If you are searching for houses for sale in Birmingham, it is helpful to understand a little bit about the market – it also helps when it comes to planning and knowing what to expect when it comes to prices. As you are aware, this has been a turbulent few years with the pandemic, rising inflation and interest rates and a red hot housing market that featured record prices.
What can we expect in Birmingham going forward?
Birmingham Housing Market
As you look for houses for sale in Birmingham… you are far from alone. There has been a marked increase in demand. Additionally, wide scale and far-reaching projects, such as HS2 (high speed rail network connecting Birmingham to London and the rest of the network), West Midlands Metro (network covering between Birmingham and Wolverhampton) and Our Future City Plan (document outlining plans to enhance life in this bustling city) are conspiring to further boost demand for homes.
Currently, the average price for a home in Birmingham is £245,284, which shows a 36.7% increase from 2016. Quite a jump! And that upward movement isn’t expected to slow anytime soon. In fact, experts forecast growth of 24% by 2025. At that rate, Birmingham will need 4000 new homes a year over the next ten years to accommodate demand.
At the same time, the UK’s ‘second capital city’ is more affordable when compared to the capital city. In London, the income to house price ratio is 12.52; in Birmingham , it is 6.37 – which is well below London levels and a bit below the UK average of 7.84. (Generally, it is considered affordable to get a mortgage equivalent to 2 to 2.5 times your gross income.
Why Invest in Birmingham?
Houses for sale in Birmingham are a hot commodity, but there are several reasons why investing in this city is a smart move for your current and future goals. These include:
HS2: As mentioned, this is a transportation network that will connect Birmingham with London, Manchester, Leeds and other destinations quickly and efficiently. A trip to London, for example, can be done in 45 minutes. HS2 will also be one of the most environmentally-responsible rail networks in the world.
West Midlands Metro: Another boon for public transport, this metrol will connect suburban areas with the city centre, including links to HS2 and Birmingham International Airport.
Birmingham International Airport: Just 20 minutes from the city centre, this airport connects passengers with over 150 destinations across the world.
Motorways: It is easy to access nearby cities directly via Birmingham’s motorways. Travel and commutes are easier than in many other areas.
Dynamic Population: Birmingham is the third largest student city in the UK, and the overall population is quite young as well. Sixty percent are 35 or under, and 40% are under 25.
Services: Birmingham has strong financial services, healthcare, jewellery (40% of the UK’s jewellery is made here!), education and other industries. This creates extensive job and business opportunities, as well as facilitating easier access to key services.
The Commonwealth Games: The city played host to the 22nd Commonwealth Games in 2022. Studies indicate that it could boost the housing market by 15%. The UK hosted the games four times since 1970, and each time, the host city saw property values increase by an average of 14.9%. Edinburgh (two time host), Manchester and Glasgow all saw growth following the Games.
James Forrester, managing director for Barrows and Forrester says, ‘Birmingham has already enjoyed an extensive and ongoing period of regeneration and future plans to continue this regeneration will further cement us as the UK’s second city.
“The choice to host the Commonwealth Games in Birmingham is a testament to how far we’ve come in this respect and this privilege will not only help to put the city further on the map, it will bring a huge boost to the local economy and will entice more businesses, and people, into calling the city home in the process.’
Finding Houses for Sale in Birmingham
If now is the time to buy and Birmingham is your target, look at reputable online sites like Rightmove, OntheMarket and Zoopla. It is also helpful to work with an experienced estate agent so you can find the right property for your needs, goals and budget.