Birmingham is in the middle of a renaissance – or, as some have dubbed it, a Brummy Bounce.
The city has enjoyed a series of infrastructure refurbishments, most notably of New Street Station, and a report by PwC ranked it the sixth best in Europe for investment – not bad for an area that had borne the brunt of the decline in British manufacturing.
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It’s also starting to look like an extremely attractive place for buy-to-let investors. While capital growth might not be as high as investors have previously banked on in places like London, the rental yields are strong. So what are Birmingham’s buy-to-let hotspots?
Best areas for buy-to-let in Birmingham
This postcode covers an area to the south west of the city centre, and includes the town of Selly Oak. Because the University of Birmingham is really close, this is one of the most popular student areas.
Trains from Selly Oak station reach Birmingham New Street in 10 minutes, and the area is also well-served by local buses. B29 boasts plenty of shops and bars, and there’s an out-of-town shopping centre called Battery Retail Park.
Recent data from TotallyMoney.com shows that the median asking price for properties is relatively high in this area at almost £240,000, but strong rental prices mean that landlords can still enjoy average yields of 7.47 per cent.
The B8 postcode is close to the city centre, and includes Washwood Heath, Saltley, Alum Rock and Ward End. It’s an ethnically diverse area, with a large Asian population. The streets in this postcode are mainly residential, with rows of terraced and semi-detached houses. There are good bus links into the city centre.
Landlords with properties in this part of Birmingham are enjoying rental yields of 7.26 per cent. The median property price is pretty low at under £150,000, but median rental value is almost £900 a month.
The B44 postcode covers Perry Barr, Kingstanding, and Great Barr, and data shows that it’s bringing in rental yields of over five per cent. Perry Barr includes the North Campus of Birmingham City University, so there are big opportunities in student housing.
Lots of Birmingham’s top spots are within easy reach (Villa Park is just down the road), and all of the areas covered by B44 are well served with supermarkets – and, enticingly, there’s also a fair amount of green space.
Property prices are also attractive. A three bed semi-detached house in Great Barr will set you back around £150,000, while, if you’re lucky, you might be able to snap up a one bed flat for less than £100,000.
What should you look for in a Birmingham buy-to-let investment?
As we’ve seen, Birmingham is attractive not necessarily for capital growth, but instead for rental yields. It’s attracting a lot of inward investment, and there’s talk of several large banks moving there. If you want to make the most of the opportunity, consider the following things:
- Transport links
- Proximity to universities, schools, and work hubs
- Regeneration projects
- Local amenities
Are you thinking about investing in buy-to-let in Birmingham? Tell us in the comments.