How Buy-To-Let Property Investment is Changing in Birmingham
GetGround’s property consultant, Steven Oladipo, shares insights from his recent trip to Birmingham with the team: Eamon Carpenter, Scott Dixon, and Sophie Wilson.
I recently had the opportunity to visit Birmingham with the team here at GetGround to explore the changing landscape of buy-to-let property investment. During my trip, I had the pleasure of visiting four different sites, a mix of completed and off-plan developments: Grand Central in City Centre, Swan Court, Swan View and City Greens in Sheldon - and finally, Fountain Lofts and Sapphire Court in Digbeth. I witnessed firsthand the exciting transformations taking place across the city.
One of the most remarkable aspects of Birmingham's property market is the impact of the Birmingham Big City Plan. This long-term regeneration initiative has sparked significant development and revitalisation efforts, particularly in areas like Digbeth. The Smithfield regeneration site, part of this overarching plan, promises to be a game-changer for property investors.
During my visit to Digbeth, touted as the 'Shoreditch of the Midlands', I saw the beginnings of a thriving community emerging from the regeneration efforts. The mix of trendy bars, independent shops, and cultural attractions showcased the city's vibrant atmosphere. It's no wonder that people are increasingly drawn to Birmingham, not only for its economic growth but also for its lifestyle appeal. The Smithfield site, a historic area spanning 14 hectares, is at the forefront of this development. This ambitious project aims to create a vibrant mixed-use space, comprising residential, commercial, and leisure facilities. The ￡1.9 billion regeneration plans include thousands of new homes, retail spaces, offices, green spaces, and cultural venues. the Smithfield regeneration site is strategically positioned, acting as a connector between the city centre and Digbeth, an emerging creative district. This prime location, combined with the upcoming infrastructure improvements, will undoubtedly attract more people to the area, driving up rental and purchase demand.
Two of the sites we visited were located in Sheldon, an area known for its proximity to the NEC centre and Birmingham International Airport. This strategic location offers excellent domestic and nationwide connectivity, making it an attractive destination for business travelers and tourists alike. The presence of these key transportation hubs means that demand for serviced accommodation in the area is expected to rise. Investors who focus on providing short-term rentals or serviced apartments could tap into this growing demand and potentially achieve higher rental yields.
Additionally, while exploring the city centre, I couldn't help but notice the presence of globally renowned companies like Goldman Sachs and Deloitte. This is a testament to the wide city attractiveness and the growing trend of industry leaders moving their headquarters to Birmingham. The arrival of such prestigious companies not only enhances the city's reputation but also contributes to the creation of job opportunities and economic growth. As a result, this influx of professionals and the increase in high-paying jobs can lead to higher demand for property in the city centre. This trend can potentially boost property prices and create lucrative investment opportunities for buy-to-let investors. Outside of the site visits what struck me the most were the two major infrastructure projects that are set to make a significant impact on property prices in the city: the tram extension and the arrival of HS2.
The tram extension throughout Birmingham is a game-changer for the city's connectivity. With plans to expand the current network, the tram will provide convenient and efficient transport links to various neighborhoods, including key areas for buy-to-let investment such as Digbeth and the city centre. This improved accessibility is expected to drive up property prices in these areas as they become even more desirable for professionals, students, and families alike. Additionally, the tram extension will contribute to reducing traffic congestion and promoting a greener and more sustainable mode of transportation, further enhancing the city's appeal.
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Speaking of enhanced connectivity, the arrival of HS2 in Birmingham is an exciting prospect that is generating a lot of buzz in the property market. HS2, the high-speed rail network, will connect Birmingham with London and other major UK cities, significantly reducing travel times. This improved accessibility will open up Birmingham to a larger pool of potential residents and investors, boosting the demand for buy-to-let properties. As a result, property prices are expected to experience steady growth, especially in areas close to HS2 stations.
However, it's important to note that buy-to-let property investment is not just about location and infrastructure. Birmingham also offers a diverse economy, with a thriving business sector, renowned universities, and a vibrant cultural scene. These factors contribute to a strong rental market, providing investors with a steady stream of potential tenants and ensuring the sustainability of buy-to-let investments.
From our trip, I can summarise three key learnings that should encourage any investor considering Birmingham:
In conclusion, Birmingham is undergoing exciting changes that are reshaping the landscape of buy-to-let property investment. The city's regeneration efforts, such as the Birmingham Big City Plan and the Smithfield redevelopment in Digbeth, coupled with its appealing lifestyle and continuous development of new builds along with the tram extension project and the impending arrival of HS2 are set to significantly boost property prices in key areas of the city. By capitalising on these developments, investors can tap into the growing demand for high-quality rental properties and enjoy attractive returns. It's clear that Birmingham's property market is evolving, and astute investors are poised to reap the benefits of this transformation.
If you are interested by the opportunity to invest in Birmingham, set up a call with me or any one of the team. You can also leave a comment below and we will get in touch.