The Birmingham housing market is one of the fastest growing in the UK, providing high levels of capital appreciation for homebuyers and investors alike. The city had a strong 2019, and 2020 is on course to be equally successful.
The foundation of Birmingham’s success is its young and growing population – a winning combination for any city. The latest Birmingham Economic Review from the University of Birmingham shows that the city is the youngest in Europe, with those under the age of 25 accounting for nearly 40% of its population.
This remarkable figure can be accounted for by Birmingham’s retention of almost half the graduates from its universities each year, and the fact the city is the most popular destination for young professionals leaving London for superior employment and housing opportunities.
It’s easy to see what attracts these people to Birmingham, and why it will be home to more than 1.2 million people by 2038 according to the City Council. The city is a natural home for businesses big and small which provide high quality, well paid jobs - with more than 1 million sqft of additional office space currently under construction, as recorded by the Deloitte Crane Survey, guaranteeing even more jobs will come to Birmingham in the future.
Alongside that, major infrastructure programmes like the Big City Plan and the HS2 high speed rail network are underway to further cement Birmingham’s status as an internationally connected economic hub.
All of this is a recipe for property prices to continue increasing at a rapid pace. There are simply not enough homes to meet demand, and the aforementioned long-term investments ensure that more people will keep moving to the city. In particular, the luxury residential accommodation perfectly suited to young professionals is in incredibly short supply.
The latest Hometrack UK House Price Index report shows that house prices in Birmingham are growing faster than the national average. What’s more, JLL’s West Midlands Residential Forecast 2019 shows that there is much more to come in the future.
Describing the outlook for Birmingham’s housing market as “extremely positive,” JLL anticipates further house price growth in the city of 16% by 2023. The report goes on to note that, “development activity [in Birmingham] has remained below demand levels for some time, which has created fierce competition for new homes in the city.”
The latest Residential Market Forecast from Savills confirms this, showing that the West Midlands region – of which Birmingham is the heart – will see house prices grow by 18.4% by 2024. The vast majority of this growth will be concentrated on the city and its suburbs, areas that are seeing some of the highest demand in the UK.
This is the perfect time to purchase off-plan property in Birmingham and make the most of the upcoming capital appreciation. For more information, get in touch with the team today.