A buy-to-let investment involves purchasing a property specifically for renting it out to renters. This purchase can either be made by an organisation or an individual.
The UK’s buy-to-let (BTL) market encourages capital investment in real estate. This area of the real estate market has been consistently expanding due to the rising demand from renters.
As more and more people continue to buy-to-let in the UK, let us look at the buy-to-let scenario in Birmingham, the best buy-to-let apartments in Birmingham, the advantages of buy-to-let investments, and more.
Birmingham Buy-to-Let Property Investments
Birmingham, which began as a market town, has grown rapidly over the past 200 years, becoming the fastest-growing metropolis of the 19th century. The reason is a mix of philanthropic support, scientific advancement, commercial innovation, and a continual inflow of migrant workers into its neighbourhoods.
Birmingham first rose to prominence as a city of canals, then as a city of cars, and most recently as a significant European convention and shopping hub by the end of the 20th century. Birmingham has established itself as the metropolitan centre of the United Kingdom’s automotive sectors.
In the current day and age, Birmingham is in the centre of a sizable post-industrial metropolis, surrounded by important educational, manufacturing, retail, recreational, and conferencing facilities.
Even though it is as great as London in terms of growth and expansion, Birmingham is still less expensive than London in terms of real estate. Since property in Birmingham is more affordable than in London, it makes for a particularly attractive location for investors.
Therefore, a buy-to-let investment in Birmingham is a great option. Here are more reasons for you to invest in a buy-to-let property in Birmingham:
1. The housing market in Birmingham is thriving
Birmingham’s buy-to-let market is booming, offering profitable rates of 4.8 to 5.3%. Only 26% of Birmingham residents are homeowners, which explains why there is such a high demand for rental apartments. Due to the increasing demand, it is a great time to invest in buy-to-let properties in Birmingham.
2. The property prices in Birmingham are relatively less
For real estate investors, Birmingham is a great city to invest in. The average home price in Birmingham is around £229,000. On the other hand, the average house rate in London is approximately £518,000. Birmingham offers even more affordable real estate options for investors. The starting price of properties in Birmingham is just £47,000.
3. Property investment in Birmingham is set for great capital growth
Long-term capital growth, or the rise in a property’s prices over time, is one of the most significant aspects for property investors planning on retiring soon. Fortunately for individuals looking to invest in Birmingham real estate, this city has seen tremendous capital growth over the past 20 years.
Therefore, if you are targeting medium- to long-term investments, investing in buy-to-let in Birmingham is ideal!
4. Birmingham is witnessing a rise in population
Due to its extensive economy and huge population, Birmingham is frequently referred to as the UK’s second city. Birmingham has a population of 1.14 million, and it is expanding rapidly. 163% growth in Birmingham’s population between 2002 and 2015 has been observed.
It’s a great time to invest in Birmingham because current estimates indicate that the city’s population will increase from 1.1 million to 1.23 million by 2038. After all, the growing population results in more purchasers and renters, which drives up home prices and rental income, resulting in great growth for potential Birmingham buy-to-let investors.
Birmingham Property Investment: Best Buy-to-Let Areas
While indulging in buy-to-let in Birmingham is a great idea, certain areas can fetch you better rents than others. Therefore, having a clear idea about the top buy-to-let areas in Birmingham can help you earn huge profit margins.
Let us take a look at the best of Birmingham’s buy-to-let locations:
- Birmingham City Centre
Most of Birmingham City Centre’s major regeneration projects have made significant progress during the past year. This degree of renovation is one of the many factors contributing to Birmingham City Centre’s overall price growth for buy-to-let investments.
As one might expect, Birmingham’s City Centre remains a top choice for buy-to-let property investment because it has become a thriving business district. It appeals to young professionals, who occupy most of the rental market.
There are also plenty of buy-to-let properties for sale in Birmingham City Centre for you to choose from. Therefore, Birmingham City Centre easily qualifies as one of the best property investment locations.
- Edgbaston
Edgbaston is primarily known for its sporting history, but it’s also one of Birmingham’s wealthiest neighbourhoods and an obvious choice for property investment. For investors looking for a Birmingham buy-to-let investment property with proven growth, Edgbaston has seen a growth of approximately 40% over the past ten years.
- Harborne
Harborne, one of Birmingham’s most sought-after localities, is well-liked by families seeking a suburban lifestyle without sacrificing accessibility to the City Centre.
Nearly 63% of the people in Harborne, significantly greater than the UK average, are professionals, making Harborne known for having a high concentration of professionals. The amenities and property standards have significantly influenced these statistics.
- Other locations
Erdington, Digbeth, and Jewellery Quarter are also among the top contenders for making buy-to-let investments. All in all, plenty of Birmingham’s localities offer a great return on investment.
Expand Your Profit Margins with Pluxa Property
We at Pluxa Property help you make the right property investment at the right time. From assisting you make quick purchases to securing great yields, we provide comprehensive services to boost your profit margins. Get in touch with us for great capital appreciation, high monthly cash flow, guaranteed rent, and more.
FAQs
I want to invest £150000 into the buy-to-let market in the UK. Is it a good time to do that?
It is a great time to invest the said amount into the buy-to-let market in the UK, as the real estate sector is set for a great boost in the upcoming years.
Will the property be a good investment in the UK in 2022?
Yes, 2022 seems a great year to invest in the UK’s real estate sector. The predicted rise in house price valuations is exceptionally strong, and rents are at an all-time high.
Is now a good time to invest in UK property?
Yes, now is a good time to invest in UK property, especially if you are looking for mid-mid-tog-term investments.
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
