Birmingham has joined Manchester and Liverpool as one of the top Northern property investment hotspots, according to fresh research from IP Global.
The property investment company conducted a Global Real Estate Outlook study, revealing London to be at the top of the list, followed by Manchester, Birmingham and Liverpool.
Known as the UK’s ‘second city’, investors pursue Birmingham for its affordability and future returns potential. New investors looking to get into the UK property markets would favour the city as prices are still below their 2008 peak.
Rental yields in Birmingham have grown to 4.25% in the city centre over the past year – an increase of 24% – ensuring good returns for buy-to-let property investors. House prices year-on-year for 2015 to 2016 have also grown 5.2%, with capital gains growth estimated to be 17% from 2015 to 2019.
Despite London’s continued number one ranking as the top property investment choice, investors are freely expanding their property portfolios in regional cities.
With significant investment plans underway, including the 20-year Big City Plan which aims to increase the city core’s size by 25% and improve transport connectivity, effectively providing 5,000 new homes and 50,000 new jobs, Birmingham has plenty of potential. For first-time investors looking to explore Birmingham’s property market, there is promising success in the near future and beyond.
The city is also, home to five universities and over 750,000 students, many of whom plan to stay in the city post-graduation. The influx of young professionals rooted in the city has led to demand exceeding supply.
Hamish Pound, investment manager, IP Global, said that Birmingham joining Manchester and Liverpool completes the ‘Northern Powerhouse trio’ and will be welcome news to those looking to diversify their existing portfolios.
He added: “With its proximity to London, as well as other key regional hubs, Birmingham is ideally placed to assume the position as a leading destination for both domestic and overseas investors.”
The Global Real Estate Outlook from IP Global can be viewed here.