5 Tips for Buy-to-Let in Birmingham

Table of Contents

With the increase in the average rental yield in Birmingham-based properties, buy-to-let investments are a new rage in the city. Therefore, buy-to-let is a great option if you are looking forward to making mid to long-term investments. 

The British phrase ‘buy-to-let’ describes the acquisition of a property to rent it out. A mortgage loan created particularly for this use is known as a buy-to-let mortgage. 

Although buy-to-let properties are often residential, investments in student housing and hotel rooms can also be a part of buy-to-let. 

For clarification about buying-to-let property in the UK, refer to our guide to buy-to-let mortgages. 

Birmingham Buy-to-Let Guide

Here is a step-by-step guide on buy-to-let with special reference to Birmingham: 

1. Knowing how buy-to-let works

As iterated earlier, buy-to-let implies purchasing a property solely for renting it out. Even though it is common in the case of houses, you can also buy offices, hotel rooms, and more to make a buy-to-rent investment. 

You can rent the property or contact an agency for guaranteed rent. Therefore, buy-to-let works in various ways. Researching the scheme that interests you is what matters here! 

2. Understanding how to buy to let property

If you want to make a buy-to-let investment, you need to follow a couple of steps, including:

  • Getting in touch with a property investment firm. 
  • Shortlisting and investing in a property that ticks off all your checkboxes, such as budget, type of property, locality, etc. 
  • Getting a solicitor to sort out all the legalities. 
  • Arranging and providing the required documents. 
  • Applying for a buy-to-let mortgage, if applicable.

Contacting a good property investment firm can solve most of your queries regarding the buy-to-let investment. From finding a property within your budget to recommending a great solicitor, a well-established property investment agency can make the buy-to-let process hassle-free. 

Since Birmingham has some of the top property investment agencies in the country, buy-to-let in Birmingham is extremely simple!

3. Learning how to get a buy-to-let mortgage

How to buy-to-let is a common question among investors. For the uninitiated, buy-to-let mortgages are made to assist you in purchasing a home that you want to give on rent to other individuals instead of residing in it yourself. 

Your ability to borrow money typically depends on the rent you anticipate receiving from tenants. While applying for a mortgage to buy a rental property is identical to applying for a loan to buy a residence, the qualifying requirements will vary. 

To obtain a buy-to-let mortgage, you don’t need to own a home, and you can apply alone or with up to three other people as long as you’re not a part of a business. However, the rules and regulations vary from place to place and bank to bank. 

Therefore, getting in touch with a Birmingham-based bank is advisable to grab more information about buy-to-let mortgages. 


Five Reasons Birmingham Is the Top Property Investment Spot

Birmingham has the fastest population growth in the UK. With a projected population of 1,240,000 by 2030, Birmingham has countless business and societal growth prospects. Several impressive developments are taking place throughout the city to accommodate its growing population and the need to become a UK hotspot destination in terms of property investment.

Here are the top 5 reasons for Birmingham being the top property investment spot: 

  1. Birmingham enjoys great connectivity 

The city consists of major motorways, a crowded international airport, and New Street, one of the busiest train stations in the nation. Therefore, Birmingham is ideal for touring throughout the UK. 

Recent developments, like a £600 million refurbishment of New Street station, have significantly boosted the city’s transportation options. Moor Street Queensway has a brand-new interchange worth £12 million. Additionally, £129 million has been invested in the Midland Metro Line 1 Extension.

The proposed High Speed 2 (HS2) construction will reduce the trip to London to just 45 minutes. Investing in a location that enjoys great connectivity is always a win!  

  1. High rental demand 

Nearly 40% of Birmingham’s population is under 25, making it one of the youngest places in Europe. Along with students, the city draws many young professionals and graduates looking for work.

Since renting is a more feasible option for this age group, houses for rent are always in great demand. With some major companies opening their offices in Birmingham, the number of renters will only rise in the upcoming years. Therefore, the Birmingham buy-to-let sector is scheduled for great growth. 

  1. Great variety in property 

Birmingham is rich in all property types, from student accommodation to serviced offices. It is an excellent place for people wishing to start or expand their real estate portfolios because there is a wide choice of property available at various price points. 

Therefore, you do not need a hefty budget to invest in a property in Birmingham. 

  1. Flourishing economy

Birmingham is home to one of the country’s biggest legal and financial services centers. The relocation of numerous well-known worldwide organizations and corporations, like Deutsche Bank and HSBC, has increased the number of wealthy residents in the city.

There is a high demand for luxury real estate to house people. Therefore, investing in buy-to-let properties in posh localities can fetch you great rents. The West Midlands is predicted to have the UK’s fastest economic growth, with a 1.8% annual growth rate in economic output. Birmingham is an eminent city to invest in.

  1. An expected rise in house prices 

JLL’s UK Residential Forecast Report predicts a significant price and rental value rise for Birmingham homes within the next five years, with changes starting to appear in 2022. For early-stage investors, the 4% increase in home value and the 3.5% increase in rental value are great news.


Pluxa Property Has Got You Covered 

We at Pluxa Property help to buy to let. Our rates and offers are customized for you. We provide multiple services, including locating a suitable property, renovating, renting, reselling, managing agents and attorneys, dealing with tenants, etc. Get in touch to secure the best property investment deals in Birmingham!


How can I get a loan for a rental property without a job?

You can get a loan for a rental property without a job by taking a property mortgage.

How to determine if a property is good for flip or rental?

If you plan on flipping a house, you should concentrate on buying structurally strong houses and ignore minor plumbing or wiring issues. On the other hand, you must look for high in demand apartments for rental.

What is the single best reason to buy a house?

Investment is certainly among the top reasons to buy a house.


Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Get Started

Don’t have any account yet? Create a New Account

Our Quantum 7 Secret Formula for How to make £10k Cashflow per Month

Even if you have no experience or money!