Birmingham housing market snapshot
- 40% of its population aged under 25
- Most popular destination for young professionals leaving London
- Population of 1.2 million by 2038
- HS2 rail infrastructure incoming
- Birmingham house prices predicted to grow by 16% by 2023
The foundation of Birmingham’s success is its young and growing population – a winning combination for any city. The latest Birmingham Economic Review from the University of Birmingham shows that the city is the youngest in Europe, with those under the age of 25 accounting for nearly 40% of its population.
This remarkable figure can be accounted for by Birmingham’s retention of almost half the graduates from its universities each year, and the fact the city is the most popular destination for young professionals leaving London for superior employment and housing opportunities.
It’s easy to see what attracts these people to Birmingham, and why it will be home to more than 1.2 million people by 2038 according to the City Council. The city is a natural home for businesses, big and small, which provide high quality, well paid jobs - with more than 1 million sqft of additional office space currently under construction, as recorded by the Deloitte Crane Survey, guaranteeing even more jobs will come to Birmingham in the future.
Alongside that, major infrastructure programmes like the Big City Plan and the HS2 high speed rail network are underway to further cement Birmingham’s status as an internationally connected economic hub.
All of this is a recipe for property prices to continue increasing at a rapid pace. There are simply not enough homes to meet demand, and the aforementioned long-term investments ensure that more people will keep moving to the city. In particular, the luxury residential accommodation perfectly suited to young professionals is in incredibly short supply both in the suburbs and in the city centre.
The latest Hometrack UK House Price Index report shows that house prices in Birmingham are growing faster than the national average. What’s more, JLL’s West Midlands Residential Forecast 2019 describes the outlook for Birmingham’s housing market as “extremely positive,” JLL anticipates further house price growth in the city of 16% by 2023*. The report goes on to note that, “development activity [in Birmingham] has remained below demand levels for some time, which has created fierce competition for new homes in the city.”
The latest Residential Market Forecast from Savills confirms this, showing that the West Midlands region – of which Birmingham is the heart – will see house prices grow by 18.4% by 2024*. The vast majority of this growth will be concentrated on the city and its suburbs, areas that are seeing some of the highest demand in the UK.
Given the performance of other investment vehicles, it is clear that property continues to be the safest and the best performing mode of investment at the moment.
*these figures may need to be slightly revised as a consequence of the pandemic.