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Birmingham Investment Guide

Birmingham Guide Cover

WELCOME TO BIRMINGHAM

THE UK’S ENGINE

Birmingham is the UK’s second city and it has developed into a significant property investment market over the last decade. As the city transforms itself from a industrial giant into a modern 21st century business destination, this is the ideal time to buy property in Birmingham and make the most of a booming city.

Home to world-class businesses, high-tech research and development facilities, renowned universities and one of the youngest populations in Europe, this is a vibrant, business-friendly region that is thriving. Birmingham’s position at the centre of the country and its large talent pool of highly-trained workers makes is especially attractive to businesses. Productivity and wage levels are high and growing faster than the rest of the UK as a consequence, allowing Birmingham to provide the type of life and work offering that draws people to the city.

Birmingham will further benefit from a series of once-in-a-generation events and investments which are taking place over the course of this decade and give the city a global spotlight. Economic growth is already following and will continue to do so. This is a city with a bright future and demand for property is going through the roof alongside it – this is the ideal time to buy property in Birmingham and secure reliable, long-term returns.

aerial view of birmingham's modern developments at night

Economy and Investments

ECONOMIC OVERVIEW

Birmingham is a true economic powerhouse, both as a city and as the heart of the West Midlands region. More and more investment is being poured into the city each year, providing Birmingham with a bright future.

Once known as the ‘workshop of the world’, Birmingham retains its status as a home to entrepreneurs and small start ups while also proving to be attractive to big business – with recent years seeing PwC, Deutsche Bank and KPMG among others open major headquarters in the city. The West Midlands is the growth capital of the UK, and Birmingham is the engine that drives it forward.

SECTOR HIGHLIGHTS

5G

Birmingham is home to the UK’s first multi-city 5G test bed. The multi-million-pound trial will pave the way for the future rollout of 5G across the UK following its successful implementation in Birmingham. Being the first city to have a 5G network gives Birmingham a competitive advantage in the modern world of communications and technology, and is a huge boost for businesses in the city.

Birmingham has the highest rate of start-ups of any UK city, and these innovative new businesses have a unique opportunity to capitalise on this pioneering communications project by utilising this network that is faster, more powerful and more responsive than ever before.

The West Midlands is now the UK’s best-placed region to support high-tech start-ups on their journey to becoming large international corporations – exactly the sort of businesses that provide high quality employment opportunities and draw people to the city.

FinTech

The Birmingham technology economy is particularly concentrated in the area of FinTech, with a growing ecosystem of FinTech companies which have developed into one of the UK’s largest cluster outside of London. This includes both large, established firms and burgeoning start-ups which are driving disruptive change in the sector.

The West Midlands Combined Authority cites the region’s exceptional talent pool as a major reason why Birmingham is so impressive in this sector, with many international investors having been impressed with the city’s combination of tech specialists and an entrepreneurial spirit being the key to its attractiveness.

Indeed, Birmingham has ranked as the UK’s most entrepreneurial region for five consecutive years, with 18,590 start-ups formed in the latest year we have figures for, and growth in start-ups double the national average. Companies at the forefront of FinTech – such as Pervacio, Vermeg and Parent Pay – see Birmingham as a natural home, and they are bringing major economic benefits to the city in return.

MAJOR INVESTMENTS INTO BIRMINGHAM

Birmingham is in the midst of a series of huge investments which are changing the face of the city and inspiring major economic and population growth. This is a city that thinks big and for the long-term – the perfect environment for property investors to consider. The following are just some of the major investments ongoing in Birmingham:

Big City Plan

The Big City Plan is a 20-year masterplan that is the centrepiece of Birmingham’s transformation into a modern, world-class city. This major strategic development covers every part of the built environment and is an outstanding example of the large-scale planning that Birmingham is so good at.

It is expected to create 50,000 jobs, include 1.5m sqm of commercial space, add £2.1bn to the city economy each year, build 65,000 sqm of new public realm, provide 28km of new walking and cycling routes, and preserve key aspects of the city’s history. The Big City Plan is the perfect example of what makes Birmingham so attractive – economic gains and lifestyle improvements are built side by side.

Paradise Birmingham

Described as Birmingham’s most important development in a generation, Paradise is a mixed-use neighbourhood where commerce and culture meet to create something unique. This £700m city centre development will bring 1.74m sqft of office space and 120,000 sqft of retail and leisure space into Birmingham, including three brand new public squares.

This will be a world-class urban village which will bring a vibrant new life into Birmingham and reaffirm the city’s intention to keep reinventing itself and growing.

Birmingham Smithfield Masterplan

As one of the largest and most attractive city centre development sites in the country, the £1.9bn Birmingham Smithfield will be a key part of the city’s evolving story by capitalising on the city’s rich history while delivering something thoroughly modern – new retail markets, exciting family leisure opportunities, cultural buildings, public squares and transport facilities.

Made up of 300,000 sqm of new floorspace with an investment value of over £500m, Smithfield will be a new legacy for the city which also fits at the forefront of the World Business Council for Sustainable Development’s (WBCSD) Zero Emissions Cities programme.

Commonwealth Games

The Commonwealth Games 2022 will be held in Birmingham and will deliver a whole range of benefits to the city, from a carbon neutral plan to a fully integrated business and tourism strategy.

It has been estimated that Birmingham will receive an immediate £500m uplift, as well as future growth of £1.2bn directly from the influence of the Commonwealth Games. That is not to mention the addition of thousands of new jobs and hundreds of millions of pounds being spent on the regeneration of the Perry Bar area.

street in birmingham

Population Growth

Alongside its economic growth, Birmingham has a population of approximately 1.149m people that is growing rapidly. The latest published figures from the Birmingham Demographic brief show that the city’s population is scheduled to reach more than 1.2m by 2038 – representing growth of 7.8%.

The job opportunities and lifestyle on offer make Birmingham the number one destination in the UK for people who leave London according to Visit Birmingham. Thousands arrive every year to make the West Midlands city their new home. Furthermore, research from JLL shows that almost a third of the city’s population is aged 15-34. This is an extremely young population which gives the city a real energy and puts major stress on the housing stock.

Birmingham’s growth long ago overtook its capacity to build new homes. Whereas a study from JLL shows that at least 4,000 new homes are needed each year, the reality is that levels of delivery lag far behind, with only 900 homes delivered each year on average in the city. This means that the most desirable homes are more in demand than ever, and Birmingham’s growing population will continue to push both house prices and rents higher in the years to come.

Connectivity

Birmingham is located in the centre of the UK, with 90% of the population within a four-hour drive of the city. The city itself is home to a rail, tram and bus network that makes travel cheap and easy for businesses and residents.

Likewise, Birmingham is connected efficiently to the rest of the world via Birmingham Airport, the fastest-growing airport in the UK, and the upcoming HS2 rail line will only improve the situation further. HS2 is Europe’s largest engineering project and will cut journey times to London and Manchester in half from each of Birmingham’s two stations.

Connected to Everything

TRAM AND BUS

  • The £1.3bn West Midland Metro expansion will triple the network size by adding 50 additional trams by 2026. It is expected that this will increase passenger numbers 30m a year and improve links to both of Birmingham’s HS2 stations.
  • £100m is being invested into Birmingham’s bus network to deliver one of the finest integrated systems in Europe. 80% of all journeys in Birmingham area taken by bus, and the city already has the largest bus network in the UK outside of London, with more than 260m journeys taken every year across 300 bus routes.

TRAINS

Birmingham’s main station is New Street, which is by far the busiest station in the city and will remain so until the HS2 works are completed at Curzon Street. It recently underwent a successful £750m redevelopment which improved the station and added Grand Central, a 450,000 sqft shopping centre which attracts 50m visitors a year. It cannot be overstated how important New Street is to Birmingham and the UK as a whole.

Mark Carne, Chief Executive of Network Rail, said: “Birmingham New Street sits right at the heart of our rail network and the transformation which has taken place here is nothing short of stunning. The station is now bigger, brighter and better able to meet the needs of the growing number of people who use it each day.”

HS2

The HS2 high speed rail line is under construction and will cut journey times to London and Manchester in half when it arrives in Birmingham.

  • HS2 will provide £4bn of extra economic activity to Birmingham each year (Birmingham City Council)
  • It is estimated that HS2 will provide 50,000 jobs to Birmingham (Birmingham City Council)
  • London journey time: 45 mins
  • Manchester journey time: 40 mins

The new rail line is the most significant infrastructure development the UK has seen in decades and will boost Birmingham’s appeal to business even more so thanks to tighter links with the capital and other regional centres like Manchester.

The West Midlands Combined Authority’s HS2 Growth Strategy contains £1.2bn of transport improvements be delivered by 2028, that will improve the wider transport network, expand the economic area and increase productivity.

BIRMINGHAM AIRPORT

The past decade has seen more than £300m invested into Birmingham Airport, including a runway extension which enables more long-haul flights and opens up destinations across South America, the Far East, Africa and more. A further £500m is being invested over the next 14 years on more improvements.

It is the third-largest Airport in the UK outside London, and by 2033 it is estimated that annual passenger numbers will have increased 40% to a total of 18 million. This is excellent news for the region’s businesses who will have access to a global customer base, and makes the city an even more enticing proposition for workers who will be able to access the world and improved job opportunities.

Education

Birmingham has a well-earned reputation for the quality of its education which has made a creative, innovative population. Today, the nine universities within reach of Birmingham city centre continue that legacy and put Birmingham at the cutting edge of progress.

A high proportion of graduates recognise this strength and stay in the region to work, start businesses and live their lives. This diversity of population provides major economic boosts to Birmingham and ensures that its education sector is a huge asset with a global reach – exactly what any booming city needs to keep growing.

Additionally, Birmingham is the recipient of skills deals backed by the UK Government which are worth millions of pounds and are training the next generation of workers who will build the city’s future. This level of skill is a major draw to businesses, and contributes to making Birmingham the most popular destination in the UK for people leaving London. This increases demand on the available housing stock and contributes to strong house price and rental growth estimations over the coming years – making Birmingham the perfect place for property investors who can see the potential.

THE UNIVERSITY OF BIRMINGHAM

The University of Birmingham is one of the UK’s top institutions and regularly scores highly in national rankings. Most recently, it was named the 19th best university in the UK by the Complete University Guide league table for 2022, with 18 of its departments ranked in the top 10 for their areas of study.

The University has a proud tradition in the STEM (Science, Technology, Engineering and Mathematics) subjects and other advanced technologies, with its most recent notable contributions including work towards the discovery of both the Higgs Boson and Gravitational Wave theory. Every year the University contributes billions to the local economy and it has been estimated that one-in-50 people in the city are employed due to its work.

  • 10 Nobel Prize winners
  • £3.5bn annual economic impact on the city
  • 15,545 jobs supported in the region by the University

BIRMINGHAM CITY UNIVERSITY

Birmingham City University is rapidly becoming the leading university in the Midlands when it comes to working with local businesses and accelerating the local economy. Almost 27,000 students study here and a large proportion of them are retained for the benefit of Birmingham.

The economic impact of Birmingham City university on the city itself and the wider region is substantial. The institution contributes £270m to the regional economy every year and support thousands of jobs in the area. They have invested £340m into buildings and infrastructure, including a major expansion of our city centre campus at Eastside, providing students with an enviable range of facilities.

  • 26,900 students
  • Students from 100 countries around the world
  • £270m contribution to the local economy

ASTON UNIVERSITY

Aston University is located just outside the city centre and was the UK’s first College of Advanced Technology, a legacy which lives on today through its work.

Having been shortlisted for University of the Year in the Times Higher Education Awards 2021, this university is a major draw for students and has a significant impact on Birmingham and the wider region.

Aston University’s 11,000 students know that they are in the right place to achieve their business goals following graduation thanks to the institution being named the Winner of Outstanding Entrepreneurial University by the Times. The focus on biosciences and engineering guarantees that its graduates are in high demand.

  • 11,000 students, including 2,000 postgraduates
  • Ranked in the top 10 UK universities for producing millionaires
  • Has partnerships with 140 universities around the world

Why Invest in Birmingham?

Birmingham is the UK’s second city and it has developed into a significant property investment market over the last decade. As the city transforms itself from an industrial giant into a modern 21st century business destination, this is the ideal time to buy property in Birmingham and make the most of this potential.

A significant undersupply of high quality homes in the city centre is driving a huge demand which is likely to push house prices and rents up significantly over the coming decades. Estimates from JLL show that at least 4,000 homes are needed in Birmingham each year, but only 900 a year are delivered. As more jobs are created, and major regeneration works continue to open up the city even further, demand will only continue to grow in Birmingham.

The HS2 high speed rail line will make Birmingham even more attractive in the future, and it will push house prices higher as jobs are created, more businesses move to the area and people follow. This gives investors an opportunity to get ahead of the game and capitalise on the returns that Birmingham has to offer. Strong house price and rental growth is anticipated, and the entry prices are low enough to make Birmingham property accessible to all investors.

Why Invest with Opulent?

At Opulent, we manage your property investments and portfolios as if they were our own. This dedication and attention to detail guarantee a personal service with tailored investment advice built to your exacting requirements.

Our team of experienced property investment advisors work tirelessly to identify and present the very best investment opportunities to maximise the return on your investment. Whether it be identifying new property and off-plan developments for future resale or attractive rental properties with regular returns, we have complete confidence and proven expertise in delivering exceptional returns.

A Superior Investment Proposition

There is no shortage of investment advisors in the UK but, sadly, not every one of these will place your needs above their own desire to turn a profit. This is the precise reason that we set up our business in 2014.

It is witnessing poorly researched property investments lacking a strategic framework and companies willing to recommend developers without thorough due diligence checks, that led us to the comprehensive property investment service we are so proud of today. We call it ‘the Opulent Way’.

Adding Value, Creating Wealth

The ‘Opulent Way’ means adding tangible value based on a number of critical variables. It includes a research process second to none that allows us to make informed recommendations rooted in facts and figures and presented in a no-nonsense, easy-to-understand format.

It involves working with hand-selected, reputable developers with unblemished track records right from the very start. This ensures that property investment plans can be shaped to your needs and delivered with a confidence that we are prepared to stake our brand on.

Our primary goal is to create wealth and long-term financial security for you, and we are proud to do so transparently and ethically.

Total Management

We set out to create turnkey opportunities that are fully managed and require minimal input. There’s no corner-cutting, but by acting decisively we can circumvent the most challenging part of the property investment process for you.

An aftersales team will guide you through your property investment purchases, absorbing most of the administrative burden. Forget time-consuming legal paperwork or preparing your property for rental. We’ll take care of it while you sit back and contemplate your next investment.

Available Investment Opportunities

TIMBER YARD

Timber Yard is an exquisite new-build development in Birmingham, built by Galliard Homes, one of the UK’s premier developers. The developments comprises 379 apartments which are a mix of studios, 1-, 2- and 3-bedroom units. Properties of all types are available in the first release of apartments, and are arranged around attractive landscaped courtyard gardens.

This development’s theme is very much providing an exclusive lifestyle, with excellent on-site amenities, including a gym, club lounge, and cinema screening room, as well as a stunning double-height entrance lobby.

The luxury apartments are spread over 12 floors and offer outstanding views over Birmingham city centre. All apartments will be built to an exceptional standard and specification in keeping with the high-quality values and ethics set by this most exacting of construction companies.

The location of this project could not be better, just a 10-minute walk from Birmingham New Street and Moor Street stations – as well as being only 15 minutes from the upcoming HS2 station at Curzon Street. Furthermore, it is adjacent to Birmingham’s Chinese Quarter and a mere 10-minute walk to to the heart of the city centre.

Key Property Information

  • Price: From £233,400
  • Developer: Galliard Homes
  • Management Company: TBC
  • Service Charge: £2.35 p/sqft
  • Payment Plan: 15% on exchange, 85% on completion
  • Projected Yield: 5%
  • Parking: Available on units over £325,000 for an additional £15,000
  • Management Fee: TBC
  • Ground Rent: £200-£300
  • Completion Date: Q3/Q4 2021
  • Deposit Interest: N/A
  • Tenure: 209 years leasehold

THE COPPERWORKS

A modern, contemporary development of 71 high specification apartments in Birmingham’s Jewellery Quarter, one of the country’s most exciting districts and the most desirable residential area in the city.

Most major city centre landmarks, business zones, attractions and transport links can be reached within a 10- or 20-minute walk of The Copperworks. This includes New Street Station, Brindleyplace, Colmore Row, The Mailbox, O2 academy, International Convention Centre, St Paul’s Square, Chinatown and University College Birmingham.

The Copperworks occupies a prominent location in the South West of the city’s Jewellery Quarter, a new and thriving residential neighbourhood for Birmingham, only a few minutes’ walk from the city centre. Built within the strict conservational guidelines designed to preserve the heritage of the Jewellery Quarter, the development cleverly fuses its industrial heritage with a modern aesthetic to offer an array of homes full of character and charm.

The Copperworks comprises a range of apartments, duplexes and townhouses. Some are new-build, while others form part of the restoration of the centrepiece, the Grade II listed former brass works which dates back to 1854. Traversing Sloane Street and Camden Street, and only half a mile from the Jewellery Quarter Metro, The Copperworks is a major new address and an exciting opportunity to be a part of this area’s residential renaissance.

Key Property Information

  • Price: From £185,000
  • Developer: Kings Crescent Homes
  • Management Company: Opulent
  • Service Charge: £2 p/sqft
  • Payment Plan: 15% on exchange, balance on completion
  • Projected Yield: 5.4%+
  • Management Fee: 8% + VAT
  • Ground Rent: 0.1% of property value
  • Completion Date: Q2 2022
  • Deposit Interest: N/A
  • Tenure: 999 years leasehold

Start Your Investment Journey Today

Property investment is an astute choice for many and includes retirement fund planning, nest eggs to finance university education and experienced property investors seeking portfolio contraction or expansion. Get in touch today to find out more about our latest investment opportunities in Manchester.

Click here to download our Birmingham Investment Guide in PDF format.

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