Birmingham, England’s ‘second city’, is an unassuming part of the UK despite its vital place in the days of early industry. The West Midlands are often overlooked for their investment potential, with northern hubs winning out even over London for attracting investment. But Birmingham is a sleeper city, with low property value costs that could be set to go stratospheric.
The Status Quo
The housing market in Birmingham at present is somewhat promising for buyers, in spite of the previous three years of volatile house price movement. According to ONS statistics, the average house price in the West Midlands (as of January 2023) is £256,694 – around £50,000 less than the average house price across the whole of England.
Birmingham, being the major urban centre for the West Midlands, can be expected to lie at the upper bounds of the property value spectrum. However, prices remain below the UK average house price, and the area remains highly competitive on account of its relatively low cost of living. Northern urban centres like Leeds and Manchester led the charge for affordability, but investment and gentrification have made Manchester a less affordable city – and Leeds is soon to follow suit.
The Next Five Years
With Birmingham still an extremely strong candidate city for building a life, maintaining its early industrial ‘second city’ status in spite of Manchester’s rapid growth, it is understandable that investors might want to make themselves known in the property market. It is also understandable, though, that the next five years might hold surprises for the national and regional property market.
While the narrow avoidance of a national recession – and the continuing cost-of-living crisis – leave little hope for a stable year of growth, the five-year forecast for Birmingham is a positive one. Some estimates place Birmingham’s property value growth between 2023 and 2027 at a considerable 19.2%.
What Can You Do?
Of course, five years of potential property movement is not quite enough to rely on for the semi-active property investor. Value increases can also be controlled and proactively managed through property development – aka renovation and redecoration.
One useful way to improve property value is to neaten up the outside of the property. Fresh paving that leads to the front door, and well-manicured greenery to welcome guests, can make a property seem infinitely more welcoming alone – to say nothing of the power a fresh house render or lick of paint yields. Addressing the exterior of the property improves both kerb appeal and first impressions, quickening the rate of offers and pushing up the value of first offers.
As for the interior of the property, a fresh lick of interior paint can also go a long way – particularly if the paints chosen are neutral colours that allow visitors to envisage their own unique style. If there is a larger sum of investment money in the pot, an extension is an extremely effective way to increase property value immediately.
