The Birmingham property market is proving a sound investment
AN Englishman’s home castle – so they say. We take pride in our homes and pleasure in the freedom that having our own four walls allows. But British society is changing. Family units are different, communities have diversified – life goals are moving.
Among these changes are aspirations of home ownership.
For many, this is a harder ambition to achieve.
But that doesn’t mean we can no longer see our homes, owned or rented, as our castles.
The new breed of high aspirations and from their properties.
Recent research into the West Midlands residential market from property experts at JLL states: “The importance of good design and high quality specification is becoming more apparent.
“Renting is fast becoming a lifestyle choice for many and developers need to be aware of this more discerning demographic.
“Renters are looking for more than just location and they are willing to pay extra for the right product.”
This is especially evident in the rising popularity of city living which is attracting increasing numbers of young, aspirational and affluent renters.
Birmingham is certainly seeing this surge in demand for city centre residences.
This is buoyed by a combination of the city’s thriving financial and professional services sector, which is already the largest in the country outside London, and the retention of recent graduates from the city’s four universities.
Also driving the demand for city living in the heart of Birmingham is a surge in London leavers, 7,620 people left the capital for the Second City last year – more than any other city in the UK, according to data is his renters have expectations from the Office for National Statistics. More affordable lifestyle options and rent among the list of benefits available to them.
Developers are responding to the demands for high quality residences for renters with a raft of exciting city centre developments which open up potentially lucrative opportunities for property investors.
These include SevenCapital’s St Martin’s Place, a residential development offering a life in the city centre at the most exclusive level, without carrying the London price tag.
Featuring 228 luxury apartments, all of which come complete with smart features and a high specification finish, St Martin’s Place will also have a gym and private cinema with residents offered full access to the bar and restaurant and exclusive hotel services offered by the stylish next door neighbour, the Park Regis Hotel.
The luxury development will be located in one of Birmingham’s highest sought-after postcodes, minutes from the main business and professional district.
For those looking to invest now or in the near future the outlook for property prices in the Second City is good.
House prices in Birmingham are rising more than twice as fast as UK prices, up 6.9 per cent in the year to May – compared to an average 3 per cent rise for the whole of the UK, according to figures from the Office for National Statistics.
And with optimism for the future high – despite uncertainty over Brexit – the long term benefits could be ample. Birmingham city centre is undergoing a huge transformation with a raft of exciting developments underway for residents, businesses and transport – in addition to St Martin’s Place.
The city is set to welcome the 2022 Commonwealth Games and in 2026 HS2, which will slash journey times to London to just 49 minutes.
Adding further appeal to the prospects offered from investing in property the Royal Institution of Chartered Surveyors (RICS) recently reported that rents could increase by 15 per cent by 2023, due to high demand from tenants coupled with small-scale landlords pulling out of the market, decreasing availability even more.
This means, for those who continue to invest in the residential market, more potential for increased monthly rental income, which is key for covering mortgage repayments and generating a regular passive income.
Last year average rents for two bedroom flats in Birmingham city centre increased by 2.8 per cent due to demand.
A successful property investment can see you increase your wealth over time through capital appreciation – as the price of your property increases, as well as generate a regular income through monthly rental yields, with limited extra work required on your part.
This could easily explain why property is the favoured option – ahead of land and gold, amongst the majority of the UK.
According to independent research by CensusWide, commissioned by developer SevenCapital, 40.3 per cent of people said property was their favoured investment, with land second at 20.9 per cent and gold third at 19.6 per cent.
Andy Foote, director at SevenCapital, said: “The city centre landscape is changing at a momentous rate and it’s attracting increasing numbers of young professionals into the city to both live and work.
“Despite multiple residential developments under way, the demand still far outstrips supply, and, as suggested in the report from JLL, we’re seeing a trend for bigger, more luxurious apartments.
“This currently presents a huge opportunity for those looking to invest in buy to let property in the city centre.”
Investing in property is generally considered one of the safest and best options available for those looking to invest their money for a good return and Birmingham is currently offering some of the most exciting and potentially lucrative deals in the UK.
To find out more about investing in the St Martin’s Place development in Birmingham city centre got to sevencapital.com/ development/st-martins-place