Property investments have become a successful method of earning passive income in the UK. As long as one chooses the right metropole to invest in, the profit-making opportunities are endless.
Birmingham has attracted the attention of many capitalists due to the lack of property supply, blooming economy, high rental yields, affordable property prices, etc.
The following reasons serve to persuade individuals in investing in a Birmingham apartment.
High demand from young professionals
In the course of the last decade, Birmingham has become one of the most prominent business centres in the United Kingdom. Since 2017, over £1 billion has been invested in this fast-growing city for business development. Many worldwide popular companies have relocated their headquarters in this metropolis, such as Deutsche Bank, creating more than a thousand vacancies. Go here to gain insight into Birmingham’s bid to become the southern Silicon Valley.
Being a business hotspot makes this city desirable for young professionals who move here to take advantage of the offered business opportunities. Approximately forty percent of the population of this metropolis is aged under twenty-five. Having a population of just over a million residents makes Birmingham an intriguing buy-to-let hotspot. The number of inhabitants is expected to increase even further, reaching 1.3 million residents by 2039.
The most effective way for property investors to target young professionals is by investing in city centre flats close to transport links for better commuting. Unlike students, these tenants are prepared to pay higher prices for good accommodation.
Student demand
Another reason for capitalists to consider investing in city centre apartments in Birmingham is the increasing student population. This dynamic location attracts 80,000 students every year, thus becoming of the leading student cities in the UK. Individuals are provided with a choice of five renowned universities within the city, as well as twenty other universities within an hour of the metropolis.
Nevertheless, the selection of universities isn’t the only factor encouraging students to move to Birmingham. It offers plenty of entertainment opportunities like budget-friendly clubs and pubs, live music shows, sophisticated cocktail bars, etc. Follow this link, https://metro.co.uk/2015/08/16/14-reasons-why-you-should-pack-up-and-move-to-birmingham-immediately-5344413/, to check out fourteen reasons to pack and move to this lovely city.
Considering the thousands of students coming to study there, it’s no wonder the demand for buy-to-let properties is high. If you don’t mind letting flats to students, Birmingham is doubtlessly one of the most popular hotspots in the UK.
Affordable property prices
Property prices in this metropolis are still incredibly low when contrasted to the house prices in other cities like London and Brighton. While average house prices in this city are approximately £250,000, the cost is almost doubled in Brighton. In contrast, the average price of properties in London is a little over £900,000.
Despite the low property prices, rental costs keep on increasing. Since 2019, rental prices have seen an increase of about twenty percent. For instance, the average cost for rent two years ago was £786. Nowadays, it has reached the price of £930.
Furthermore, the rental yield in Birmingham is 4.4 %, higher than the yield in London, which is 3.5 %. When compared to other UK cities, the Birmingham property market provides investors with high rental returns. In order to enjoy a rental yield of more than ten percent, capitalists are advised to choose the most profitable areas.
Short property supply
Probably the most important reason for investors to make an investment in the city of Birmingham is the short property supply. In order for the number of houses and apartments to meet the forecasted increase in population, about 5,000 new homes have to be built each year.
Moreover, this metropolis is ideally located for travel across the UK, providing multiple transport options. Being part of the High Speed 2 project will even further improve its connection to the other cities in the United Kingdom, especially Manchester, Leeds, Glasgow, and Newcastle. In about fifteen years, residents will arrive in London in less than forty-five minutes.
Final word
The modern infrastructure, economic growth, and thriving social scene are some of the reasons to invest in real estate in Birmingham.
You’ll be surprised by the high ROI!