Famous for being the second most populous city in the UK and for its commitment to leading architectural design, such as the iconic Bull Ring commercial centre, Birmingham is now making headlines for a new reason, having recently been identified as one of the highest yielding Buy-to-Let (BTL) destinations in the UK.
BTL is increasingly being regarded as one of the most dynamic and profitable UK investment markets. The private rented sector has been growing steadily over the past decade, but has accelerated significantly within the last 12 months as the UK's housing market has picked up, with the latest Sequence index showing a 15% year on year increase in new tenancies across the UK.
That being said, home ownership is falling, dropping from 71% of households in 2003 to just 65% currently, according to the latest English Housing Survey from the Department of Communities and Local Government.
As befits its status as England's second city, Birmingham has some big plans in place. The 20 year Big City Plan is set to create a host of new business facilities, transportation links and public spaces in Birmingham during the plan's life, adding 50,000 jobs and contributing £2.1 billion to the economy every year.
The planned High Speed Two (HS2) rail link, which aims to cut journey times between Birmingham and London, is scheduled to begin construction in 2017 and will further enhance Birmingham's reputation as a leading commercial and business-oriented city.
Ray Withers, CEO of leading property investment firm Property Frontiers, explained how this is creating the perfect Buy-to-Let environment within Birmingham,
He said: "House prices in Birmingham are increasing, but remain consistently below the levels we are seeing in London and the South East. Concurrently, rental yields in Birmingham are higher than one can expect in London. With lower purchase prices and higher yields, it might well be the UK's second city but it's not second choice with smart investors avoiding the capital in favour of buy-to-let property in Birmingham."
The news is indeed well timed as Property Frontiers has just released an exciting new off-market opportunity in Birmingham to landlords and investors. The prime city centre residential development will consist of studio, 1 and 2 bedroom luxury apartments with up to 9% yields and guaranteed rental options also available.
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