGHAM
Birmingham’s proposed Curzon Street HS2 station. Together with a wider GBP 900 million regeneration scheme of the surrounding area, it
will lead to the creation of several new neighbourhoods, including 36,000 new jobs.
Birmingham: A City With an Exciting Future
High Speed 2 (HS2)
HS2 is the UK’s new GBP 106 billion, 345-
mile high-speed railway network, connecting
London to the Midlands and Northern
England. Journey Times from
Birmingham on HS2
The UK government estimates the new
network will deliver benefits to the UK
economy worth over GBP 103 billion [25]. LONDON
49 minutes
(currently 1 hour 24 minutes)
And few other cities will benefit from HS2
quite as much as Birmingham is forecast to.
MANCHESTER
41 minutes
Construction has started on Phase One,
(currently 1 hour 25 minutes)
which will link London and Birmingham
by 2029. The first trains, operating out of
LEEDS
Birmingham’s new Curzon Street station, will
57 minutes
see the fastest trains in Europe connecting
(currently 1 hour 58 minutes)
the city to London in just 49 minutes.
Invest in UK Property: An Investor's Guide to BIRMINGHAM Invest in UK Property: An Investor's Guide to BIRMINGHAM
HS2’s Impact on Birmingham’s Growth Other Major Projects in the Pipeline
MIDLANDS GATEWAY TO THE WORLD PROJECT
Masterplan to increase the capacity of Birmingham International Airport [34]
STRONGER ECONOMY
18 million passengers per annum
An average GVA increase of GBP 680 per worker [26] Since HS2 was given the by 2033 targeted
green light, demand for city centre
living has far outpaced supply.
The creation of 34,000 new jobs
A GBP 4 billion increase in economic output per year Demand has largely been comprised
of young professionals [33]
The airport to increase the
Rail travel between Birmingham and London is JLL Midlands economy by 42%
predicted to more than double in 20 years [27]
BIG CITY PLAN
A 20-year ‘city centre masterplan’ of regeneration works [35]
INCREASED JOBS UPLIFT IN PROPERTY
PRICE GROWTH
50,000 additional jobs in the West Midlands (26,000 65,000 sq.m. of new and improved
of which would be in Birmingham/Solihull) [28] The average property price public spaces
in Birmingham has already
increased by 8% since 2017 and 1.5 million sq.m. of new floorspace
Employers to gain access to a larger pool of employees is set to rise further [30]
for local businesses, improving productivity and 50,000 new jobs created
reducing business costs [29] “Buyers are jumping at the
chance to buy” in Birmingham
Access to a greater range of job opportunities in more
locations for people living in these regeneration
areas 2022 COMMONWEALTH GAMES
As an example of the potential
impact, Crossrail – London’s Birmingham will host the Games, 27th July – 7th August 2022
proposed new rail network – has
already caused some property on Between 500,000 and 1 million
the route to “double in price” [31]
visitors are expected to visit the
area during the Games [36]
Birmingham residents whose property is handy for
the new Curzon Street station or the new interchange
The minimum benefit to the West
station near the city’s airport should see prices go up
once HS2 is fully up and running [32] Increased access to London Midlands of hosting the Games
and other major cities will turn would be £1.5bn of legacy benefits
[37]
THE GUARDIAN Birmingham “into a commuter
hotspot pretty much overnight”
Invest in UK Property: An Investor's Guide to BIRMINGHAM Invest in UK Property: An Investor's Guide to BIRMINGHAM
A Property Market That Cannot Keep Pace With Demand Strong 5-Year Price Growth Forecasts for
Birmingham & West Midlands Of all the housing markets
Birmingham is among the UK’s most popular investment locations for global
property buyers. that JLL monitors,
Forecast average cumulative property
Birmingham is forecast to
price growth between 2021-2025[39]
Like the very best markets, Birmingham’s property performance is underpinned by a significant see the strongest house price
undersupply of real estate across all sectors in the city and wider region. In particular, Birmingham and rental value growth
city centre is starved of quality purpose-built rental accommodation. over the next 5 years. The
city is also seeing a growing
With all forecasts predicting strong growth in the coming years, it’s a property market with all housing shortfall. [41]
the essential qualities required for a successful long-term investment.
JLL
5-year average property price growth in the West Midlands forecast at 21.7%
to 2024 – Savills[40]. UK average during this period is forecast at 20.4%
A History of Price Growth
H1 2020 5 YEARS
H2 2020 2021 2022 2023 2024
(ACTUAL) TO 2024*
Property prices in Birmingham city centre
have enjoyed consistent growth levels of LONDON 3.7% 1.5% 0% 1.0% 4.0% 2.0% 12.7%
the last 10-15 years. SOUTH EAST 2.3% 3.5% 0% 2.5% 5.0% 3.0% 17.3%
The price of an average two-bedroom EAST OF ENGLAND 2.3% 3.5% 0% 2.5% 5.0% 3.0% 17.3%
apartment increased by 5.2% during 2018.
SOUTH WEST 1.3% 3.0% 0% 3.0% 5.5% 3.5% 17.3%
There was also a 2.9% annual percentage EAST MIDLANDS 1.5% 1.5% 0% 5.0% 7.5% 5.5% 22.6%
change in house prices in August 2020; UK
WEST MIDLANDS 0.7% 1.5% 0% 5.0% 7.5% 5.5% 21.7%
average 2.6%[38].
NORTH EAST 0.3% 0.5% 0% 5.5% 8.0% 6.0% 21.7%
BIRMINGHAM AVERAGE HOUSE PRICE PERFORMANCE NORTH WEST 3.9% 0.5% 0% 6.0% 8.0% 6.5% 27.3%
135 YORKSHIRE 1.8% 1.0% 0% 5.5% 8.0% 6.0% 24.1%
130
WALES 1.7% 1.0% 0% 5.0% 7.5% 5.5% 22.3%
125
120 SCOTLAND 1.8% 2.0% 0% 5.5% 8.0% 6.0% 25.4%
115
UK 4.0% 0% 4.0% 6.5% 4.5% 20.4%
110
105
100
HOUSE PRICE GROWTH (PA) 2020 2021 2022 2023 2024 2025 2021-2025*
95
90
BIRMINGHAM 4.5% 0% 4.0% 5.5% 5.0% 5.0% 19.5%
2004
2008
2006
2009
2007
2005
2014
2010
2016
2017
2015
2012
2013
2011
UK 3.5% -1.5% 2.5% 4.0% 5.0% 4.5% 14.5%
5% HIGHER THAN THE UK AVERAGE
* Cumulative Growth
Invest in UK Property: An Investor's Guide to BIRMINGHAM Invest in UK Property: An Investor's Guide to BIRMINGHAM
A Thriving Rental Sector AVERAGE WEEKLY ASKING
RENTS IN BIRMINGHAM
Rental price growth rates in Birmingham £80 £90 £100 £110 £120 £130
consistently outpace those in the wider
West Midlands area 2019
2018
Average asking rents across the city have
risen by 28% since the end of 2009 [42] 2017
2016
City centre rents have risen due to a lack
of available stock, with two-bedroom flats 2015
increasing by 2.7% in 2018 [43]
2014
The prime rental market is even more 2013
unsupplied of available stock, and
rental values for two-bedroom flats have 2012
increased by 7.1% as a result 2011
2010
12% cumulative average rent 2009
growth forecast 2021-2025 - JLL[44]
The Undersupply Driving
Growth for Investors
Birmingham needs 89,000 new homes
between 2011 and 2031
The majority of households living
in the city centre are in the private
That’s the equivalent of 4,450 new homes
rented sector, according to Knight
per a year [46
Frank analysis.
Estimates suggest that a further 2,500 homes
Around 60% of those living there
a year are still needed in Birmingham to
are under the age of 35, reflecting
help meet demand and clear the backlog [47]
the growth in a young, professional
population attracted by the
Available land in Birmingham is scarce
improving jobs market and career
and costly, with average development
opportunities within the city [45]
land prices having increased from GBP
12,000-GBP 16,000 per unit in 2013 to GBP KNIGHT FRANK
35,000 in 2018 [48]
Subdued development activity in recent
years has “only exacerbated the demand for
rental accommodation in the city centre” [49]
Invest in UK Property: An Investor's Guide to BIRMINGHAM Invest in UK Property: An Investor's Guide to BIRMINGHAMSources [30] HS2 Route UK Cities Development - Read More
[31] House Prices Crossrail Map - Read More
[1] World Atlas: Largest Cities in England - Read More [32] The Guardian: HS2 Property Prices Midlands - Read More
[2] Birmingham Q4 2019 Update - Read More [33] JIL: West Midlands Residential Forecasts - Read More
[3] Birmingham Government Update Q4 2019 - Read More [34] Birmingham Airport Unveils Master Plan - Read More
[4] Britannica on Birmingham - Read More [35] Birmingham Gov: Big City Plan - Read More
[5] Birmingham Government Update Q4 2019 - Read More [36] Greater Birmingham Chambers: Commonwealth Games 2022 - Read More
[6] Business Live: West Midlands Sees Bumper Crop - Read More [37] Mace Group: Commonwealth Games 2022 - Read More
[7] Knight Frank: The Birmingham Report 2018 - Read More [38] Zoopla UK House Price Index September 2020 - Read More
[8] Silicon Canal - Read More [39] JIL: West Midlands Residential Forecasts - Read More
[9] Greater Birmingham Chambers 2018 - Read More [40] Savills: Our Mainstream Residential Market Forecasts - Read More
[10] BBC: The UK’s rapid return to city centre living - Read More [41] JIL: West Midlands Residential Forecast - Read More
[11] Birmingham 2020 - Read More [42] Knight Frank: Birmingham Market Update 2020 - Read More
[12] International Residential: West Midlands Residential Forecasts - Read More [43] JIL: West Midlands Residential Forecast - Read More
[13] Knight Frank: Birmingham Market Update 2020 - Read More [44] JIL: West Midlands Residential Forecast - Read More
[14] The Birmingham Economic Review 2018 - Read More [45] Knight Frank: Birmingham Market Update 2020 - Read More
[15] JIL: West Midlands Residential Forecasts - Read More [46] Savills: The Impact of HS2 on Development - Read More
[16] Greater Birmingham Chambers 2018 - Read More [47] Propety Investor Today: Boom for Birmingham - Read More
[17] Nomisweb: Census 2011 - Read More [48] Knight Frank: The Birmingham Report 2018 - Read More
[18] Distinctly Birmingham: Guangzhou - Read More [49] JIL: West Midlands Residential Forecast - Read More
[19] The Times: University of Birmingham Opens Door to More Chinese Students - Read More
[20] Forbes: African Billionaire Fortunes - Read More
[21] Wolves Club Ownership - Read More
[22] Lai Guochuan - Read More
[23] SCMP: Hong Kong Takes Over Birmingham City - Read More
[24] Birmingham Airport Experiences Another Strong Year - Read More
[25] Greater Birmingham Chambers 2018 - Read More
[26] Birmingham Transport HS2 - Read More
[27] Birmingham Transport HS2 - Read More
[28] Birmingham Transport HS2 - Read More
[29] How HS2 Will Transform the West Midlands - Read More
Invest in UK Property: An Investors’ Guide to BIRMINGHAM Invest in UK Property: An Investors’ Guide to BIRMINGHAMPlease note that this article is being sent to you for discussion purposes and contains a number of reasonably held opinions about very general
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